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Full text of "Department of State bulletin"



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FOURTH HEGULAK SESSION OF THE GENERAL 
ASSEMBLY: SUMMARY OF MAJOR ACTION • By 

Eliaaltflh Ann Brown ••........•., 



For r''m I ■'.-•.' conienis set 



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January 2, 195U 




JAN 13 1950 




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Vol. XXII, No. 548 • Pubucation 3715 
January 2, 1950 



For sale hy the Superintendent of Documents 

U.S. Government Printing Office 

Washington 26, D.C. 

Price: 

52 issues, domestic $G, foreign $8.60 

Single copy, 20 cents 

The printing of this publication has 

been approved by the Director of the 

Bureau of the Budget (February IS, 1649). 

Note: Contents of this publication are not 
copyrighted and items contained herein may 
be reprinted. Citation of the Dki'artment 
OF State Bulletin as the source will be 
appreciated. 



The Department of State BULLETIN, 
a weekly publication compiled and 
edited in the Division of Publications, 
Office of Public Affairs, provides the 
public and interested agencies of 
the Government with information on 
developments in the field of foreign 
relations and on the work of the De- 
partment of State and the Foreign 
Service. The BULLETIN includes 
press releases on foreign policy issued 
by the White House and the Depart- 
ment, and statements and addresses 
made by the President and by the 
Secretary of State and other officers 
of the Department, as well as special 
articles on tmrious phases of inter- 
national affairs and the functions of 
the Department. Information is in- 
cluded concerning treaties and in- 
ternational agreements to which tlie 
United States is or niay become a 
party and treaties of general inter- 
national interest. 

Publications of the Department, as 
well as legislative material in the field 
of international relations, are listed 
currently. 



FOURTH REGULAR SESSION OF THE GENERAL ASSEMBLY 



Summary of Action, 
September 20-December 10, 1949 



hy Elizabeth Ann Brown 



At its first session on September 20, 1949, the 
General Assembly completed its internal organi- 
zation, electing its President, its seven Vice-Presi- 
dents, and, in successive sessions of the six main 
committees, their respective chairmen. These offi- 
cers, who constitute the Assembly's General Com- 
mittee, were Carlos P. Romulo (Philippines) 
President; China, France, United Kingdom, 
U.S.S.R., United States, Pakistan and Brazil, 
Vice-Presidents; L. B. Pearson (Canada), H. 
Santa Cruz (Chile), Carlos Stolk (Venezuela), 
H. Lannung (Denmark), A. Kyrou (Greece), and 
M. Lirhs (Poland). ( hairmeii of Coniniittees 1 
through 6, respectively. 

The general debate began September 21, and by 
the date of its conclusion, September 2G, the As- 
sembly had heard 34 speakers. The Secretary of 
State spoke for the United States on September 
21. During these plenary sessions, the Assembly 
also adopted an agenda of 66 items and added to 
it 2 items proposed after the Assembly convened— 
the Chinese item regarding alleged violations of 
the Sino-Soyiet treaty of 1945 and of the Charter, 
and the Soviet proposal condemning alleged prepa- 
rations for a new war and proposing a Hve-power 
peace pact. An Ad Hoc Political Committee was 
set up to share with the Political and Security 
Committee tlie heavy burden of dealing with all 
the political items on the Assembly's agenda prior 
to adjournment. Xasrollah Entezam (Iran) was 
elected Chairman of the Ad Hoc Political Com- 
mittee. The date for adjournment was set at 
November 30 and was subsequently moved forward 
in the light of developments. 

On October 24 the President of the United 
States and other high dignitaries participated in a 
plenary session at the Permanent Headquarters 
on the East River, at which time Trygve Lie, the 
Secretary-General laid and dedicated the corner- 



stone of the Permanent Headquarters. Copies of 
the Charter, the Universal Declaration of Human 
Rights, and the program of the ceremony of dedi- 
cation were placed in the cornerstone. 

On November 21, the Greneral Assembly received 
the Shah of Iran, who made a brief speech implor- 
ing the members of the United Nations to act for 
peace and thus to assure all countries of freedom 
and independence, so that all could contribute to 
world progress. 

The session adjourned on December 10, 1949. 



ELECTIONS OF MEMBERS OF COUNCILS 

India, Ecuador and Yugoslavia were elected to 
the Security Council to succeed Canada, Argen- 
tina, and the Ukrainian S.S.R., Yugoslavia re- 
ceiving the necessary two-thirds majority on the 
second ballot. Mexico, Iran, the United States, 
Pakistan, Canada and Czechoslovakia were chosen 
to replace Venezuela, Lebanon, the United States, 
Turkey, New Zealand, and the Byelorussian 
S.S.R. on the Economic and Social Council. The 
Dominican Republic was elected to fill the unex- 
pired 1-year term created by the resignation of 
Costa Rica from the Trusteeship Council. Argen- 
tina and Iraq were elected to the regular 3-year 
terms on this Council, the former replacing 
Mexico, while the latter was reelected. These 
elections were held on October 20. 



REPORTS OF THE FIRST COMMITTEE 
(POLITICAL AND SECURITY) 

Greece 

The General Assembly, on November 18, 1949, 
by a vote of 50 to 6, with 2 abstentions, adopted 



ianuary 2, J 950 



a resolution submitted by the delegations of 
Australia, China, the United Kingdom, and the 
United States which provides for the continua- 
tion of the Special Committee on the Balkan situ- 
ation, with the same terms of reference ; calls upon 
Albania, Bulgaria, and the other states concerned, 
to cease any assistance or support to the guerrillas 
in fighting against Greece; recommends to all 
members of the United Nations and all other 
states to refrain from direct or indirect provision 
of arms or other materials of war to Albania and 
Bulgaria until their unlawful assistance to the 
guerrillas has ceased; calls upon Albania, Bul- 
garia, and Yugoslavia to cooperate with Greece 
and with the Special Committee with respect to 
the settlement of their differences by peaceful 
means; calls upon the states harboring Greek 
nationals as a result of Greek guerrillas' operations 
against Greece to facilitate the peaceful repatria- 
tion to Greece of all such individuals who desire 
to return and live in accordance with the law of 
the land; authorizes the Secretary-General to 
arrange through the Special Committee or other 
appropriate United Nations or international body, 
the extension of assistance to governments in 
making the arrangements for repatriation or re- 
settlement of Greek guerrillas and other Greek 
nationals involved in the guerrilla warfare and in- 
structs the Special Committee to continue to be 
available to assist the four governments concerned 
in the implementation of the Assembly's resolu- 
tions, and, in its discretion, to appoint and utilize 
the services and good offices of one or more per- 
sons, whether or not members of the Special 
Committee. 

A second resolution, which was adopted unani- 
mously, refers to the problem of the repatriation 
of Greek children; urges all members of the 
United Nations and other states harboring these 
children to make necessary arrangements in con- 
sultation and cooperation with the international 
Red Cross organizations for the early return to 
their homes of the children ; and invites the inter- 
national Red Cross organizations to report to the 
Secretary-General on the progress made in imple- 
mentation of this resolution. 

Substantive discussion on the Greek question in 
the First Committee was delayed for some time in 
order to permit a Conciliation Committee, ap- 
pointed on the proposal of Australia and consist- 
ing of the President of the Assembly, the Secre- 
tary-General, and the Chairman and Vice-Chair- 
man of the First Committee, to attempt to find 
some basis for settlement of the principal inter- 
national issues between Greece on the one hand, 
and Albania, Bulgaria, and Yugoslavia on the 
other. These efforts failed, the immediate unre- 
solved point being the insistence of Albania upon 
the recognition of the Greek- Albanian frontier as 
definitive. 

At the time the Greek case first came before the 
plenary, there were two resolutions submitted by 



the U.S.S.R. and the United Kingdom, respec- 
tively, having to do with the problem of execu- 
tions in Greece. The Soviet resolution would 
have liad the Assembly request the Greek Goveni- 
ment to suspend the cari-ying out of death sen- 
tences in regard to certain mentioned individuals, 
while under the British resolution, the Assembly 
would have decided it was "not competent" to 
adopt the Soviet resolution. This situation was 
ultimately resolved by the General Assembly on 
December 5, 1949, when, following the withdrawal 
of the British and Soviet resolutions, an Ecua- 
doran resolution was adopted without objection, re- 
questing the President of the Assembly to ascer- 
tain the views of the Government of Greece con- 
cerning the suspension of sentences passed by 
military courts for jjolitical reasons. A somewhat 
similar proposal had been adopted by the First 
Committee when the Greek item was under con- 
sideration there. On December 10, the President 
of the Assembly informed the members that he had 
been advised by the Greek representatives that no 
death sentences had been carried out in Greece 
since the recent clemency legislation was enacted. 

Disposition of the Former Italian Colonies 

The General Assembly, in a section-by-section 
vote on the first resolution recommended by the 
Committee which dealt with all three former Ital- 
ian colonies, adopted the resolution as a whole by 
a vote of* 48 to 1, with 9 abstentions. 

Under this resolution, Libya, comprising Cyre- 
naica, Tripolitania, and the Fezzan, is constituted 
an independent, sovereign state, its independence 
to become effective as soon as possible, and not 
later than January 1, 1952. Provision is made 
for preparation of a constitution for Libya by the 
inhabitants, to be assisted by a United Nations 
Commissioner aiapointed by the General Assembly 
and a Council consisting of EgyiM:, France, Italy, 
Pakistan, United Kingdom, United States, and 
one representative of the people of each of the 
three regions of Libya, plus one representative of 
the minorities in Libya. In the interim period 
the Commissioner, assisted by the administering 
powers, is to report regularly to the General Assem- 
bly with respect to the steps taken to implement 
its recommendations. Upon its establishment as 
an independent state, Libya is to be admitted to 
the United Nations in accordance with article 4 of 
the Charter. 

Italian Somaliland is to become an independent, 
sovereign state after 10 years, during which pe- 
riod it shall be placed under the international 
Trusteeship System with Italy as the administer- 
ing aulhorify, aided and advised by an Advisory 
Council composed of representatives of Colombia, 
Egypt, and the Philippines. The Trusteeship 
agreement is to define the terms of reference of the 
Advisory Council. This agreement is to be pre- 
])are(l, not later than tlie fifth regular session 
of the General Assembly. Among other provi- 



Department of State Bulletin 



sions, the agreement is to include an annex contain- 
ing a declaration of constitutional principles guar- 
anteeing the rights of the inhabitants and provid- 
ing for institutions ilcsigiied to insure tlu- inaugu- 
ration, development, and subsequent establishment 
of full self-government. Italy is invited to vmder- 
take provisional administration of the territory 
following action by the Trusteeship Council on the 
trusteeship agreement but before its approval by 
the General Assembly. 

With respect to Eritrea, the Assembly decided 
that a Conunission consisting of representatives 
of Burma, Guatemala, Norway, Pakistan, and the 
Union of South Africa should be established to 
ascertain more fully the wishes and best means 
of promoting the welfare of the inhabitants of 
Eritrea and to report to the next General Assembly 
such proposals as it might deem appropriate for 
the solution of the problem of Eritrea. The Com- 
mission is charged to take into account informa- 
tion from the inhabitants of the territory and from 
governments, including Ethiopia, and the sugges- 
tions made regarding the disposition of Eritrea 
at the fourth regular session of the General As- 
sembly. 

A separate resolution, adopted by a vote of 48 
to 5. with 3 abstentions, provided that, to assist 
the Assembly in making the appointment of the 
United Nations Libyan Commissioner, a Commit- 
tee composed of the President of the General As- 
sembly, two of the Vice-Presidents (Brazil and 
Pakistan), the Chairman of the First Committee 
(L. B. Pearson, Canada) and the Chairman of 
the Ad Hor Political Committee (N. Entezam, 
Iran) shoidd nominate a candidate or failing such 
agreement, three candidates. This Committee re- 
ported to the General Assembly on December 8, 
1949, that it had unanimously agreed on Adrian 
Pelt of the Netherlands, at present Assistant Sec- 
retary-General in charge of Conference and Gen- 
eral Services, as its nominee for the Libyan Com- 
missioner. The recommendation was acted upon 
by the General Assembly December 10, 1949. Pro- 
ceeding by secret ballot, members cast 28 votes for 
Mr. Pelt who was elected as the United Nations 
Commissioner in Libya. 

Another resolution, approved by a vote of 32 
to 13, with 6 abstentions, calls upon the Interim 
Committee of the General Assembly to study the 
procedure to be adopted to delimit the boundaries 
of the former Italian colonies in so far as they 
are not already fixed and report with its conclu- 
sions to the fifth regular session. 

Essentials of Peace 

The major U.S.S.R. propaganda theme at the 
Assembly was centered upon its draft resolution 
entitled "Condemnation of the Preparations for 
a New War and Conclusion of a five-power Pact 
for the Strengthening of Peace." If passed, the 
Soviet resolution would have condemned the al- 



leged preparations for a new war being conducted 
in a number of countries, particidarly the United 
States and the United Kingdom; would have 
stated the view of the Assembly that it regarded 
the use of atomic weapons as contrary to the con- 
science and honor of nations and incompatible 
with membership in the United Nations and that 
it considered inadmissible further delay in the 
adoption by the United Nations of practical meas- 
ures for the unconditional prohibition of atomic 
weapons and the establishment of appropriate 
strict international control ; and would have called 
upon all states to settle their disputes and differ- 
ences by peaceful means and particularly expressed 
the wish that the United States, the United King- 
dom, China, France, and the Union of Soviet So- 
cialist Republics would unite their efforts to this 
end by the conclusion among themselves of a pact 
for the strengthening of peace. This resolution 
was decisively rejected in the First Committee. 
In its place the Committee adopted a United 
States-United Kingdom resolution by the striking 
vote of 53 to 5, with 1 abstention (Yugoslavia). 
Plenary action was taken on December 1, 1949. 
The United States-United Kingdom resolution, as 
the Committee recommendation, was voted upon 
first; after a paragraph-by-paragraph vote, the 
resolution as a whole was adopted by 53 votes to 
5, with 1 abstention.^ 



Promotion of the Stability 

of International Relations in the Far East 

The General Assembly, on December 8, 1949, 
adopted two resolutions covering the item which 
had been submitted for the agenda by China under 
the title: "Threats to the political independence 
and territorial integrity of China and to the i)eace 
of the Far East resulting from Soviet violations 
of the Sino-Soviet Treaty of Friendship and Alli- 
ance of August 14, 1945, and Soviet violations ot 
the Charter of the United Nations." A joint res- 
olution, submitted to the First Committee by Aus- 
tralia, Mexico, Pakistan, the Philippines, and the 
United States, was adopted by a vote of 45 to 5, 
with no abstentions. This resolution calls upon 
all states to respect the political independence of 
China ; to respect the right of the Chinese people 
now, and in the future, to choose freely their 
political institutions and to maintain a govern- 
ment independent of foreign control; to respect 
existing treaties relating to China; and to refrain 
from seeking to acquire spheres of influence, or 
to create foreign controlled regimes within Chi- 
nese territory, or to obtain special rights or 
privileges within that territory. 

The Assembly also adopted a second resolution 
by a vote of 32 to 5, with 17 abstentions, referring 
the Chinese case to the Interim Committee for 
continuous examination and study, and for report 

' For text of resolution, see Bulletin of Nov. 23, 1949, 
p. 807. 



January 2, 1950 



to the next General Assembly session. The In- 
terim Committee is authorized to act both on the 
agenda item in general and on the basis of any 
charges of violations of the preceding resolution 
on China adopted by the Assembly. The Interim 
Committee is also authorized to bring the matter 
to the attention of the Secretary-General for report 
to the Security Council if it deems it necessary. 



REPORTS OF THE AD HOC POLITICAL 
COMMITTEE 

Korea 

The General Assembly, on October 21, 1949, 
adopted the resolution proposed by the Ad Hoc 
Political Committee, which recommended the con- 
tinuation of the United Nations Commission on 
Korea, with the new function of observing and re- 
porting any developments which might lead to, or 
otherwise involve military conflict in Korea, and 
with authority to employ observers to this end. 

The Commission is authorized to continue its 
efforts to facilitate the removal of barriers to eco- 
nomic, social, and friendly intercourse caused by 
the division of Korea and to make available its 
good offices to assist in bringing about Korea's uni- 
fication. This resolution was adopted by a vote of 
48 to 6, with 3 abstentions. A Soviet substitute 
resolution to terminate the Korean Commission 
was rejected by a vote of 42 to 6, with 5 absten- 
tions. 



Observance of Human Rights 

in Bulgaria, Hungary, and Rumania 

The General Assembly adopted, on October 22, 
1949, by a vote of 47 to 5, with 7 abstentions, the 
resolution recommended by the Ad Hoc Political 
Committee. This resolution expresses the Assem- 
bly's concern at the accusations against these three 
states with regard to observance of human rights 
and fundamental freedoms and requests the 
International Court of Justice for advisory 
opinions on the following questions: first, on 
whether the disputes fall within the cate- 
gory for which the treaty makes special provision 
for a method of settlement by the appointment of 
commissions; second, if so, whether Bulgaria, 
Hungary, and Rumania are obligated to carry out 
the provisions of the articles of the peace treaties 
relating to the settlement of disputes, including 
the treaty provisions for the appomtment of their 
representatives to the treaty commissions; third, 
if so, whether, if one party fails to appoint a rep- 
re.sentative to the treaty commission, the United 
Nations Secretary-General is authorized to ap- 
point the third member of the commission upon 
the request of tlie other party to the dispute; and 
if so, fourth, whether a treaty commission com- 
posed of a representative of one party and a third 



member appointed by the Secretary-General con- 
stitutes a commission, within the meaning of the 
treaty articles, competent to make a definitive and 
binding decision in the settlement of a dispute. 
The resolution also retains this question on the 
agenda of the fifth regular Assembly session. 

Admission of New Members 

The General Assembly adopted 11 resolu- 
tions proposed by the Ad Hoc Political Commit- 
tee. The first nine resolutions dealt respectively 
with Austria, Ceylon, Finland, Ireland, Italy, 
Jordan, Korea, Portugal, and Nepal, which a large 
majority of the members of the United Nations 
considered to be qualified for admission to the 
organization. These resolutions (with virtually 
identical texts) expressed the view of the Assembly 
that these applicants were peace-loving, and able, 
and willing to carry out the obligations of the 
Charter and should therefore be admitted to 
membership in the United Nations and requested 
the Security Council to reconsider their applica- 
tions in the light of this determination by the 
Assembly. The Assembly votes, taken November 
22, were on Austria and Ireland, .51 to 5 ; on Ceylon, 
Finland, and Portugal, 53 to 5 ; on Nepal, 52 to 5 ; 
on Italy, 51 to 6; on Jordan, 50 to 5; and on the 
Republic of Korea. 50 to r>. 

The Assembly also adopted a resolution by 
which the International Court of Justice is re- 
quested to give an advisory opinion on the ques- 
tion of whether the General Assembly can admit 
an applicant state to membership in the absence of 
a favorable recommendation from the Security 
Council. This resolution was approved by 42 
votes in favor, 9 against, with 6 abstentions. 

The final resolution, adopted by a vote of 42 to 
5, with 11 abstentions, requests the permanent 
members of the Security Council to refrain from 
the use of the veto on recommendations for ad- 
mission of states to United Nations membership 
and requests the Security Council to keep under 
consideration the pending applications of all 
states which so far have not gained admission to 
the United Nations. 

A Soviet proposal on membership, which would 
have recommended reconsideration by the Security 
Council of the applications of Albania, the Mon- 
golian People's Republic, Bulgaria, Rumania, 
Hungary, Finland. Italy, Portugal, Ireland, Jor- 
dan, Austria, Ceylon, and Nepal (but not flie Re- 
public of Korea) for membership in the United 
Nations, was defeated by a vote of 32 to 12, with 13 
abstentions. 

Report of the Interim Committee 

The General Assembly, on November 21, 1949, 
adopted by a vote of 45 to 5, with 4 abstentions, the 
resolution recommended by the Ad Hoc Political 
Connnittoe. This resolution reestablishes the In- 
terim Committee for an indefinite period with the 



Departmenf of Slate Bullelin 



same terms of reference as it lias had previously. 
Under other resolutions adopted by (his session of 
the Assembly, the Interim Committee will also 
have specific functions in relation to the former 
Italian colonies, the China problem, and may be 
consulted by the Korean and Balkan Commis- 



sions. 



United Nations Field Service 



The General Assembly, on November 22, 1949, 
by a vote of 4C) to 5, with 3 abstentions, adopted 
a resolution which, after reference to the report 
of the Special Committee on this problem and a 
statement that establishment of the field service 
is within the authority of the Secretary-General, 
takes note of the intention of the Secretary-Gen- 
eral to establish the proposed field service unit. 
It is contemplated that the field service will in- 
clude not more than three hundred persons to 
perform protective, administrative, and service 
functions with United Nations missions in the 
field. 

A second resolution, approved the same day by 
a vote of 38 to G, with 11 abstentions, requests the 
Secretary-General to establish and maintain a list 
of persons qualified to assist United Nations mis- 
sions in the functions of observation and super- 
vision, such persons to be called to service in re- 
sponse to a specific resolution by a competent 
United Nations organ. The list is to be known 
as the United Nations Panel of Field Observers. 
This panel is to perform observation and super- 
visory duties with field missions. 

In the committee discussion of this matter it was 
recognized that this proposal simply reorganized 
certain existing services now performed by the 
Secretariat on a temporary basis. 



International Control of Atomic Energy 

On November 23, 1949, the General Assembly, 
by a vote of 49 to 5, with 3 abstentions, adopted 
a resolution which, after reference to previous 
action by the Assembly in the field of interna- 
tional control of atomic energy, urges all nations 
to join in an international cooperative develop- 
ment of the use of atomic energy for peaceful 
ends; calls upon governments to do everything 
in their power to make possible, by acceptance 
of effective international control, the effective pro- 
hibition and elimination of atomic weapons; re- 
quests the permanent members of the Atomic 
Energy Commission to continue their consulta- 
tions and to keep the Atomic Energy Commission 
and the General Assembly informed of their prog- 
ress; and recommends that all Bations join in 
mutual agreement to limit the individual exer- 
cise of their sovereign rights in the control of 
atomic energy to the extent required for the pro- 
motion of world security and peace and to agree 
to exercise such rights jointly. 



Regulation and Reduction of 

Conventional Armaments and Armed Forces 

The General Assembly, on December 5, 1949, 
adopted under a resolution (recommended by the 
Committee) which, after referring to past action 
by the Assembly and other Uniteu Nations bodies 
on this subject, approves the proposals formu- 
lated by the Commission on Conventional Arma- 
ments for the submission by members of full in- 
formation on conventional armaments and armed 
forces and their necessary verification; considers 
that early submission of this information would 
constitute an essential step toward substantial re- 
duction of conventional armaments and armed 
forces ; notes that unanimity among the permanent 
members of the Security Council on this matter 
has not been achieved; recommends that the Se- 
curity Council continue its study of the regula- 
tion and reduction of conventional armaments and 
armed forces through the agency of the Commis- 
sion for Conventional Armaments in accordance 
with its plan of work ; and calls upon all members 
of the Security Council to cooperate to this end. 
This resolution was originally introduced in the 
Committee by France and Norway and was ap- 
proved without change. The resolution was 
adopted by 44 votes to 5, with 5 abstentions. 

Indonesia 

The General Assembly, on December 7, 1949, 
by a vote of 44 to 5, with 2 abstentions, approved 
a resolution welcoming the agreement reached at 
the Round Table Conference at The Hague on 
Indonesia, commending the parties concerned and 
the United Nations Commission for Indonesia for 
their contributions thereto, and welcoming the 
forthcoming establishment of the Republic of the 
United States of Indonesia. 

Assistance to Palestine Refugees 

The General xVssembly, on December 8, 1949, 
without debate, adopted a resolution providing 
for the organization of relief to Palestine refugees 
by a vote of 47 to 0, with 6 abstentions. Under 
this resolution there is established the United Na- 
tions Relief and Works Agency for Palestine 
Refugees in the Near East to take over the direct 
relief program of Unkpr and to combine it with 
the works program recommended by the Economic 
Survey Mission of the Palestine Conciliation 
Commission. The resolution establishes an Ad- 
visory Committee on which there will be repre- 
sentatives of France, Turkey, the United King- 
dom, the United States, and three additional mem- 
bers from contributing governments may be 
added. In addition, the authority of the Director 
of the agency is described and defined in the resolu- 
tion. Members of the United Nations are urged 
to make contributions to finance the 18-month pro- 
gram in the amount of $54,900,000. Provision 



January 2, 1950 



is made for termination of direct relief at the end 
of 1950. The Secretary-General is authorized to 
make certain advances from the working capital 
fmid and to negotiate a loan from the Interna- 
tional Refugee Organization (Iro). 



Proposals for International Regime 
for Jerusalem 

The General Assembl}', on December 9, adopted 
a resolution recommended by the Ad Hoc Politi- 
cal Committee which looks toward the interna- 
tionalization of Jerusalem under the auspices of 
the United Nations by a vote of 38 to 14, with 7 
abstentions. The United States voted against the 
resolution. As adopted, the resolution states the 
intention of the Assembly that Jerusalem "should 
be placed under a permanent international regime, 
which should envisage appropriate guarantees for 
the protection of the Holy Places both within and 
outside Jerusalem"; confirms certain provisions of 
the General Assembly resolution of November 29, 
1947, establishing the city of Jerusalem as a 
corpus separatum, under United Nations Admin- 
istration through the Trusteeship Council and 
describing the area included in the city of Jerusa- 
lem ; requests that at its next session the Trustee- 
ship Council complete the preparation of the stat- 
ute for Jerusalem and proceed immediately with 
its implementation, not allowing any actions by 
any interested government or governments to di- 
vert it from adopting and implementing the stat- 
ute ; and calls upon the states concerned, "to make 
formal undertakings, at an early date and in the 
light of their obligations as members of the United 
Nations that they will approach these matters with 
good will, and be guided by the terms of the 
present resolution." 

REPORTS OF THE SECOND COMIVIITTEE 
(ECONOMIC AND FINANCIAL) 

Economic Development and Technical Assistance 

Four draft resolutions were presented for ple- 
nary action as the result of Committee considera- 
tion of this subject. All were adopted November 
16, 1949. 

The first resolution, adopted without objection, 
deals with an expanded program of technical as- 
sistance to be financed by voluntary contributions 
and to be carried out by the United Nations and the 
specialized agencies. It approves certain observa- 
tions and guiding principles outlined by the Eco- 
nomic and Social Council on this matter and takes 
notes of the Council's decision to call a technical 
assistance conference. The Secretary-General is 
authorized to set up a special account for technical 
assistance for economic development to be available 
to those organizations which participate in the ex- 
panded technical assistance program. (According 
to tiie formula adopted by Ecosoc, the first 10 



million dollars in contributions shall be automati- 
cally available to the participating organizations 
for the expanded technical assistance program ; of 
the second 10 million dollars of contributions, 70 
percent shall be automatically available for dis- 
tribution to the participating organizations and 
30 percent shall be retained for subsequent alloca- 
tions; and all contributions above 20 million dol- 
lars shall be similarly retained. Contributions 
automatically available for distribution to the par- 
ticipating organizations are to be transferred by 
the Secretary-General to the organizations in the 
following way: United Nations, 23 percent ; Inter- 
national Labor Organization. 11 percent ; Food 
and Agriculture Organization, 29 percent: United 
Nations Educational, Scientific and Cultural Or- 
ganization, 14 percent; International Civil Avia- 
tion Organization, 1 percent; and World Health 
Organization, 22 percent.) The resolution also 
approves the recommendations of Ecosoc to gov- 
ernments participating in the technical assistance 
conference, regarding financial arrangements for 
administering contributions and invites govern- 
ments to make as large voluntary contributions as 
possible to the special account for technical assist- 
ance. 

The second resolution, likewise adopted without 
objection, deals with expansion of the program of 
technical assistance for economic development 
carried out by the United Nations itself under its 
regular budget. After approval of the recom- 
mendations of Ecosoc, the resolution notes that 
the Secretary-General has included an amount 
($076,000) for these services in the United Nations 
budget for 1950. 

The third resolution, adopted without objection, 
constitutes instructions to Ecosoc with regard to 
its future work and lays special stress upon the 
problems of financing the program of assistance to 
underdeveloped countries. The resolution recom- 
mends that the Council continue to give urgent 
attention to the problems of economic development 
of underdeveloped countries. 

The fourth resolution is concerned with the in- 
fluence of international economic and commercial 
policy on economic development. It recommends 
that Ecosoc pay further attention to such ques- 
tions of international economic and commercial 
policy as may influence the process of development 
of the economies of underdeveloped countries with 
a view to making recommendations thereon to the 
General Assembly. It was adopted without ob- 
jection. 

Full Employment 

The General Assembly, on November 25, 1949, 
by a vote of 41 to 5, with 2 abstentions, adopted 
the resolution reconunended by the Second Com- 
mittee. This resolution states the belief of the 
Assembly that action designed to promote and 
maintain full employment is a matter of basic im- 
portance for the achievement of a stable and ex- 



8 



Department of Stale Bulletin 



panding world economy ; notes steps already taken 
by member governments to this end; and recom- 
mends that members consider their responsibility 
under articles oo and .")(! of the United Nations 
Charter to take action designed to promote and 
maintain full employment through measures ap- 
propriate to their political, economic, and social 
institutions. The resolution also points to the 
importance of underemployment in underdevel- 
oped agricultural areas and requests the Economic 
and Social Council to give attention to this prob- 
lem. 



REPORTS OF THE JOINT SECOND 
AND THIRD COMIVIiTTEE 
AND THE FIFTH COMMITTEE 

On November 24, 1949, the General Assembly 
adopted three resolutions dealing with the ques- 
tion of coordination of the activities of the United 
Nations and the specialized agencies. 

Resolution I, which was adopted unanimously, 
deals with the agreements bringing the special- 
ized agencies into relationship with the United 
Nations. Under this resolution, the Assembly de- 
cides to take no measures at this session for revi- 
sion of the agreements with the specialized agen- 
cies and requests the Economic and Social Council 
to report on this subject to the next session of 
the General Assembly. 

Resolution II, which was adopted unanimously, 
recommends that members, organs of the United 
Nations, the specialized agencies, and the Secre- 
tary-General take measures to reduce the prolifer- 
ation and overlapping of activities. This reso- 
lution was the result of an item proposed by 
Brazil, which expressed grave concern at the in- 
creasing costs of participation in international 
activities and took the view that there was con- 
siderable duplication of effort among interna- 
tional organizations which should be eliminated. 

Resolution III deals with matters relating to 
the budgets of the specialized agencies. The three 
sections of this resolution, each in fact a separate, 
though related resolution, were voted upon sep- 
arately. The first section, which was adopted 
unanimously, suggests general measures to be 
taken by members. United Nations organs, special- 
ized agencies, and the Secretary-General to im- 
prove administrative and budgetary coordination. 
The second section, because of opposition by the 
United States to a provision by which the Assem- 
bly would state its belief that there was room for 
closer relationship between the assessments on 
member states for contributions to the United Na- 
tions and to the specialized agencies, was divided 
into two parts for voting by the Assembly. The 
preambular paragraph was adopted by a vote of 
28 to 9, with 12 abstentions. Following this vote, 
the resolution as a whole was adopted by 38 votes 
to 2, with 7 abstentions. The United States voted 



against the resolution. Under the resolution, the 
Connnittee on Contributions is authorized to ad- 
vise specialized agencies at their retiuest with re- 
spect to their scale of contributions. The third 
section, adopted by a vote of 42 to 1, with 5 ab- 
stentions, recommends that specialized agencies 
keep their expenditures within estimated receipts. 



REPORTS OF THE THIRD COMMITTEE 

Freedom of information 

Following the rejection of a Uruguayan resolu- 
tion to return the matter to the Third Committee 
for further study and the defeat of a Lebanese 
amendment which would have required the As- 
sembly at its fifth regular session to prepare the 
final text of a convention on freedom of informa- 
tion, a resolution on this subject was adopted on 
October 20 by a vote of 38 to 10, with 10 absten- 
tions. This resolution recommends that the Eco- 
nomic and Social Council request the Commission 
on Human Rights to include adequate provisions 
on freedom of information in the draft interna- 
tional covenant on human rights and postpones 
further action on the convention to the fifth ses- 
sion of the Assembly and pending receipt by the 
Assembly of the covenant, or a progress report 
thereon. The Assembly also approved on October 
21, without objection, a resolution prepared by the 
Economic and Social Council, which was recom- 
mended by the Third Committee, urging members 
of the United Nations to grant to accredited news 
personnel free access to countries where United 
Nations or specialized agencies meetings take place, 
to all public information sources and services of 
the United Nations and specialized agencies, and 
to meetings and conferences which are open to the 
press equally and without discrimination. 

United Nations International Children's 
Emergency Fund 

The General Assembly, on December 2, 1949, by 
44 votes to 0, with 3 abstentions, adopted a reso- 
lution recommended by the Third Committee 
whicli notes the steps taken by the Fund with re- 
spect to the United Nations Appeal for Children ; 
appeals to various official and private international 
organizations to collaborate with Unicef in every 
])ossible way; congratulates the Fund for its great 
humanitarian effort in various parts of the world 
in bringing substantial aid to millions of mothers 
and children ; notes with approval the decisions of 
the Fund to devote a greater share of its resources 
to programs outside Europe; notes with concern 
the existence of children's emergency needs arising 
out of war and other calamities as well as the great 
needs in underdeveloped countries; expresses 
gratification at the contnmed support of the Fund 
by governments and individuals; and draws the 



January 2, 7950 



attention of members to the urgent necessity of 
further contributions to enable the Fund to carry 
out its programs. 

In its statement in explanation of its position on 
this resolution, for which it voted, the United 
States made clear its belief that this resolution 
was directed to the Icef as it has operated and 
did not imply its future extension. Emphasis was 
put upon the fact that the United Nations, through 
its Social Commission and the Economic and So- 
cial Council, is undertaking a study of the long- 
range international problems in this area, with a 
view to preparation of a coordinated plan and 
program. 

Advisory Social Welfare Services 

The General Assembly, on November 17, 1949, 
adopted without objection the resolution recom- 
mended by the Third Committee. This resolu- 
tion authorizes the Secretary-General to place the 
advisory social welfare services on a continuing 
basis; directs the Seci-etary-General to budget for 
these services in the future and to continue this 
work in 1950 at approximately the same level as 
in 1949; and requests the Economic and Social 
Council to review the terms of the original action 
of the Assembly in 1946 establishing these serv- 
ices and to recommend to the next session of the 
Assembly any necessary modifications. 

Discriminations Against Labor 

On November 17, 1949, the General Assembly 
by a vote of 45 to 6, with 2 abstentions, adopted 
the resolution proposed by the Third Committee 
on this subject. The resolution, after noting that 
the question of the treatment of immigrant labor 
had been dealt with by the International Labor 
Organization, which had adopted a convention 
dealing with this problem, provides for the trans- 
mission to the International Labor Organization 
of the records of the discussion on this subject at 
the fourth session of the Assembly, with the re- 
quest that the International Labor Organization 
do everything possible to expedite the ado]ition 
and application of the convention by its members. 

Suppression of the Traffic in Persons and 
Exploitation of Prostitution 

The General Assembly, on December 2, 1949, 
by a roll-call vote of 35 to 2, with 15 abstentions 
(including the United States), approved the draft 
convention for the su]ipi'ession of traflic in per- 
sons and of the exploitation of the prostitution 
of others. The purpose of the convention is to 
continue international cooperation for the control 
of the border traffic in women and children, to 
provide for the punishment by each country of 
procurers and kecpei-s of houses of prostitution, 
and to encourage, within each country, measures 
for the prevention of prostitution and rehabilita- 



tion of prostitutes. Simultaneously, the Assembly 
adopted a resolution proposing that: each member 
of the United Nations and each nonmember state, 
which the appropriate organs of the United Na- 
tions may invite to do so, become a party to the 
convention. Three amendments to the convention, 
proposed by the United Kingdom, making the ele- 
ment of gain a criterion in connection with of- 
fenses under the convention, opening the conven- 
tion to signature on behalf of any trust territory 
of which the United Nations is the administering 
authority and on behalf of the Free Territory oi 
Trieste and adding a provision under which par- 
ties to the convention could declare that the con- 
vention shall apply to all or any of the territories 
for the international relations of which it is re- 
sponsible, were rejected. The United States ab- 
stained in the voting on this convention because 
no "federal-state clause" was included. 

Refugees and Stateless Persons 

The General Assembly, on December 3, 1949, 
by a vote of 35 to 7, with 13 abstentions, adopted 
a resolution providing for the establishment of 
the Office of High Commissioner for Refugees 
and requesting the Se<"retary-General and the Eco- 
nomic and Social Council to take necessary im- 
plementing action. It also approved, as an annex, 
an organic statute for the High Commissioner's 
Office, providing for his terms of reference, the 
manner of his appointment, and his responsibility 
to the United Nations. A number of important 
amendments, all but one of which were proposed 
by the United States, were adopted at the same 
time. These included a clarification of the rela- 
tionship between the expenditures of the Office of 
High Commissioner and the budget of the United 
Nations, which provides that only administrative 
expenditures of the Office of High Commissioner 
shall be borne on the United Nations budget, all 
other expenditures to be financed by voluntary 
contributions; a definition limiting the refugees 
within the jurisdiction of the High Commissioner 
to those under the Iro; clarification of his re- 
sponsibilities with respect to material assistance, 
by provision that appeals for such assistance shall 
be subject to prior approval by the General 
Assembly; and provisions for the High Com-,' 
missioner to report to the General Assembly 
through the Economic and Social Council. 



REPORTS OF THE FOURTH COMMITTEE 
(TRUSTEESHIP AND NON-SELF-GOVERNING 
TERRITORIES) 

Report of the Trusteeship Council 

Six resolutions were ai)proved by the Assembly 
on this subject on November 15. The United States 
voted in favor of these resolutions. 

The first resolution deals with the political ad- 
vancement of trust territories aiul, as adojited, 



10 



Department ot Sfa/e Bulletin 



simply takes note of decisions of the Trusteeship 
Council in this field, expressing full support of 
the Council's recommendations to the adminis- 
tering authorities for the adoption of measures 
to hasten the advancement of trust territories to- 
ward self-government or independence; and rec- 
ommends to the Trusteeship Council that it shoidd 
include in its annual reports to the General As- 
sembly information dealing with the implemen- 
tation of its recommendations concerning meas- 
ures adopted to grant the indigenous inhabitants 
of trust territories a larger degree of self-govern- 
ment through participation in the legislative, 
executive and judicial organs and procedures of 
these territories. The resolution as a whole was 
adopted bv 51 votes to 0, with 2 abstentions. 

Resolution II, after taking note of the activities 
of the Trusteeship Council with respect to the ex- 
amination of petitions and the sending of visiting 
missions to trust territories, recommends that the 
Trusteeship Council take appropriate measures to 
facilitate and accelerate examination and disposal 
of petitions and that it direct its visiting missions 
to report fully on political, economic, social and 
educational advancement, and particularly steps 
taken toward self-government or independence in 
the trust territories. This resolution was adopted 
by a vote of 54 to 0, with 1 abstention. 

Resolution III, following a paragraph-by-para- 
graph vote, was adopted as a whole by 49 votes to 
1, with 7 abstentions. This resolution, having to 
do with economic advancement in the trust terri- 
tories, expresses supijort of the recommendations 
of the Trusteeship Council in this field; reaffirms 
the principle that the interests of the indigenous 
inhabitants must be paramount in all economic 
plans or policies in trust territories; expresses 
concern at the lack of budgetary autonomy in 
some cases and the scarcity of data in others, mak- 
ing impossible thorough examination by the Trus- 
teeship Council of the financial situation of cer- 
tain territories ; notes with satisfaction the excel- 
lent financial situation in Western Samoa and 
Nauru; and recommends that the Trusteeship 
Council include in its annual report a special sec- 
tion dealing with implementation by the adminis- 
tering authorities of its recommendations on eco- 
nomic advancement of trust territories. 

Resolution IV was adopted by 52 votes to 1, 
with 4 abstentions. This resolution expresses sat- 
isfaction at the reconmaendations of the Trustee- 
ship Council concerning absolute prohibition of 
such practices as child marriage in trust terri- 
tories; recommends the adoption of strong meas- 
ures to abolish corporal punishment in certain 
territories; recommends that the Trusteeship 
Council consider the adoption of measures for the 
solution of such problems as migrant labor and 
penal sanctions for breach of labor contracts by 
indigenous inhabitants; recommends the abolition 
of discriminatory laws and practices in trust terri- 
tories and their examination by the Trusteeship 
Council ; and requests the Council to include in its 

January 2, 1950 



annual report a special section dealing with im- 
plenientation of its recommendations concerning 
the improvement of social conditions in trust ter- 
ritories. 

Resolution V, dealing with educational ad- 
vancement in the trust territories, following a par- 
agrapli-by-paragraph vote, was adopted as a 
whole by 50 votes to 0, with 5 abstentions. This 
resolution, arnong other things, recommends that 
the Trusteeship Council continue its program for 
developing in the trust territories the diffusion of 
information on the United Nations; expresses the 
hope that the administering authorities will give 
special prominence to improving and increasing 
educational facilities; expresses the opinion that 
the more rapid development of facilities for higher 
education in the trust territories constitutes an es- 
sential contribution to progress toward independ- 
ence of the inhabitants of these territories; and 
recommends that the Trusteeship Council include 
in its annual reports to the Assembly a special sec- 
tion with respect to these matters. 

Resolution VI, which was adopted by 48 votes to 
5, with 4 abstentions, requests that the Trusteeship 
Council recommend to the administering authori- 
ties that the flag of the United Nations be flown 
over all trust territories, together with the flag of 
the administering authorities concerned, and the 
territorial flag, if there is one. 

Administrative Unions Affecting Trust Territories 

The General Assembly on November 15, 
1949, following a paragraph-by-paragraph vote, 
adopted a resolution on this item by a vote of 44 
to 9, with 1 abstention. The resolution, after re- 
ferring to the reports of the Trusteeship Council 
with respect to Administrative Unions Affecting 
Trust Territories, recommends that the Council 
complete its investigations, paying particular at- 
tention to certain matters, includmg the desira- 
bility of advance notice to the Trusteeship Council 
by the administering authorities of any proposed 
new administrative unions, the desirability of fur 
nishing precise separate financial statistical infor- 
mation and other data relating to a trust territoi-y, 
the desirability of establishing a separate judicial 
organ in each territory, the desirability of estab- 
lishing a separate legislative body within each 
territory, and the desirability of taking into ac- 
count in these matters the wishes of the inhabi- 
tants. The Trusteeship Council is further re- 
quested to complete its investigation and present 
a special report to the next regular session of the 
Assembly on its results, including particular refer- 
ence to any safeguards which it may consider 
necessary to request from the administering 
authorities. 



Information From Non-Self-Governing Territories 

Acting on the report of tlie Special Commit- 
tee on information transmitted under article 

11 



73(e) of the Charter, the Fourth Committee ap- 
proved 10 resolutions for action by the General 
Assembly. Action was taken on this item by the 
General Assembly December 2, 1949. 

Resolution I, which was adopted by a vote of 
33 to 9, with 11 abstentions, recommends that when 
revision of the standard form for the guidance of 
members in the preparation of information is 
undertaken, general information on geography, 
history, people, and human rights should cease to 
be classified under the optional category of the 
form; and expresses the hope that members may 
voluntarily include details on the government of 
non-self-governing territories in the information 
transmitted by them under article 73(e). The 
United States voted against the resolution. 

Resolution II, which was adopted by 44 votes to 
1, with 7 abstentions, invites the administering 
members to take steps to establish equal treatment 
in matters relating to education of the inhabitants 
of the non-self-governing territories under their 
administration and invites these members to in- 
clude in the information transmitted under article 
73(e) full data on the costs and methods of financ- 
ing separate educational facilities where these are 
provided for different communities within a ter- 
ritory. 

Resolution III invites the administering mem- 
bers to take steps to promote the use of the indige- 
nous languages in territories under their adminis- 
tration and invites Ukesco to undertake an over- 
all study of this question. This resolution was 
adopted by 34 votes to 4, with 13 abstentions. 

Resolution IV, dealing with the eradication of 
illiteracy in non-self-governing territories, invites 
Unesco to communicate to the administering mem- 
bers information on measures for the suppression 
of illiteracy which could be applied with satisfac- 
tory results in non-self-governing territories and 
to communicate annually to the United Nations an 
account of these measures and the extent to which 
its services have been utilized. It was adopted by 
a vote of 42 to 0, with 10 abstentions. 

Resolution V, which was adopted by 39 votes 
to 2, with 8 abstentions, provides for international 
collaboration in regard to economic, social, and 
educational conditions in non-self-governing terri- 
tories between the United Nations and the special- 
ized agencies. 

Resolution VI is the key resolution in this series 
since it provides for the establishment of the Spe- 
cial Committee on Information transmitted under 
iuticle 7;>(e) of the Cluirter for a 3-year period, 
giving it the same terms of reference and the same 
composition as the predecessor Special Committee. 
This resolution was adopted by a vote of 44 to 5, 
with 4 abstentions. 

Resolution VII, which was adopted by a vote of 
35 to f), with 9 abstentions, was originally proposed 
jointly by the United States and Mexico. This 
resolution deals with the work program of the 
Special Committee and invites the Special Com- 



mittee at its 1950 session, without prejudice to the 
consideration of the other two functional fields 
(economic and social) within its terms of refer- 
ence, to give special attention to the problems of 
education in the non-self-governing territories. 

Resolution VIII was adopted on a roll-call vote 
by 30 votes to 12, with 10 abstentions including 
the United States. The resolution expresses the 
view that it is within the responsibility of the Gen- 
eral Assembly to express its opinion on the prin- 
ciples which have guided or may, in the future, 
guide the members concerned in enumerating the 
territories for which the obligation exists to trans- 
mit information under article 73(e) and invites 
the Special Committee to examine the factors 
which should be taken into account in deciding 
whether any territory is or is not a territory whose 
people have not yet attained a full measure of self- 
government. 

Resolution IX, which was adopted by 31 votes 
to 4, with 16 abstentions, relates to the publication 
of information relating to non-self-governing 
territories and notes the future requirement that 
this information is to be published in the three 
working languages. 

Resolution X, which was adopted by 46 votes to 
1, with 5 abstentions, requests the Secretary-Gen- 
gral to keep the Special Committee informed of 
the nature of the technical assistance accorded to 
non-self-governing territories by specialized inter- 
national bodies. 

Acting pursuant to resolution VI, the Fourth 
Committee, on December 5, 1949, elected eight 
members of the Special Committee on Information 
transmitted under article 73(e) of the Charter 
to balance the eight members submitting informa- 
tion : Australia, Belgium, France, Denmark, Neth- 
erlands, New Zealand, United Kingdom, and 
United States. The U.S.S.R., Egypt, India, and 
Brazil were elected for a 3-year term ; Mexico and 
the Philippines for a 2-year term ; and Sweden and 
Venezuela for a 1-j'ear term. Three states, 
Belgium, France, and the United Kingdom, did 
not participate in this election because of their 
opposition to the Special Committee. 

Question of South West Africa 

The question of the status of South West Africa 
was before the Assembly for the fourth time. The 
Assembly had previously reconnnended that the 
Government of the Union of South Africa should 
submit a trusteeship agreement for the territory 
of South West Africa and, pending that arrange- 
ment, should submit information on it. No 
trusteeship agreement was submitted, and since 
1947, no information on the administration of 
South West Africa has been furnished by the 
Union Government. Moreover, the Union Gov- 
ernment formally advised the United Nations in 
1949 that it would nol submit information re- 
garding its administration of the territory. 



12 



DeparfmenI of State Bulletin 



Two resolutions were recommended for adop- 
tion by the Assembly. The first of these, on wliicli 
the President ruled, and was upheld, that a two- 
thirds majority was required, expresses tlie regret 
of the Assembly that the Government of the Union 
of South Africa has withdrawn its previous under- 
taking to submit reports on its administration of 
South West Africa ; reiterates the three previous 
Assembly resolutions on this subject, expressing 
regret that tlie Union of South Africa has decided 
not to take them into account; and invites the 
Government of the Union of South Africa to re- 
sume submission of reports to the General As- 
sembly and to comply with its previous decisions. 
Following roll-call votes on each of the para- 
graphs, the resolution as a whole was adopted by 
33 votes to 9, with 10 abstentions, on December 6, 
1049. The United States voted against the reso- 
lution. 

The second resolution requests the International 
Court of Justice for an advisory opinion as to the 
international status of the territory of South West 
Africa and the international obligations of the 
Union of South Africa arising therefrom. In par- 
ticular, the Court is asked to determine whether 
the Union Government continues to have inter- 
national obligations under the former League of 
Nations Mandate for South West Africa, whether 
the provisions of Chapter XII of the Charter are 
applicable in any way to the territory, and whether 
the Union Government has the competence to 
modify the international status of the territory 
of South West Africa, or if not, where such com- 
petence rests. The Secretary-General is requested 
to submit certain documents relating to the As- 
sembly's consideration of South West Africa for 
the use of the International Court. This resolu- 
tion, also adopted on December 6, was approved 
by a vote of 40 (including the United States) to 
7, with 4 abstentions, following separate votes on 
its several paragraphs. It may be noted that the 
President of the Assembly ruled without challenge 
that the reference to the Court did not require a 
two-thirds majority. 



REPORTS OF THE FIFTH COMMITTEE 

Organization of the United Nations 
Postal Administration 

The General Assembly, on October 20, 1949, 
approved without objection a resolution taking 
note of the report of the Secretary-General on 
the organization of a United Nations Postal Ad- 
ministration and requesting the Secretary-General 
to continue the preparation of necessary arrange- 
ments for the establishment of the postal admin- 
istration and to submit a new report on this 
matter to the fifth regular session. 



Scale of Assessments 

This resolution, adopted without objection 
October 20, 1949, accepted the report of the Con- 
tributions Conmiittee which recommended a re- 
duction of .1 percent in the contribution of the 
United States (from 39.89 percent to 39.79 per- 
cent) and .02 percent in the contribution of 
Sweden, and an assessment of .12 percent for 
Israel, a new member. The Committee on Contri- 
butions is authorized to undertake a general re- 
view of the scale of assessments and report thereon 
to the fifth regular session. 

Expenses of the Permanent Central Opium Board 

The General Assembly, on November 24, 1949, 
adopted without objection the resolution presented 
by the Fifth Committee, under which the Sec- 
retary-General was requested to undertake a 
thorough study of the question of the assessment 
of nonmembers of the United Nations which are 
signatories of the convention of February 19, 1925, 
relating to narcotic drugs as well as the assessment 
of nonmembers for the expenses of other inter- 
national bodies exercising general jurisdiction in 
the international control of narcotics. The results 
of this study are to be submitted for consideration 
by the General Assembly at its next regular session. 

Establishment of an Administrative Tribunal 

On November 24, 1949, the General Assembly 
adopted two resolutions on this item. The first 
of these, consisting of the statute for the Tribunal, 
was adopted by a vote of 48 to 0, with no ab- 
stentions. A second resolution, amending the 
United Nations provisional staff regulations to 
take account of the establishment of the Adminis- 
trative Tribunal, was also adopted 48 to 0, with no 
abstentions. The Administrative Tribunal is 
authorized to hear and decide cases involving 
alleged nonobservance of contracts or terms of em- 
ployment of staff members of the Secretariat of the 
United Nations. 



U.N. Headquarters 

The General Assembly, on November 24, 1949, 
adopted by a vote of 46 to 0, with 1 abstention, a 
resolution taking note of the Secretary-Genei'al's 
report on the Headquarters of the United Nations, 
continuing the Headquarters Advisory Commit- 
tee, and requesting the Secretary-General to sub- 
mit a progress report on this matter to the fifth 
regular session of the General Assembly. 

Budget Estimates for 1950 

The General Assembly, on December 10, 1949, 
took final action on a series of resolutions involv- 
ing budgetary matters. The first of these, regard- 



January 2, 1950 



13 



ing appropriiitions for the linancial year 1950, ap- 
l)ropriates an amount of $49,(i-il,773 and prescribes 
the major individual aHoeations for particuhir 
purposes. This amount inehided appropi-lation 
of <S million dollars to finance the International 
Kegime for Jerusalem, apjn-oved by a vote of o'.> 
to 1. with 14 abstentions. This i-esolution was ap- 
proved by a vote of 48 to 0. with 7 abstentions. 

A second resolution, dealing with unforeseen 
and extraordinary expenses, autliorizes the Secre- 
tary-General under certain prescribed circum- 
stances to enter into commitments to meet unfore- 
seen and extraordinary exi)enses of the organiza- 
tion. Such expenditures are to be reported to the 
Advisoi-y Committee on Administrative and Budg- 
etary Questions and to the next regular session 
of tile General Assembly, together with the sub- 
mission of the necessary supplementary estimates. 
This resolution was approved by 53 affirmative 
votes, with -2 abstentions. The Assembly also au- 
thorized, as unforeseen and extraordinary ex- 
])enses such commitments as may be necessary for 
the Economic and Social Council to hold its elev- 
enth session at Geneva (if the Council confirms 
its previous decision to this eifect) which was 
adopted by a vote of 37 to 9, with 5 abstentions, 
including the T'nited States. 

The third resolution wliich was approved by a 
vote of 53 to 0, with no abstentions, provides for 
the maintenance of tlie working capital fund at 
20 million dollars and authorizes the Secretary- 
General to advance certain siuns from the work- 
ing capital fund under particular c(mditions laid 
down by the General Assembly. 

The final resolution, which was adopted l)y a 
vote of 45 to 0, with 4 abstentions, relates to ar- 
langements to be entered into by the United Na- 
tions and the World Health Organization regard- 
inir the building of an extension of th(> Palais des 
Nations in (ieneva, and aulhorizes tiie Secrc-tary- 
(ieneral to enlei- into the nec(>ssary arrangements 
with the World Ileallli Organizatiou and the 
Swiss Govei-nment for this pvirpose. 



REPORTS OF THE SIXTH COtVJP/IITTEE 

Methods and Procedures of the General Assembly 

'I'he General Assembly, on October 2i\ 1919, 
aflojited by a vote of 43 to 5, with 3 abstentions, 
the I'eport of the Sixth Connnittec on Methods 
and I'rocedures of the General Assembly. The 
reconnnendalions of the Sixth Committee wei-e 
based upon the repoi-f of the S])ecial Connnittec 
on Assembly Methods and Procedui-es, which had 
been set up at the second ])art of the IhircO'egulai- 
session and which met during the summer to study 
means of exf)ediling the work of the (Jeneral As- 
sembly, including a])propriate amendments of the 
Assembly's rides of piocednre. The Assembly's 
ac-tion covereil a number of amendments and revi- 



sions of the rules of procedure and certain general 
recommendations regarding the over-all organiza- 
tion and procedure of the General Assembly. The 
amendments to the rules of procedure become ef- 
fect i\ c January 1, 1950. 

Application of Liechtenstein to International Court 

Tlie General Assembly, on December 1, 1949, by 
a vote of 40 to 2. with 2 abstentions, adopted the 
resolution determining the conditions under which 
Liechtenstein may become a ]iarty to the Statute 
of the International Court of Justice. The con- 
ditions outlined in the resolution are identical 
with those reconnneniled by the Security Council 
for Liechtenstein and conform to the pattern es- 
tablished in 194(1 when Switzerland became a 
party to the Statute. lender the resolution, 
Liechtenstein will undertake to contribute to the 
expenses of the Court in the amount assessed by 
the General Assembly. 

Reparations for Injuries 
Incurred in U.N. Service 

'I'he General .Vssembly, on December 1, 1949, by 
a vote of 48 to 5. with 1 abstention, adopted a res- 
olution on this matter. The resolution authorizes 
the Secretary-( Jeneral, in the case of injury in- 
curred in United Nations service, to bi'ing a claim 
for rejia ration for damages to the United Nations, 
and in respect of damage to the victim or persons 
entitled through him, against the government of 
any state alleged to be responsible ; directs the 
S,',Tciary-(ient'ral to negotiate in each case agree- 
ments necessary to reconcile action by the United 
Nations and by the state of which the victim is a 
national; and requests animal leports by the Sec- 
i-etary-General on this matter. 

This resolution stems from the advisory opinion 
recjuested by the Geiu-ral Assembly from the In- 
ternational Court of Justice by a resolution of 
Dec(Miiber 3. 191S. The Court unanimously held 
that the United Nations had the capacity to bring 
an international claim against a govermnent anci, 
by divided vote, that the United Nations had 
ca])acity to bring an international claim on behalf 
of a vict iui or jiersons entitled through him. Cer- 
tain members did not agree with the opinion of the 
Court that the United Nations should present 
claims fur damages caused to the victim or persons ( 
entitled throiiirh him. 



Registration and Publication 

of Treaties and International Agreements 

'I'he (Jeneral Assembly, on December I. 1949, 
unanimously adopted a resoluticm noting with 
satisfai'l ion the progress achieved with respect to 
registration and publication of treaties and I'e- 
(luesting the Secrelary-(Jeneral to take all neces- 
sary measures to bring about the earliest possible 
publication of all i-egistered agreements and 



14 



Department of State Bulletin 



treaties. A second resolution, which was adopted 
by 49 votes to 0, with 3 abstentions, amends the 
regulations regarding the registration of treaties 
to provide that the United Nations itself may 
register a treaty where it is the depository of a 
multilateral treaty or agreement. 



Rules for the Calling 

of International Conferences 

Tlie Economic and Social Council prepared, at 
the request of the General Assembly, draft iniles 
for the calling of international conferences which 
were before the General Assembly at the present 
session for final approval. The rules, as revised 
and amended by the Sixth Committee, were 
adopted by a vote of 39 to 0, with 6 abstentions, 
on December 3, 1949. Before the vote, a Cuban 
proposal, which would have deleted reference to 
the necessity for the approval of the responsible 
state for any territory which might participate in 
an international conference, was rejected by a vote 
of 17 to 18, with 8 abstentions. 

Because the Sixth Committee decided at the 
outset of its discussions on this matter that the 
draft rules for the present should be limited to 
conferences of states, a second resolution was pro- 
posed by the Committee. This resolution, which 
was adopted by 40 votes to 3, with 2 abstentions, 
requests the Secretary-General to prepare, after 
consultation with the Economic a\id Social Coun- 
cil, draft rules for the calling of nongovenimental 
conferences, with a view to their study by the 
General Assembly. 

Invitations To Be Addressed 

to Nonmember States on Genocide 

The General Assembly, on December 3, 1949, by 
a vote of 38 to 0, with 7 abstentions, adopted a 
resolution under which the Secretary-General is 
requested to dispatch invitations to accede to the 
genocide convention to any nonmember state which 
is, or hereafter becomes, an active member of one 
or more of the specialized agencies of the United 
Nations or a party to the Statute of the Interna- 
tional Court of Justice and which invites mem- 
bers which liave not yet done so to sign or ratify 
the convention as soon as possible. 

# 

Draft Convention on the Declaration 
of Death of Missing Persons 

The General Assembly, on December 3, 1949, 
adopted by a vote of 29 to 1, with 15 abstentions, a 
resolution referring to the draft convention on the 
declaration of death of missing persons. Four 
amendments to the resolution, as adopted by the 
Sixth Committee, were approved by the plenary. 
The purpose of these amendments was to provide 
for an international conference of government 
representatives to cojiclude a multilateral conven- 
tion on this subject. The resolution, as adopted. 



provides for an international conference of gov- 
ernment repi-esentatives to be convened not later 
than April 1, 1950, with a view to concluding a 
multilateral convention; instructs the Secretary- 
General to issue invitations to members and to 
make other necessary arrangements; refers the 
draft convention on the declaration of death of 
missing persons to member states to enable them 
to examine it and consider the possibility of adopt- 
ing, if necessary, legislative measures on the legal 
status of missing persons; and requests members 
to transmit their comments to the Secretary-Gen- 
eral for report to the next regular session of the 
General Assembly. 

Report of the International Law Commission 

The General Assembly, on December 6, 1949, 
took linal action on the report of the International 
Law Commission as recommended by the Sixth 
Committee. The first resolution, which simply 
approved part I of the report of the International 
Law Commission and congratulated it upon the 
work it has undertaken, was approved by a vote of 
42 to 0, with 5 abstentions. This part of the Com- 
mission's report deals with the organization of its 
work. 

A second re.solution, which was adopted by a 
vote of 32 to 8, with 8 abstentions, after reference 
to the three topics to which the International Law 
Commission has already decided to give priority 
of consideration, recommends to the Commission 
that it include the topic of the regime of territorial 
waters in its list of priorities. 

The third resolution, dealing with the draft 
declaration on the rights and duties of states, was 
adopted, as recommended by the Committee, after 
the rejection of a Cuban amendment which would 
have commended the principles formulated in the 
declaration to the continuing attention of members 
of international tribunals and jurists as a source 
of international law. This amendment was de- 
feated by a vote of 22 to 11, with 15 abstentions. 
A provision in the original Committee resolution, 
which would have provided for consideration by 
the Assembly at its next regular session of the sug- 
gestions and comments of member states on the 
declaration, was^ deleted by a vote of 19 to 15, with 
14 abstentions. The resolution as a whole was 
adopted by a vote of 34 to 0, with 12 abstentions. 

As approved, the resolution notes the draft 
declaration; expresses appreciation to the Inter- 
national Law Commission for its work ; deems the 
declaration a notable contribution toward the pro- 
gressive development of international law ; trans- 
mits the declaration to member states for com- 
ments by July 1, 1950, including comments as to 
whether further action should be taken by the 
Assembly and, if so, of what nature ; requests the 
Secretary-General to prepare and publish these 
comments; ajid appends the text of the draft 
declaration as an annex to the resolution. 



January 2, 1950 



15 



status of Mutual Defense Assistance Program 



Statement by Secretary Acheson 



[Released to the press December 21] 



The press has quite properly been giving close 
attention to the steps which are being taken to put 
into operation the Mutual Defense Assistance Act 
particularly as it relates to the North Atlantic 
Treaty countries. This is an important program, 
deserving this coverage. It represents a major 
effort by the people of the United States and their 
government, acting in response to requests from 
other North Atlantic Treaty countries, to carry 
out the obligation for mutual assistance in accord- 
ance with our abilities which the United States, 
along with the other signatories, assumed when 
it ratified the North Atlantic Treaty. 

Because the Mutual Defense Assistance Pro- 
gram is a somewhat complicated one which is in 
the process of getting started on a number of 
fronts. I wish to make a brief statement about 
the status of the program. 

Before the program for North Atlantic Treaty 
countries for fiscal year 1950 can be fully launched, 
there must be three major types of agreements be- 
tween the United States and the recipient coun- 
tries. First, before any equipment moves, the act 
requires that a bilateral agreement covering the 
general conditions of transfer be signed. Second, 
there must be an understanding at the technical 
level on the specific items which will be sent. 
Lastly, before more than the first 100 million dol- 
lai'S is obligated, the President must indicate ap- 
proval of recommendations for the integrated 
defense of the North Atlantic area which have 
been previously approved by the Defense Commit- 
tee and the Council of the North Atlantic Treaty 
Organization. 

The position with respect to the three types of 
agreements is as follows : 

Bilateral Agreements 

For the past several weeks, the United States 
Government has been discussing the bilateral 
agreements with the North Atlantic Treaty coun- 

16 



tries who have requested military assistance. 
With Italy, Norway, Denmark, France, Belgium, 
the Netherlands, and Luxembourg, these discus- 
sions have proceeded from questions of general 
princijjle to details of phraseology. With respect 
to the United Kingdom, the discussion is still on 
general principles. 

It is essential, in my judgment, to discuss fully 
and frankly any questions which may be in the 
minds of other governments with respect to the 
way in which the program will be carried out in 
advance of the signing of any agi'eement and the 
initiation of the program. This seems to me to be 
elementary common sense both from our stand- 
point and from that of the other countries. In 
this connection, I understand and appreciate the 
action of the United Kingdom in coming to us 
with their worries in advance. It has given me 
an opportunity to make clear the intentions of this 
government. We are now engaged in an exchange 
of views which represents the sensible, i-ational 
way in which governments with a common purpose 
and common problems reach agreement. 

The framework of the bilaterals was laid down 
by the Congress after public hearings and full 
debate. I do not think it appropriate to discuss 
their specific language while negotiations are in 
progress. When they are signed, they will be pub- 
lished and will, of course, be registered with the 
United Nations. At that time, I shall be glad to 
discuss their terms with you if you have questions 
to raise. 

Specific 1950 Programs 

Although no equipment will be transferred until 
the bilaterals have been concluded, technical repre- 
sentatives have been discussing for the past sev- 
eral months what items are most urgently needed 
to strengthen the integrated defense of the North 
Atlantic area and the extent to which they can be 
provided by the United States. While we will of 

Department of State Bulletin 



course not be able to satisfy in full all the needs 
of the recipient countries, substantially complete 
agi'eement has been reached on what the fiscal 
1950 funds shall be spent for. The implementa- 
tion of the Mutual Defense Assistance Act for the 
fiscal year 1950 will not be held up by any diffi- 
culty on the list of items to be fumislied. Exactly 
what will be in the various country programs can- 
not be revealed in detail for obvious security 
reasons. 

Stategic Concept 

In accordance with the statute as passed by Con- 
gress, only 100 million dollars of the total amount 
available for North Atlantic Treaty countries can 
be obligated until the President shall have ap- 
proved recommendations for an integrated defense 
of the North Atlantic area which have been drawn 
up by the Defense Committee and approved by 
the Council of the North Atlantic Treaty Organ- 
ization. The Defense Committee approved 
recommendations on integrated defense at its 
December 1 meeting. We are now in the process 
of consulting with the other pact countries to fix 
the date and place for the next meeting of the 
North Atlantic Council which must approve these 
recommendations before the President can give 
them his final consideration. While no date for 
the Council meeting has yet been fixed, it will 
probably take place early in January. 



These three steps are required to get the pro- 
gram going in its full scale. They require the 
cooperation of 12 govermnents on complicated 
issues affecting their security. I think we have 
reason to be greatly gratified that it has been 
possible so early after the' establishment of the 
North Atlantic Treaty Organization to make the 
progress we have made in reaching agreement 
among us on the issues presented in these three 
fields. 

In addition to these general agreements on an 
integrated defense, on the conditions of aid in the 
bilaterals and on the equipment to be furnished, 
it has been necessary to make arrangements for 
the administration of the program in the indi- 
vidual countries. These arrangements deal pri- 
marily with the provision of United States person- 
nel qualified to assist in the assembly of compli- 
cated modern weapons with which many of these 
countries are not familiar and to help them learn 
how to operate and maintain the equipment so 
that it may have a long life and contribute to the 
maximum to the defensive purposes for which they 
requested it. Arrangements have already been 
agreed with respect to the initial complement to 
get the program going and to work out the ar- 
rangements for such additional personnel as the 
countries may want from us. These personnel are 
not going as special military missions but will 
rather be an integral part of our Embassy staff 
in each country, acting under the direction and 
control of the United States Ambassador. 



Control of Foreign Exchange and off the Movement of Property^ 



LAW NO. 53, REVISED 



Whereas the Military Governors of the United States, 
British and French Zones have agreed to enact simultane- 
ously legislation revising Military Government Law No. 53, 
"Foreign Exchange Control," and dealing with the move- 
ment of property ; It is hereiy ordered, As follows : 

Article I. Prohibited Transactions 

1. Except as authorized by Military Government or any 
agency designated by it, any transaction involving or with 
respect to any of the following is prohibited : 

(a) Foreign exchange assets, wherever located, owned 
or controlled directly or indirectly, in whole or in part, 
by any person whose ordinary residence is in the area 
defined in Article X, hereinafter referred to as the Terri- 
tory; 

(b) Foreign exchange assets located in the Territory ; 

(c) Property located in the Territory owned or con- 



' 14 Fed. Reg. 7567. 
January 2, 1950 

887818—50 3 



trolled directly or indirectly, in whole or in part, by any 
person outside the Territory; 

(d) Property wherever situated, if the transaction is 
between or involves any person in the Territory whose or- 
dinary residence is in the Territory and any person outside 
the Territory ; 

(e) Foreign exchange assets, real or Intangible property 
or any interests therein, wherever located, when the trans- 
action is between any person whose ordinary residence 
is in the Territory and any person whose ordinary resi- 
dence is outside the Territory ; 

(f ) Foreign exchange assets, real or intangible property 
or any interests therein, located In the Territory, where 
the transaction is between persons whose ordinary resi- 
dence is outside the Territory ; 

(g) Property located in Germany or subject to the pro- 
visions of Article II of this Law where the transaction is 
between a person outside the Territory whose ordinary 
residence is in the Territory and any person outside the 
Territory ; 



/^ 



17 



(h) German currency or monetary claims expressed in 
German currency, when the transaction involves a trans- 
fer from a person whose ordinary residence is in the Ter- 
ritory to a person whose ordinary residence is outside the 
Territory. 

2. No property other than ordinary personal effects shall 
be brought into or removed from the Territory except 
through authorized crossing points and with the author- 
ization of Military Government or any agency designated 
by it. 

Article II. Declaration, Delivery and Disposition of 
Foreiyn Exchange Assets 

1. Unless otherwise ordered by Military Government 
any person whose ordinary residence is in the Territory 
shall, if he owns, jwssesses or controls, directly or in- 
directly, in whole or in part, any foreign exchange asset, 
file a declaration. Such declaration shall be filed within 
thirty days of acquiring ownership, possession or control 
with the nearest branch of a Land Central Bank or other 
institution designated by Military Government in the form 
prescribed by it. 

2. Any person owning or controlling, directly or indi- 
rectly, in whole or in part, any foreign exchange asset 
located within the Territory shall, when ordered by Mili- 
tary Government, deliver such asset to the nearest branch 
of a Land Central Bank or an agency designated by 
Military Government. 

3. Any person whose ordinary residence is in the Terri- 
tory who is entitled to sell or procure the sale of any 
foreign exchange asset owned or controlled in whole or in 
part by a person whose ordinary residence is in the Terri- 
tory shall, when directed by Military Government, put it 
at the disposal of Military Government or an agency speci- 
fied by it for sale at a price or rate of exchange provided 
for by uniform regulations. 

4. Military Government may designate an agency to 
Issue orders and instructions and otherwise to act on its 
behalf and under its supervision in implementation of the 
provisions of this Article. 

Article III. Foreign Exchange Supervision 

Military Government or agencies designated by it may 
order any person in the Territory, or whose ordinary resi- 
dence is in tlie Territory, to furnish any information in his 
possession or under his control which they deem necessary 
for the enforcement of this law or for the detection of any 
violation thereof. Any person required to furnish such 
information shall produce such books, accounts, or other 
documents in liis possession or under his control as may be 
required for such purposes. 

Article IV. Search of Persons and Baggage 

Unless otherwise provided by any legislation in force 
it shall be lawful for any duly authorized Allied or German 
oflicial to : 

(a) Require from any person a declaration of all prop- 
erty brought into or removed from the Territory by him ; 

(b) Search, arrest and detain any person failing to 
make a declaration or making or suspected of making a 



false declaration relating to the bringing into or removal 
from the Territory of any property ; 

(c) Search the baggage of any person entering or 
departing from the Territory ; 

(d) Stop, search and detain any vehicle, train, aircraft, 
vessel or other means of transportation containing, or 
suspected of containing, property intended to be brought 
into or removed from the Territory ; 

(e) Enter into stationary or moving post ofiices, includ- 
ing sorting rooms, to search, in tlie presence of postal 
ofiicials, consignments containing or suspected of contain- 
ing property intended to be brought into or removed from 
the Territory illegally ; 

(f) Seize any property moved or suspected of being 
moved in violation of the provisions of Article I of this 
law; 

(g) Seize any property held or suspected of being held 
in violation of the provisions of Article II of this law. 

Article V. Seized Property or Goods 

1. Where any property has been seized under the pro- 
visions of Article IV of this law, any aggrieved person may 
within 30 days from the date thereof file a protest against 
such seizure with the authority designated by Military 
Government in accordance with regulations issued here- 
under. Such authority may order the release or confisca- 
tion of the property. Administrative confiscation of the 
property seized may be pronounced if no protest is filed as 
herein provided. 

2. Where a person is prosecuted for a violation of this 
law, no order of confiscation regarding the seized property 
shall be made until final disposition of the criminal case ; 
however, regulations may provide for a compromise with 
respect to the seized property notwithstanding that a 
protest has been filed or a prosecution has been instituted. 

Article VI. Applicati07is for Authorisations 

Applications for authorizations under this law shall be 
submitted in accordance with regulations to be issued by 
Military Government or any agency designated by it. 

Article VII. Void Transactions 

Any transfer, agreement or arrangement executed in 
violation of this law or made with the intent of evading 
any provision thereof is without effect unless subsequently 
authorized by Military Government. The parties thereto 
may be required to restore the property which was the 
subject matter of such prohibited transaction to its orig- 
inal status and it shall be no defense to such requirement 
that the consideration which has been paid therefor cannot 
be returned. 

Article VIII. Penalties 

1. Any person who violates any provision of tliis law, 
or of any regulation or order made thereunder shaU be 
guilty of an offense, and shall, upon conviction, be liable 
to a term of imprisonment not exceeding five years, or to 
a fine not exceeding DM25,000, or three times the value of 
the property which is the subject matter of the offense, or 
both such imprisonment and fine. The Court may also 
order the confiscation of such property which has been 
the subject matter of the offense. 



18 



Department of State Bulletin 



2. Where a person accused of violating this law elects 
to have a fine imposed rather than be prosecuted, the Ad- 
ministrative Authority may impose a flue in accordance 
vpith the procedure to be laid down by regulations under 
this law. 

Article IX. Disposition of Confiscated Property 

Regulations issued by Military Government under this 
law shall provide for tlie disposition of property confis- 
cated pursuant to Articles V and VIII. 

Article X. Definitions 

For the purposes of this law : 

(a) "Person" shall mean any natural, collective or 
juristic person under public or private law, and any gov- 
ernment including all political sub-divisions, public 
corporations, agencies, and instrumentalities thereof; 

(b) "Transactions" shall mean acquiring, importing, 
borrowing, or receiving with or without consideration, re- 
mitting, selling, leasing, transferring, removing, exporting, 
hypothecating, pledging or otherwise disposing of, paying, 
repaying, lending, guaranteeing, or otherwise dealing in 
any property mentioned in this law ; 

(c) "Property" shall be deemed to include all property 
and rights therein, of every description, including all 
foreign exchange assets ; 

(d) "Foreign exchange assets" shall be deemed to in- 
clude : 

(1) Any property located outside the Territory ; 

(2) Currency other than German currency, bank bal- 
ances outside the Territory, and checks, drafts, bills of 
exchange and other instruments of payment drawn on or 
issued by persons outside the Territory ; 

(3) Claims and any evidence thereof owned or held by : 
(1) Any person whose ordinary residence is in the Ter- 
ritory against a person outside the Territory whether 
expressed in German or other currencies ; 

(ii) Any person whose ordinary re.sidence is in the Ter- 
ritory against any other person in the Territory if 
expressed in a currency other than German currency ; 

(iii) Any person outside the Territory with respect to 
which claim a person whose ordinary residence is In the 
Territory has any interest ; 

(4) Any securities and other evidences of ownership 
or indebtedness issued by persons whose ordinary resi- 
dence is outside the Territory, and securities and other 
evidences of ownership or indebtedness issued by persons 
in Germany if expressed or payable in a currency other 
than German currency ; 

(5) Gold or silver coin, or gold, silver or platinum bul- 
lion or alloys thereof in bullion form ; 

(6) Such other property as is determined by Military 
Government to be a foreign exchange asset ; 

(e) The term "Ordinary personal effects" shall be 
deemed to include such personal effects as are reasonably 
necessary to a traveller in connection with his entry into, 
stay in, or departure from the Territory, but shall not 
include any property in commercial quantities nor any 
property the movement of which into or from the Territory 
is required by law to be specially licensed ; 



(f) "Ordinary Residence" shall mean the usual place 
of abode of natural persons and the principal place of busi- 
ness or legal seat of juristic persons and other associa- 
tions; 

(g) The term "Territory" shall mean the Laender of 
Bavaria, Bremen, Hesse, Wuerttemberg-Baden, Lower 
Saxony, N'orth-Rhine-Westphalia, Schleswig-Holstein, 
Rhine/Palatinate, Wuerttemberg-HohenzoUern, Baden, 
Hansestadt Hamburg as constituted on the effective date 
of this law ; 

(h) The term "Germany" shall mean the area consti- 
tuting "Das Deutsche Reich" as it existed on 31 December 
1937; 

(i) "German currency" shall mean any currency having 
or having had legal tender status in the Laender of 
Bavaria, Bremen, Hesse, Wuerttemberg-Baden, Lower 
Saxony, North Rhine-Westphalia, Schleswig-Holstein, 
Rhine-Palatinate, Wuerttemberg-HohenzoUern, Baden, 
Hansestadt Hamburg, Saxony, Saxony-Anhalt, Thuringia, 
Brandenburg and Mecklenburg-Pomerania, and in Greater 
Berlin. 

Article XI. General Provisions 

1. A juristic person shall, for the purpose of the 
enforcement of the provisions of tliis law, be deemed to be 
located in any one or more of the following countries : 

(a) That country by, or under whose law the juristic 
person is created; 

(b) That or those in which it has a principal place of 
business ; or 

(c) That or those in which it carries on business. 

2. Property shall be deemed to be "owned" or "con- 
trolled" by any person if such property is held in his name 
or for his account or benefit or owed to him or to his 
nominee or agent, or if such person has a right or obliga- 
tion to purchase, receive or acquire such proi)erty. 

Article XII. Repeals 

1. The following legislation is hereby repealed : 

(a) Military Government Law No. 53 "Foreign Ex- 
change Control" and General Licenses Nos. 1, 3, 5, 6, 7, 9, 
and 10, and notices Nos. 1, 2, and 3 pursuant thereto ; 

(b) Those portions of Military Government Law No. 161 
(amended), "Frontier Control", dealing with the move- 
ment of proijerty and goods, and General Licenses Nos. 1 
and 2 issued pursuant thereto ; 

(c) German Foreign Exchange Control Law of 1938; 
and 

(d) Military Government Ordinance No. 17, "Prohibited 
Transactions and Activities". 

2. All special licenses under Military Government Laws 
Nos. 53 and 161 and General Licenses Nos. 2, 4, 8, 11, 12 
and 13 under Military Government Law No. 53 are hereby 
continued in force with the same effect as if issued under 
this law. 

3. Any person who prior to the effective date hereof, 
committed an offense by violating or by failing to perform 
any act required of him by Military Government Law No. 
53, Military Government Ordinance No. 17 and those por- 
tions of Military Government Law No. 161 (amended), 



January 2, 1950 



19 



"Frontier Control", dealing with the movement of prop- 
erty and goods may be tried for such offense, whether or 
not he has already been charged, and, if convicted, pun- 
ished as if Military Government Law No. 53, Military Gov- 
ernment Ordinance No. 17 and those portions of Military 
Government Law No. 161 (amended), "Frontier Control", 
dealing with the movement of property and goods had not 
been repealed. 

4. The provisions of this law or any regulation, authori- 
zation or order made thereunder shall prevail over any 
provisions of German law inconsistent therewith. 

Article XIII. Application and Effective Date 

This Law is applicable within the Laender of Bavaria, 
Hesse, Wuerttemberg-Baden and Bremen. It shall become 
effective on 19 September 1949. 

By order of Military Government : 

[Regulation No. 1 under Military Government Law No. 53, 
Revised] 

Control of Foreign Exchange and of the Movement of 
Property 

Whereas under Article I pargaraph 2 of Military Gov- 
ernment Law No. 53 (Revised) and laws to the same ef- 
fect simultaneously enacted in the UK and French Zones 
it is provided that no property other than ordinary per- 
sonal effects shall be brought into or removed from the 
Territory (as defined in the said laws) except with the 
authorization of Military Government or any agency des- 
ignated by it ; and 

Whereas the Military Governors of the US, British and 
French Zones have agreed to issue simultaneously regula- 
tions authorizing the movement of such property subject 
to such conditions as are hereinafter contained ; and 

Whereas it is intended that on the establishment of the 
Government of the German Federal Republic (hereinafter 
referred to as the Federal Government) it shall assume as 
soon as may be responsibility for certain measures of con- 
trol of the movement of property heretofore exercised by 
other agencies ; It is hereby ordered, As follows : 

Article I 

This regulation governs the movement into and out of 
the Territory of the following categories of property (other 
than ordinary personal effects) as the term is defined in 
Law 53 (Revised) : 

(a) Property moving into or out of the Territory in the 
course of trade ; 

(h) Property in transit through the Territory ; 

(c) Postal matter; 

(d) Relief and welfare supplies; 

(e) Property of persons acquiring or abandoning their 
ordinary residence in the Territory; 

(f ) Means of transport. 

Such categories are hereinafter referred to as "controlled 
property". 



Article II 

In pursuance of paragraph 2 of Article I of Law No. 53, 
the Federal Government is hereby designated as the agency 
competent, subject to such conditions as may from time 
to time be prescribed by Military Government, to authorize 
and regulate the movement of controlled property into and 
out of the Territory. 

The Federal Government may delegate the power to 
issue authorizations for the movement of controlled prop- 
erty into and out of the Territory to any Federal Agency 
or any agency of a Land Government. 

Article III 

Until such time as Military Government or the Federal 
Government shall otherwise direct, the agencies competent 
immediately prior to the effective date of this regulation 
to issue authorizations for the movement into and out of 
the Territory of controlled property shall continue to be 
so empowered, subject to the conditions and procedures 
then applicable, and any authorizations which have been 
issued by such agencies and are then in force shall con- 
tinue in effect until the normal time of expiration. 

For the purposes of this Article the Federal Chancellor, 
or such minister as he may authorize to act on his behalf, 
may designate the agency or agencies of the Federal Gov- 
ernment competent to exercise direction and control of 
movement of property into and out of the Territory insofar 
as such direction and control has heretofore been exercised 
by any agency of the Bizonal Economic Administration 
area or any German agency in the French Zone of Occupa- 
tion. Pending such designation, the Federal Agency most 
nearly corresponding to the agency of the Bizonal Eco- 
nomic Administration shall exercise such direction and 
control in the Territory. 

Article IV 

Nothing in this regulation shall authorize the movement 
into or out of the Territory of any property where such 
movement is prohibited under any other legislation. 

Article V 

This regulation becomes effective on 19 September 1949. 
By order of Military Government : 

Publication of this notice is not intended to and 
does not in any way add to or detract from the 
presently existing legal force and effect of the 
matter quoted above. 

For the Secretary of State. 

[seal] Henry A. Bteoade, 

Director, Bureau of German Affairs. 

December 12, lOJfi 



20 



Department of Stale Bulletin 



U.S. Demands Hungary Release American Citizen 



FURTHER MEASURES WILL BE TAKEN IF ACTION IS NOT PROMPT 



[Releaied to the press December 20] 



The American Minister in Budapest, Nathaniel 
P. Davis, has today communicated to the Hun- 
garian Minister for Foreign Affairs a note, the 
text of which is quoted heloio, with regard to the 
arrest and detention of Robert A. Vogeler, an 
American citizen. A copy of this note has also been 
handed to the Hungainan Minister in Washington 
by the Under Secretary of State. 

Excellency : I liave the honor to state that I 
have been directed by my Government to com- 
municate to you the following : 



The Government of the United States views 
with the deepest concern and dissatisfaction the 
attitude and conduct of the Government of Hun- 
gary in the case of Mr. Robert A. Vogeler, an 
American citizen, and protests the action of the 
Hungarian authorities in subjecting him to secret 
arrest and indefinite detention incommunicado. 
In order that there may be no misunderstanding 
on the part of the Hungarian Government regard- 
ing the importance which my Government, in the 
attendant circumstances, attaches to this case, I 
am authorized to set forth its position in the most 
emphatic terms and to point out that the absence 
of a satisfactory settlement of the matter must 
inevitably affect other aspects of United States- 
Hungarian relations. 

II. 

As you are aware, Mr. Vogeler, who is an Assist- 
ant Vice President of the International Telephone 
and Telegraph Corporation and who as the special 
representative in Central Europe of that Corpora- 
tion had been engaged for some weeks in negotiat- 
ing with the Hungarian Government a proposed 
agreement relating to the operation of Interna- 
tional Telephone and Telegraph manufacturing 
properties in Hungary, was arrested secretly by 
the Hungarian security police on November 18, 
1949, at an undisclosed place in Hungarian terri- 
tory while traveling by private automobile from 



Budapest to Vienna. On November 19, having 
been notified by Mrs. Vogeler in Vienna that her 
husband had not arrived there as expected, I 
called personally at the Ministry for Foreign Af- 
fairs to inform you of Mr. Vogeler's unexplained 
disappearance and, after expressing my serious 
concern, requested that the Hungarian authorities 
make a prompt and energetic investigation of his 
whereabouts. You replied that you had no infor- 
'mation but that you would investigate the matter 
at once and advise me of the results as soon as 

Eossible. In response to further inquiries by the 
egation, the Ministry for Foreign Affairs stated 
on November 20 that it still had no information on 
the matter and on November 21 that the police had 
reported that they had no knowledge of Mr. 
Vogeler's whereabouts. 

On November 22, when I again personally 
called on you, I reiterated my Government's grave 
concern over the unexplained disappearance of 
Mr. Vogeler and expressed dissatisfaction with the 
statement of Hungarian police authorities, re- 
ported by the Ministry for Foreign Affairs, that 
they had no knowledge of Mr. Vogeler's where- 
abouts. I further stated that since all circum- 
stances pointed to Mr. Vogeler's detention, I must 
insist upon the ri":ht of American consular officers 
to visit him in order that they might satisfy them- 
selves as to his welfare and the protection of his 
right to competent legal counsel of his own choice 
in defense against any charges placed against him. 
At this point you stated that you were able to in- 
form me that Mr. Vogeler had been arrested on 
November 18 by the security police ; that you did 
not know where his arrest occurred ; and that the 
police had evidence, including a "confession" by 
Mr. Vogeler, confirming that he had engaged in 
espionage and sabotage and was implicateid in the 
attempted escape of a Hungarian citizen from 
Hungary. I expressed my confidence that Mr. 
Vogeler was innocent of these charges and again 
requested an immediate opportunity for American 
consular officers to visit him. While disclaiming 
authority in the matter, you replied that you would 



January 2, 1950 



21 



take up my request with the competent authorities 
and would inform me in the matter as soon as 
possible. 

Since November 22, the Legation has been in 
touch with the Ministry for Foreign Affairs by 
telephone once or twice daily, and on two further 
occasions, November 29 and December 14, respec- 
tively, I personally called on Under-secretary 
Berei and yourself to renew my long-standing re- 
quests for an explanation of the charges against 
Mr. Vogeler and an opportunity for American 
consular officers to visit him. As you are well 
aware, the Hungarian Government has neither 
taken any action on nor made any satisfactory 
response to these repeated representations. It is 
also pertinent to recall in this connection that, hav- 
ing sought for many days an interview with 
Deputy Prime Minister Rakosi and subsequently, 
on December 1, having received assurances from 
the Ministry for Foreign Affairs that an appoint- 
ment with Mr. Rakosi would be arranged during 
the week of December 4, 1 was eventually informed 
on December 12 that he was on vacation and would 
not return for several weeks. 

This is the record of inaction, evasions, and bad 
faith on the part of the Hungarian authorities 
in the case of Mr. Vogeler. 

in. 

The foregoing conduct of the Hungarian Gov- 
ernment has served only to confirm my Govern- 
ment in the conclusion that the charges which have 
been made against Mr. Vogeler are wholly false 
and that the Hungarian Government is motivated 
by ulterior purposes in this affair. Mr. Vogeler 
has already been held incommunicado for a period 
of over a month, without access to American con- 
sular officers and there has been no indication 
from the Hungarian authorities when his deten- 
tion under these conditions will be terminated. 
The secretive proceedings of the police in the cir- 
cumstances can only raise doubts as to the treat- 
ment which Mr. Vogeler has received during his 
detention. Such treatment must be considered, 
according to prevailing concepts of justice in civil- 
ized countries, as arbitrary and inhumane, and 
as a clear denial of justice. It is the considered 
view of my Government, therefore, that the Hun- 
garian Government, by its unjust procedure in 
the case of Mr. Vogeler, has acted in derogation 
of basic human rights as these are embodied in 
the principles of internaticmal practice, in Arti- 
cles 8-12 of the Universal Declaration of Human 
Rights approved by the United Nations General 
Assembly, in civilized codes, and in the obliga- 
tions laid specifically upon Hungary in Article 
2 of the Treaty of Peace. The treatment of Mr. 
Vogeler by the Hungarian Government is also 
clearly contrary to the spirit and letter of the 
Treaty of Friendship, Commerce and Consular 
Rights between the United States and Hungary, 

22 



proclaimed October 4, 1926, which provides that 
United States nationals shall receive within Hun- 
garian territory "the most constant protection and 
security for their persons and property, and shall 
enjoy in this respect that degree of protection that 
is required by international law." Moreover, the 
refusal of the Hungarian Government to permit 
American consular officers prompt access to Mr. 
Vogeler is likewise contrary to the above-men- 
tioned treaty and in disregard of general inter- 
national practice with respect to consular rights. 

rv. 

The Government of the United States calls 
upon the Hungarian Government promptly to 
release Mr. Vogeler and to permit his immediate 
departure from Hungary. My Government, more- 
over, reserves all rights to claim damages on its 
own behalf and on behalf of Mr. Vogeler for any 
injuries resulting from the actions on the Hun- 
garian Government or its nationals in connection 
with his arrest and detention. 



The Government of the United States is con- 
cerned not only with the case of Mr. Vogeler as 
an American citizen whose treatment at the hands 
of the Hungarian authorities must be considered 
offensive to those concepts of justice which prevail 
among all civilized peoples; it is also concerned, 
as a signatory of the Treaty of Peace with Hun- 
gary, with the state of affairs in Hungary which 
is exemplified by the unjust procedures used 
against him. Thus the Hungarian Government, 
while continuing its systematic denial of funda- 
mental human rights and freedoms to its own 
citizens, is also depriving persons of other nation- 
ality within Hungary of those same rights and 
freedoms. 

In these circumstances, my Government has 
given careful consideration to the question 
whether American citizens are any longer free 
to transact normal business, or to visit, in Hun- 
gary without suffering surveillance, arbitrary ar- 
rest, and other intolerable molestations at the 
hands of the Hungarian police authorities and 
other infringements of their rights. The conduct 
of the Hungarian Government over a considerable 
period of time, and specifically in the present 
case, compels the conclusion that such freedom is 
presently denied to Americans in Hungary. The 
United States Government accordingly is taking 
immediate stei)S to prohibit travel by private 
American citizens to Hungary until further 
notice. 

The Government of the United States is giving 
urgent consideration to such further measures as 
may be appropriate in the absence of prompt ac- 
tion by the Hungarian Government to resolve the 
case of Mr. Vogeler on a satisfactory basis. 

Accept [etc.]. 

Departmenf of State Bulletin 



Account of Vice Consul Olive's 
Detention by Shanghai Communists 

After leaving the Shanghai consulate general 
about 1 : 30 p. ni. July 6, 1949, Vice Consul William 
M. Olive had crossed the Garden Bridge and was 
proceeding by car alon^ Broadway when police 
signaled him to turn oft on a narrow side street. 
He was about to proceed when several heavily 
armed Chinese Communist sohliers came up and 
compelled him to buck all the way to Broadway, 
(lie discovered he was driving on a street which, 
it appeared, was among (hose declared reserved for 
a parade in an announcement made at noon of the 
sixth — quite unknown to him.) Upon reaching 
Broadway, he decided to return to the consulate 
general and was nearing Garden Bridge when he 
was halted again — this time by the civilian police. 
The same group of soldiers then reappeared, har- 
rangued him, forced him to wait about 2 hours, 
then took him to the Wayside Police Station. 

He was held but a few minutes at Wayside dur- 
ing which time he was warned that he was in for 
a bad time, being a foreigner, and was told he could 
not be permitted to telepnone the consulate general. 
He was then taken to the Foochow Eoad Central 
Police Station, Office of Aliens Affairs, where the 
only subordinate in charge (because of the parade 
holiday) characterized the matter as "a very minor 
offense" and issued a written instruction for the 
return of Mr. Olive to the Wayside Station for a 
quick settlement of the case. 

On his return to Wayside, Mr. Olive was in- 
f oi-med that the central police official's written or- 
der had been amended by a Wayside officer to read 
"is to be detained." "Wliile asserting his rights as 
an American official. Vice Consul Olive was sur- 
rounded by soldiers who struck him M-ith gun 
barrels. 

He was then put in handcuffs (which were not 
removed for almost 24 hours), brutually beaten, 
and hauled to a preliminary detention cell. 

The next morning, July 7, he was compelled 
(with armed soldiers surrounding him) to write a 
"full confession" of "guilt" for various "offenses," 
including assault and the original traffic "viola- 
tion." He drafted three statements, none of which 
satisfied the police, who then virtuallj' dictated a 
fourth statement. During this time, Mr. Olive 
was repeatedly photographed. He was later 
forced to sign a shorter statement (including 
apologies to the prison guards) and was pressed 
to include a denunciation of the American Govern- 
ment. 

Following the preparation of his "confession" 
he was given a "trial," charged with no less than 
eight offenses, lectured at length on the "American 
Government's sins," and the manner in which for- 
eigners should conduct themselves under the 
"people's regime." He was then compelled to write 
down a summary of what had been told him. 

On July 7, officers of the consulate general went 



to the police station, taking food which they had 
been told they would be permitted to bring for 
Mr. Olive. On arrival, they explained that they 
had come to inquire regarding his welfare and the 
charges against him. They were told curtly they 
could see no one, nor could they leave the food. On 
attempting to leave the i)olice station, they were 
held, brought back into tlie station, lectured, and 
harangued in arbitrary fashion on the grounds 
that they had been guilty of "a serious violation of 
regulations" in driving into the police station com- 
pound. They explained that they were quite 
unaware of any such regulations, which had not 
been enforced or mentioned the previous evening 
when they attempted to see Mr. Olive. The officers 
were finally permitted to depart after signing 
statements indicating regret for any regulations 
which had been violated through unawareness of 
their existence. 

Mr. Olive was finally released on July 9. The 
only nourishment he received during his entire 
detention was bread and insufficient water. His 
requests for a doctor to examine his injuries were 
refused. Subsequent to his trial the Vice Consul 
was twice forced to make additions to his original 
"confession": first, that he had been well-treated 
and "suffered no injuries while under detention" 
and secondly, that his "confession" was made 
"voluntarily." In connection with his apologies, 
he was forced to make three waist-deep bows while 
photographers took pictures. 



Chinese Issue Second 
Port-Closure Order 

[Released to the press December 19] 

The Department of State has received another 
note from the Chinese National Government 
through the American consul general at Taipei 
with regard to the so-called Chinese port-closure 
order. The full text of the note, dated December 
12, is heing issued today iii an announcement to all 
Arnerican shipping companies, ship operators, and 
ship masters. 

Reference is made to a notification issued on 
June 20, 1949, by the Minister of Foreign Affairs 
of the Chinese Government to the various foreign 
governments to the effect that the area and ports 
within the sphere of the territorial waters along 
the coast line from the mouth of the Liao River in 
the northern part of China, i.e., 122 degrees 20 
minutes east longitude and 40 degrees 30 minutes 
north latitude to the north of the mouth of the 
Min River, i.e., 119 degrees 40 minutes east longi- 
tude and 2G degrees 15 minutes north latitude, were 
to be temporarily closed and that the entry of for- 
eign vessels into the territorial waters shall be 



January 2, 1950 



23 



strictly forbidden.^ In addition, the Chinese Gov- 
ernment issued a mandate announcing tliat, effec- 
tive June 26, 1949, at zero hour, foreign vessels 
violating this order shall be suppressed and that 
they shall assume responsibilities themselves for 
any consequence in case of violation of such an 
order. 

Subsequently, the Chinese Goveriunent rejjeat- 
edly notified the various foreign governments an- 
nouncing the extension of the closure area from 
the north of the mouth of the Min River, i.e., 119 
degrees 40 minutes east longitude and '2G degrees 
15 minutes north latitude, southward to the west 
of Tienpai hsien, i.e.. Ill degrees 20 minutes east 
longitude and 21 degrees 30 minutes nortli latitude, 
of which the record is on file. 

The Chinese Govermnent notes with regret that, 
after the closing of the aforementioned ports and 
territorial waters by the Chinese Ciovernment, a 
small number of foreign merchantment have ig- 
nored this order and some have evei^ met with 
incidents. 

In order to avoid such incidents, the Chinese 
Government has now decided that any American 
registered vessel now remaining in the above-men- 



tioned territorial waters and ports, or their vicini- 
ties, shall be instructed promptly to leave such 
waters, and ports within one week of grace begin- 
ning December 12, 1949. The military authorities 
of the Chinese Government will be pleased to 
afford such vessels safe conduct so as to avoid 
unnecessary risk; this does not apply to those 
which attempt to enter such areas. 

Ever since the proclamation of the closure of 
the designated ports and territorial waters the 
Chinese Government has time and again advised 
the various foreign governments that foreign ves- 
sels shall assume their own responsibilities for any 
consequences in case of the violation of this order. 
With a view to tightening this order, henceforth 
the Chinese Government will take such effective 
measures, as may be deemed necessarj'. Any for- 
eign vessels whicli, in violation of this order, should 
hit any mine, sustain any damage and losses, or 
encounter any risk, obviously must assume respon- 
sibility themselves. 

It would be greatly appreciated if you would 
promptly transmit the substance of the foregoing 
to your government and bring the matter to the 
attention of the American shipping circles. 



Soviet Union Still Refuses To Cooperate 
in Repatriation of Japanese 

Statement hy William J. Seiald ' 



At the forty-fourth meeting of the Council, held 
on October 29, 1947, I made a report to the Coun- 
cil on the problem of repatriation. During the 
intervening 2 years, this problem has continued 
to be one of considerable complexity, not oidy for 
(he Supreme Commander and his general head- 
(juMilcis, but also foi' tlie Ja])anese Government 
and people. In my report given at the forty- 
fourth meeting, I stated that for practical pur- 
I)oses I'epati'iation from all ai-eas, other than those 
controlled by the Soviet Union, had been com- 
pleted. This situation has remained unchanged 
and, in consequence, the discussion which follows 
nuist necessarily and unavoidably be limited to 
the repatriation problem witii respect to Japanese 
pi'isoners of war and civilians in ai"eas under the 
control of tiu> Soviet Union. 

You will recall tliat at the forty- f< Mirth meeting 

' liuM.ETlN of July 11, 1!)!!), p. .'M. 

'Miific ill !i MicclinL; of tlic Allied Council for ,I;ii).'in on 
Dec. 21. Mr. Sebald l.s United State.s member on and 
I'liiilriimu of the Council. 



reference was made to the provision of the Pots- 
dam Declaration, which states: 

The Japanese military forces, after b<>injj completely 
disarmed, sliall li(> jiermitted to return (o their homes 
with the oiiportunity to live peaceful and productive lives. 

Reference was also made during the discussion 
at the meeting to the fact that the Japanese Gov- 
ermnent accepted the Potsdam Declaration, and 
that Japanese accejitance was written into the 
terms of the Instrument of Surrender of Septem- 
ber 2. l!)4r). It was also iiointed out that the terms 
of reference^ of the Allied (\iuiK'il for Japan spe- 
cilically state, infir (ilia, that the Council was es- 
tablished for the ]:>iirpose of consulting with and 
advising the Su])reme (^oinnumder in regard to the 
im])lementation of the terms of surrender and 
other matters. Under these terms of reference, 
the Council can not esca])e the necessity of again 
considering the broad ii^sues of this problem of 
repatriation, whicli not only is of vital importance 
to the .Ia|);iiiese people but weighs heavily among 
the many responsibilities of the J5upreme 
Commander. 



24 



Department of S/a/e Bvlletin 



Repeated Approaches Made 

Duriiiji tlu' past '2 years, the Supreme Com- 
mander, tlirou<;li tlic competent oflicers of his head- 
quarters, has made repeated approaches to the 
Soviet member of the Allied Council, with a view 
to increasing the rate of flow of repatriates from 
Soviet -controlled areas. Irrespective of what the 
Soviet member may have done to point out to his 
government the continued efforts of the Supreme 
Commander in this regaid. the facts remain that 
during the months from December 1, 1947, to 
April 30, 1948, a total of only 3,676 Japanese were 
repatriated. During the months from May 1, 1948, 
to April 30, 1949, a period of 1 year, a total of 
approximately 280,000 Japanese were repatriated, 
or an average of 23,300 a month. From the period 
May 1. 1949, to date, a total of approximately 
95,000 Japanese were repatriated, or an average 
of 13,500 a month. I mention these monthly 
averages primarily to contrast them with the offer 
made by the Supreme Commander at the forty- 
fourth meeting of the Council to repatriate 160,000 
Japanese a month, or within 5 months of the date 
of that meeting, October 29, 1947, to return to 
Japan everj- Japanese then in Soviet-controlled 
areas. To date, more than 2 years later, no reply 
has been received to these offers, although they 
have been repeated time and again in correspond- 
ence with the Soviet member, as well as in public 
announcements released by General Headquarters, 
Sui^reme Commander for the Allied Powers. I 
might reiterate that these offers have never been 
withdrawn and still stand. 

Aside from the rate of flow of repatriates from 
Soviet-controlled areas, the best available sta- 
tistics (to which I shall refer later) indicate that 
as of today, a total of 316,617 Japanese remain to 
be evacuated from Soviet-controlled areas, includ- 
ing Dairen, Karafuto, the Kuriles, and Siberia, 
but not including Manchuria, which is statistically 
charged with 60,312 unrepatriated Japanese. As 
of May 20, 1949, this number would necessarily 
have been increased by the totals which have been 
repatriated since that date, namely, 94,973, of 
whom 10,000 were not prisoners of war but ordi- 
nary Japanese civilians. I mention the date May 
20, 1949, in view of a Tass press release made in 
Moscow on that date to the effect that only 95,000 
former Japanese troops remained to be repatriated. 
To summarize : As of May 20, 1949, a total of 471,- 
902 Japanese were unaccounted for. 

Since that date, 94,973 have been repatriated, 
leaving 376,929 still unaccounted for today. 

In connection with these unaccounted-for Jap- 
anese, repeated efforts have been made by the Su- 
preme Commander to obtain precise information 
from Soviet authorities regarding deaths of Jap- 
anese internees. These efforts have been uniformly 
abortive. I should point out in this connection 
that the Soviet repatriation authorities not only 
have refused to allow other repatriates to carry 
back to Japan the ashes of the dead, but at no time 

January 2, 1950 

S67818— .'50 4 



have they permitted the transmittal of even ap- 
pro.ximate rosters of deceased internees. Requests 
to the Soviet member for vital statistics show- 
ing deaths from disease or othei- cause or for in- 
formation regarding the state of health and where- 
abouts of these Ja[)anese have remained unan- 
swered. This has made necessary the compilation 
of death li.sts by the Japanese au'thorities through 
exhaustive antl time-consuming interviews with 
individual internees. (ITnder this system no Jap- 
anese has been listed oflicially as dead until the 
exact date, place, and cause of death have been 
substantiated by at least two witne.sses.) 

As I have already said, repeated attempts have 
been made to obtain from the Soviet member a list 
of Japanese prisoners of war and other internees 
who have died in Soviet-controlled areas. Entire- 
ly aside from the efforts made by General Head- 
quarters, ScAP, in this regard, it would appear that 
the dictates of international law, not to mention 
ordinary considerations of simple humanity, and a 
desire on the part of the Soviet authorities to assist 
the Supreme Commander in this important mat- 
ter, would impel the Soviet authorities to furnish 
such lists voluntarily. To the best of my knowl- 
edge, no such effort has been made. Parentheti- 
cally, I might add that thousands of petitions have 
been received by General Headquarters, as well as 
by the members of this Council, from the hundreds 
of thousands of Japanese individuals who are af- 
fected by the disappearance of their nearest of kin. 
The Soviet member undoubtedly is aware of this, 
and I can only presume that he has duly notified 
the Soviet authorities of the considerations in- 
volved. In order that there might be no misun- 
derstanding regarding these petitions, I have re- 
quested the Secretary-General to display to the 
members a part of the total number of petitions, 
letters, and postcards received to date. 

In light of the aforementioned considerations, 
it has become desirable, in fact necessary, to ex- 
plain to the Japanese people the reasons for the 
wide discrepancy between the figures to which I 
have previously made reference and the announce- 
ment by Tass News Agency concerning the num- 
ber of Japanese who remained to be repatriated 
as of May 20, 1949. Any exposition that might 
attempt to explain away this discrepancy must 
necessarily be a long one, and I hope the members 
of the Council will bear with me for the time in- 
volved in touching upon the major aspects of this 
problem. The story is not a happy one. 

Methods Used To Determine Death Lists 

In determining the probable munber of Japanese 
internees who have died in Soviet-controlled 
areas since the end of hostilities in August 1945, 
various approaches and cross-checks were made. 
For example, a tabulated list of 125 prisoner-of- 
war camps in Soviet areas, giving the number 
of prisoners and number of dead, was compiled 

25 



in January 1947, based on numerous interroga- 
tions, oral and written, of repatriates. Of 209,300 
prisoners of war in these camps, 51,332 were re- 
ported to have died of malnutrition and commu- 
nicable diseases. The mortality rate was thus 24.5 
percent. It must be remembered, however, that 
this cumulative percentage deals with the first 
years after the end of hostilities when treatment 
of prisoners and general camp conditions were 
admittedly at their worst. It should also be rec- 
ognized that living and labor conditions subse- 
quently improved somewhat. I will connnent 
upon this later. 

Another list, prepared in September 1947, re- 
vealed possible amelioration of conditions in 53 
prisoner-of-war camps and a death rate of 10.7 
percent. The report stated, however, that the 
percentage might be as high as 15 percent since the 
tabulations did not include deaths in hospitals or 
while en route to Soviet areas. 

Among the many interrogation reports pertain- 
ing to different areas, those given by returned 
repatriates from the Amur area were especially 
gruesome. Of a total of 11,000 internees in some 
20 camps, 3,000 dead were reported; the number 
of dead buried in the Kuibyshevka special hos- 
pital area, from a count of the graves, alone to- 
taled some 1,500; at a hospital in Blagovesh- 
chensk, 500 prisoners of war died. Numerous 
other examples could be cited. Even if an im- 
provement in living conditions is accepted for 
later years, i.e., 1948 and 1949, the cumulative 
death rate still represents an average of 27 percent. 

Internment Conditions 

The reports are full of pitiful statements. To 
cite a few typical cases, one says: "Half of our 
number who were physically weak died one after 
another from the shortage of food and the cold" ; 
another states : "Most of the prisoners of war in 
July 1947 suffeied from malaria, malnutrition, 
or iung trouble"; again: "Prisoners even though 
sick were forced to work eight hours daily on 
farms"; and still again, "Ticks, fleas, and lice 
were abundant in summer. Many people suffered 
from fever, skin diseases, pneumonia, tuberculosis 
..." I could go on and on, but suffice it to say 
that the combined effects of disease, exposure, 
malnutrition, and fatigue, together with a callous 
disregard for the welfare of prisoners of war and 
civilian internees in the attemj^ts to maximize 
their labor, resulted in a teri'ific toll of lives. 

I wish to emphasize that the statistical record 
relating to this problem is based upon detailed rec- 
ords of the numbers of Japanese citizens abroad, 
both military and civilian, compiled over a period 
of many years by the Japanese Government. Such 
records have proved to be of surprising accuracy 
in all other areas of tlie woi-ld, and I have no 
reason to doubt that they are similarly accurate 
for the areas under discussion. Further study 



of the records indicates an evaluated conclusion 
on the part of General Headquarters that the 
number of Japanese in areas presently controlled 
by the Soviet Government, at the close of hostili- 
ties in August 1945, was as reported in the official 
Japanese Government tabulation. 

The Japanese Government has already issued 
death notices of Japanese deceased in Soviet-con- 
trolled areas to 60,000 families in Japan. These 
notices are based upon attestation of death by two 
or more witnesses in each case. No combat fatali- 
ties, no civilians, and no deaths occurring in Man- 
churia are included in these notices. It is there- 
fore probable that the actual number of Japanese 
internees who have died while in Soviet custody 
amounts to several times the stated number, an 
estimate which is made credible by the many 
thousands of reports to which I have previously 
alluded. These reports tell of long marches in 
bitterly cold weather from Manchuria into Soviet 
territory where the prisoners were imprisoned and 
forced to work under unspeakably harsh con- 
ditions. 

Poorly clothed, with inadequate shelter and 
sorely deficient rations, the repatriates have re- 
ported that large numbers of their fellow prison- 
ers died early in the period of captivity. Further- 
more, lack of adequate medical and sanitary facil- 
ities in the prison camps, malnutrition, epidemics, 
and the necessity to work under the so-called 
"norm" system quickly took the toll of thousands 
of lives. On the basis of these interrogations, we 
find such factual accounts of internees being 
forced to scavenger from the countryside to sup- 
plement their deficient diet. Repatriates tell of 
almost total unpreparedness on the part of the 
Soviet authorities to care for the large numbers of 
prisoners; of camps located far from human habi- 
tation and totally unfit as living quarters because 
of poor construction and overcrowding. Some 
repatriates reported that it was not unusual for 
prisoners to be herded into buildings in such num- 
bers that it was almost impossible for them to lie 
down. One repatriate has reported ". . . spent 
two years at hard labor felling trees and receiv- 
ing harsh treatment which slaves, coolies, or 
even cattle had never experienced." We see such 
typical reports as this: "approximately 2C,000 
Japanese civilians were camped in an area around 
Hungnam in May 1946. Seven thousand died 
from exposure and starvation." The consensus 
is that, during this period, conditions were so bad 
that only the strong survived. 

The reports indicate that work was theoreti- 
cally assigned according to three physical classi- 
fications : the strong, the less strong, and those fit 
only for light work. Work projects, according to 
the reports, included lumbering, loading and un- 
loading rail cars, mining, road or railroad repair, 
construction work, excavation, stevedoring, and 
other labor required heavy exertion. The norm 
S5'stem to which I have previously referred ro- 



26 



Department of State Bulletin 



portcdly was bused upon the miinbcr of individu- 
als in eiu'ii labor group rej^ardless of physical con- 
dition. Theoretically, the prisoners worked a 
mininuun of 8 hours a day ; it was rare, however, 
that prisoners were able to complete their norm in 
such a short time. The amount of food allotted to 
the prisoners was continjient upon the percentage 
of norm accomplished. Enervated prisoners who 
were unable to complete their norm were thus fur- 
ther weakened wiien food was denied. It is in- 
teresting to note, also, that the reports speak of 
discrimination against so-called "reactionaries" 
who were allegeilly placed in camps where the 
worst living conditions existed. Discrimination 
was e.xercised in favor of those prisoners of war 
and others who were considered politically sym- 
pathetic. 

Soviet Indoctrination 

The reports further revealed a systematic ap- 
proach by the Soviet authorities to the question of 
political indoctrination of those Japanese who 
had withstood the rigorous treatment during their 
years of captivity. The indoctrination program 
has all the earmarks of a vast machine designed to 
reconstruct the lives and political future of the 
selected candidates. It was skillfully adapted to 
the Japanese habit of thought; carefully phased 
to the prisoner's current circumstances and to each 
stage of his development until the program itself 
became an integral part of the prisoners' lives and 
thoughts. The Soviet authorities were assisted by 
Japanese Communists, usually early converts to 
communism through conviction of expediency, 
working under Soviet direction. 

I will not attempt to trace in detail the cam- 
paign of indoctrination. Suffice it to say that with 
the candidates in a state bordering on complete 
prostration, psychologically upset through sud- 
den and final defeat, weakened by grueling work 
and subsistence on semi-starvation-level rations, 
resistance became understandably low. Their one 
lifeline was hope of early repatriation. A so- 
called "anti-fascist"' group known as the Friends 
Society {Tomonokai) was encouraged among the 
prisoners and was utilized to urge those interested 
in political and social problems to join discussion 
groups, inducement being offered in the form of 
somewhat improved living conditions. Positive 
indoctrination was also undertaken by undermin- 
ing the foundation of the Japanese social struc- 
ture with a view to an eventual proletarian revo- 
lution in Japan. The Japan News (Nippon Shim- 
bun), a Japanese newspaper published under the 
auspices of the Soviet authorities, published a 
series of inflammatory editorials designed to de- 
stroy the morale of the prisoners. 

With the beginning of repatriation at the end 
of 1946 and early in 1947, the systematic indoc- 
trination of the prisoners of war was increased. 
Promising students and potential group leaders 



were excused from maiuial labor, given clothing, 
and in general placed in a preferred status. Anti- 
occupation propaganda was stressed, courses were 
given in theoretical communism, and pressure 
maintained to convince the prisoners of war that 
their only hope of a true reconstruction of Japan 
lay in an alliance with the U.S.S.H. and the 
eradication of all Anglo-American policies and 
influences. 

It is obvious that this program was carefully 
built upon the long experience of Russian commu- 
nism in dealing with this problem. The indoc- 
trination program was rounded out by sending 
selected and tried converts to undergo special 
courses in four important training centers, name- 
ly, the Moscow Indoctrination School, the Demo- 
cratic School, the Youths School, and the Political 
School. Finally, at the port of Nahodka, the pris- 
oners of war and civilian internees were given 
an intensive indoctrination period known among 
themselves as the finishing school. Here were re- 
hearsed community singing of the Internationale 
(The Red Flag) and Communist slogans were 
learned. This entire unnerving special procedure 
then usually ended with a great rally at which 
trained orators urged the repatriates to stem the 
Americanization of the Japanese people. Finally, 
at the highest point of indujcement, an official ap- 
peared with pledges to join the Japan Communist 
Party. 

I will not dwell further upon the results of this 
program which unfortunately it has become neces- 
sary to relate. We are all familiar with the end 
result of this long period of training and indoc- 
trination in mass tactics as evidenced by the recent 
arrival at Japanese repatriation center of thor- 
oughly indoctrinated and organized bodies of re- 
patriates. 

Soviets Urged To Reveal Facts 

I have digressed somewhat from the main thesis 
in the presentation of this problem to the Council 
in order that we might have a rounded picture of 
what transpired in the lives of the Japanese 
prisoners of war and civilian internees in Soviet- 
controlled areas. I shall now revert to our recon- 
struction, from available information, of the 
discrepancy between the implied finality of the 
Tass report of May 20, 1949, and the estimates of 
Ja])anese still unaccounted for to which item I 
have jireviously made reference. 

If we strike an average of the statistical death 
rates applied for the 3 winters of 1945 to 1947 in- 
clusive, with variable camp conditions, we arrive 
at an annual rate of approximately 7 jiercent. 
During the year 1948, which we shall call the pe- 
riod of indoctrination, the percentage of losses is 
estimated at 2 percent. We therefore arrive at 
an estimated hypothetical statistical number of 
deaths as follows: 1945, worst winter, 10 percent 
losses 272,349; year 1946, slight improvement, 7 



January 2, 1950 



27 



percent losses 77,816 ; year 19-i7, improvement, 3.7 
percent losses 19,668 ; year 1948, indoctrination 2 
percent losses 4,208; aggregate 374,041. 

Thus, if we were to accept in all their gruesome- 
ness tlie full implications of these ghastly accounts 
of disease, malnutrition, inadequate housing, phys- 
ical abuse, and all the manual cruelties of slave 
labor conditions, combined with an appa,rent lack 
of even elementary medical care and facilities — if 
all these unbelievable accounts of disregard for 
humanity are indeed true — we can arrive at the 
heartrending conclusion that 374,041 Japanese 
formerly in Soviet hands are now dead and will 
never return to Japan. Can this be true? Are 
we to believe that of the 376,929 Japanese still un- 
accounted for only 2 or 3,000 remain alive? 

We can only guess at what may have happened 
behind the curtain of silence that has shut oS these 
hapless Japanese from their homeland and their 
people for the past 4 years. We can only surmise 
the motives of the Soviet Union in refusing to ful- 
fill the pledge given in the Potsdam Declaration 
and in failing to release repatriates to fill the 
abundant ships that the Supreme Commander has 
held ready and waiting at all times to bring them 
back to Japan. We must resort to pure specula- 
tion and conjecture to find any explanation for the 
Soviet desire to hold the Japanese prisoners of war 
in their own hands all these years, for dealing with 
them so brutally and for coldly ignoring all repre- 
sentations by tlie Supreme Commander and all the 
piteous pleas of the Japanese people. 

But even surmise and conjecture fail us in seek- 
ing to discover any possible justification for the 
Soviet failure — or refusal, or inability — to provide 
even the most meager information regarding the 
names and location of the prisoners held, or any 
form of vital statistics to show losses by death. 
Can it be that the Soviet authorities did not know 
how many of these unfortunate Japanese were in 
their hands, or where they were located, or what 
was happening to them? Does the Government 
of the Soviet TJnion wish us to believe that it main- 
tained no records in its prison camps, no rosters 
of internees, no lists, no record of deaths? 

I am obliged now to turn to the Soviet member 
and again call upon him to give us the answers to 
these simple but vital questions. Not only Gen- 
eral MacArthur and his headquarters, not only the 
Japanese people, but the entire civilized world is 
anxious to know tiie facts. 

I turn also to the other members of this Council 
and ask them to give all possible assistance to the 
Supreme Commander and his general headquar- 
ters in the urgent and vital task of tearing the veil 
from the ugly countenance of the repatriation 
problem tliat should have been resolved long since 
and of discovering the secrets which have been 
hidden from us for so long to the end that we may 
know the number and names of Japanese prisoners 



of war and civilians who have died during their 
captivity in Soviet-controlled territory and thus be 
enabled to hasten the return of those who still 



remain. 



Japanese Officials To Study 
U.S. Government Procedures 

[Released to the press Decemler 19] 

Four officials of the Japanese Foreign Office, the 
first of a group of ten, are scheduled to arrive in 
Washington at the end of this month to begin a 
60-day period of study and observation. The pur- 
pose of these visits, which are being sponsored by 
the Department of State in cooperation with the 
Department of the Army, is to provide certain key 
officials of the Japanese Foreign Office with an 
opportunity to study the organization of the De- 
partment of State, the activities of the United Na- 
tions, the formulation and execution of American 
international trade policies, the coordination of 
activities between the Department of State and 
other government agencies, and the relationship 
of those agencies with the legislative branch of the 
government. These visits are part of the United 
States Government's national leader-training pro- 
gram designed to assist in the democratic reorien- 
tation of German and Japanese leaders. 



Warning to Ships 
Approaching Korea 

[Released to the press Decemler 23] 

Acting on instructions from the Department of 
State, a consular officer from the American Em- 
bassy in Seoul, Korea, delivered a copy of the 
Department's warning notice of December 17 to 
the master of the Isbrandtsen Line's S.S. Flying 
Arrow while the ship was in the port of Pusan, 
Korea, on December 20. 

At the same time, the consular officer handed 
the master of the ship a communication which 
stated as follows: 

At the direction of the Secretary of State, I am in- 
structed to inform .von that the Coast Guard has advised 
that viohitioii of the warning will render licenses of 
masters of U.S. flag vessels liable to action under R.S. 
section 4450. 

In addition, on December 18 the commanding 
oflicer at Okinawa also delivered copies of the 
above comnuinications to the master of the Flying 
Arrow before the ship departed for Korea. 



28 



Department of State Bulletin 



Colonial Airlines Told Logan Act 

Not Involved in Case 

Before Canadian Transit Board 

Statement hy Secretary Acheson 
[Released to the press December l.'i] 

On December 6, the Department of State an- 
nounced that it liad requested the Canadian (lov- 
ernnient to consult over llie issues raised by the 
action of tlie Canadian Air Transport Board in or- 
derinji Colonial Airlines to show cause why its 
permit to operate into Canada should not be sus- 
jiended.' At that time, the Department expressed 
the hoi)e that the Canadian Government would 
avoid takinjr action to suspend the license of Co- 
lonial, pending the conclusion of this consultation. 
Tlie Dejiartment did not request the Government 
of Canada to postpone or delay the hearing itself, 
inasmuch as it is the view of this Department that 
such action would constitute interference with 
the legal processes of Canada. 

The Canadian Government has agreed to our 
request for consultation, which will take place in 
Ottawa beginning on December 15. The Ameri- 
can delegation will be headed by Adrian S. Fisher, 
Legal Adviser of the Department, and will consist 
of Emory T. Nnnneley, Jr., General Counsel of 
the Civil Aeronautics Board; Livingston Sat- 
terthwaite, Deputy Chief of the Office of United 
Kingdom and Northern European Affairs ; Laur- 
ence C. Vass, and H. Alberta Colclaser of the 
Department. 

The hearing by the Canadian Air Transport 
Board on its show-cause order was duly conducted 
on Monday and Tuesday of this week and then 
was adjourned without decision by the Board. 

I understand that at this hearing a Colonial rep- 
resentative took the position that it was prevented 
from taking any part in the hearing by the provi- 
sions of the Logan Act. As you know, the Logan 
Act was passed in 1799 for the purpose of prevent- 
ing private individuals from interfering with the 
foreign relations of the United States. 

This nnitter has been pending for the past 10 
days, and the representatives of Colonial Airlines 
have been in constant touch with officere of the 
Department. They have never requested any in- 
terpretation of the Logan Act, and, as a result, it 
is a little hard for me to take their position seri- 
ously. Of course, the Logan Act is no more ap- 
plicable to this case than to any other judicial or 
administrative proceeding abroad involving an 
American citizen and the provisions of an inter- 
national agreement. 

If Colonial Airlines had reallj' felt that the 
Logan Act was involved, they could have asked for 
permission to appear, and we certainly would have 



" Bulletin of Dec. 19, 1949, p. 949. 



told them that we had no objection to their appear- 
ing to take all necessary steps to protect their 
rights. In fact, we have already told them that 
in a letter the Legal Adviser of the Department 
wrote to them last week. 



Ecuador Receives Loan 
From Export- Import Bank 

[Released to the press December 22"] 

Edward G. Miller, Assistant Secretary for In- 
ter-American Affairs, today expressed his gratifi- 
cation that the Expoi't-Import Bank, as it an- 
nounced yesterday, had authorized credits aggre- 
gating 7 million dollars for the Republic of 
Ecuador. 

Recalling his visit to Ecuador last August on 
the occasion of the earthquake that devastated a 
large area of the country, Mr. Miller stressed the 
timeliness of the loan in supplementing the direct 
assistance already provided by this and other 
American Republics for the relief of Ecuador. 

The needs of the people in the fields of public 
health, food production, child welfare, and edu- 
cation, as pointed out, rightly have been and con- 
tinue to be the object of direct assistance either 
through technical missions, such as those of the 
Institute of Inter-American Affairs or through 
funds advanced by the governments and peoples 
of the hemisphere. The Export-Import Bank 
credit, however, will enable the Ecuadoran Gov- 
ernment to initiate rehabilitation of the basic fa- 
cilities on which the nat ion's economy depends. 

Of the total sum autliorized, 1.5 million dollars 
will be devoted to the financing of machinery and 
technical services which will be made available 
to a reorganized national highway maintenance 
department. Once the initial task of clearing 
away debris and repairing roads damaged by the 
earthquake has been comjileted, the equipment 
services will be utilized to put into effect a com- 
prehensive program of highway maintenance un- 
der the system and methods employed in the 
United States. Another 1.5 million dollars is allo- 
cated to the financing of railroad equipment, 
principally locomotives and track. 

The remaining 4 million dollars will be allo- 
cated to projects to be approved by the Export- 
Import Bank designed to longer-range reconstruc- 
tion and development needs. Thus, Mr. Miller 
pointed out, the Export-Import Bank loan marks 
the end of the period of merely emergency assist- 
ance and the beginning of the hopeful, though 
long and laborious, march of reconstruction. The 
Assistant Secretary again praised the resolution 
and self-reliance which the Government of Ecua- 
dor has shown in rallying to meet the situation 
with which it is faced. 



January 2, 1950 



29 



U.S.-U.K. Discuss Dollar Drain 
on Sterling Areas in Oil Operations 

[Released to the press December 21] 

As announced in the joint communique of Sep- 
tember 12, it was recognized in the U.S.-U.K.- 
Canadian financial discussions that the question of 
oil production and refining and geographical dis- 
tribution involved problems of extreme complex- 
ity. It was agreed that representatives would 
be appointed to analyze these problems as a basis 
for subsequent discussions. 

Such analysis has indicated that the dollar drain 
on the United Kingdom and the rest of the ster- 
ling area arising from oil transactions for the year 
1949-50 would run to about 710 million dollars, 
on the basis of current prices. Of that sum it 
was estimated that about 340 million dollars would 
arise from the operations of United States oil 
companies in the United Kingdom and the rest of 
the sterling area. This results largely from the 
fact that, at present, these companies import oil 
for sale in the stei'ling area, and it has been cus- 
tomary for this oil to be paid for in dollars. 

It was estimated that about 370 million dollars 
of the dollar drain arises from the world-wide 
operations of the British oil companies. The dol- 
lar expenditures involved in these operations in- 
clude royalty payments to foreign governments, 
operating costs, and the purchase of materials and 
equipment. 

The British have recently made estimates for the 
calendar year 1950 which over-all are somewhat 
less than the above figures. The new estimates 
will be discussed with the British during the cur- 
rent talks. 

One of the important objectives of the talks 
witli the British and Canadians continues to be the 
development of means of reducing this very large 
dollar drain on the sterling area resulting from 
petroleum operations. It is not easy of solution. 
It involves, among other things, the interest of 
this government in the continuance of a substan- 
tial overseas production and marketing of petrol- 
eum by American companies. Discussions are 
now continuing with the British and Canadians 
looking toward an accommodation of the British 
necessity to save dollars and the United States 
interest in the continuance of American oil pro- 
duction abroad. In this connection, ways and 
means are being considered by the United States 
companies of reducing the dollar costs of their 
foreign ()])erations. 

In the interim, however, the British Government 
has stated that British companies have facilities 
for production of petroleum products in excess of 
those nece.ssary to supply their established markets 
and that, because of the serious dollar drain, it 

30 



considered it necessary to curtail the importation 
into the United Kingdom and into the sterling 
area of certain production of American com- 
panies. The action thus far taken by the British 
Government with respect to the reduction in dol- 
lar oil imports is applicable to the first quarter of 
1950. 

We have indicated to the British our concern at 
their present action in this field and our desire to 
discuss this question of displacement in order to 
minimize any dislocations which might be occa- 
sioned to the United States companies. It is 
hoped that some adjustment can be made in the 
recently announced British procedure which will 
enable the American companies concerned to make 
approjariate adjustments in their operations. 



Tariff Modifications 
With Haiti Announced 

[Released to the press December 23] 

The President, on December 22, 1949, signed a 
proclamation putting into effect as of January 1, 
1950, the modifications in the United States tariff 
initially negotiated between the United States and 
Haiti at Annecy, France, last summer.^ Haiti is 
the only one of the 10 "acceding" countries which 
negotiated at Annecy that has signed the Annecy 
Protocol of Accession to the General Agreement 
on Tariffs and Trade and has taken the other steps 
necessary to permit the concessions initially nego- 
tiated between that country and the United States 
to go into effect on January 1. The nine other 
acceding countries have until April 30, 1950, to 
take similar action. Those countries are: Den- 
mark, the Dominican Republic, Finland, Greece, 
Italy, Liberia, Nicaragua, Sweden, and Uruguay. 

It is expected that by joint agreement of the two 
governments, the provisions of the trade agree- 
ment concluded by the United States and Haiti in 
1935 will be superseded on January 1, 1950, by 
the provisions of the General Agreement and the 
concessions negotiated at Annecy. 

The products on which United States customs 
treatment will be changed are as follows : Vetivert 
oil, certain household wares made of mahogany, 
crude oi'ange peel, mangoes, prepared pineapples, 
certain jellies, jams, marmalades, and fruit but- 
ters, prepared or preserved guavas, rum, mango 
and guava pastes and pulps, certain vegetable fiber 
braids and articles manufactured from them, 
alpargatas, shoes of sisal, logwood, lemongrass oil, 
and turmeric. 



' 14 Fed. R(V. 7723 ; I'roc. 28G7. 

Department of State Bulletin 



Argentine-U.S. Commercial 
Relations Studied 

[Released to tKe press December 15] 

The Joint Argentine-United States Committee 
on commercial studies, created to survey objec- 
tively the problems affecting commercial and 
financial transactions between Argentina and the 
United States, has completed an analysis of the 
conditions under which such transactions between 
the two countries take place as well as a study of 
adequate measures to overcome obstacles which 
might exist for the purpose of facilitating an in- 
crease in reciprocal economic activities. 

Ambassador Albert F. Nufer was head of the 
United States delegation, and the Argentine dele- 
gation was headed by its Ambassador to the 
United States, Senor Jeronimo Remorino. 

The Committee benefited constantly from the 
sponsorship and support of Assistant Secretary 
for Inter- American Affairs, Edward G. Miller, Jr., 
and received the fullest cooperation from the high- 
est authorities of each countr}' in the development 
of its work. The Joint Committee has pi'epared 
a final report which has been presented for the 
consideration of both governments. This report 
reaches frankly optimistic conclusions and notes 
that certain trade increases, which have already 
taken place as a result of its woi'k, are distinctly 
encouraging. 

In addition to the work and investigations un- 
dertaken in the various subcommittees of the Joint 
Committee in Washington, the Argentine delega- 
tion with the cooperation of the United States 
Departments of State and Commerce visited the 
most important marketing centers for Argentine 
products where it held conversations with im- 
porters, exporters, bankers, and industrialists. 
These visits made possible the gathering of in- 
formation valuable for the purposes of the com- 
mittee and were very useful in establishing direct 
contacts with representative businessmen of the 
United States, at the same time facilitating a com- 
mon understanding of current economic conditions 
in both countries. 

The work performed by the Joint Committee 
presented the opportunity for an exchange of 
valuable information which will definitely be use- 
ful in clarifying certain aspects of Argentine- 
United States commercial and financial relations, 
thus making evident the many immediate and po- 
tential advantages which would result from closer 
economic ties between the two countries. 

In addition and as a further demonstration of 
a desire to achieve practical results in all the fields 
in which the two economies are linked, the United 
States and Argentine Governments have agreed 
that experts of both countries will study double 
taxation problems with respect to income and in- 
heritance taxes for the purpose of seeking a solu- 



tion which adequately takes into account the 
interests of the two parties. 

In view of the above, there is no doubt that the 
studies and conclusions of the Joint Argentine- 
United States Committee make possible the build- 
ing of a firm basis for closer and continuing co- 
operation between both governments in the future 
economic relations of Argentina and the United 
States. 



U.S.-Argentina To Consult 
on Double Taxation Treaty 

[Released to the press December 15] 

As a result of conversations which have been 
held between the Joint Argentine-United States 
Committee of Commercial Studies and officials of 
the interested Departments of the United States 
Government, it is expected that officials of the two 
governments will soon open technical discussions 
looking to the conclusion of treaties for the avoid- 
ance of double taxation and for administrative 
cooperation in prevention of tax evasion with re- 
spect to income taxes and to taxes on estates of 
deceased persons. 

If the discussions are successful and a basis for 
agreement is found, they will result in the pi'ep- 
aration of draft treaties which will be submitted 
by the negotiators to their respective governments 
for consideration with a view to signing. 

In preparation for the discussion, the United 
States delegation will welcome conferences with 
interested parties, or statements and suggestions 
from them, concerning problems in tax relations 
with Argentina. Communications in this con- 
nection should be addressed to Eldon P. King, 
Special Deputy Commissioner of Internal Reve- 
nue, Bureau of Internal Revenue, Washington 
25, D.C. 



VOA Inaugurates Broadcast to Turkey 

The Department of State inaugurated its 
first broadcast to the Republic of Turkey over the 
Voice of America December 19. The broadcast 
scheduled from 12 : 15 to 12 : 45 p. m. originated 
in New York. Thereafter, the program will be 
broadcast daily over a VOA network and relayed 
via Munich short-wave and BBC. 

The program included a playing of the 
Turkish anthem, statements by the Turkish Am- 
bassador; George V. Allen, newly aj^pointed Am- 
bassador to Yugoslavia ; Edwin C. Wilson, former 
American Ambassador to Turkey, and President 
Truman. 



January 2, 1950 



31 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



A Review of the World Wool Situation 



hy Jamct G. Evans 



The International Wool Study Gionp, at its 
third meeting at London from November 7-'J, 
li»4'J, noted that world wool production has been 
characterized by a modest increase since the war 
and is now approximately eijnal to that of the 
prewar years although the output of the merino 
wool remains somewhat below prewar level. The 
total clip of the five main wool exporting countries 
is now 13 percent above the I93f-;>1» level. AVool 
production in the chief importing countries is 
beginning to increase, but for the l!)49-rilJ season 
it is unlikely to be more than four-fifths of the 
prewar level. 

World consumption of ajjparel wool in 1!)4S- 
49 was below the record high level reached just 
after the war, and a further slight tlecline is antic- 
ipated during the current season. World con- 
sumption of apparel wool during the current sea- 
son, however, will ])robably conliinie to exceed the 
<'urrcnt clip as it has since the end of the war, 
and world stocks will therefore decline. 

The pi'oduction ol' apjiarel wool amnunled to 
2,!)7r) million pounds in I'.llS—t!) an<l is expecled to 
reach :'.,01.") million ])ounds in i;)4i)-r)l). Worhl con- 
sum])! ion (d' apj^irel wool is estimated at '\,lA't 
million pounds in l!)48-49 and at ;'>,r)'28 million 
pounds foi- the current 1949-50 season. World 
stocks of ai)parel wool, which weiv 'J,9()l million 
pounds on June 30, 1949. may decline to 2,448 mil- 
lion j)ounds by June ;'>0, 19.".(). The average clos- 
ing stock position of world ap|)arel wool for the 
years 1934—39 was 1,713 million jjounds. 

Government stocks on Jime :*)(). 1949. are esti- 
mated at t)l() million jjounds. but these stocks may 
be reduced to :'.17 million ])Ounds by June 3(J, 1950. 



32 



Action Taken at Final Session 

The (iroup for the tii-st time agreed to release 
for publication its report on the world wool situa- 
tion and also reports on the wool situation in 
member countries unless the delegation making a 
particular report indicated that it should be re- 
garded as confidential. 

On the basis of its review of the world wool 
situation, the Group concluded that no immediate 
problems called for intergovernmental collabora- 
tion in connection with world trade in wool in 
addition to its i)resent activities. 

Although the delegates recognized that the sur- 
plus stocks problem which led to the establishment 
of the Wool Study Group in 194G has largely dis- 
appeared, they felt that the continued existence of 
the ( irouj) would provide a useful medium for the 
improvement of world wool statistics and also 
would provide an established body to which world 
wool j.roblems could be referred as they arise. 

Tile I'nited Kingdom was invited to continue 
to provide a Secretariat for the Group. 

In order, however, to facilitate its work, the 
(iroup decided to establish a management commit- 
tee consisting of representatives of Argentina, 
Austi'alia. Ft-aiice, Italy, the Union of South Af- 
rica, the United Kingdom, and the United States. 
'I'he Management Committee will meet at London 
when re(iuested either by members or by (he Secre- 
tariat and is ex|)ected to assist the Secretariat in 
ai-i'anging for plenary meetings and advise on 
liroblems arising between such meetings. 

The Technical Committee was connnended for 
its work in the develojiment of a minimum stand- 
ard for collecting and rejiorting wool statistics by 

Department of State BuUetin 



governments. Delegates at the third meeting de- 
cided to continue tliis work and ai)proved an en- 
hirgement of the Committee's membership to 
include representatives designated by interested 
member governments and international organiza- 
tions. 

The Technical Connnittee was asked to study the 
extent to which the minimum standard for the 
reporting and collection of wool statistics is being 
met and to make recommendations at the fourth 
meeting of the Group regarding further improve- 
ment in the content and use of the standard. 

It was agreed that the fourth meeting of the 
Group would be held at London during the fourth 
quarter of 1950 unless members should request con- 
vening at an earlier date. 

The following 24 countries were represented at 
the meeting : Argentina. Australia. Belgium, Can- 
ada, Czechoslovakia, Denmark, Dominican Repub- 
lic, Egj'pt, Finland, France, India, Italy, 
Netherlands, New Zealand, Pakistan, Iran, Po- 
land. Switzerland, Turkey, Union of South Af- 
rica, United Kingdom, United States, Uruguay, 
and Yugoslavia. Observers represented the 
Food and Agriculture Organization of the United 
Nations, the Commonwealth Economic Commit- 
tee, the International Wool Textile Organization, 
and the U.K.-Dominion Wool Disposals Limited. 



FAO Commission Discusses Forestry 
Resources , 

Included among the most important items on 
the agenda of the second meeting of the Fag 
Latin American Forestry and Forest Products 
Commission at Lima, Peru, November 14-20, was 
discussion of the proposal for organization of a 
Latin American Institute for Forestry Research 
and Education. 

The Commission approved plans for a central 
institute with five regional stations to insure tech- 
nical coverage of the many forest types found in 
Central and South America. Full advantage is to 
be taken of existing research organizations and in- 
stitutions so that important projects may be ini- 
tiated at once. 

The Governments of Peru and Chile offei-ed to 
initiate regional stations in their areas, and these, 
together with the cooperation of existing institu- 
tions in Central America and the Caribbean area, 
■will permit the Institute for Forestry Research 
and Education to make a prompt and effective 
start. The Secretary of the Commission was in- 
structed to contact all existing forestry research 
centers to determine the tj'pe and amount of co- 
operation that can be provided. This pooling of 
reserves should prevent duplication of research 
effort and unnecessary expenditure of funds. 

The Commission approved the standardization 



of forest-tree nomenclature. A subcommittee of 
the Conference considered the principal commer- 
cial species and recommended universal common 
names for each. Such standardization will be of 
great importance to connnercial exporters because 
common names of trees vary greatly and even sci- 
entific uniformity of nomenclature is not avail- 
able. Moreover, acceptance of standard names by 
commerce will greatly aid trade in Latin Ameri- 
can lumber. 

The lack of uniformity of dimensions and sizes 
of lumber produced was considered and stand- 
ardized dimensions were recommended. This 
standardization, when adopted generally, will 
tend to make movement of lumber much easier in 
the international market. 

A uniform statistical program was adopted 
which will aid operators and prosi)ective oper- 
ators of Latin American forest resources by ena- 
bling them to compare intelligently statistical in- 
formation received from agencies of the various 
governments. 

The Commission acknowledged proposals sub- 
mitted by Italy and France which disclosed the 
possibilities these countries offer for the recruit- 
ment of technical persomiel to work in Latin 
American countries and at the proposed Latin 
American Institute of Forestry and Education. 
It was recommended that other countries, as well 
as the International Refugee Organization, be 
asked to submit lists similar to those submitted 
by France and Italy with sufficient information to 
permit an easy selection of the required personnel. 

In order to facilitate the work of the Fao re- 
gional office, the Commission requested that an in- 
quiry previously undertaken by the Fao con- 
cerning available woods operating machinery be 
reinitiated. The Commission finally recom- 
mended that the regional office give this inquiry 
wide publicity not only among the administrative 
authorities of the different countries but also 
among private organizations, institutions, and in- 
dustrial concerns. 

Another meeting will be called by the president 
of the Forestry and Forest Products Commission 
when accomijlishments warrant further general 
discussion. Meanwhile, the Secretariat of the 
Commission will keep all members informed of 
progress in carrying out the recommendations of 
the second meeting as well as continuing its able 
technical advisory services. 

The following 11 governments were represented 
at the meeting: Bolivia, Chile, Dominican Repub- 
lic, El Salvador, France, Nicaragua, Paraguay, 
Peru, the United Kingdom, the United States, and 
Venezuela. International organizations repre- 
sented were : the Organization of American States, 
the International Labor Organization, the Inter- 
national Refugee Organization, and the Servicio 
Cooperativo Interamencano de Produccion de 
Alimentos (Inter- American Cooperative Service 
for the Production of Food). 



January 2, 1950 



33 



Admission of New Members 



D.N. doc. A/1129 

Resolutions adopted Nov. 22, 1949 



The General Assembly, 

Noting from the special report of the Security Council 
on the reconsideration of the application of Austria for 
membership in the Ignited Nations (A/982) that nine 
members of the Security Council, on 13 September 1949, 
supported a draft resolution recommending the admission 
to the United Nations of Austria, but that no recommen- 
dation was made to the General Assembly because of the 
opposition of one permanent member, 

Deeming it imi)ortant to the development of the United 
Nations that all applicant States which possess the 
qualifications for membership set forth in Article 4 of the 
Charter should be admitted. 

Considering that the opposition to the application of 
Austria was based on grounds not included in Article 4 
of the Charter, 

Recalling the recommendation of the General Assem- 
bly in resolution 197 (III) A of 8 December 1948 that 
each member of the Security Council and of the General 
Assembly, in exercising its vote on the admission of new 
Members, should act in accordance witli the advisoiy 
opinion of the International Court of Justice of 28 May 
1948, which declared that a State was not juridically en- 
titled to make its consent to the admission dependent on 
conditions not expressly provided by paragraph 1 of 
Article 4, 

1. Reaffirms its determination that Austria is, in its 
judgment, a peace-loving State within the meaning of 
Article 4 of the Charter, is able and willing to carry out 
the obligations of the Charter, and should therefore be 
admitted to membership in tlie United Nations; 

2. Requests the Security Council to reconsider the ap- 
plication of Austria, in the light of this determination 
of the General Assembly. 

B. 

The General Assembly, 

Noting from the special report of the Security Council 
on the reconsideration of the application of Coylon for 
membership in the United Nations (A/982) that nine 
members of the Security Council on 13 September 1949, 
supported a draft resolution recommending the admis- 
sion to the United Nations of Ceylon, l)ut tliat no recom- 
mendation was made to the General Assembly because 
of the opposition of one permanent member, 



Deeming it important to the development of the United 
Nations that all applicant States which possess the qual- 
ifications for membership set forth in Article 4 of the 
Charter should be admitted. 

Considering that the opposition to the application of 
Ceylon was based on grounds not included in Article 4 
of the Cliarter, 

Recalling the recommendation of the General Assem- 
bly In resolution 197 (III) A of 8 December 1948 that 
each member of the Security Council and of the General 
Assembly, in exercising its vote on the admission of new 
Members, should act in accordance with the advisory 
opinion of the International Court of Justice of 28 May 
1948, which declared tiat a State was not juridically 
entitled to make its consent to the admission dependent 
on conditions not expressly provided by paragraph 1 
of Article 4, 

1. Determines that Ceylon is, in its judgement, a peace- 
loving State within the meaning of Article 4 of the 
Charter, is able and willing to carry out the obligations 
of the (Charter, and should therefore be admitted to mem- 
bership in the United Nations ; 

2. Requests the Security Council to reconsider the appli- 
cation of Ceylon, in the light of this determination of the 
General Assembly. 

C. 

The General Assembly, 

Noting from the special report of the Security Council 
on the reconsideration of the application of Finland for 
membersliip in the United Nations (A/982) that nine mem- 
bers of the Security Council, on 13 September 1949, sup- 
ported a draft resolution recommending the admission to 
the United Nations of Finland, but that no recommenda- 
tion was made to the General Assembly because of the 
opposition of one permanent member. 

Deeming it important to the development of the United 
Nations that all applicant States which possess the quali- 
fications for membership set forth in Article 4 of the 
Charter should be admitted. 

Considering that the opposition to the application of 
Finland was based on grounds not included in Article 4 
of the Charter, 

Kecallino the recommendation of the General Assembly 
in resolution 197 (III) A of 8 December 1948 that each 
member of the Security Council and of the General Assem- 
bly, in exercising its vote on tlie admission of new Mem- 
bers, should act in accordance with the advisory opinion 
of the International Court of Justice of 28 aiay 1948, which 



34 



Deparfmenf of Sfafe Bulletin 



declared that a State was not Juridically entitled to make 
its consent to the admission dependent on conditions not 
expressly provided by paragraph 1 of Article 4 ; 

1. ReufPrms its determination that Finland is, in its 
Judgment, a peace-loving State witliin the meaning of 
Article 4 of the Charter, is able and willing to carry out 
the obligations of the Charter, and should therefore be ad- 
mitted to membership in the United Nations; 

2. Requests the Security Council to reconsider the appli- 
cation of Finland, in the light of this determination of the 
General Assembly. 

D. 

The General Assembly, 

Noting from the special report of the Security Council on 
the reconsideration of the application of Ireland for mem- 
bership in the T'nited Nations (A/982) that nine members 
of the Security Council, on 13 Septem'ber 1949, supported a 
draft resolution recommending the admission to the United 
Nations of Ireland, but that no recommendation was made 
to the General Assembly because of the opposition of one 
permanent member. 

Deeming it important to the development of the United 
Nations that all applicant States which possess the quali- 
fications for membership set forth in Article 4 of the 
Charter should be admitted. 

Considering that the opposition to the application of 
Ireland was based on grounds not included in Article 4 
of the Charter, 

Recalling the recommendation of the General Assembly 
in resolution 197 (III) A of 8 December 1948 that each 
member of the Security Council and of the General Assem- 
bly, in exercising its vote on the admission of new Mem- 
bers, should act in accordance with the advisory opinion 
of the International Court of Justice of 28 May 1948, which 
declared that a State was not juridicially entitled to make 
its consent to the admission dependent on conditions not 
expressly provided by paragraph 1 of Article 4, 

1. Reafflrms its determination that Ireland is, in its Judg- 
ment, a peace-loving State within the meaning of Article 
4 of the Charter, is able and willing to carry out the obli- 
gations of the Charter, and should therefore be admitted 
to membership in the United Nations ; 

2. Requests the Security Council to reconsider the appli- 
cation of Ireland, in the light of this determination of the 
General Assembly. 

E. 

The General Assembly, 

Noting from the special reports of the Security Council 
on the reconsideration of the application of Italy for 
membership in the United Nations (A/982) that nine 
members of the Security Council, on 13 September 1949, 
supported a draft resolution recommending the admis- 
sion to the United Nations of Italy, but that no recom- 
mendation was made to the General Assembly because 
of the opposition of one permanent member, 

Deeming it important to the development of the United 
Nations that all applicant States which possess the quali- 
fications for membership set forth in Article 4 of the 
Charter should be admitted. 

Considering that the opposition to the application of 
Italy was based on grounds not included in Article 4 
of the Charter, 



Recaluno the recommendation of the General Assem- 
bly in resolution 197 (III) A of 8 December 1948 that 
each member of the Security Council and of the General 
Assembly, in exercising its vote on the admission of new 
Members, should act in accordance with the advisory 
opinion of the International Court of Justice of 28 May 
1948, which declared that a State was not Juridically 
entitled to make its consent to the admission dependent on 
conditions not expressly provided by paragraph 1 of 
Article 4, 

1. Reafflrms its determination that Italy is, in its Judg- 
ment, a peace-loving State within the meaning of Article 
4 of the Charter, is able and willing to carry out the obli- 
gations of the Charter, and should therefore be admitted 
to membership in the United Nations ; 

2. Requests the Security Council to reconsider the ap- 
plication of Italy, in the light of this determination of 
the General Assembly. 



The General Assembly, 

Noting from the special report of the Security Council 
on the reconsideration of the application of Jordan for 
membership in the United Nations (A/982) that nine 
members of the Security Council, on 13 September 1949, 
supported a draft resolution recommending the admis- 
sion to the United Nations of Jordan, but that no recom- 
mendation was made to the General Assembly because 
of the opposition of one permanent member, 

Deeming it important to the development of the United 
Nations that all applicant States which possess the quali- 
fications for membership set forth in Article 4 of the 
Charter should be admitted, 

CoNsiDEBiNo that the opposition to the application of 
Jordan was based on grounds not included in Article 4 
of the Charter, 

Recaxlino the recommendation of the General Assem- 
bly in resolution 197 (III) A of 8 December 1948 that 
each member of the Security Council and of the General 
Assembly, in exercising its vote on the admission of new 
Members, should act in accordance with the advisory 
opinion of the International Court of Justice of 28 May 
1948, which declared that a State was not Juridically 
entitled to make its consent to the admission dependent 
on conditions not expressly provided by paragraph 1 of 
Article 4, 

1. Reafflrms its determination that Jordan is. in its judg- 
ment, a peace-loving State within the meaning of Article 
4 of the Charter, is able and willing to carry out the obli- 
gations of the Charter, and should therefore be admitted 
to membership in the United Nations ; 

2. Requests the Security Council to reconsider the ap- 
plication of Jordan in the light of this determination of 
the General Assembly. 

G. 

The General Assembly, 

Noting from the special report of the Security Council 
(A/9<i8) that nine members of the Security Council, on 
9 March 1949, supported a draft resolution recommending 
the admission to the United Nations of the Republic of 
Korea, but that no recommendation was made to the Gen- 



January 2, 1950 



35 



eral Assembly because of the opijosition of one permanent 
member, 

Deeming it important to the development of the United 
Nations that all applicant States which possess the qnali- 
fications for membership set forth in Article 4 of the Char- 
ter should be admitted, 

Considering that the opposition to the application of the 
Republic of Korea was based on grounds not included in 
Article 4 of the Charter, 

Recalling the recommendation of the General Assembly 
in resolution 107 (III) A of 8 December 11148 that each 
member of tlie Security Council and of the General Assem- 
bly, in exercising its vote on the admission of new Mem- 
bers, should act in accordance with the advisory opinion 
of tlie International Court of Justice of 28 May 1"J4S, which 
declared that a State was not juridically entitled to make 
its ciinsent to the admission dependent on conditions not 
expressly provided by paragrapli 1. of Article 4. 

1. Dtt( riiiitifK tliat the Republic of Korea is, in its judg- 
ment, a peace-loving State within the meaning of Article 
4 of the Charter, is able and willing to carry out the obli- 
gations of the Charter, and should therefore be admitted 
to membership in the United Nations; 

2. R((iiii .stn the Security Council tn rc(iinsi<ler the appli- 
cation of the Republic of Kfu'ea, in tlie light of this de- 
termination of the General Assembly. 

H. 

The General Assembly. 

Noting from the special report of the Security Council 
on the reconsideration of the application of Portugal for 
membershii) in the United Nations (A/082) that nine 
members of the Security Council, on 13 September 1949, 
supported a draft resolution recunmiending the admission 
to the United Nations of Portugal, but that no recom- 
mendation was made to the General Assembly bei'ause of 
the opposition of one permanent member, 

Dekmi.ng it inijiortant to the development of the United 
Nations tliaf all applicant States whii'h possess the (|uali- 
flcations for nienibersliip set forth in Article 4 of the i 'liar- 
ter should be admilted. 

CONSinKIiINO Dial I lie njipesilidll to llle .1 pplii:i I ietl of 

Portugal was based on grounds not included in .\rtlcle 4 
of the Chartei-, 

Rf.C.M.LI.N'c; the recoiMlueu<l;itiiiii of tlie Genei'al Asseiubly 
in resolutlen i;i7 (III) .\ nf .v 1 )eiciiiljer I'.ilS tb.-il each 
lueiiilier ol the Se<'Urily ( '"Unell anil nf I lie General .\sseni- 
bly, in exercising its \(ite en tlie ailiuissieii nf new .Mem- 
bers, should act in aeenrdanie with tlie uilvismy epinion 
of the International Court of ,lusliee nf 2S .M:iy litis, which 
declared that a State was not juridically entitled to make 
its consent to the admission dependent on conditiniis imt 
exjiressly pidvided by ii.aragraph 1, of .\rticle 4. 

1. Ixtiifl'inna its determiTi.atiou that I'mtugal is in its 
jtidgmi^nt a peace-loving Sl.ate within the meaning of 
Article 4 of the Charter, is able and willing to carry out 
the obligations of (lie Cliiirter, and should therefm-e bc> 
admitt<'d to luembershii) in the United Nations; 

2. RiiiuchIh the Security Council to reconsider the ap|ili- 
cation of Portugal, in the light of this delerminal ien of 
the General Assembly. 



The General Assemlily, 

Noting from the .special report of the Security Council 
(A/974) that nine members of the Security Council on 
7 September 1949, supported a draft resolution recom- 
mending the admission to the United Nations of Nepal, 
but that no recommendation was made to the General 
Assembly because of the opposition of one permanent 
member, 

Di.EMiNG it important to the development of the United 
Nations that all applicant States which possess the quali- 
fications for membership set forth in Article 4 of the 
Charter should be admitted. 

Considering that the oiipesition to the application of 
Nepal was based on grounds not included in Article 4 of 
the Charter, 

Recalung the recommendation of the General Assem- 
bly in resolution 197 (III) A of 8 December 1948 that 
each member of the Security Council and of the General 
Assembly, in exercising its vote on the admission of new 
Members, should act in accordance with the advisory 
opinion of the International Court of .Justice of 28 May 
194S, wliich declared that a State was not juridically en- 
titled to make its consent to the admission dependent on 
conditions not expressly provided by paragraph 1 of 
Article 4, 

1. Del crmi ties that Nepal is, in its judgment, a peace- 
loving State within the meaning of Article 4 of the 
Chai-ter, is tible and willing to carry out the obligations 
of the Charter, and should therefore be admitted to mem- 
bership in the United Nations; 

2. Requests the Seiurity Council to reconsider the ap- 
plication of Nepal, in the light of this determination of ( 
the General Assembly. 

J. 

The General As.semlily, 

Keeping in mind the discussion <-oncerniiig the admis- 
sion of new members in the .\<l Hoc Political Committee 
at its fourth regular session, 

R((IU(xts the International (^ourt of ,Tustice to give an 
advisory opinion on the following question : 

"Can the admission of a State to nieiiibeishiii in the 
United Nations, iiursnant to Articli' t. paragraph 2, of 
the Charter, be elTeeted by a deeision of the General As- 
senibl,\ when llie Security Cnunril h.as made no recom- 
mendation f(U- admissinu by reason of the candidate fail- 
ing to obl.ain the reipiisile m.ajority or of the negative 
vote of a permanent member iiiioii a resolution so to 
recommend?" 

K. 

The (ieueral Assembly, 

CoNsinivKiNO the special report of the Secui-ily Coimcil 
on the admission of new Members (.\/;).S2), 

1. I\'i i/iKsIx the Slates iiermaiienl members of the Se- 
curity Council to rel'r.ain from the use of the veto in 
connexion with the recommen<lation of Slates for mem- 
bership in the United Nations; 

2. R((iu(«t.s tlie Secinity Council to keep luider consid- 
eration, in the light of .Vrticle 4, paragrai>li 1, of the 
Charier, the iiending applications of all States which so 
far have not gained admission lo the United Nations. 



36 



Department of State Bulletin 



Calendar of Meetings ^ 



Adjourned During December 

Iti' (International Telecommunication Union): 

Meeting of the Technical Plan Committee of the Interna- Paris June 23-Dec. 5 

tional Hish Frequency Broadcasting Conference. 

Third North American Regional Broadcasting Conference. . Montreal Sept. 13-Dec. 9 

Ic.\o (International Civil Aviation Organization): 

Council: Eighth Session Montreal Sept. 6- Dec. 13 

United Nations: 

General Assembly Lake Success Sept. 20-Dec. 10 

Ecosoc (Economic and Social Council) : 

Social Commission; Fifth Session Lake Success Dec. 5-16 

Tru.'iteeship Council: Special Session Lake Success Dec. 8- 

Council of Foreign Ministers: 

Deputies for Austria New York City Sept. 23-Dec. 14 

UNESCO (United Nations Educational, Scientific and Cultural 
Organization) : 

International Seminar on Rural and Adult Education . . . New Delhi Nov. 2-Dec. 14 

F.\o (Food and .Agriculture Organization) : 

Annual Conference: Fifth Session Washington Nov. 21-Dec. 7 

Council: Eighth Session Washington Dec. 8 (one day) 

Ilo (International Labor Organization): 

Industrial Committee on Iron and Steel: Third Session . . . Geneva Nov. 22-Dec. 3 

Advisory Committee on Juvenile Employment: First Session. Geneva Dec. 5-6 

Caribbean Commission: Ninth Meeting St. Thomas, Virgin Islands . . . Dec. 5-10 

In Session as of January 1, 1950 

(Does not include conferences convened prior to January 1, 1949) 

United Nations: 1949 

Conciliation Commission for Palestine Haifa, Rhodes and Lausanne . . Jan. 17- 

International Authority for the Ruhr Dusseldorf Apr. 28- 

Port-au-Prince Bicentennial Exposition Port-au-Prince Dec. 8- 

Ilo (International Labor Organization): 

Governing Body: llOtli Session Mysore, India Dec. 29- 

Scheduied January 1 to March 31, 1950 

IcAO (International Civil Aviation Organization) : 1950 

Legal Committee: Fifth Session Taormina, Italy Jan. 5- 

Council: Ninth Session Montreal Jan. 24- 

Meteorological Division: Third Session Paris Feb. 14- 

Special African-Indian Ocean Regional Communications Paris Mar. 21- 

Committee Meeting on Aeronautical Fi.\ed Telecommun- 
ications Services. 
United Nations: 

Ecosoc (Economic and Social Council): 

Subcommission on the Prevention of Discrimination and Lake Success Jan. 9- 

the Protection of Minorities: Third Session. 

Economic and Employment Commission: Fifth Session . Lake Success Jan. 9- 

Tenth Session Lake Success Feb. 7- 

Economic Commission for Asia and the Far East: Third Undetermined February 

Meeting of Subcommittee on Iron and Steel. 

Population Commission: Fifth Session Lake Success Mar. 20- 

Transport and Communications Commission: Fourth Lake Success Mar. 20- 

Sossion. 

Human Rights Commission: Sixth Session (Jeneva Mar. 27- 

Subcommission on Economic Development: Fourth Lake Success Mar. 27- 

Session. 
Trusteeship Council : Sixth Session Geneva January 

' Prepared in the Division of International Conferences, Department of State. 
January 2, 1950 37 



Calendar of Meetings — Continued 



Scheduled January 1 to March 31, 1950 — Continued 

Committee on the 1950 Census of the Americas: Third Session . 
Ilo (International Labor Organization): 

First Asian Regional Conference 

Preparatory Technical Tripartite Conference on Training of 
Adults. 

Committee of Social Security Experts: First Session .... 

Governing Body; 111th Session 

International Conference of Experts on Pneumonconiosis . 
Who (World Health Organization) : 

Executive Board: Fifth Session 

Second Session of the Inter-American Statistical Institute . . 
Fao (Food and Agriculture Organization) : 

Nutrition Committee for Southeast Asia 

International Rice Commission: Second Meeting 

Four Power Discussions Regarding Swiss-Allied Accord . . . 
General Agreement on Tariffs and Trade: Fourth Session of 

Contracting Parties. 
Ittj (International Telecommunication Union) : 

Technical Plan Committee of the International High Fre- 
quency Broadcasting Conference: Second Session. 
Ibo (International Refugee Organization): 

General Council: Fifth Session 

Executive Committee: Seventh Session 

Inter-American Council of Jurists 



Bogota Jan. 9- 

Colombo, Ceylon Jan. 1&- 

Geneva Jan. 23- 

Wellington Feb. 8-20 

Geneva Feb. 27- 

Australia Feb. 28-Mar. 11 

Geneva Jan. 16- 

Bogoti Jan. 16-28 

Rangoon Jan. 30- 

Rangoon Jan. or Feb. 

Bern Jan. or Feb. 

Geneva Feb. 23- 

Florence Mar. 1 

Geneva March 

Geneva March 

Rio de Janeiro March 



THE FOREIGN SERVICE 



Mrs. Paul H. Ailing Appointed 
to Personnel Guidance Program 



countries and in regard to their responsibilities in 
officially representing the United States abroad. 

Although questions of diplomatic protocol are 
naturally a part of this discussion, the emphasis is 
on the importance of conforming to high stand- 
ards of conduct and on interpreting America 
abroad in such a way as to bring credit on this 
country and its people. 



[Released to the press December 19] 

In order to help new employees of the American 
Foreign Service adjust to foreign customs and con- 
ditions, the Department of State has for several 
years conducted orientation and training programs 
for them. An important part of their orientation 
for overseas duty has been individual personnel 
counseling on such subjects as food, clothing, 
household equipment, health problems, child care 
and education, and adjustment to the life of the 
particular foreign country and post. 

To strengthen this personnel guidance program, 
the Department has recently employed a Foreign 
Service wife of 25 years experience as an additional 
personnel counselor. She is Mrs. Paul H. Ailing, 
whose Inisband died recently while serving as Am- 
bassador to Pakistan. Mrs. Ailing started her life 
in the Foreign Service in 1024 when her husband 
was a young vice consul and served with him at 
Beirtit, Alejjpo, Damascus, Tangier, and Karachi, 
as well as for a number of years in AVashington. 

Mrs. Ailing has been on the job for several 
months. She advises new employees, including 
young officers and their wives, in regard to prob- 
lems of family life and child-rearing in foreign 



Chiefs of U. S. Missions in 

Other American Republics To Confer 

[Released to the press December 19] 

Two meetings for United States Ambassadors in 
the other American Kepublics have been scheduled 
for the near future. The first will take place at 
Habana, January 18-20; the second at Rio de 
Janeiro, JNIarch 1-^3. Between the two, attendance 
will include all Ambassadors of the United States 
to the other American Republics. These gather- 
ings, which are to occur periodically, are in accord 
with the Department of State's new policy of hav- 
ing our Ambassadors the world over mftt in re- 
gional conferences to discuss matters of mutual 
interest in their area. 

Edward O. Miller, Jr., Assistant Secretary 
for Inter-American Affairs, will attend both 
meetings. His attendance at the Rio meeting will 
follow visits which he intends to make in February 
and March to Port-au-Prince, Haiti (where he will 
attend the opening of the Bicentennial Exposi- 
tion), the Dominican Republic, Puerto Rico, 



38 



Department of State BuUetin 



and thereafter, in the following order, Argentina, 
Uruguay, and Paraguay. These visits, imluding 
his trip to Brazil, are part of Mr. Miller's program 
of visiting all of the other American Republics for 
acquaintance and observation. 

The meeting at Rio de Janeiro will also be 
attended by George F. Kennan, Counselor of the 
Department, who is proceeding in February on a 
study tour of certain of the American Republics. 

Mr. Miller will be accomi^anied at both Habana 
and Rio by William P. Hughes, Executive Direc- 
tor of the Bureau of Inter-American affairs, and 
bj' the appropriate directors of the regional offices 
in the Bureau. It is also planned that Ivan B. 
White, Economic and Labor Adviser in the 
Bureau, will attend the Habana meeting. 

These regional conferences are one phase of the 
reorganization of the Department of btate. Sim- 
ilar regional conferences were held October 24^25 
at London, with chiefs of United States diplomatic 
missions in Eastern Europe attending; and at 
Istanbul, Turkey, on November 26, with chiefs of 
United States diplomatic missions to the Near 
East. Representatives of certain United States 
diplomatic and consular missions in Africa will 
meet January 9 at Louren^o Marques, Mozam- 
bique. A similar meeting is planned for Far 
Eastern chiefs of mission in which Ajnbassador-at- 
Large Jessup will be in attendance. 

The purpose of all of these meetings is to bring 
together for consultation with chiefs of missions 
in various parts of the world, officers of the For- 
eign Service, the Department, and other interested 
United States agencies in the interests of maximum 
coordination in the administration of our foreign 
policy abroad. 

Consular Offices in China Closed 

Tbe following American Foreign Service posts in China 
have closed since July 1949 : 

Consulate General, Canton was closed to the public on 
August 19 and officially on August 24 ; ' 

Consulate, Chungking, was closed both to the public 
and officially on November 19 ; 

Consulate, Darien, was closed both to the public and 
officially on October 21 ; ' 

Consulate General, Hankow, was closed to the public 
on October 1, and officially on December 5 ; ' 

Consulate, Kunming, was closed to the public on No- 
vember 10 and officially on December 10 ; 

Consulate General, Mukden, was closed officially on 
December 6 ; 

Consulate, Tihwa, was closed to the public on August 
16, and officially on September 27 ; ' 

Consulate General, Tsingtao, was closed to the public 
October 15 but not officially before departure of consular 
stafE. 



THE CONGRESS 



' Bulletin of Aug. 29, 1949, p. 318. 
' Bulletin of Nov. 7. 1949, p. 714. 
' Bulletin of Sept. 19. 1949, p. 442. 
' Bulletin of Oct. 3, 1949, p. 519. 



Legislation 

Export-Import Bank — Polish Loans. Hearings before 
tlie Investigations Subcommittee of the Committee on 
E.xpenditures in the Executive Departments, United States 
Senate, Eighty-first Congress, First Session, pursuant to 
S. Res. 52, a resolution authorizing the Committee on 
Expenditures in the Executive Departments to carry out 
certain duties. May 16, 17, and 18, 1949. v, 119 pp. 

United States Flag Shipping Under the Eca Program. 
Hearings before the Special Watchdog Committee on the 
Carriage of Cargo Under the Eca Program of the Com- 
mittee on Merchant Marine and Fisheries, House of Rep- 
resentatives, Eighty-flrst Congress, First Session. May 
19, 1949. iii, 30 pp. 

Settlement of Claims Against Foreign Governments 
(Yugoslav Claims) Hearings before the Committee on 
Foreign Affairs, House of Representatives, Eighty-flrst 
Congress, First Session on H. R. 4406, a bill to provide for 
the settlement of certain claims of the Government of the 
United States on its own behalf and on behalf of American 
nationals against foreign governments. May 18, 20, 23, 
and 24, 1949. iil, 79 pp. 

International Claims Commission. Hearing before a 
Subcommittee of the Committee on Foreign Relations, 
United States Senate, Eighty-first Congress, First Session, 
on S. 1074, a bill to provide for the settlement of certain 
claims of the Government of the United States on its own 
behalf and on behalf of American nationals against for- 
eign governments. June 17, 1949. iii, 27 pp. 

Merchant Marine Study and Investigation (Transfer of 
American Ships to Foreign Registry) Hearings before a 
Subcommittee of the Committee on Interstate and Foreign 
Commerce, United States Senate, Eighty-flrst Congress, 
First Session, pursuant to S. Res. 50, a resolution author- 
izing the Committee on Interstate and Foreign Commerce 
to investigate problems relating to the United States Mer- 
chant Marine. Part 1. June 21 and 22, 1949. iii, 98 pp. 

Korean Aid. Hearings before the Committee on Foreign 
Affairs, House of Representatives, Eighty -flrsl Congress, 
First Session, on H. R. 5330, a bill to promote world peace 
and the generel welfare, national interest, and foreign 
policy of the United States by providing aid to the Re- 
public of Korea. June 8, 9, 14, 15, 16, 17, 20, 21, and 23, 
1949. iv, 207 pp. 

To Amend the Philippine Rehabilitation Act of 1946. 
Hearing before a Subcommittee of the Committee on the 
Judiciary, United States Senate, Eighty-flrst Congress, 
First Session, on S. 1033, a bill to further amend the Philip- 
pine Rehabilitation Act of 1946. June 30, 1949. iii, 23 pp. 

Institute of Inter-American Affairs. Hearings before 
a Special Subcommittee of the Committee on Foreign 
Affairs, House of Representatives, Eighty-flrst Congress, 
First Session, on H. R. 2957. a bill to amend the Institute 
of Inter-American Affairs Act. July 5, 0, 11, 1949. iv, 
95 pp. 

Importation of Foreign Farm Labor. Hearing before 
Subcommittee No. 2 of the Committee on Agriculture, 
Hou.se of Repre-sentatives, Eighty-flrst Congress, First 
Session, on H.R. 5557. July 14, 1949. iii, 32 pp. 



January 2, T950 



39 



wyn/e/nA' 



United Nations and 
Specialized Agencies 

Fourth Regular Session of the General As- 
sembly — Summary of Action, September 
2a-December 10, 1949. By Elizabeth 
Ann Brown 

Admission of New Members 

General Policy 

U. S. Demands Hungary Release American 
Citizen- — Further Measures Will Be 
Taken If Action Is Not Prompt .... 

Account of Vice Consul Olive's Detention by 
Shanghai Communists 

Chinese Issue Second Port-Closure Order . . 

Japanese Officials To Study U. S. Govern- 
ment Procedures 

Warning to Ships Approaching Korea . . . 

Occupation Matters 

Soviet Union Still Refuses To Cooperate in 
Repatriation of Japanese. Statement 
by William J. Sebald 

Control of Foreign Exchange and of the 
Movement of Property — Law No. 53, 
Revised 

Treaty Information 

Colonial Airlines Told Logan Act Not In- 
volved in Case Before C'anadian Transit 
Board. Statement by Secretary .\che- 
son 

Tariff Modifications With Haiti Announced . 

U.S.-Argcntina To Consult on Double Tax- 
ation Treatv 



Page 



3 

34 



21 

23 
23 

28 
2S 



24 



17 



29 
30 

31 



Economic Affairs page 

Ecuador Receives Loan From Export-Import 

Bank 29 

U.S.-U.K. Discuss Dollar Drain on Sterling 

Areas in Oil Operations 30 

Argentine-U.S. Commercial Relations 

Studied 31 

A Review of the World Wool Situation. By 

James 0. Evans 32 

Fao Commission Discusses Forestry Re- 
sources 33 

National Security 

Status of Mutual Defense Assistance Pro- 
gram. Statement by Secretary Acheson. 16 

International Information and 
Cultural Affairs 

V0.\ Inaugurates Broadcast to Turkey ... 31 

International Organizations 
and Conferences 

A Review of the World Wool Situation. By 

James G. Evans 32 

Fao Commission Discusses Forestry Re- 
sources 33 

Calendar of Meetings 37 

The Foreign Service 

Mrs. Paul H. Ailing Apjiointed to Personnel 

Guidance Program 38 

Chiefs of U.S. Missions in Other .\merican 

Republics To Confer 38 

Consular Offices in China Closed 39 

The Congress 

Legislation 39 



c 



iomvtmmotc/] 



'M 



ICIirtthilli Ann liiriirn, .-nilliDr <<f the summary of major 
UniliMl Xnliiins jiclion, is a Foreign Affairs officer. Officer 
of I'liiteil N;iti(ins Political and Security -\tifairs. Depart- 
ment of State. 

JtniKK G. Ernnn, author of the article on the luler- 
n;ilii>nal Wool Study (iroup. is an ollicer on the Economic 
Resources and Security Staff, Department of State. 



U.S. GOVERNMENT PRINTING OFFICE: 1950 



_Jl^, 



Ky/te/ ^eha/y£men(/ xw trtaCe^ 



iTa lU JLAl'AT 
TRADE 59 

FUTURE WORLD MUST SEE CLOSE ASSOCMTION 
OF FREE NATIONS 52 

PRESENT RELATIONS WITH INDIA • By Amhas^dor 

Loy W. nendemnn 43 

PROBLEMS IN AnilEVINC A STARLF TIN 

INDUSTII 47 



\ 




For complete contents see batik cover 



io.549 
January 9, 1950 





*.^.,wy^,. bulletin 



Vol. XXII, No. 549 • Publication 3716 
January 9, 1950 



For sale by the Superintendent of Documents 

U. S. Government Printing Office 

Wasiiington 26, D. C. 

Price: 

62 issues, domestic $6, foreign $8.50 

Single copy, 20 cents 

The printing of this publication has 

been approved by the Director of the 

Bureau of the Budget (February 18, 1949). 

Note: Contents of this publication are not 
copyrighted and items contained herein may 
be reprinted. Citation of the Department 
or State Bulletin as the source will be 
appreciated. 



The Department of State BULLETIN, 
a weekly publication compiled and 
edited in the Division of Publications, 
Office of Public Affairs, provides the 
public and interested agencies of 
the Government with information on 
developments in the field of foreign 
relations and on the work of the De- 
partment of State and the Foreign 
Service. The BULLETIN includes 
press releases on foreign policy issued 
bj' the White House and the Depart- 
ment, and statements and addresses 
made by the President and by the 
Secretary of State and other officers 
of the Department, as well as special 
articles on various phases of inter- 
national affairs and the functions of 
the Department. Information is in- 
cluded concerning treaties and in- 
ternational agreements to which the 
United States is or may become a 
party and treaties of general inter- 
ruitional interest. 

Publications of the Department, as 
well as legislative material in the field 
of international relations, are listed 
currently. 



PRESENT RELATIONS WITH INDIA 



hy Lotj IT'. Uenderson, Ame'rican Ambassador to India 



Ambassador Loy Hendei-son addressed the For- 
eign Relations Society at Xew Delhi on December 
23, 1949. One of the aims as expressed by that 
society is the promotion of "good will and friendly 
relations, good understanding and cooperation in 
political, economic, and cultural affairs between 
all countries of the world." ^Vmbassador Hen- 
derson continued his address as follows : 

^\Tiere there is initial good will and sincere 
mutual effort, friendly relations are likely to fol- 
low. Friendly relations are the main channel to 
good understanding between peoples or nations 
that facilitates cooperation, provided, of couree, 
the attainment of understandmg does not reveal 
evil intent. 

Mutual Understanding 

Good will already exists between our countries. 
In fact, one of the most striking similarities be- 
tween Indians and Americans is that the cultural 
heritage of both prompts them in general to ap- 
proach the world in a spirit of good will. Both 
peoples are inclined to reject philosophies which 
in essence or in method of propagation are based 
on hatreds. Both are prone to take it for gi-anted 
that other peoples are also motivated by kindliness 
and good will and are shocked and disappointed 
when their friendly overtures, either as nations or 
as individuals, are met by rebuffs or indifference. 
It is true that from time to time certain elements 
in each of our countries make efforts to arouse ani- 
mosities, unduly to stress or to magnify real or 
imaginary national faults or weaknesses in the 
other, and maliciously to misinterpret the inten- 
tions of the otliers. Fortunately, these elements 
are not representative and are in the minority. 



Our mutual good will facilitates the maintenance 
of the kind of friendly relations between us which 
are advantageous not only to India and the United 
States but to the whole community of nations. 
One of the tests of the genuine friendliness of 
relations between peoples or governments is the 
ability of both partners to maintain such relation- 
ship without rancor, to discuss and analyze among 
themselves fancied or real divergencies in views 
or policies, and thus to discover and isolate the 
factors responsible for such divergencies as are 
found actually to exist. Although such friendly 
relations have been established between our efov- 
ernments and between our peoples, we cannot af- 
ford to slacken our joint efforts to deepen and 
broaden them. This we can do by continuing to 
promote better understanding and closer coop- 
eration. 

Prime Minister's Visit Promotes Friendship 

One of the purposes of meetings of this kind is 
the furtherance of good understanding between 
our respective countries. During recent months, 
notable progress has been made in this direction. 
The visit of your Prime Minister has done much to 
bring about in the United States a better imder- 
standing of Indian political, economic, and cul- 
tural policies and conditions. It has strength- 
ened the realization of millions of i\jnericans that 
the new independent India is already becoming a 
vibrant facfor in world affairs and that, although 
there may be superficial differences in customs and 
manners, they have much in common with the 
people of India, including a similar individual and 
national sense of morality, an earnest desire for 
social justice, and a craving for civil liberties. 



January 9, 1950 



43 



The visit of the Prime Minister also helped to 
demonstrate the need for strengthening our under- 
standing of each other. I have been somewhat 
impressed, for instance, at the lack of understand- 
ing of the United States Government and people 
exhibited by certain elements in India which 
seemed to have a genuine apprehension lest the 
United States take advantage of the presence of its 
distinguished guest to try to prevail upon the Gov- 
ernment of India to alter various of its foreign 
or domestic policies. This apprehension was ap- 
parently so deep that your Prime Minister has 
found it necessary on a number of occasions to 
deny that while in the United States he had 
entered into any kind of a secret deal or had made 
any agreement behind the scenes. 

On behalf of the United States, I would like 
to add to these statements of the Prime Minister 
that, in inviting liim to be its guest, there had 
never been any intention on the part of my Gov- 
ernment to abuse its hospitality by endeavoring 
to persuade him that India should alter any of 
its policies or should form any ties or make any 
commitments, and I can state unequivocally that 
neither directly nor indirectly while your Prime 
Minister was in the United States was such an 
endeavor made. Anyone who really understands 
the American people would realize how distaste- 
ful it would have been to them for their govern- 
ment to take so unfair an advantage of a 
guest. . . . 

Combating Communism 

There seems to be a feeling among some of my 
Indian friends that the United States is devoting 
too much of its means and energies to combating 
communism. The fact is that the people of the 
United States do not conceive that their efforts 
are directed to the combating of a mere ideology. 
It is their belief that they are earnestly striving 
to eliminate aggression among nations and to dis- 
courage the deprivation by force of the liberty 
of peaceful peoples and the imposition upon them 
of a way of life repugnant to them. We have 
learned from sad experience that if peoples of 
good will interested in the maintenance of world 
peace remain inert while aggressors overpower one 
by one their weaker neighbors, a situation is al- 
most certain to develop which will lead to wars 
even more disastrous than tliose which have taken 
place during the first half of this century. We 
are doing our best to discourage aggression be- 



cause we are convinced that if we do not, it 
will run amuck and destroy the peaceful world 
structure which all nations of good will are striv- 
ing to improve and strengthen. 

We realize that in the present world there are 
many gross imperfections. It is our belief that 
with patience, perseverance, and international 
good will the nations of the world, individually 
and in cooperation, can in an orderly fashion elimi- 
nate most of these imperfections. We are ad- 
dressing ourselves to this task. In the meantime, 
however, we believe that we must do our share 
to protect what has already been built from de- 
struction by aggression and to prevent the reduc- 
tion of a fairly orderly world to chaos. 

Tlie "Power Bloc" and Cooperative Action 

In this connection, there is noticeable in certain 
circles of India what seems to us to be another 
fallacy — another fancied divergency between the 
policies of the United States and those of India. 

Some of my Indian friends have expressed this 
to me somewhat as follows : The world is divided 
into two great power blocs in one of which the 
United States is a prominent member. According 
to them, these two blocs are engaged in a cold war 
with each other and the members of these blocs, in 
making decisions in international affairs, are in- 
clined not to consider the moral aspects of each 
problem but rather to give weight to the influence 
which their decisions might have upon their suc- 
cess in the conduct of this cx)ld warfare. India, 
on the other hand, so my friends emphasize, re- 
frains from alining herself with either of these two 
power blocs and decides each question relating to 
international issues on its merits. My Indian 
friends seem to believe that whereas the interested 
combatants of the cold war, such as the United 
States, are concentrated on preparation for actual 
warfare, India is devoting its attention to improv- 
ing the lot of the common man. 

We Americans feel that such a divergence in 
the policies of the United States and India does 
not really exist. The idea that tliere is such a 
divergence seems to us to be based upon a mis- 
understanding of what the United States is trying 
to do and is doing and upon tlie hopes and ideals 
of the American people themselves. 

We do not consider that the United States 
adheres to what we could call a "power bloc." It 
is true that the United States looks toward other 
members of jrood will of the United Nations for 



44 



Deparfment of State Bulletin 



cooperation in discouraging aggression. It seeks 
tliis cooperation, liowever, in the spirit of the 
Cluirter of the United Nations in order to 
strengthen the principles on which the United 
Nations itself is based. Only if the term, "power 
bloc," could be defined to mean the cooperation of 
nations of good will for the purpose of discourag- 
ing aggiession could the United States from our 
point of view be said to belong to such a bloc. I 
wonder, however, if our Indian friends really in 
the back of their minds place a group of nations 
cooperating to discourage aggression on the same 
level as nations welded together for aggressive 
purposes. 

I should also like to stress that, from the Ameri- 
can point of view, the United States follows a 
policy identical with that espoused by our Indian 
friends; namely, the making of decisions with 
regard to international problems on the merits of 
each problem. The people of the United States 
would never permit their Government to make 
immoral international decisions merely in order to 
strengthen their Government's position in a cold 
war. Furthermore, the strength of the coopera- 
tive opposition to aggression is derived largely 
from the fact that it bases itself on the principles 
of the United Nations Charter, and the failure of 
the United States or any nation cooperating with 
it to live up to these principles merely in order 
to gain a temporary advantage in a cold war would 
be shortsighted, indeed. In fact, the kind of a 
decision which from our point of view would 
be most immoral would be for the United States, 
in an endeavor to come to terms with aggressors, 
to agree to leave small and defenseless nations to 
their mercy. It would be not only immoral but 
foolish since the guilty and uneasy peace which 
might follow would in any event be short-lived. 

Most Americans believe that both India and the 
United States are really trying to make decisions 
on the basis of merit with regard to each interna- 
tional problem as it arises. You may well ask 
how, if their belief is correct, there are at times 
divergencies in the intei-national decisions made 
by our respective countries. The answer would 
seem to be that, even though both coimtries may 
be endeavoring to uphold the same principles, 
there may be honest differences in the weighing 
and interpretation of all the facts involved. Cer- 
tain facts may seem much more important to one 
of us in view of its international position and 
historical background than to the other. Never- 



theless, differences of this kind should not cuuse 
one of us to impugn the motives or the morals of 
the other. 

Relieving World Distress 

Few Americans would accept the thesis that the 
United States is more interested in preparing for 
war than in relieving the distress of suffering peo- 
ple throughout the world. They do not see how 
anyone who makes a really serious study of what 
has taken place since 1945 can fail to realize that 
never before in history has any country opened its 
stores and its coffers to assist suffering peoples in 
other countries to a greater extent than has the 
United States. Since the termination of the war, 
it has added many billions of dollars to its already 
huge national indebtedness and has made inroads 
on its natural resources in order to assist other peo- 
ples, and it is still doing so. Much of this assist- 
ance has been in the form of food, clothing, shelter, 
and medicines, some of which at the time of their 
export were badly needed in the United States 
itself. In spite of the highest taxes and public 
debt in our history, we are still contributing to 
the welfare of other peoples either directly or 
through a number of international organizations. 

It must be remembered, however, that the wealth 
and resources of the United States are not inex- 
haustible. It has been impossible for the United 
States to meet simultaneously the crying needs 
which exist in nearly every quarter of the world. 
Its inability to do so unfortunately results at times 
in bitter criticism and lack of appreciation of what 
it has done and is trying to do. In view of this 
inability, it has been compelled to allocate its 
available resources where, in its opinion, they 
would be most effective in attaining the objective 
of bringing about a stable, prosperous, and pro- 
gressive world society. The judgment displayed 
in the making of thes^e allocations may be open to 
question but certainly not the motives. 

Responsibilities of Peace 

The American people have not limited the ex- 
pression of their interest in other peoples merely 
to the extension of economic assistance. In the 
forum of the United Nations and through diplo- 
matic and other channels, the United States has 
been consistently trying to aid peoples whose liber- 
ties are being threatened or who are seeking a 
fuller degree of self-government. 

In giving this assistance, we have tried to 



January 9, 7950 



45 



bear in mind that overhasty and dramatic action 
sometimes results in more suffering than benefit 
to those whom we are trying to help. The heavy 
responsibilities which have been imposed upon us 
impel us not to forget that human progress is 
achieved by constructive not by destructive 
methods. 

We have, therefore, endeavored to prevent in- 
ternational situations from developing in a man- 
ner which would be conducive to violence and dis- 
order and would increase rather than decrease 
human unhappiness. I feel confident that the ma- 
jority of the people of India who are keeping 
themselves informed with regard to world events 
do not believe that the United States is indifferent 
to the welfare of peoples within or outside its 
confines. 

No peoples more than the Americans, them- 
selves, deplore the fact that the United States finds 
it necessary to utilize so much of its energies and 
resources for military purposes. A cai-ef ul study 
of our history, particularly that of the last 50 
years, should make it clear that we are inherently 
a peaceful people and that we have consistently 
struggled for the maintenance of world peace. 
The last two world wars found us unprepared. 
Other nations, therefore, had to bear the brimt of 
asrsression until we could mobilize our material 
and human forces for their assistance. Until it 
becomes clear that there is no serious threat to 
world peace from any quarter, we do not feel that 
it would be fair to the American people or to 
other people of good will for us to be totally un- 
prepared for that which we fervently hope will 
not take place. An examination of our military 
preparedness must show, however, that it is en- 
tirely of a defensive nature. Our hand is out- 
stretched in friendship to all nations of the world 
which are willing without reservation to abandon 
force as a means of the carrying out of national 
policies and to refrain from engaging in activities 
designed to stir up hatreds and disrupt the peace. 

National Problems in International Affairs 

Please do not obtain the impression that, in thus 
endeavoring to explain some of the policies of my 
country, I am critical of the position in interna- 
tional affairs taken by India or any other country 
of good will. Each of these countries face certain 
conditions, within and without, peculiar to itself 
which must determine the extent and character of 
its opposition to aggression against countries other 



than itself, and international cooperation can best 
be furthered if the people of each country of good 
will strive to understand the peculiar conditions 
which are responsible for the policies of the others. 
My endeavor at this time to clarify some of the 
policies of the United States is prompted in part 
by the expressions of surprise on the part of so 
many of my countrymen visiting India at the lack 
of understanding which they find even among 
high-minded and good-intentioned Indians with 
respect to what the United States is doing and 
trying to do. I would be derelict in the carrying 
out of what I consider to be one of my most impor- 
tant duties — namely, the promotion of fuller un- 
derstanding between our two countries — if I did 
not make an effort at least to give to you the Ameri- 
can point of view. 
U. S.-lndian Ideals 

It is impossible to enlarge here upon the clari- 
fications which I have attempted or to touch upon 
various other misunderstandings with regard to 
the United States which exist here. Instead, 
I shall dwell for a few minutes on the cooperation 
between our two countries which is promoting 
understanding between us and strengthening our 
friendship. This cooperation is manifested in 
many forms. It is in fact so common that both 
the United States and India unconsciously take 
it for granted. We are sometimes inclined, 
therefore, to devote an undue amount of attention 
to the comparatively few instances in which we 
assume different positions with regard to world 
problems. Anyone who examines the records of 
the international conferences attended by both the 
United States and India since India attained in- 
dependence cannot but be impressed by the similar- 
ity of our approach to most of the matters con- 
sidered at such conferences. This similarity is not 
the result, of course, of any agi'eement between the 
United States and India or of any formal or infor- 
mal ties. It exists because of the similarity of 
ideals and of sense of morality. I am convinced 
that so long as there exists no barrier, artificial or 
otherwise, which prevents our two peoples from 
discussing frankly with each other their views on 
all kinds of problems in human relationship, and 
so long as we do not permit the venom of hatreds 
to replace the springs of good will, the paths which 
we shall pursue into the future will continue to be 
more or less parallel. It is extremely important to 
the peace and welfare of future humanity that they 
shall not wiuuler too far from one another. 



46 



Department of State Bulletin 



PROBLEMS IN ACHIEVING A STABLE TIN INDUSTRY 



Background for the Fifth Meeting 
of the International Tin Study Group 



by C. W. Nichols 



Concern over an inadequacy of supplies of tin 
has been relieved during the past j'ear but has been 
superseded by some apprehension that a burden- 
some surjilus may be in prospect. 

The fifth meeting of the International Tin 
Study Group is scheduled for March 1950. Con- 
sideration will be given to the need for interna- 
tional regulation of trade in tin and the form 
which such regulation might take. In prepara- 
tion for this meeting, member governments have 
received from a working party of the Study Group 
a statement on the position and prospects of the 
tin industry and a draft of a control agreement. 

Some producing interests have urged that an 
early conference should be held under United Na- 
tions auspices for the negotiation of an intergov- 
ernmental control agreement which would seek to 
avert conditions of excessive market instability 
and insure other objectives in the world tin 
situation. 

These proposals give current interest to a re- 
view of prewar regulation in tin ; an examination 
of the situation in the tin industry; and consid- 
eration of some problems inherent in the question 
of international control. 

Basic Features of the Tin Industry 

Tin is mined principally in three regions of the 
world : Southeast Asia, Bolivia, and Africa. For 
many years the bulk of the world production of tin 
ore has been obtained from Malaya, Indonesia, 
Bolivia, the Belgian Congo, and Nigeria. 

Consumption of tin in the principal tin-mining 



areas is very small. The United States, the 
United Kingdom, and Europe account for the 
bulk of world consumption. The largest single 
use of tin metal is in tin plate. Other major uses 
include solder, babbitt, bronze, foil, collapsible 
tubes, and chemicals. Notwithstanding some 
possibilities for conservation and substitution, tin 
is an essential material for an industrialized econ- 
omy in time of peace or war. Variations in the 
price of tin have a comparatively slight effect ujjon 
tlie valunae of tin consumption in the short run. 

World requirements for tin over a long period 
have shown rapid and substantial fluctuations. 
The average rate of long-time growth in world 
demand however, has been substantially less than 
that for such metals as steel, copper, zinc, and 
aluminum. During the inter-war period, tin min- 
ing was mechanized to a great and increasing 
extent; productive capacity increased substan- 
tially; and the basic tendency of tin prices was 
toward a high degree of instability. Pronounced 
fluctuations in the price of tin caused considerable 
concern to users, particularly those normally 
carrying sizable inventories or contracting for 
future delivery of tin-bearing manufactures, and 
much more concern to the tin-mining regions 
whose over-all economy was so largely affected by 
conditions in this one industry. 

Past Regulation of Tin 

During the 1920's and 1930's, the producers or 
the producing countries made numerous attempts 
to achieve a degi-ee of stability in the price of tin 



January 9, 7950 



47 



by regulating output and by operating buffer 
stocks. 

The first attempt toward control was the Ban- 
doeng Pool of V.>21, which was liquidated in 1924. 
After the onset of world depression in 192!), a 
voluntary program of production restriction was 
undertaken bj' a number of producers in 1930. 
This step was not sufficiently effective, and the 
principal producers turned to their governments 
in 1931 to administer and enforce a regulation 
of tin output. 

The resulting intergovernmental program was 
implemented in three agreements applicable, i-e- 
spectively, to the periods 1931-33, 1934-36, and 
1937^1. A fourth agreement was signed for the 
period 1942-46 but never came into operation be- 
cause of war conditions. The objectives of these 
agreements, as described in the third agreement, 
were ". . . adjusting production to consumption; 
preventing raj^id and severe oscillations of prices; 
and maintaining reasonable stocks." The i-egu- 
lation of output under these agreements was ad- 
ministered through the International Tin Com- 
mittee which was composed of representatives of 
tin-producing countries which ]iartici])ated. The 
Connnittee fixed periodically a quota for a com- 
ing period (3 months or 6 months) in terms of 
percentage to be applied to the standai'd tonnages 
of the participating countries. The standard ton- 
nage figures were based initially upon I he actual 
production of each ])articii)ating couiilry in 1929 
but were subseciuently adjusted. 

In the first agreeniont. the participating coun- 
tries were Afalaya, Bolivia, Indonesia, and Nigeria, 
which together in 192!) had i)ro(hici'd 92 ]H'rc('nt of 
world output. Later adlierents were Thailand 
19:il, Belgian Congo 1934, French Indochina ll);'.l, 
and during 19;]4-36, Coi'nwall, and Portugal. 
Sonic of these adherents were granted mininnnn 
quotas or flat tonnage rates. The Belgian Congo 
received a standard tonnage wliich incicascd 
steadily encji year. Other ])ro(lucing countries 
(China, liui'nia, Japan, Australia, etc.) remained 
outsi(li> the agieemenl. 

A buffer slock was found to be a necessary ad- 
junct to a control scheme anil in 1931 an interna- 
tional tin pool was foirned by Britisli and Dutch 
groups, which accumulated a total of 21.000 ions 
in 19.'! 1 and released (hem slowly in 1932-3—1 at a 
fairly stable, price, and ))i"ices showed greater 
stability than for a very long ])eriod. 

.\ short-livcil buffi'r stock operated from Mav~ 



PRESENT MEIVIBERSHIP 


Australia 


Canada 


Xi'thei-lands 


IJclgium 


China 


Thailand 


Bolivia 


Czechoslovakia 


United Kingdom 


British Coltmial 


Fiance 


United States 


and Dependent 


India 




Territories 


Italy 





September, 1935, and prices during its life showed 
a degree of stability (daily quotations from £209 
to £245 per long ton. monthly averages from £223 
to £228). 

During 1936-38, regulation continued, but an 
effective buffer stock operated only from the latter 
part of 1938. During those 3 years, prices showed 
marked fluctuations (highest daily price in 1937 
£311 ; lowest daily price in 1938. £153) . The regu- 
lation scheme did not seem to be able by itself to 
correct the effects of sudden movements in con- 
sumption. The participating countries set up, 
therefore, the 1938 buffer-stock agreement as an 
adjunct to the regulating scheme. Its objects 
were "to reduce the large price ranges that have 
occurred in the past to narrower limits" and "to 
maintain a price per ton ranging between £200 
and £230." The signatory countries contributed, 
between August 19;iS. and July 1939, 15.512 tons to 
the stock, raised by a special quota of production 
fixed by the International Tin Committee. The 
buffer stock operated ell'ectively and played a part 
in meeting the immediate war denuuul at around 
£230 a ton on the Lonilon market in Sei)tember 
19.";;i. Atthesamc time, the ])rice in New York had 
risen to 65 cents ])er i)Ound or around £360 a ton. 

In and after 1937. provision was made for a con- 
sumers" advisory panel which was invited to at- 
tend meetings of the International Tin Committee 
and to tender advice regarding world stocks and 
consumption. Under the j^rovisions of the third 
regulation agreement, representatives of consumer 
interests attended meetings of the Committee dur- 
ing the jiei-iod 1937—1:1. The regulation progiam 
was inactive during the war and the International 
Tin Conuniltee was dissolved at the end of 1946. 

The International Tin Study Group 

Ixecogni/.ing the extent of international interest 
in (in, (he United Kingdom (jovernment invited 
other in(erested govermnents to a World Tin Con- 
ference which was held in London duiing October 
!!'!('>. 'I'll is conference reconnncnded the establish- 



48 



Department of State Bulletin 



inent of an International Tin Study Group which 
held its first meeting at Brussels in April 1947. 

The terms of reference of the Study Group pro- 
vided (hat "the membership of the Group shall be 
open to all countries principally interested in the 
production, consumption or trade in tin." Other 
provisions in the terms of reference include the 
following: the Group shall meet periodically for 
discussion of common problems in tin; shall be 
free to make studies of the world tin position, hav- 
ing regard to the desirability of providing con- 
tinuous accurate information regarding the supply 
and demand position and its probable develop- 
ment; shall consider possible solutions to prob- 
lems which are unlikely to be solved by the ordi- 
nary development of world trade in tin; shall 
arrange for the collection of necessary statistics; 
shall maintain a secretariat; and may formulate 
and transmit recommendations to the participating 
governments. 

The second meeting of the Study Group, held in 
Washington in April 1948, reviewed the world tin 
situation in the light of changes since the Brussels 
meeting and examined the statistical position 
regarding production, consumption, and stocks of 
tin throughout the world. The Group also dis- 
cussed the question of an intergovernmental tin 
agreement. It was agreed to recommend to mem- 
ber governments the setting up of a working party 
to examine the appropriateness and practicability 
of framing an intergovernmental agreement on 
tin, conforming to the principles of the charter 
for an International Trade Organization. 

This working party met in The Hague in June 
1948 and reported that it would be appropriate 
and practicable to conclude an international tin 
agreement incorporating the principles which its 
report set forth in some detail. 
■ This report was considered at the third meeting 
of the Group at The Hague in October 1948. The 
proposals in the i-eport were modified in certain 
respects; and the group forwarded to member 
governments a recommendation that, after certain 
preparatory steps had been taken, the member 
governments should be asked whether they were 
willing to attend a conference to put the agree- 
ment into final form and to conclude it. If a 
sufficient number of affirmative replies were 
received, the United Nations was to be asked to 
convene an intergovernmental conamodity confer- 
ence on tin. 



A Drafting Committee of the Group met in 
Washington in December 1948, and a draft inter- 
natioiuil tin agreement was prepared and circu- 
lated to all members. 

The replies in the spring of 1949 indicated that 
the summoning of an international commodity 
conference on tin was not considered timely and no 
approach was made to the United Nations. 

The fourth meeting of tiie Group met at London 
during June 1949. The estimates of future pro- 
duction and consumption made at the meeting in- 
dicated an existing and growing excess of produc- 
tion for commercial consumption (i.e., exclusive 
of purchases for noncommercial, strategic stock 
])iling purposes). The Group considered that a 
burdensome surplus of the kind which could be 
regarded as justifying the conclusion of an inter- 
national commodity control agreement might well 
arise within the next 5 years. The Group set up 
a working party, open to all member governments, 
with instructions to prepare a statement on the 
position and prospects of the tin industry which 
would serve as a basis for member governments to 
decide whether they should ask for an interna- 
tional commodity conference to be convened by 
the United Nations. The working party was also 
instructed to prepare a draft of a commodity con- 
trol agreement which might be considered at such 
a conference. 

The working party meeting at The Hague from 
October 26-November 2, 1949, prepared the state- 
ment and the draft agreement and then sub- 
mitted them to the member governments. The 
Study Group will consider these documents at its 
next meeting. It is expected that the Study 
Group will decide whether a formal recommenda- 
tion should be made for the calling of a commodity 
conference to negotiate a control agreement. 

Some Factors in the Current 
Situation of the Industry 

The tin production of Bolivia, the Belgian 
Congo, and Nigeria was pressed at a high rate dur- 
ing the war and subsequent production in those 
areas has been largely maintained. In Southeast 
Asia, productive capacity has been progressively 
rehabilitated since the war and programs of re- 
equipment are continuing. World production of 
primary tin in 1949 has recently been estimated at 
approximately 160,000 long tons, as compared 
with consumption estimated at approximately 
115,000 long tons. The aggregate of world stocks 



January 9, 1950 



49 



which are considered to be commercial is unusually 
large, being in excess of annual consumption at the 
present rate. These accumulations have not been 
prevented by noncommercial "strategic stock 
piling" purchases. Such purchases in substantial 
quantities may continue for some time, but the 
rate and duration cannot be accurately predicted. 

Some rehabilitation and expansion of tin min- 
ing capacity, begun during the scarcity of the post- 
war period but not yet advanced to the stage of 
actual production, is proceeding despite the cur- 
rent statistical position, the unexpectedly low level 
of recent consumption, and the decline in the price 
of tin which began late in 1949. 

These factors in the situation have given rise to 
some apprehension of an imminent burdensome 
sulplus and of consequent severe economic diffi- 
culties which might have widespread social and 
political repercussions in areas where tin mining 
is the mainstay of the economy and alternative 
opportunities are relatively limited and slow to 
develop. 

For these reasons several representatives on the 
recent working party meeting advocated a con- 
trol agreement for tin on the reasoning that it is 
necessary for supplies to be adjusted to demand at 
a price level high enough to justify necessary re- 
placement investment in productive facilities. It 
was argued that this would avoid serious hard- 
ships to producing interests over the near term 
and would avoid prejudice of consumers' inter- 
ests over a longer term by assuring future avail- 
ability of adequate supplies. 

Problems Inherent in International Regulation 

Any international agreement in the field of tin 
control would have to conform to certain guiding 
principles that have been determined internation- 
ally as being essential if the serious faults and 
inequities of the prewar commodity agreements 
are to be avoided. In addition, it would have to 
solve a number of difficulties that are particularly 
associated with the economic characteristics of tin 
itself. 

The United States and other governments which 
are parties to the General Agreement on Tariffs 
and Trade have agreed to be guided, to the fullest 
extent of their executive authority, by the general 
principles of the Habana charter. This means 
that, in their approach to any proposed commodity 
agreement, they will be guided by the principles 
of chapter 6 of that charter. In accordance with 



those principles, a commodity control agreement 
may be entered into only when a finding has been 
made that there has developed or is expected to 
develop a burdensome surplus, or widespread un- 
employment, which in the absence of specific gov- 
ernmental action, would not be corrected by 
normal market forces in time to prevent serious 
hardship to producers or workers. 

A control agreement which is not precluded by 
the general limitation in the Habana charter must, 
however, also satisfy other specific requirements 
in chapter 4 of the charter. Such an agreement 
would be very different from the intergovern- 
mental regulation programs which were adminis- 
tered through the International Tin Committee. 
The Habana charter provides that commodity con- 
trol agreements shall be open to wide participa- 
tion by interested governments; that provision 
shall be made for adequate participation of coun- 
tries substantially interested in importation or 
consumption as well as countries interested in ex- 
portation or production; and that full publicity 
shall be given to the development and operation 
of the agreement. 

Two important requirements of the Habana 
charter are set forth in article 63, paragraphs (c) 
and (d). Article 63 (c) provides that 

Such agreements shall make appropriate provision to 
afford increasing opportunities for satisfying national 
consumption and world market requirements from sources 
from which such requirements can be supplied in the most 
effective and economic manner, due regard being had to 
the need for preventing serious economic and social 
dislocation and to the position of producing areas suffer- 
ing from abnormal disabilities. 

and article 63 (d) provides that 

Participating countries shall formulate and adopt pro- 
grams of internal economic adjustment believed to be ade- 
quate to ensure as much progress as practicable within 
the duration of the agreement towards solution of the 
commodity problem involved. 

Other provisions in chapter 4 of the charter re- 
quire that an equal number of votes shall be as- 
signed to importing and exporting countries, that 
the agreement shall be designed to assure avail- 
ability of adequate supplies at all times and that 
the maximum term of such an agreement shall be 
5 years, with any renewal subject to the same de- 
terminations as are required at the outset. 

Besides these and other provisions that must 
be included in order to comply with the principles 
of the Habana charter, any commodity control 
agreement must necessarily include the answers to 



50 



Department of Stale Bulletin 



a number of other difficult problems. Among the 
most fundamental of these is the determination 
of whether the agreement shall contain provisions 
directly related to the price of the commodity or 
whether the price shall be permitted to find its 
own level, though influenced by other j)rovisions 
of the agreement. The question then arises as to 
whether prices should be determined from time 
to time by negotiation among the members or 
whether the agreement should seek to determine 
a price objective, such as a longer range equilib- 
rium level. 

Related to the question of price is the deter- 
mination as to whether provisions should be made 
for a buffer-stock operation. 

Subsidiary questions which would have to be 
settled in any agreement relate to such matters as 
the distribution of votes among the various im- 
porting and exporting countries, the treatment to 
be accorded nonparticipating countries and pro- 
visions relating to the withdrawal of participants 
or termination of the agreement before its ex- 
piration. 

Some Special Considerations 
Involved in International Tin Control 

Certain factors particularly applicable to tin 
and to the position of the United States in the 
world tin markets would have to be considered in 
connection with any international agreement for 
the control of tin. Some of these factors have 
been already mentioned. 

Both the supply and the demand for tin are 
characteristically unresponsive to changes in price. 
Because of the relatively small amounts of tin re- 
quired in proportion to other materials in tin- 
bearing manufactures, the consumption of tin 
does not increase readily in response to price de- 
clines. Similarly the large investment required 
for productive facilities and the heavy dependence 
of the most important producing areas on tin pro- 
duction as a means of livelihood and government 
revenue result in a similar inelasticity of supply. 
That is, production tends to be maintained even 
though prices fall. Not only have these condi- 
tions exaggerated the fluctuations in tin prices in 
the past but they have also increased the difficulty 
of achieving a rational adjustment of the indus- 
try to changed conditions. 

A particular difficulty in the case of tin arises 
from the fact that international trade has only 
very recently been freed from wartime controls 



and that a fairly long history of international 
control, on the prewar plan, ended only with the 
outbreak of the war. Thus, the world is ex- 
periencing comparatively free market conditions 
in tin for the fii-st time in nearly 20 years and has 
no recent experience by which to judge the 
"equilibi'ium price" at which the demand and sup- 
ply of tin might be considered to be in reasonable 
balance. 

The most direct interest of the United States in 
tin is determined by its position as the most im- 
portant consuming country, with virtually no pri- 
mary production. Although it is in the interest of 
the United States that tin should be available at 
reasonable prices, it is also important that it be 
continuously available in adequate quantities. 
The significance of tin supplies during the recent 
war emphasizes the dependence of this country on 
supplies of tin both for civilian and military 
consumption. 

The United States also has an interest as a pro- 
ducer of tin metal and a consumer of tin ore. The 
Texas City smelter is being maintained in opera- 
tion by the United States Government at this time 
for reasons of national secui'ity, and the continued 
availability of ore for the smelter is a factor not 
only in the current strategic stockpile program but 
in any future emergency. 

The United States also has an interest in eco- 
nomic conditions in the producing countries. The 
very high dependence of such areas as Malaya, 
Indonesia, and Bolivia on tin production and the 
difficulty of finding alternative employment for 
mine labor in those areas makes them pai-ticularly 
vulnerable to any serious drop in the price of tin. 
This sensitivity is a factor of importance to the 
United States for both economic and political rea- 
sons. The same considerations, however, under- 
line the importance of avoiding the establishment 
of any uneconomic pattern of production or trade 
that might store up greater trouble for the future. 

Any tin control agreement that would conform 
to the principles of the Habana charter would 
necessarily avoid many of the more controversial 
features of tin control arrangements operated by 
producing countries during the 1920's and '30's. 
Nevertheless the many factors that contribute to 
the difficulty of achieving satisfactory stability in 
the tin industry and tin markets lend exceptional 
importance and interest to the question scheduled 
for consideration by the fifth meeting of the Inter- 
national Tin Study Group. 



January 9, ?950 



51 



Future World IVlust See Close Association of Free Nations 



Tile need foi- closer association in tlie fi'ee 
world wouKi exist even if the Soviet Union did 
not was pointed out to tlie American Political 
Science Association, at its nieetiiifr in New York on 
December ^9, by Theodore C. Acliilles. Director of 
the Office of Western European All'airs.' Pres- 
ent-day problems cannot adequately be dealt with 
in any other way. The existence and policies of 
the Soviet system merely make the need for closer 
association elsewhere more urgent. 

Calling attention to the fact that the Soviet 
Union has been extremely active in integrating 
Eastern Europe and i)arts of the Far East, Mr. 
Achilles pointed out that the inte<;ration has been 
dictated from Moscow under methods which are 
a combination of ideological and military and 
jjolitical conquest, the methods of Genghis Khan 
brought up to date. 

Mr. Achilles enumerated four points for atten- 
tion : The first, that new answers are necessary and 
that when the right ones are found, they will be 
found to be ])racti('able; the second, that, while 
efforts on botii tlie universal and on a more iimiied 
basis are necessary, jii'ogress toward oui' idliniate 
goal may be made more I'apidly in many fields by 
building outwai'd, by limited ])racl ical)lc steps, 
from small nuclei than by attempting to build all 
at once on a universal basis; the thii'd, that 
Europ(! is .seeking, and clearly recognizes the need 
for, new measui-t^s of closer international associa- 
tion and that these, measui'es, while essential, are 
not, enough if taken in a pui'ely Euiopean frame- 
work; and (he fourth, that the matter of piim;iry 
im|)ortance to this country is how (levclopments 
elsewhere affect us and what we are picjiarcil to do 
about it. 

'I'he develojniient of the North Atlantic 'i'lcaty 
illusi raters tin; a|)piication of these four ])oints in 
the security field. I5y tlie end of 1017, it had 
become clear to (ieneral Marshall and Mr. lievin 
that the consolidation of |)ower by the Soviet 
Union in Eastern Europe had reached a i)oint 
where, the AV'est must seek a similar i)ooiiiig of 
moral and matei-ial force if its civilization were 
tosuivi\-e. Ml-. Bevin declai'eil that it was gener- 
ally agreed that lOurope nnist be unified, the only 



'Tlii.s is an excriplcd viTsimi n( :iii addicss hy .Mr. 
Achilles; for cDiiiplclc IcxI. scr 1 )c|i:irliM(Ml •<( Sliilc 
press release l{)l.''i of Dec. li!), 1!)4!1. 



question being whether it would l)e unified by 
force, dictatorship, and police state methods or by 
the voluntary association of free men. He also 
recognized that the consolidation of Western 
Europe would be inadequate and illusory in the 
security field without the backing of the United 
States. Prime Minister St. Laurent of Canada 
spoke of the necessity of creating a preponderance 
of moral and material force as a dynamic counter- 
attraction to communism. General ^farshall 
fully agreed with these beliefs but considered it 
essential that the Europeans, before seeking the 
association of the United States, first demonstrate 
in concrete terms what they were prepared to do 
for themselves and for each other. 

In recent years, Mr. Achilles continui'd. if has 
been becoming increasingly clear that a world of 
wholly unregulated national sovereignties is not 
adequate to deal with modern conditions. In the 
world today, the daily life of the individual is 
constantly and dii'cctly affected by events in dis- 
tant places over which neither he nor his govei-n- 
ment has any control. Today it is obvious that 
])roblems of war and i>eiue, of economics and 
political science can no longei' be dealt with ade- 
((uately on a strictly national basis. These are 
not abstractions. 

Fi\e years ago today we were deep in the most 
terrible war of all time. The Battles of the Bulge 
and of Ijcyte were I'aging. No one knew for sure 
whether atomic wea])ons would be jiracticalile. 
Many steps in international relations which then 
appealed beyond the realm of practical politics 
have in these 5 years been foun<l to be both neces- 
sary and i)racticable. 'Ihe I'nited Nations, with 
the United States and all other great ])owei's and 
a grc.it majority of the wcnld's governments as 
full members, has come into being and is gather- 
ing slrcngtli. It rei)resents a radical new depar- 
ture in international organization on a world-wide 
basis. Similarly ia<lical developments in inter- 
national organization and closer association on a 
more limited geographic scale have taken shape 
in the Bencdux Economic Union, the Brussels 
Treaty, the Council of Euiope, (he organization 
for European Economic Cooiieration. the Kio 
Ti'ealy, and ihe Noi-th Atlantic Treaty. It is im- 
jiossible clearly to foresee what (Icvclopments the 



52 



Department of State Bulletin 



next few years may bring but these developments 
cited dearly indicuto the trend. 

The Director of tlie Ollice of Western European 
Affairs revealed in the course of his speech that 
the ultimate goal of this country is a world system 
adequate to assure the individual peace, freedom 
and economic well-being; in the words of the 
Declaration of Independence: "the unalienable 
rights that among these are life, liberty, and the 
pursuit of happiness." Secretary Acheson has 
defined our goal as being the kind of world in 
which the American experiment can survive and 
prosper, the kind of world in which freedom can 
endure. 

There are two basic approaches, Mr. Achilles 
explained to his audience, the universal and the 
regional. The former seeks to raise international 
standards of conduct and develop new institu- 
tional forms and methods on a universal basis. 
Under it, the rate of progress depends upon the 

extent to which those governments least willing 

• • • 1 1 

to cooperate are in a position to impede the prog- 
ress of the rest. The second, the regional or 
nuclear approach, lies in seeking the progressively 
closer association, through limited and practicable 
measures, of smaller groups of states with close ties 
of common heritage, tradition, and interests. 
Clearly we must pursue tirelessly every oppor- 
tunity for progress through both methods, but it 
seems clear that progress in many fields can be 
achieved much more rapidly by the second. 

It is certainly not accidental that all of the radi- 
cal experiments of the last 5 years in closer inter- 
national association along regional lines which I 
have cited have taken place in Western Europe 
and the Americas which, taken together, comprise 
what may, for want of a better term, be called the 
Atlantic community. It is a community of in- 
terest, a community more in the ideological than 
in the geographic sense, for the close ties which 
bind many of its members together are imponder- 
able rather than geographic and they extend out- 
side Europe or the Americas to far parts of the 
world. Its essential characteristics are funda- 
mental belief in the dignity and worth of the indi- 
vidual, and in the importance of the rule of law 
to safeguard individual freedom. 

Referring to the Atlantic Treaty, Mr. Achilles 
said that it has supplied an essential new answer 
to the need for closer international association 
among free nations in the security field. It has 
done so with no abridgment of sovereignty ex- 
cept to the extent that any treaty abridges sov- 
ereignty through the commitment to do or refrain 
from doing certain things in certain circumstances. 
This was made crystal clear, largely under the 

Guidance of Senators Connally and Vandenberg, 
y the provision that in the event of an armed 
attack each party will take "such action as it deems 
necessary." Nevertheless, Congress in passing the 
Mutual Defense Assistance Act of 104!) in Septem- 
ber authorized immediate expenditure of only 
1 hundred million dollars for military assistance to 

January 9, 1950 



the other parties to the Treaty and 9 hundred mil- 
lion dollars when "The President approves recom- 
mendal ions for an integrated defense of the North 
Atlantic area," to be developed by the Treaty De- 
fense Committee and Council. The Congressional 
Conference report declared that : 

Conlriliiifion of military rcsonrces to an integrated de- 
fense of the North Athintic is a prudent investment for 
the Amerinan peoi)le . . . What is es.«ential Is that plan- 
ning ... be premised from the outset on the principle of 
unity of defense. 'I'hat means differentiation of func- 
tions among the parts in relation to an all-inclusive unity. 

This insistence upon integrated defense, backed 
by 9 hundred million dollars out of 1 billion dol- 
lars, shows how seriously Congress tal<es integra- 
tion in the security field. It, and the results which 
we confidently expect from it, shows what can be 
done collectively without abridgement of sover- 
eignty. That the Atlantic Treaty has not been 
paralleled by any similar development in the eco- 
nomic or political fields is due to a number of 
reasons. 

First, the security field is relatively simple and 
in peace time has relatively little effect upon the 
daily life of the individual. The most important 
single fact about the North Atlantic pact is its 
very existence. It makes war less likely by pro- 
viding clear advance notice to any potential ag- 
gressor of the determination of all the parties, 
including the United States, effectively and col- 
lectively to exercise the right of self-defense in 
the event of an armed attack upon any of them. 

Second, in the security field we had as guidance 
the fundamental Monroe Doctrine and a ready pat- 
tern in the Rio Treaty. Similar patterns may ex- 
ist in the economic and political fields but we have 
not yet been able to discern them. 

Third, the economic field is infinitely complex as 
compared to the security field. It directly affects 
the daily life of the individual in countless ways. 
I do not believe that the time to seek new patterns 
in the political field will come before both the 
need for them and their proper form have become 
much clearer through further efforts to deal with 
the underlying basic economic problems. 

In concluding, Mr. Achilles disclosed that it is 
difficult to believe that answers will be found all 
at once in any form as far reaching as federation, 
or applied solely to Western Europe or any other 
limited area. The difficulties are great, both sub- 
stantively and geographically. The Benelux ex- 
periment has demonstrated the innumerable small, 
practical problems which must be solved even 
under favorable conditions and between only three 
contiguous and closely related countries. The 
larger and more heterogeneous the group, the 
greater the difficulties to be overcome. The direc- 
tion in which we must work is that of progres- 
sively closer association, by limited and practicable 
steps, of more and more of the free world. It is 
natural tliat this process should proceed fastest 
with those countries which have the closest ties 
of common heritage, tradition, and interest. 

53 



Joint Statement on U.S.-lranian Relations 



NEED FOR IRAN'S ECONOMIC DEVELOPMENT SEEN 



[Released to the press hy the White House Dcecmhcr 30] 



The Shah of Iran Ends Visit 

His Imperial Majesty, Mohaiimicd lleza I'ah- 
lavi, Sliahinsliah of Iran, today completed his 
tour of I he United States and departed for Iran. 
The Sliah came to this country at the invitation of 
the President and his A'isit has enabled him to be- 
come acquainted at first hand with the United 
States and its institutions. The President said to- 
day tliat the existing;; friendly relations with Iran 
have been stren<^thened still i'urtlier by the Shali's 
visit. The President is most liajjpy thsit His 
Majesty has ]iaid tlie United States tlie honor of 
this visit, wliich enabled not only the Pi-esident 
but also many oflicials of the <xovei'nmenl, as well 
as tlie American people, more clearly to know and 
understand Iran, its j^^roat traditions, and its pres- 
ent achievements and objectives. 

Followinfi a stay of several days in Washington, 
the Shah visited many parts of the country and 
inspected vai'ious institutions and industrial and 
agricultural entei-prises whose technical oixM'ation 
might be usefully a])plied in Iran. He also saw 
military, naval, and air installations. His Majesty 
had the opportunity of meeting civic, industrial, 
and educational leaders, as well as other rejiresent- 
atives of liroad segments of the Ameiican popula- 
tion. 

While in Washington, Ilis Majesty had C(in\er- 
sations with the Pi'(>sident, the Secretary of Slate, 
and other senior oHicials of the Ignited States Oov- 
ei'nment. These conversations look place in an 
atmosphei'(> of frankness and cordiality, and the 
intci'change of views was most valuable in arriv- 
ing at a nuilual understanding of probhMus in 
which both the United States and Iran have in- 
terest. Pursuant to these co'iversations His Maj- 
esty and the President have decided to issue the 
ffillowing joint statement on the relations between 
the t wo coiuitries: 



Joint Statement 

His Imperial Majesty, the Shah of Iran, and 
the President of the United States have examined 



the relations between their two countries and the 
problems which they face in common. In the 
course of their conversations, it has been brought 
out that : 

1. They believe the United Nations otTers the 
best means of assuring a peaceful world. Both 
countries will continue to give the United Nations 
their unfaltering support and to work in close co- 
operation with it and its agencies. 

2. A serious threat to international peace and 
security anywjiere in the Avorld is of direct concern 
to the United States. As long ago as December 1, 
1941), when President Koosevell, Prime Minister 
Churchill, and Mai'slial Stalin signed the three- 
power declaration at 'L'ehran, tlie United States 
made clear its desire for the maintenance of the 
independence and integrity of Iran. The great 
interest of the United States in this regard has 
been repeatedly adirmed in its foreign policy decla- 
rations and the United States Government intends 
to continue that i)olicy. 

;>. His Imperial Majesty believes, and the Presi- 
dent concurs, that the ability of any country to 
maintain its independence' is based on a sound and 
])rosi)erous economy. For this reason, as far back 
as l!)lt'), upon His Majesty's advice, the Iranian 
Govei-iunent took ste])s to pre])are a seven-year 
]ilan for economic and social ])rogi-ess which now, 
embodied into law, is being carried out with all the 
means at the (Jovernment's disposal. The Presi- 
dent a])precialeslhe importance of this jirogram to 
the economic devel()])ment of Iran, and aiiplica- 
tions by th(> Iranian (lovermnent to the Interna- 
tional i5ank for Reconstruction and Develo])ment 
for economically justifiable loans to be used in the 
furtliei'aTice of tlie jirogram will therefore receive 
the sui)p(U't of the United States. Subject to fa- 
vorabl(> Congressional action on the Point -1 pro- 
gram, the United States also stands ready to facili- 
tate Iranian economic development thi'ough the 
]irovision undei- Point 4 and otlierwise of technical 
advisory assistance if requested by Iran. His 
Maj(>sty welcomes the assistance envisaged under 
the I'oint I program and is ]iarticulai'ly aware of 



54 



Departmenf of Slate Bulletin 



tlie desirability of increased investments of private 
caj>itiil in flip Iranian economy. Tlie Iranian Gov- 
ernniont will consider measures to be taken to en- 
courage such investments. 

4. It is the policy of the United States to help 
free peoples everywhere in the maintenance of 
their freedom wherever the aid which it is able to 
provide can be effective. ^Vs the result of recent 
Congressional authorization, and in response to the 
1 request of the Government of Iian, the Govern- 
ment of the United States is currently prepared 
to offer certain military assistance essential to en- 
able Iran, as a nation dedicated to the purposes and 
principles of the United Nations Charter, to de- 
velop effective measures for its self-defense in sup- 
port of those purposes and principles. Tlie United 
btates will continue to bear in mind Iran's defense 
needs in connection with further foreign assistance 
which may be considered by the United States 
Government. 



Indonesian Independence Welcomed 



alism for Indonesia and that aggressive acts and 
efforts on the part of foreign dictatorships to sub- 
vert this newly won independence will be resisted 
with vigilance. Indonesia may count upon the 
sympathy and suppoi-t of all who believe in democ- 
racy and the right of self-government. 

H. Merle Cochran, who has served with distinc- 
tion as the United States representative upon the 
United Nations Commission for Indonesia, has 
presented his credentials in Djakarta as the first 
American Ambassador to Indonesia.- I know 
that he has many friends among you and that he 
will renew these friendships and make many more. 
As America's envoy to Inclonesia, he brings you the 
good wishes and assurances of friendship of the 
American people. It will be his privilege to fur- 
ther the full and sympathetic understanding be- 
tween the American and the Indonesian peoples. 

I express the sentiments of the American people 
when I say that I am truly glad that the people of 
Indonesia have attained statehood by the way of 
peaceful and cooperative agreement with the 
Netherlands. 



Statement hy President Trumcm^ 

It is with pleasure that I greet the people of a 
new sovereign state, the people of the Republic of 
the United States of Indonesia, and congi-atulate 
you and your great leader, President Sukarno, on 
the attainment of Indonesian independence. 

The world has seen a nation grow in the vast 
archipelago of Indonesia. A new republic now 
has emerged from the chaos and disruption of war, 
and a new state is demonstrating that it will fol- 
low a course of peace and order so that all men in 
Indonesia may work fruitfully in your richly en- 
dowed islands to fulfill the promise of a new era. 

The leaders of Indonesia have shown their 
statesmanship in reaching with the Netherlands 
unanimity of agreement at the Hague Conference 
and in supportmg that Agreement in the halls of 
government in Indonesia. Through wholehearted 
cooperation in bringing about this agreement, the 
leaders of the Indonesian and of the Dutch peo- 
ples have strengthened and contributed to the de- 
velopment of the United Nations. They have 
gained for the people of Indonesia sovereignty and 
for the people of the Netherlands good will and 
assurances of fair treatment. 

The United States will welcome the Republic of 
the United States of Indonesia into the commu- 
nity of free nations and looks forward to Indo- 
nesia's admission to membership in the United 
Nations. Indonesia has already demonstrated 
that the goal of the new state will be true nation- 



' Made on the occasion of the transfer of sovereignty 
from tlie Kingdom of the Netherlands to the Uepuhlic of 
the United States of Indonesia. The statement was re- 
leased to the press by the White House, Dec. 28, 1949. 



Survey Mission Recommends Near East 
Relief and Public Works Program 

Statement hy President Trvmuin 

[Released to the press by the White House December S0'\ 

Having completed his task as Chairman of the 
United Nations Economic Survey Mission to the 
Middle East, Gordon R. Clapp, Chairman of the 
Board of the Tennessee Valley Authority, has 
called on me to discuss the results of his work in 
the Near East. 

The mission, which was composed of experts 
from a number of member States of the United 
Nations, was created upon the recommendation 
of the United Nations Palestine Conciliation Com- 
mission. Its duties were to examine the economic 
situation arising from the recent hostilities in the 
Near East and to recommend means for ovei'com- 
ing economic dislocations, for reintegi-ating the 
refugees into the economic life of the area, and for 
creating economic conditions conducive to the es- 
tablishment of permanent peace. 

When Mr. Clapp's appointment was announced 
by the Secretary-General of the United Nations on 
August 2G, I took the occasion to pledge the full 
support of this government to the Economic Sur- 
vey Mission as well as to other efforts by the United 

'The President appointed on Dec. 28, Edward A. Dow, 
Jr., as acting representative of the United States of 
America on the United Nations Commission for Indonesia. 
Mr. Dow, a Foreign Service officer, has been assisting 
Ambassador Cochran in his work on the United Nations 
Commission for Indonesia. 



January 9, 1950 



55 



Nations to settle differences and achieve peace in 
the Near East. It seemed clear to me that such 
endeavors coincided precisely with our hopes that 
the governments and peoples of the Near East 
might soon be in position to devote the full meas- 
ure of their abilities and resources to their eco- 
nomic and social betterment. 

During the past 4 months, Mr. Clapp and his 
colleagues have conducted an intensive study of 
economic conditions in Palestine and neighboring 
countries. The recommendations which they liave 
formulated are incorporated in two United Na- 
tions documents, tlie first an interim report sub- 
mitted on November 18, and tlie second a final 
report which will shortly be released by the United 
Nations.^ 

In its interim report, the survey mission consid- 
ered the tragic plight of some three-quarters of a 
million refugees, rendered homeless by the Pales- 
tine conflict. That these destitute people are still 
alive today is credited largely to the efforts of the 
United Nations Relief for Palestine Refugees, 
whose funds will be exhausted early in January. 
The Economic Survey Mission has recommended 
a renewed relief program including a public works 
program to provide the refugees with gainful em- 
ployment and to permit them to be of greater serv- 
ice both to themselves and to the lands now giving 
them asylum. 

Mr. Clapp has indicated that the second report 
of the Economic Survey Mission will deal with 
prospects for long-range development in the Near 
East. He believes that the potentialities of the 
region are great, but that it will be necessary to 
move slowly and carefully if the best results are to 
be achieved. 

On December 8, the General Assembly of the 
United Nations unanimously passed a resolution 
based on the interim report of the Economic Sur- 
vey Mission. It called for a United Nations refu- 
gee program terminating June 30, 1951, and in- 
volving the expenditure of 54.9 million dollars, to 
be provided by international contribution. The 
unanimity of the vote was appropriate testimony 
to the success of the work done by the mission as it 
was also unmistakable indorsement of the need for 
international assistance to the Palestine refugees. 

In accord with my previously expressed inten- 
tion to give careful consideration to such assist- 
ance as we might appropriately render in carrying 
out the recommendations of the survey mission, 
legislation is now in preparation for presentation 
to the Congress requesting authorization for this 
government to assume its share in the cost of the 

Srogram proposed by the United Nations for the 
ear East. The success of the program depends 
on a large measure of international cooperation, 
and I feel certain that other member states of the 
United Nations will assume their shares of this 
burden. 



' BULLETIN of Dec. 5, 1949, p. 847a. 



Mr. Clapp and his colleagues on the Economic 
Survey Mission have our thanks for the important 
public service which they have rendered. 



Approaches to Shanghai and 
Yangtze River Mined 

[Released to the press December 29] 

The Department of State has been informed by 
the Chinese Government that the approaches to 
the Yangtze River and Shanghai have been mined 
within Cliinese territorial watei-s. Furthermore, 
the Department of State has been informed that, 
due to the manner in which the mines have been 
laid, no channel has been left open and that the 
only way to move vessels in and out would be to 
sweep the mines. 

United States shipping companies and masters 
who contemplate movements of vessels into the 
area are warned accordingly. 

Tlie above information is being transmitted to- 
day to all United States sliipping companies, op- 
erators, and masters by the Hydrographic Office 
and the Maritime Commission. 



Families Informed That Smith 
and Bender Are Safe in China 

[Released to the press December 27] 

The Department of State today sent the fol- 
lowing telegram to Mrs. Elmer C. Bender, Chi- 
cago, Illinois, wife of Master Sergeant Elmer C. 
Bender, and to Mrs. William C. Smith, Long 
Beach, California, and Mrs. Charles M. Smith, 
Columbia Falls, Montana, wife and mother, re- 
spectively, of Chief Electrician William C. Smith : 

United States consular official at Tsingtao was 
informed by official of Chinese Communist For- 
eign Affairs Bureau during firet week in De- 
cember that Chief Smith and Sergeant Bender 
were safe and well and that they were being held 
at a large Communist military base just outside 
Tsingtao. Delay in receipt of this re])oi't was 
due to lack of radio communications with United 
States officials at Tsingtao. 

The Consulate General there has been closed to 
the public but the consular pei-sonnel are still in 
the city, awaiting transportation to Shanghai. 
Department is continuing its efforts to obtain ad- 
ditional information regarding Chief Smith and 
Sergeant Bender and to effect tlieir release. 



56 



Department of Slate Bulletin 



Chinese Communist Announcement 
on Ownerless Land 

[liclesacd to the press December 29] 

The Department of State today announced that 
it had been informed that the Slian<jhai Chieh 
FatKj Jih Pao, tlie leailing Cliinese Connnunist- 
controlled newspaper, had published on December 
15, 194J), provisional measures promulgated bj' the 
local authorities governing the disposition of own- 
erless land. The following is an unoflicial sum- 
mary translation as received by the Department : 

1. Ownerless land is described as land (a) remaining 
unregistered after tlie time limit for refrtstration, (b) 
where the owner has departed without leaving an agent 
with power of attorney, (c) where there is an agent but 
who cannot satisfy the requirements of the land bureau, 
and (d) where, following the death of an owner, it is not 
clear that he left a lawful heir. 

2. Ownerless land is to lie held in trust by the land 
bureau. Such land will be announced by the Chieh Fang 
Jih Pao. 

3. The period of safekeeping is for not more than 3 yearis 
during which time the owner, his attorney, or heir may 
apply for return of the land. The land bureau will dismiss 
cases found to be unreasonable by issuing a written de- 
cision to the applicant. The decision may be questioned 
within 15 days during which time the bureau may reverse 
its decision. If the appeal is considered groundless, how- 
ever, the lile will be transmitted to higher authorities for 
final decision. 

4. Claims for property on the part of two or more appli- 
cants shall be settled according to procedure providing for 
the settlement of land disputes. 

5. Ownerless land becomes the property of the local 
authorities after the period of safekeeping if no claims 
thereon have been filed. 

6. Persons renting ownerless land may apply for prior- 
ity in continuing to rent after it has been taken over by 
the land bureau. 

7. Other rights which have not been registered may be 
registered with the bureau. 

8. Land under safekeeping is subject to requisition by 
the local authorities whenever necessary. 

9. When ownership is established, the owner must settle 
all accounts with the land bureau concerning profit, service 
charges, and rates during the period of safekeeping. 

10. All contracts made during the period of safekeeping 
remain valid after the return of the land. 

11. Any special case that is not covered by these meas- 
ures may be submitted to the local authorities for special 
approval by the land bureau according to its merits. 

12. These measures are effective from December 15, 
1949. 



saltations were called so that both governments 
might review questions arising under the air trans- 
port agreement signed between the two govern- 
ments last June, inclutling the details of recent 
problems regarding operations under the agree- 
ment over the route between New York and Mont- 
real. Tiie discussions have been thorough and 
satisfactory progress has been made. 

The United States lepresentatives indicated 
their concern over certain aspects of the proceed- 
ings before the Air Transport Board which ap- 
peared to thein to be based on the fact that Co- 
lonial Airlines was taking steps in the courts of the 
United States to test the validity of the air trans- 
port agreement. The Canadian representatives 
stated that whereas the Air Transport Board had 
decided to hold hearings on the position of Co- 
lonial Airlines as a licensee of the Board on the 
route between Montreal and New York, at no time 
had the Canadian Government ever questioned the 
constitutional right of Colonial Airlines to have 
determined by the United States courts the valid- 
ity of the air transport agreement under the 
United States law; nor had there ever been any 
desire on the part of the Canadian Government 
to interfere with the juridical or administrative 
proceedings in the United States. The representa- 
tives of the Canadian Government expressed them- 
selves as satisfied that the United States had en- 
tered into the 1949 agreement in good faith, with 
every intention of carrying out its provisions. Tlie 
representatives of the United States Government 
were also satisfied with the course adopted by the 
Canadian Government in implementing the provi- 
sions of the 1949 agreement. 

Although the discussions between the represent- 
atives of the two governments took place within 
a general area of agreement, certain questions have 
arisen regarding the interpretation of particular 
articles of the bilateral agreement. It has been 
decided to adjourn the talks until an early date to 
permit each government to consider the other's 
position in greater detail. 



North Atlantic Council 
To Hold Third Session 



U.S.-Canada Make Progress 
in Colonial Airlines Case 

[Released to the press December 21] 

Representatives of the Canadian and United 
States Governments have engaged, during the past 
week, in consultations concerning civil aviation 
relations between the two countries. These con- 



[Released to the press December 28] 

It was announced today that the North Atlantic 
Council would hold its third session in Washing- 
ton on January 6, 1950. At this session the United 
States will be represented by Secretary of State 
Acheson, Chairman of the Council for the first 
year of its operation. The other members of the 
North Atlantic Treaty will be represented by their 
diplomatic representatives in Washington. 



January 9, 1950 



57 



U.S. and Cuba To Renegotiate 
Certain Items in GATT 

Views Invited 

The Chiiirmaii of the Interdepartmental Com- 
mittee on Trade Agreements announced December 
27 that, as a resuU of requests by the Cuban Gov- 
ernment for renegotiation of Cuban concessions on 
certain items initially negotiated with the United 
States in 19-17, the United States and Cuba will 
carry on renegotiations at Washington early in 
February 1950. 

Agreement on the part of the United States to 
carry on renegotiations of certain of these Cuban 
items, namely cotton and rayon ribbons, braids and 
galloons; nylon hosiery; rubber tires and tubes; 
and colored-woven textiles, was announced on Oc- 
tober 11, 1948, and on June 3, 1949.' 

Interested persons are invited to express their 
views in writing or orally regarding any jirodnct 
concerned in or regarding any phase of the rene- 
gotiations. The Connnittee for Reciprocity In- 
formation has issued a notice with respect to the 
presentation of views and with respect to the pub- 
lic hearings which will be held beginning on Feb- 
ruary 1, 1950. The closing date for receiving writ- 
ten bi-iefs and statements will be Janvuiry 23. 

Committee for Reciprocity Information 

Closin;,' (i:ite for application to lie heard, .Tamiary 2X 1!»."0. 
CIosiiiK (late for submission of briefs, .January 'S.i. VX<{). 
Public- hearings open, February 1, 1050. 

The Department of State has issued on this day 
a press release, a copy of which is attached hereto, 
stating tliaf the Ciiairiuan of the Interdepart- 
mental Connnittee on Trade Agreements announces 
that renegotiations of certain items in schedule 
IX (Culia) of the General Agreement on Tarill's 
and Trade will be carried on with Cuba eai-ly in 
February 1950. Attached to this press release is 
a list of the items in part II of schedule IX which 
the Cuban Government has requested be renego- 
tiated.- 

The negotiations will also inchule consideraliim 
of new concessions, wliether oi- not in lyspecl of 
items now in the Cuban schedule, which Cuba 
might grant to tiie United Stales in return for any 
modilicafions of the chities applicable to any of 
tlie ])ro(hicts described in the aforementioned list 
tliat miglit be agreed to by this government. 

Consideration may be given, in addition, in these 



' I'.n.i.rriN of .Tunc 1'-', I!))!), p. TOl!. 

= For lis(. s<>(! Dopartnient of Stale press release 10(14 of 
Deo. 27, 1019. 



negotiations to the possible withdrawal of some 
concessions which the United States initially ne- 
gotiated with Cuba in 1947 in schedule XX of 
the General Agreement. 

The Committee for Recipi'ocity Information 
hereby gives notice that information and views 
in writing in regard to the foregoing negotiations 
shall be submitted to the Committee for Reciproc- 
ity Information not later than 12 : 00 noon, Janu- 
ary 23, 1950, and all api^lications for oral presen- 
tation of views in regard thereto, including a 
statement as to the product or products on which 
the applicant wishes to be heard, shall be submit- 
ted to the Committee for Reciprocity Information 
not later than 12:00 noon, January 23, 1950. 

Such communications shall be addressed to : 

The Chairman. Committee for Reciprocity Information 

Tariff Commission Building 

Washington 25, D. C. 

Ten copies of written statements, either type- 
written or printed, shall be submitted, of which 
one copy shall be sworn to. 

Public hearings will lie held liefore the Com- 
mittee for Reciprocity Information, at which oral 
statements will be heard. Tlie first hearing will 
be at 10 : 00 a.m. on February 1, 1050, in the hear- 
ing room of the Tariff Commission, Tariff Com- 
mission Building, 8th and E Streets, XW., Wash- 
ington, D.C. Witnesses who make application to 
be heard will be advised regarding the time and 
place of their intlividual ajipearances. Appear- 
ances at hearings befoie tlie Committee may be 
made by^ or on behalf of those j^ersons who have 
within the time prescribed made written appli- 
cation for oral presentation of views. Statements 
made at the public liearings shall be under oath. 

Persons intei'ested in tlie negotiations may pre- 
sent to the Committee their views concerning the 
modification of schedule IX with res]iect to any 
])roduct in the list attached to the ])ress release of 
llie Di'partment of State, and concerning new 
concessions, whether or not in respect of items now 
in scliedule IX (Cuba), which might be requested, 
or willidrawals from schedule XX (United 
States) which might be made, as compensation 
for such modification. Copies of the press re- 
lease and attached list may be obtained from the 
Connnittee for Reciprocity Information at the 
address designated above and may be inspected 
at the iiehl ollices of the Department of Commerce. 

By direction of the Committee for Reciprocity 
Infoi-mation this 23d day of December 1949. 

EnwAitn Y.\i{ni.r.v 

Sicrctanj, C<iiiii>iift< < for luriprocity 

Informafion 



58 



Department of Slate Bulletin 



U.S. Efforts To Expand International Trade 



The second half of the twentieth century pre- 
sents to the United States a real challenge and a 
real opportunity in the foreign economic field, 
Winthrop G. Brown said on December 28.^ 

Speaking before the Pacific Coast Economic 
Association at San Francisco, Mr. Brown, Direc- 
tor of the Office of International Trade Policy, 
reviewed the problems of Europe and the relation 
of the United States to those problems. 

One problem has been that of immediate sur- 
vival and recovery of Europe from the ravages of 
war. The other has been the building of the 
foundations for world conditions in which the 
institutions of freedom can survive and prosper 
over the long run. These tasks have occupied the 
energies of many countries in a wide variety of 
activities — economic, political, military. 

The dislocations of the Second World War, par- 
ticularly in the economic field, were much more 
profound than those of the First. Furthermore, 
the war and its aftermath brought to the fore cer- 
tain fundamental economic difficulties which had 
been more or less under the surface between the 
two World Wars. 

The entire situation is colored today by the atti- 
tude of the Soviet Union, presenting as it does a 
basic challenge to the validity of our whole concept 
of economic and political life. At a time when 
the free nations of the world are facing difficulties 
of the most staggering magnitude, they are at the 
same time challenged before millions of people in 
the world with a claim that their system will not 
work and that the institutions of freedom as we 
know them and would like to see them cannot 
provide a satisfactory standard of living for the 
peoples of the world, Mr. Brown stated. 

Another major difference lies in the new position 
and attitude of the United States. As the greatest 
economic force in the world, the attitude of the 
United States on almost any problem is of para- 
mount importance. In the critical period of the 
1920's, we avoided our responsibilities and tried 
to look the other way. After the Second World 
War, however, we chose the path of active and 
close collaboration with other nations in the solu- 



' For complete text of Mr. Brown's remarks, .see Depart- 
ment of State press release 1007 of Dec. 27, 1949. 



tions of problems which now all can clearly see 
are problems affecting us all. 

Accomplishments of Recent Years 

In Western Europe, Mr. Brown said, physical 
facilities have been restored, homes have been re- 
built, and factories are humming. Production in 
most countries is well above prewar levels. The 
pressures of communism have been thrust back in 
France and Italy and elsewhere. 

To the success of this effort, the United States 
has made a major contribution. With Marshall 
Plan aid, we have provided necessities to keep peo- 
ple alive and factories working and to start pro- 
ductive processes. But perhaps most important 
of all, the desire and willingness of the United 
States to give this assistance and to participate in 
this work of recovery and reconstruction has pro- 
vided for the peoples of Western Europe the 
intangible but vital element of hope. 

To release the full energies of any people for the 
pursuits of peace, the fear of aggression must be 
removed. So the United States has been partici- 
pating with countries across the Atlantic in the 
building of a security system which will give the 
assurance that men and women can go about their 
lawful business unmolested. By our participa- 
tion in the Atlantic pact, by our program of mili- 
tary assistance, we are contributing to our security 
and to that of like-minded nations and are 
strengthening further this vital element of hope. 

In all these efforts, pressing as they have been, 
neither the Europeans nor ourselves have lost sight 
of the fact that we are but part of a much larger 
community and that our economic, political and 
militar}' problems are but part of world problems. 
The expi'ession of this conviction is found in the 
United Nations and in its specialized agencies. 

The creation and effective operation of interna- 
tional institutions through which the nations of 
the world could work together in all the varied 
fields of international activity has been central to 
our thinking in the United States Government 
and in the governments of most of the rest of the 
world. In the organic law of these international 
institutions, the Charter of the United Nations, 



January 9, 1950 



59 



the articles of agreement of the International 
Monetary Fund, the charter of the proposed Inter- 
national Trade Organization, nations have been 
working out agreement on the principles which 
would guide their international activity in the 
political, financial, and trade fields in the years to 
come. 

Thus, at the end of this first half of the twentieth 
century we can see that much has been accom- 
plished to give encouragement and to provide a 
foundation on which to build for the future. 

Encouraging and Expanding Trade 

A new emphasis has come into the picture. Up 
to now, Mr. Brown commented, the primary em- 
phasis has been on the restoration of production, 
on getting people back to work, and getting fac- 
tories and fields into full operation. 

Now, however, much more emphasis is being 
given to the problem of how to make it easier for 
comitries to exchange the fruits of their produc- 
tion with each other — in other words, how to en- 
courage and expand trade. There is obviously 
much less incentive for the countries of Western 
Europe to expand their production if they cannot 
exchange the goods which they produce with each 
other, with us, and with the rest of the world. 

They must be able to exchange their goods with 
each other. 

Today, the countries of Western Europe, indi- 
vidually and through the Organization for Euro- 
pean Economic Cooperation and in consultation 
with our government, are planning how they can 
increase their trade with each other on a sound eco- 
nomic basis. Boiled down to essentials, this 
means making their currencies convertible and re- 
ducing their barriers to trade and capital move- 
ments. 

Already, many of them have substantially re- 
laxed the quotas by which they have hitherto lim- 
ited their imports, and further liberalization is be- 
ing considered. Plans are well along for a modi- 
fied form of customs union between France and 
Italy, and consideration is being given to whether 
this could be linked up through trade liberaliza- 
tion measures with the Benelux union. The 
Scandinavian countries have been thinking^ about 
a customs union among themselves, and Britain 
has recently made proposals to them for freer 
currency arrangements. A major readjustment 
of exchange rates has taken place. 

Underneath and beyond all of these individual 
efforts is the thinking and planning which is be- 
ing done to find ways and take steps that miglit 
ultimately make Europe into a single great market 
of almost 300 million people. 

These are knotty problems. Their solution will 
take time. They will require immense adjust- 
ments which cannot be undertaken and accom- 
plished overnight. But the important thing is 
that men are thinking about them and addressing 



their minds to the problem. The work is going 
forward in Europe. 

Need for Becoming Import-Minded 

In order for European countries to be able to 
exchange their goods with us, they must produce 
more. They must cut their costs of production. 
They must take the trouble to learn about the 
United States market — our tastes, our methods. 
And they must make a more vigorous and more 
intelligent effort to sell their goods in our markets. 

But the solution of this problem does not rest 
with them alone. Quite aside from the vital neces- 
sity of the full and continued operation of the 
European Kecovery Program, the United States 
has a fundamental role to play in this effort, 
namely, to do something to correct what Secretary 
Acheson has described as our "unfavorable" 
balance of trade, Mr. Brown said. 

For years we, as a people, have thought of our 
international trade primarily in terms of exports. 
We have tended to look upon imports not as addi- 
tions to our national wealth, but as something 
rather undesirable, especially, imports of products 
that we could conceivably produce oui-selves. We 
have preached the virtues of free competition do- 
mestically but somehow we have been blind to its 
advantages where foreign goods in our markets 
are concerned. 

We are badly in need of a mental adjustment, 
for one of the greatest contributions we can make 
to a restoration of sane economic conditions in the 
world is to become import-minded. We need to 
recognize that imports are things that are useful 
to us; that they are additions to our national 
wealth and to our standard of living; and that 
they make it possible for other countries to pay 
for the things we want to export. 

The products of our fields and factories are es- 
sential to the economic strength and stability of 
friendly nations all over the world. It is to our 
national interest that these countries should be 
able to get our products and use them. It is also 
to our national interest that they should be able 
to pay for our products, rather than that we 
should have to give them away. 

We have the goods to send abroad. We want 
to send them abroad. The major obstacle to their 
going abroad is the inability of other countries to 
pay for them. 

in 1949, for example, we exported 16.2 billion 
dollars of goods and services. This amount, to- 
gether with 1.3 billion dollars of other dollar re- 
quirements of foreign countries,^ was paid for 
through normal trade and financial transactions 
only to the extent of 11.8 billion dollars, of which 

'These requirements are reflected in our b:ilance-of- 
paynients statistics under the headiiii; Hnors and Omis- 
sionn. Tlioy are accounted for in part liy the fact that 
recorded exports are undervalued and recorded imports 
are overvalued, and in part hy \nirecorded capital 
movements. 



60 



Department of State Bulletin 



imports of goods and services into the United 
States accoiintod for 9.!) billion dollars and United 
States public and i)rivate investment abroad ac- 
counted for 1 billion dollars. 

More than a thirtl of the total dollar require- 
ments of t'oreifin countries, or 5.7 billion ilollars, 
was financed by extraordinary assistance in the 
form of grants. 

Yet, in this situation, the people of the United 
States are devoting far less of their national in- 
come to imports than they did 20 years ago. In 
the middle twenties, the United States devoted 
about 5 percent of its national income to the pur- 
chase of imports. Today, we devote less than o 
percent to imports. This doesn't seem like much 
of a difference; but in terms of our balance-of- pay- 
ments problem, it is tremendous. If we as a peo- 
ple should devote another 2 percent of our national 
income to the purchase of imports, over 4 billion 
dollars would be added to the purchasing power of 
the rest of the world. 



Efforts To Increase Imports 

The govei-nment can do much to help make it 
easier for this country to get imports. ]\Ir. Brown 
said that in the 15 years of the administration 
of the Trade Agreements Act, it has, through 
careful and selective negotiation, made substan- 
tial reductions in the levels of our tariff. But we 
still have many tariffs that are unnecessarily high, 
70 ]iercent, 90 percent, even over 150 percent. The 
Administration proposes to press forward with 
further negotiations under the authority recently 
conferred upon it by the Congress in extending 
the Trade Agreements Act for the sixth time. 

Certain American industries or groups of pro- 
ducers fear that a "flood" of goods coming in from 
abroad as a result of these negotiations will put 
them out of business. Each of those groups thinks 
of the large dollar volume of imports that is 
needed if we are to close the dollar gap and seems 
to feel that the whole competitive impact of 
new imports will somehow be concentrated very 
largely upon it. 

That, of course, is not the case. It has been the 
practice, and it is the intention of the Adminis- 
tration, so far as tariff barriers are concerned, to 
try to open the doors to imports wherever possible, 
all across the board, and thus to spread increased 
opportunities for imports as widely as possible 
throughout the whole Ignited States market. 

"We have customs regulations and customs ad- 
ministration laws which were written in times of 
high protection and which in total constitute an 
imposing obstacle to imports. They cause imcer- 
tainty, delay, and expense to importers. Active 
and effective work is being done to improve this 
situation. We have had conferences with repre- 
sentatives of many other countries who have told us 
about the specific difficulties that their exporters 
have faced in meeting our requirements. The 



Treasury Department has already introducexl a 
number of significant imjjrovements in the area 
which lies within its administrative discretion, and 
it is expected that legislation to simplify many 
asjjccts of our customs administrative law will be 
introduced early in the next session of Congress. 

We have a number of other governmental ob- 
stacles to imports. AVe have laws which require 
our public agencies, including our stock piling 
agency, to "buy American," for example, and we 
have certain other types of regulations that oper- 
ate as import barriers. Tliese things are all being 
studied in Washington. 

Investment abroad, private and public, is an- 
other important contribution to filling the dollar 
giip. Through the commercial treaty program and 
Point 4 legislation, the government is seeking to 
encourage private investment abroad, and the Ex- 
port-Import Bank and International Bank are 
also active. 

Advantages of Multilateral Trade 

The European countries must be able to ex- 
change their goods, not only with each other, and 
with us, but with the rest of the world. The res- 
toration of a flourishing multilateral trade is a 
prerequisite to their long-term economic health. 

As a country believing in the system of free com- 
petitive enterprise and having almost the only 
convertible currency in the world, the United 
States is the country most able to practice multi- 
lateral trade and has much to lose from its disap- 
pearance from the world. 

The European countries have not lost sight of 
this essential long-term problem even in their pre- 
occupation with the immediate problems of recov- 
ery. Nor has the United States. Since World 
War II, the United States has been a leader in 
the effort to restore multilateralism in trade. And 
at this beginning of the second half of the twen- 
tieth century, we have an opportunity to advance 
that cause still further. 

Tariff Negotiations 

VE-day was in May 1945; VJ-day followed in 
September. In December, the United States set 
in motion two major efforts for the restoration of 
multilateral trade. For even before hostilities 
had ceased. Mr. Brown continued, plans had been 
laid for international action designed to avoid as 
much as possible a repetition of the economic con- 
flicts of the inter-war period. 

These two steps were the issuance by the United 
States of its Proposals for the Expansion of World 
Trade and Employment and its invitation to 14 
other countries to begin negotiations for the reduc- 
tion of tariffs. The first of these acts led, through 
more than 2 years of international negotiation 
under the auspices of the United Nations, to the 
development of the Habana Charter for an Inter- 
national Trade Organization. The second re- 



January 9, 1950 



61 



suited in the General Agreement on Tariffs and 
Trade. 

Both of these proposals had novel aspects. The 
new thing about the invitations to tariff negotia- 
tions was that they contemplated simultaneous ne- 
gotiations with a number of countries, rather than 
negotiations with one country at a time as in the 
past and that they contemplated negotiations be- 
tween each of the 15 countries and all of the others 
as well as simply negotiations with the United 
States. The countries involved accounted for 
almost three-quarters of world trade. Thus, the 
proposal involved truly comprehensive and multi- 
lateral tariff reducing action. 

These invitations were accepted. Negotiations 
took place at Geneva in the summer of 1947, and 
agreement was reached on the tariff treatment of 
products which accounted for something over half 
of the trade of the entire world. This agreement 
was extended by negotiations with new countries 
at Annecy, France last summer, and a further set 
of negotiations is scheduled for September of next 
year. With the renewal of the Trade Agreements 
Act, the United States will be able to put the re- 
sults of the Annecy negotiations into effect and to 
participate in the September negotiations. Thus, 
the work of trying to reduce the tariff barriers of 
the world is continuing to be vigorously pressed. 

THE ITO CHARTER 

The novel aspect of the Proposals for Expansion 
of World Trade and Employment was that they 
contemplated agreement by the largest possible 
number of countries on a set of principles to guide 
their trade with each other — a set of principles 
comprehensive in scope and couched for the first 
time, not in glowing generalities, but in terms suffi- 
ciently precise to be guides for action. 

The charter for an International Trade Organi- 
zation developed at Habana in 1948 is now before 
the Congress. It is expected that it will be consid- 
ered very early in the next session. 

The charter would create an Organization which 
would be a specialized agency of the United Na- 
tions. It would provide a forum in which trade 
problems could be discussed and resolved in an 
orderly manner. It would be a place where com- 
plaints could be brought against members who did 
not live up to the principles and commitments of 
the Charter. The Organization would have two 
sanctions to implement its decisions. The first is 
the sanction of public opinion, for any member de- 
parting from its commitments under the charter 
would have to justify that action pul)licly before 
the Organization. The second lies in the power of 
the Organization, if it found that a member had 
not lived up to its commitments and would not 
mend its ways, to release other members from their 
commitments to the offender. 

The charter would establish a code of trade prin- 
ciples. This code would commit members of the 
Organization to negotiate for the reduction of 

62 



their tariffs and the elimination of their tariff 
preferences. It would obligate them to simplify 
and publicize their customs regulations. It would 
commit them not to use internal taxes and regu- 
lations as means of discriminating against im- 
ports. It would commit them to abandon the 
quota as a protective device, except under certain 
carefully limited circumstances. It would obli- 
gate them to give unconditional most-favored-na- 
tion treatment to the trade of other members. 
It would commit them to operate their state trad- 
ing enterprises in accordance with commercial con- 
siderations. It would place limitations upon their 
use of subsidies. 

It would permit members to prescribe terms for 
the admission of foreign capital to their countries, 
but would require that those terms be just and 
reasonable, and would obligate members to nego- 
tiate for more detailed treaties covering invest- 
ment. It would establish the first international 
mechanism for dealing with the restrictive prac- 
tices of private international cartels. 

It would permit intergovernmental action to 
deal with the problems arising out of surpluses of 
primary commodities, but it would require that 
consuming countries be equally re^Jresented with 
producing countries in such agreements and that 
the agi-eements contain some measures directed 
toward correcting the causes of the surplus. It 
would extend to all countries the same obligation 
that we have assumed in our Emplojmient Act of 
1946 to provide bj' appropriate means opportuni- 
ties for employment of those able and willing to 
work. 

It would obligate any member contemplating 
action which might adversely affect the interests 
of another member to consult with him first and 
try to reach a satisfactory solution of flie problem, 
rather than going ahead with unilateral action 
and thus stimulatnig retaliation. 

The charter rules do not demand the impossible 
of the members of the Organization. They recog- 
nize that in certain cases, members cannot, how- 
ever much they might wish to do so, fully live up 
to the general pi-inciple. Examples illustrate this 
point. Sir. Brown stated. 

The charter has a general rule against the use 
of quotas. But it is clearly impossible for a coun- 
try short of foreign exchange to abandon their use 
entirely. It can stop using quotas for protective 
purposes, but it must be able to limit its purchases 
from hard-currency areas in order to be sure to get 
the things it absolutely needs. The charter recog- 
nizes this fact and permits exceptions from the 
rule against quotas to protect a member's balance 
of payments. 

But, as in the case of the other exceptions in the 
Charter, the use of this one is limited. Membei-s 
must establisli that they are genuinely in balance- 
of-payments difficult ies, they must relax the re- 
strictions as the condition improves, and they must 
remove them as the balance-of-payments difficul- 
ties ceases. 

Department of State Bulletin 



Similarly, when as in the United States tlie gov- 
ernment hmits tlie production of agricultural 
products as part of a price-support program, it 
may also limit imports. Any other situation 
vrould be unfair. 

The charter thus strikes a balance between the 
need for rules which are precise enough to be 
guides for action and yet which are sufliciently 
flexible to be operable under tlie conditions of 
today's world. 

The rules of the Charter are not perfect. Nor 
do they in all cases coincide exactly with the 
desires of the United States. In the words of our 
original proposals, they "reflect awareness that we 
live in a world of many countries with a vai'iety 
of economic systems. They seek to make it possi- 
ble for those systems to meet in the market place 
without conflict, thus to contribute each to the 
other's prosperity and welfare." 

What the Ito can do is to establish a frame- 
work within which countries can conduct their 
international trade with the assurance that other 
countries will be following the same principles 
and be guided by the same rules; in other words, 
that they will not be imdercut when they play the 
game and also that they will have a place where 
they can bring their complaints for redress and 
their difficulties for help and consideration. 

With the new emphasis on the importance of 
expanding trade and of removing obstacles to the 



interchange of goods, it becomes increasingly im- 
portant to establish the Ito and to obtain the 
assurance that acceptance of its principles will 
give of common action by a large number of 
countries over a wide area of international trade. 

Whether this new international institution will 
come into being, whether (his new and important 
element in the structure of the United Nations will 
ever be jMit in place and operated rests with us, 
for without the active participation of the United 
States no such organization could hope to be 
effective. 

It is a very sobering experience to represent the 
United States at an international gathering, for 
it is hard to realize here at home how vital almost 
every action of ours is to other countries and how 
tlie first question in almost evei-y situation is, 
"AVhat does the United States think and what will 
the United States do?" 

We have been the leader of this whole effort to 
restore multilateral trade. We have been the 
foremost worker in trying to create world condi- 
tions in which the private trader and the forces 
of the market place and of competition can have 
a chance to operate. If we lay down this leader- 
ship, there is no one else to take it up. And our 
failure to ratify the Ito Charter would tend to be 
interpreted by other countries as an abandonment, 
at least for a time, of our effort to restore multila- 
teralism and competition in the world. 



U. S. -Yugoslavia Sign Air Transport Agreement 

[Released to the press December 241 



The Government of the United States and the 
Government of the Federal People's Republic of 
Yugoslavia concluded a provisional civil air trans- 
port agreement at Belgi'ade on December 24, 19-49, 
through an exchange of identical diplomatic notes. 

The text of the agreement follows : 

The American Embassy at Belgrade has the 
honor to refer to conversations concerning the civil 
air transport rights which took place from Novem- 
ber 5 to Deceniber 23, 1949, at Belgrade between 
representatives of the Government of the United 
States of America and the Government of the Fed- 
eral People's Republic of Yugoslavia, and to the 
understanding reached during the course of these 
conversations as set forth in the following provi- 
sions : 

(1) The Government of the United States of 
America accords to an airline to be designated by 
the Government of the Federal People's Republic 
of Yugoslavia the right to operate scheduled serv- 
ices, with rights of transit and noutraflic stop at 

January 9, J950 



airports open to civil aircraft in the United States 
area of control in Austria and Germany as well as 
the right to pick up and discharge international 
traffic in passengers, cargo and mail at two air- 
ports in the United States occupation zone of Ger- 
many and one airport in the United States occupa- 
tion zone of Austria open to civil aircraft, on a 
route or routes via intermediate points in both 
directions from Yugoslavia via United States oc- 
cupation zones in Austria and Germany and be- 
yond, such routes to be determined at a later date. 
(2) The Government of the Federal People's 
Republic of Yugoslavia accords to an airline to be 
designated by the Government of the United States 
of America the right to operate scheduled services, 
with rights of transit and nontraffic stop at air- 
ports open to civil aircraft in Yugoslav territory 
as well as the right to pick up and discharge inter- 
national traffic in passengers, cargo and mail at 
Belgrade on the following route via intermediate 
points in both directions : the United States via the 

63 



North Atlantic and Europe to Belgi-ade and 
beyond. 

(3) On each of the above routes authorized 
airlines may operate nonstop flights between any 
of the points on such route, thus omitting stojis at 
one or more other points on such route. 

(4) The international air services described 
in paragraphs 1 and 2 may be inaugurated im- 
mediately or at a later date, but only after consul- 
tation by the designated airline with competent 
aeronautical authorities of the govermnent whose 
territory or area of control is to be served as to 
the nature of operations to be conducted within 
such territory or area of control and the issuance 
of a permit, if required, to the designated aiiline 
by such aeronautical authorities. 

(5) In order to prevent discriminatory prac- 
tices and to assure equality of treatment, it is 
agreed that : 

(a) Each government may impose or permit 
to be imposed just and reasonable charges for 
the use of public airports and other facilities 
under its control; and that such charges shall 
not, however, be higher than those paid for the 
use of such airports and facilities by its national 
aircraft engaged in similar international 
services ; 

(b) Fuel, lubricating oils and spare parts 
introduced into the territory or area of control 
of one government by the other government or 
its nationals, and intended solely for use by air- 
craft operated pursuant to the rights accorded 
under this interim agreement shall, with respect 
to custom duties, inspection fees or other 
national duties or charges imposed by the gov- 
ernment whose territory or area of control is 
entered, receive the same treatment as that 
applicable to its own national airlines; 

(c) The fuel, lubricating oils, spare parts, 
regular equipment and aircraft stores retained 
on board civil aircraft authorized to operate the 
services described in paragi'aphs 1 and 2 above 
shall, upon arriving in or leaving the area of 
control of the other government, be exempt from 
customs duties, inspection fees or similar duties 
or charges, even though such supplies be used or 
consumed by such aircraft on flights in that 
area. 

(fi) The two governments agree that: 

(a) Their respective laws and regulations 
relating to the admission to or departure from 
their territories or areas of control of aircraft 
engaged in international air navigation, or to 
the operation and navigation of such aircraft 
while within I heir respective terriloi'ics or areas 
of control, sliall be applied to and sliali he com- 
plied with by their respective aircraft upon 
entering, departing from, or while within their 
resjjective territories or areas of control ; 

(b) Their respective laws and regulations 
relating to the admission to or departure from 



their territories or areas of control, of passen- 
gers, crew, or cargo of aii'craft, as well as regu- 
lations relating to entry, clearance, immigra- 
tion, passports, customs and quarantine, shall be 
complied with by or on behalf of such passen- 
gers, crew or cargo upon entrance into, depar- 
ture from or while within their respective terri- 
tories or areas of control. 

(7) Certificates of airworthiness, certificates of 
competency and licenses for aircraft and personnel 
to be used in operating the services described in 
this Agreement issued or rendered valid by one 
party to this agreement and still in force shall be 
recognized as valid by the other party. Each 
party reserves the right, however, to refuse to rec- 
ognize, for the purpose of flight above its own 
territory, certificates of competency and licenses 
granted to its own nationals by another state. 

(8) The two governments agree, in respect of 
the operation of the air services described in para- 
graphs 1 and 2 above, to cooperate in an effort to 
simplify procedures and formalities relating to the 
operation and navigation of aircraft and relating 
to the entry, transit and departure of aircraft, 
crews, jjassengers and cargo. 

(9) In event that either government should 
consider it desirable to modify routes or conditions 
herein described, it may request consultation be- 
tween the competent authorities of the two govern- 
ments, such consultations to be commenced within 
thirty days from the date the request is received ; 
and agreement between these authorities on new 
or revised routes or conditions shall become effec- 
tive upon confirmation by an exchange of notes 
between the two governments. 

(10) It is understood that the Government of 
the Federal People's Eepublic of Yugoslavia in- 
tends to invoke paragraph 9 when its plans for the 
operation of a trans-Atlantic route have pro- 
gressed to the point where negotiations for traffic 
rights in the United States appear desirable. 

(11) This agreement shall remain effective 
until notice of termination is given by either gov- 
ernment or until superseded by a more compre- 
hensive agreement. 

(12) If one of the governments is so obligated, 
this agreement shall be registered with the Inter- 
national Civil Aviation Organization. 

The Embassy is authorized to inform the 
Ministry of I^'oreign Affairs of the Federal Peo- 
ple's Republic of Yugoslavia that the Government 
of the TTnited States of America agrees that the 
present note and the identical note of the Ministry 
constitute a jirovisional agreement Ix^tween tlie two 
governments conc'ci'iiing the exchange of civil air 
transport rights and that tliis agreement is effec- 
tive from the date on which these notes are ex- 
changed. 

The Embassy avails itself of this opportunity 
to renew to the Ministry of Foreign Affairs the as- 
surance of its hiixh consideration. 



64 



Department of State Bulletin 



Turkey Signs Fulbright Agreement 

[Released to the pregs December 27] 

Turkey and the United States today signed an 
agreement under tlie Fulbright Act, which, fol- 
lowing ratification by the Grand National Assem- 
bly of Turkey, will put into operation the program 
of educational exclianj^es authorized by Public 
Law No. 5S4, 70th Congress, the Fulbrifjlit Act. 

The signing took place at Ankara, with Secre- 
tary General Faik Zihni Akdur of the Turkish 
Ministry of Foreign AfiFairs representing the Gov- 
ernment of Turkey and Ambassador George 
Wadsworth representing the United States. 

The agreement provides for a United States 
Educational Commission in Turkey to assist in 
the administration of the educational program 
financetl from certain funds resulting from the 
sale of United States surplus property to that 
country. It provides for an annual program of 
the equivalent of approximately $250,000 in Turk- 
ish liras for 2 years, with the possibility of exten- 
sion for a number of additional j'ears, for certain 
educational purposes. These purposes include 
the financing of "studies, research, instruction, and 
other educational activities of or for citizens of the 
United States of America in schools and institu- 
tions of higher learning located in Turkey or of 
nationals of Turkey in United States schools and 
institutions of higher learning located outside the 
continental United States . . . inchiding payment 
for transportation, tuition, maintenance, and other 
expenses incident to scholastic activities; or fur- 
nishing transportation for nationals of Turkey 
who desire to attend United States schools and in- 
stitutions of higher learning in the continental 
United States . . . whose attendance will not de- 
prive citizens of the United States of America of 
an opportunity to attend such schools and institu- 
tions. 

The Commission in Turkey will consist of eight 
members, the honorary chairman of which will be 
the United States Ambassador to Turkey. The 
members of the Commission will include four citi- 
zens of Turkey and four citizens of the United 
States. 

After the members of the Commission in Turkey 
have been appointed, information about specific 
opportunities for American citizens to pursue 
study, teaching, or research in that country will be 
made public. At that time applications for these 
opportunities will be received by : 

For university teaching, or advanced research 

The Conference Board of Associated Research Councils 
2101 Constitution Avenue, NW. 
Washington 2.'5, D. C. 

For teaching in Turkish seconilary schools 

The United States OflBce of Education 
Federal Security Agency 
Washington 25, D.C. 



For teaching in American secondary schools abroad 

Tlift Conforenco Hoard of Associated Research Councils 
2101 C<institution Avenue, NW. 
Washington 25, D.C. 

For graduate study 

The Institute of International Education 
2 West Forty-lifth Street 
New York 19, N.Y. 

Fulbright Program Advisers, American colleges and uni- 
versities . 



VOA To Broadcast in Indonesian 
and Arabic Languages 

The Voice of America will beam a daily broad- 
cast to Southeast Asia in the Indonesian language 
starting on December 27, 1949, the Department of 
State announced on December 20. 

The date for inaugurating the new broadcast 
series was selected to coincide with the date set 
for the transfer of sovereignty to the Republic of 
the United States of Indonesia. The initial pro- 
gram will consist of a salute to the new republic 
with greetings from various American officials. 
Subsequent programs will consist exclusively of 
United States and world news. 

The Indonesian program will be broadcast from 
6 : 15 to 6 : 30 a.m. e.s.t., (7 : 15-7 : 30 p.m. Indo- 
nesian time) by tive short-wave transmitters in the 
United States and relayed by two short-wave 
transmitters at Honolulu and by one medium-wave 
and three short-wave transmitters at Manila. 

With the start of the new transmission, a cur- 
rent 30-minute Voice of America broadcast to 
Indonesia in English 5 times a week will be re- 
vised to include a 15-minute newscast in English 
followed by 15 minutes of news in Indonesian 7 
days a week. 

On December 22, the Department announced 
the inauguration of Voice of America broadcasts 
in the Arabic language beginning on January 1, 
1950. 

The Arabic program will be broadcast from 
11:00-11:30 a.m. e.s.t. (6:00-6:30 p.m. Cairo 
time and 7: 00-7: 30 p.m. Baghdad time) by four 
short-wave transmitters in the United States, by 
one relay transmitter at the American relay base 
at Munich, and by three relay transmitters which 
the Voice of America leases from the British 
Broadcasting Corporation. 

Indonesia will be the twenty-third language, 
and Arabic will be the twenty-fourth language 
used by the Voice of America in its world-wide 
radio service and the third beamed to the Near 
East. 



January 9, 1950 



65 



The United States in the United Nations 



[December 31-January 6] 

Security Council 

The Security Council completed its fourth year 
on December 31. The number of Council meet- 
ings in 1949 declined compared with previous 
years. Sixty-two meetings were held in 1949 ; 168 
meetings were held in 1948; 137 in 1947; and 88 
in 1946. This was the first year in which no new 
dispute was brought before the Council. 

The members of the 1949 Security Council were 
the five permanent members: China, France, the 
Union of Soviet Socialist Republics, the United 
Kingdom, and the United States, plus Argentina, 
Canada, Cuba, Egypt. Norway, and the Ukraine. 
Ecuador, India, and Yugoslavia were elected in 
1950 by the General Assembly to replace Argen- 
tina, Canada, and the Ukraine. 

Among the matters with which the Security 
Council is "seized" are the Palestine question, the 
Kashmir question, the Indonesian question, gen- 
eral regulation and reduction of armaments and 
armed forces, international control of atomic en- 
ergy, organization of armed forces at the disposal 
of the Security Council under article 43 of the 
Charter, membership applications, and the voting 
procedure in the Security Council. 

Kashmir 

At its last meeting, December 29, the Security 
Council heard the report of its President, General 
McNaughton of Canada, on his consultations with 
representatives of India and Pakistan. The Coun- 
cil had asked him to hold the consultations in or- 
der to find "a mutually satisfactory basis for 
dealing with the Kashmir problem." General ap- 
proval for the proposal that he had submitted to 
the parties for consideration by their governments 
and a desire that he continue the consultations 
were expressed by everyone in the meeting excpt 
by the Soviet representatives, but action was de- 
ferred until the 1950 Council meets. 

General McNaughton explained that his pro- 
posal was based on the principle, already accepted 
by both parties, that the freely expressed M'ill of 
its people will determine the future of the State 
of Jammu and Kashmir. 



The proposal was directed toward the practical 
task of bringing about conditions under which 
such free expression could take place through a 
plebiscite. It also included the basis for an agi'eed 
program of progressive demilitarization to pre- 
cede the plebiscite. If accepted by the parties, 
said General McNaughton, "the essential require- 
ments leading to conditions requisite to a free and 
impartial plebiscite would have been established 
and the way would be open for the Plebiscite Ad- 
ministrator to discharge the functions which have 
already been entrustecl to him." 

United States Representative Gross told the 
Council that he believed the proposal constitutes 
a fair and reasonable approach to the problem. 
We expect, he said, that the parties, imder the able 
guidance of General McNaughton, will continue 
their consultations in fulfillment of their obliga- 
tions luider article 33 of the Charter to reach a 
satisfactory and peaceful solution of the current 
dispute. 

At the opening of the meeting, the Union of 
Soviet Socialist Republics, supported by the 
Ukraine, stated that it does "not regard Mr. Tingfu 
Tsiang, the Kuomintang representative in the Se- 
curity Council, as repi'esenting China, and does 
not consider him as empowered to represent the 
Chinese people on the Security Council." After 
Ambassador Tsiang had replied to these declara- 
tions, the Security Council President ruled the 
matter closed. 

International Labor Office 

The Governing Body of the International Labor 
Organization planned to hold its 110th session at 
Mysore, India, December 29-tTanuary 7. Among 
the items to be considered are questions relating 
to the rights of trade unions, the relationship of 
the International Labor Organization to the Or- 
ganization of American States, and the Inter- 
national Labor Organization's technical assistance 
program. 

The Governing Body will consider the establish- 
ment, actively sponsored by the United States, of 
a Fact Finding and Counciliation Commission on 
freedom of association. This Commission, when 
established, would act on behalf of the United 



66 



Department of State Bulletin 



Nations as well as the International Labor Organi- 
zation and vrould be available for ascertaining the 
facts concerning allegat inn.s tliat trade nnions nave 
been denied the right oi freedom of association. 
It is anticii)ated that this Connnission would assist 
in establisliing and maintaining the rights of 
workere (and of emploj-ei-s) to associate freely 
in organizations of their own choosing, free from 
government domination. 

In line with tlie etforts of the United States to 
bring about active day-to-day cooperation in the 
activities of international organizations, repre- 
sentatives of the International Labor Organiza- 
tion and the Council of the Organization of 
American States have negotiated an agreement 
establishing working relations between the two 
organizations. It is anticipated that this agree- 
ment will be the foundation for mutual coopera- 
tion in the common work of the two organizations 
in the Western Hemisphere. 

The Governing Body will have before it various 
proposals of the Director-General with respect to 
an International Labor Organization technical 
assistance program as well as plans for integrating 
this program with the over-all United Nations 
program. 

Draft International Covenant on Human Rights 

The United States has submitted to Secretary- 
General Lie its observations on the draft inter- 
national covenant on human rights, in accordance 
with the request of the Commission on Human 
Rights for the comments of all United Nations 
members by January 1, 1950. The United States 
attaches great impoitance to the completion of 
the covenant at the next session of the Commission, 
wliich will convene March 27, 1950, in order that 
it may be forwarded first to the Economic and 
Social Council and then to the 1950 .session of the 
General Assembly for consideration and final 
approval. 

The United States has proposed for inclusion 
in the covenant a comprehensive article on its 
implementation, which provides that any state 
party to the covenant may raise the question of 
violation of the covenant if it "considers that 
another State Party is not giving effect to a pro- 
vision of the Covenant." Under the implementa- 
tion mechanism proposed, it is contemplated that 
the states involved would initially undertake a 
settlement between them. If this should fail, 
either state would have the right to refer the al- 



leged violations to a Human Rights Committee of 
live persons chosen "for their high moral char- 
acter and suitable ability" to serve in their i)er- 
sonal capacities, which would be established under 
procedures set forth in our proposal. The Com- 
mittee would have authority to call for relevant 
information from any state concerned, request 
advisory opinions from the International Court of 
Justice, through tthe Human Rights Commission, 
and would report its findings of fact not later 
than 2 years alter its first meeting. 

The "United States has also proposed for in- 
clusion in the covenant, in conformity with the 
recent General Assembly recommendation, an 
article on freedom of information which would 
be so worded as to provide the right to be free from 
governmental interference "to hold opinions, to 
seek, i-eceive and impart information, opinions 
and ideas, regardless of frontiers, through speech, 
press, art or any other media." This article also 
includes a general limitation clause, instead of a 
detailed listing of specific exceptions. The United 
States believe that this is the only practicable way 
of handling the question of limitations on freedom 
of information, if agreement is to be obtained 
and if the article is not to become one on the 
restriction of information. 

Another article of particular interest to the 
United States is that known as the federal-state 
provision, which has not yet been incorporated in 
the Commission draft. A number of member 
states, including the United States, have a form 
of constitutional government that reserves to their 
constituent states certain powers of government. 
Under the proposed federal-state provision, the 
obligation of the United States would be limited 
to matters within the Federal Government's juris- 
diction. Where it is determined by appropriate 
constitutional processes that the Covenant in- 
volves matters within the concern of the constitu- 
ent states, the Federal Government would under- 
take to recommend to those states the incorporation 
of the provisions of the Covenant in their basic 
law. 

The United States feels that the inclusion of 
economic and social rights in the covenant would 
seriously prejudice its completion by the Com- 
mission on Human Rights at its next session. The 
United States, however, has included language 
lecognizing economic and social rights as a part 
of human rights in its suggested preamble to the 
covenant. 



January 9, 1950 



67 



Bodies and Posts Established by Fourth Session of General Assembly^ 



SEPTEMBER 20-DECEIVIBER 10, 1949 



Body or Post 



1. U.N. Commission on Korea (Rees- 

tablished with a change in mem- 
bership) . 

2. U.N. Special Committee on the Bal- 

kans (Reestablished with same 
membership) . 



3. U.N. Commissioner in Libya. 
Commissioner Elected 

4. U.N. Council for Libya 



5. U.N. Commission for Eritrea. 



6. U.N. Advisory Council for Somali- 

land. 

7. Interim Committee of the General 

Assembly (Reestablished without 
time limit provision). 

8. U.N. Field Service 

9. U. N. Panel of Field Observers 



10. U. N. Headquarters Advisory Com- 
mittee (Reestablished with same 
membership as last year). 



11. U. N. Administrative Tribunal. 



Appointment of members of the 
Administrative Tribunal. 



12. High Commissioner's Office for Ref- 
ugees. 



Membership 



Australia, China, El Salvador, France, 
India, Philippines, Turkey. 

Australia, Brazil, China, France, Mexico, 
Netherlands, Pakistan, United Kingdom, 
United States, (Poland and the Union of 
Soviet Socialist Republics declined par- 
ticipation). 



Adrian Pelt (Netherlands). 



Egypt, France, Italy, Pakistan, United 
Kingdom, United States, one represen- 
tative of people of each of 3 regions in 
Libya and one representative of minor- 
ities in Libya. 

Guatemala, Burma, Norway, Pakistan, 
Union of South Africa. 

Colombia, Egypt, Philippines 



Total U.N. membership declined participa- 
tion: Byelorussian S.S.R., Czechoslo- 
vakia, Poland, Ukranian S.S.R., Union of 
Soviet Socialist Republics, Yugoslavia. 

Approved in principle and noted the Stg's 
intention to establish same. 

Requested Syg to establish Panel 

Australia, Belgium, Brazil, Canada, China, 
Colombia, France, Greece, India, Norway, 
Poland, Syria, Union of Soviet Socialist 
Republics, United Kingdom, United 
States, Yugoslavia. 

Adopted in principle 



Appointed following members on recom- 
mendation of Committees: 

S-Ycar Term: Madame Paul Bastid 

(France), Maharaja ,Iam Shri Dig- 

vijavasinhi Sahib (India), M. Omar 

I,outfi (Egypt). 

Z-Yenr Term: Rowland Egger (U. S.), 

Dr. Eniilio Oril)e (Uruguay). 
1-Ycar Term: Sir Sidney Caine (U. K.), 
Dr. Vladimir Outrata (Czechoslovak- 
ia). 
(High Commissioner to be elected by the 
General Assembly on nomination by Syg 
for term of 3 years beginning 1/1/51). 



Doc. No. 



A/1039. 
A/1117. 



A/1124 

A/PV/276. 
A/1124.... 



A/1124_ 
A/1124_ 
A/1125_ 

A/1130- 
A/1130. 
A/1141. 

A/1142. 
A/1243. 



A/1199. 



Approved 



233d meeting, 
Oct. 21. 

24.5th meeting, 
Nov. 18. 



250th meeting, 

Nov. 21. 
276th meeting, 

Dec. 10. 
250th meeting, 

Nov. 21. 



250th meeting, 

Nov. 21. 
250th meeting, 

Nov. 21. 
250th meeting, 

Nov. 21. 



252d meeting, 

Nov. 22. 
252d meeting, 

Nov. 22. 
255th meeting, 

Nov. 24. 



255th meeting, 

Nov. 24. 
274th meeting, 

Dec. 9. 



265th meeting, 
Dec. 3. 



68 



Department oi State Bulletin 



Body or Post 


Membership 


Doc. No. 


Approved 


13. Special Committee on information 
transmitted under article 73 (e). 


Established for a 3-year period 


A/1186 


263d meeting 
Dec. 2. 




A/1214 




Following members elected by Committee 




274th meeting 




4 on behalf of Cipiieral As.sembly: 




Dec. 9. 




3-Year Term: Egypt, India, Brazil, 








U. S. S. R. 








;8-y'eor Term: Mexico, Philippines. 








1-Year Term: Venezuela, Sweden. 








Members Traiismilting Information: 








Australia, Belgium, Denmark, 








France, Netherlands, New Zealand, 








United Kingdom, United States. 






11. U.N. Relief and Works Agency for 
Palestine Refugees in the Near 


(Director to be appointed by Syq) 


A/1237 


273d meeting, 






Dec. 8. 


East. 


France, Turkey, United Kingdom, United 


A/1237 


273d meeting, 


Advisory Commission of the U.N. 


States, (3 additional members may be 




Dec. 8. 


Relief and Works Agency for 


elected by the Advisory Commission). 






Palestine Refugees in the Near 








East. 








Elections to Previously Established Organs 


Membership 


Doc. No. 


Approved 


1. Election of three nonpermanent mem- 
bers of the Security Council. 


Ecuador, India, Yugoslavia 


A/PV/231 


231st meeting, 






Oct. 20. 


2. Election of six members to the 


Mexico, Iran, United States, Pakistan, 


A/PV/231 


231st meeting. 


Economic and Social Council. 


Canada, Czechoslovakia. 




Oct. 20. 


3. Election of three members to the 


Dominican Republic (to complete unexpired 


A/PV/231 


231st meeting, 


Trusteeship Council. 


term of Costa Rica), Argentina, Iraq. 




Oct. 20. 


4. Vacancies in membership of Advisory 


William O. Hall (U.S.), Olyntho P. 


A/1135 


255th meeting. 


Committee on Administrative and 


Machado (Brazil), Sir William Mathews 




Nov. 24. 


Budgetary Questions. 


(U.K.). 






5. Vacancies in the membership of the 


Frank Pace (U.S.), Mitchell W. Sharp 


A/1136 


255th meeting, 


Committee on Contributions. 


(Canada), Kan Lee (China). 




Nov. 24. 


6. A Vacancy in the membership of the 
Board of Auditors. 


Auditor General of Canada 


A/1137 


255th meeting, 






Nov. 24. 


7. Vacancies in the membership of the 


R. T. Cristobal (Philippines), E. Holte- 


A/1139 


255th meeting, 


U. N. Staff Pension Committee. 


Costello (Colombia), Nikolai Klimou 
(U.S.S.R.). 

Alternates: Miss Carol Laise (U.S.), 
Dr. A. Nass (Venezuela), P. Or- 
donneau (France). 




Nov. 24. 


8. Vacancy in the membership of the 
Investments Committee. 


I var Rooth (Sweden) 


A/1140 


255th meeting. 






Nov. 24. 



' For information on the third session, see Bulletin of Jan. 16, 1949, p. 72, and Aug. 29, 1949, p. 289. 



Programs for Non-Self-Governing Areas in the Pacific 



The completion of a project on exchange of epi- 
demiological information among the 15 non-self- 
governing territories of the South Pacific was one 
of the accomplishments of the recent meeting of 
the South Pacific Commission. 

At its fourth session from October 22-31 at 
Noumea, New Caledonia, the Commission reviewed 
the progress on 30 research projects that it had 
undertaken last May on the health, economic, and 
social development of that region. 

The Commission instructed the Secretary-Gen- 
eral to prepare a draft program for technical 
assistance. Such a program is to be based initi- 



ally on any need as may be found to reinforce any 
of the 30 approved projects in the Commission's 
existing program. 

Although the projected program for technical 
assistance will deal comprehensively with the long- 
term needs of the area, each participating govern- 
ment will make its applications for technical 
a.ssistance for such territories to the United Na- 
tions or other authority administering the pro- 
gram. 

An agreement between the participating gov- 
ernments provided for the South Pacific Confer- 
ence that will have advisory powers auxiliary to 



January 9, 1950 



69 



the Commission. The first session of the Confer- 
ence will be held at Nasinu, Suva, on April 24, 
1950. Representatives from the following terri- 
tories will attend the Conference: Papua, New 
Guinea, Nauru, New Caledonia and dependencies, 
French Oceania, Netherlands New Guinea, West- 
ern Samoa, Cook Islands (including Nine), Fiji, 
British Solomon Islands, Gilbert Islands, Ellice 
Islands, American Samoa, New Hebrides, Toke- 
lau Islands, and Kingdom of Tonga. 

The Commission also made progress in such 
projects as the investigation to discover a suitable 
infant food ; introduction of new economic plants, 
with introduction centers in Fiji, New Caledonia, 
Papua, and Netherlands New Guinea, and the im- 
provement of productivity of atoll islands; sur- 
veys by experts of social anthropology and lin- 
guistics with emphasis on practical application of 
the results; a filariasis survey; the pi'oblem of 
illiteracy; plans for the establishment of central- 
ized technical institutions and the use of films 
and other visual aids in education ; a pilot survey 
to determine methods of land usage that will begin 
soon in New Caledonia; and arrangements for a 
scheme of community development under trained 
native leadership, a start of which will be made 
in January on Moturiki, one of the Fiji Islands. 

The Commission, in recognizing the importance 
of disseminating information throughout the ter- 
ritories, decided to issue quarterly bulletins that 
would report primarily upon progress made in the 
implementation of the Commission's work pro- 
gram. 

Attending the fourth session were representa- 
tives of the participating governments : Australia, 
France, the Netherlands, New Zealand, the United 
Kingdom, and the United States. 

The fifth session of the South Pacific Commis- 
sion will be held at Suva, Fiji, in May 1950, imme- 
dately following the first South Pacific Conference. 



U. S. Delegation to 

110th Session ILO Governing Body 

On December 23, the Department of State 
announced that the President has designated 
Arnold L. Zempel, Executive Director, Office of 
International Labor AffairSj Department of La- 
bor, and Walter M. Kotschnig, Director, Office of 
United Nations Economic and Social AfTnirs, De- 
partment of State, as substitute and alternate 
substitute representatives, respectively, of the 
United States Government to the 110th session of 
the governing body of the International Labor 
Office, to be held at Mysore, India, December 29, 
1949, through January 7, 1950. Named to serve 
as adviser on the delegation is Philip B. Sullivan, 



Labor Adviser, Bureau of Far Eastern Affairs, 
Department of State. 

In addition to the persons designated to repre- 
sent the United States Government at this session, 
George Philip Delaney, International Representa- 
tive, American Federation of Labor, one of eight 
worker members of the Governing Body, and 
Charles E. Shaw, Manager, Employee Relations 
Overseas, Standard Oil Company of New Jersey, 
serving as substitute for one of the eight employer 
members, will also attend the 110th session of the 
Governing Body. 

The agenda for this session of the Governing 
Body contains 26 items, ranging from examina- 
tion of reports of the Director-General and those 
of all standing and special committee meetings 
submitted since the Thirty-second Conference of 
the International Labor Organization, to a de- 
termination of agenda, dates, and location of 
future Ilo meetings. 



United Nations Documents: 
A Selected Bibliography ^ 

Signatures, Ratifications, Acceptances, Accessions, etc. 
concerning the Multilateral Conventions and Agree- 
ments in respect of which the Secretary-General acts 
as Depository. November 15, 1949 vii. 1949.V9. 
130 pp. Printed. $1.25. 

General Assembly, Official Records: Fourth Session 

Report of the Special Committee on Methods and Pro- 
cedures of the General Assembly. Supplement No. 

12. A/937 vi. 23 pp. Printed. 25^. 

United Nations Field Service. Report of the Special Com- 
mittee on a United Nations Guard. Supplement No. 

13. A/959 iii. 10 pp. Printed. 100. 

General Assembly 

Report of the Trusteeship Council. Report of the Fourth 
Committee. A/1028, October 20, 1949. 28 pp. mimeo. 

Assistance to Palestine Refugees. Report of the Secre- 
tary-General. A/1060, November 4, 1949. 71 pp. 
mimeo. A/1060/Add. 1, November 4, 1949. 19 pp. 
mimeo. 

Economic Development of Under-Developed Countries. 
Report of the Second Committee. A/1064, November 
7, 1949. 17 pp. mimeo. 

Palestine. Protection of Holy Places. Letter from the 
United Nations Conciliation Commission for Pales- 
tine to the Secretary-General . . . A/1113, November 
IS, 1949. 9 pp. mimeo. 

Report of the International Law Commission. Report of 
the Sixth Committee. A/1196, December 3, 1919. 
21 pp. mimeo. 



'Printed materials may be secured in the United States 
from the International Docimients Service, Columbia 
University Press. 29<)0 Broadway, New Ycn-k 27, N. Y. 
Other materials (mimeographed or prcicessed documents) 
may be consnlled at certain designated libraries in the 
United States. 



70 



Department of State Bulletin 



Palestine. Report of the Ad Hoc Political Committee. 
A/1222, December 7, 1040. IG pp. mlmeo. 

Budget Kstimates for the FInnnelal Year 1950. Report 
of the Fifth Committee. A/1232, December 8, 1SM9. 
83 pp. mimeo. Unite<I Nations Conciliatiim Commis- 
sion for Palestine. Fifth Progress Keport. A/1252, 
December 14, 1949. 7 pp. mimeo. 

Security Council 

Letter Dated 23 September 1949 from the Secretary-Gen- 
eral to the President of the Security Council Trans- 
mitting the Fourth Progress Report of the United 
Nations Conciliation Commission for Palestine. 
[A/902, 14 pp. mimeo.] S/1396, September 26, 1949. 
1 p. mimeo. 

Letter from the Chairman of the United Nations Commis- 
sion for India and Pakistan to the Secretary-General 
of the United Nations Introducing the Commission's 
Third Interim Keport. S/1430, December 9, 1949. ii. 
8S pp. mimeo. S/1430/Add. 1, December 9, 1949, 
containing 53 annexes. 

Letter Dated 30 November 1949 from the Representatives 
of the United Kinfidom and the United States to the 
President of the Security Council, Transmitting the 
Report of the Administration of the British-United 
States Zone of the Free Territory of Trieste, 1 July- 
30 September 1949. S/1424, Novemlier 30, 1949. 
44 pp. mimeo. 



Appointment of Officers 

Burton Y. Berry as Director of African and Near East- 
ern Affairs, effective October 24, 1940. 



THE DEPARTMENT 



Edward W. Barrett Nominated 
Assistant Secretary for Public Affairs 

The President announced on December 31 that 
he would send to the Senate the nomination of 
Edward Ware Barrett to be Assistant Secretary 
of State. 

Following confirmation, Mr. Barrett will serve 
as Assistant Secretary for Public Affairs, succeed- 
ing George V. Allen, who resigned on November 
29, 1949, to become United States Ambassador to 
Yugoslavia. 

As Assistant Secretary for Public Affairs, Mr. 
Barrett will be responsible for advising the Sec- 
retary on public opinion factors in the develop- 
ment of policies and programs ; for conducting the 
international information and educational ex- 
change programs of the Department; for keeping 
the United States public informed on international 
affairs; for United States participation in the 
United Nations Educational, Scientific and Cul- 
tural Organization (Unesco) ; for the Depart- 
ment's publications and historical research pro- 
grams ; for supporting United States policies and 
actions relating to freedom of information; and 
for developing policies relating to frequency as- 
pects of international broadcasting. ' 



THE CONGRESS 



Legislation 

Regulation of Whaling. Hearing before a Subcom- 
mittee of the Committee on Interstate and Foreign Com- 
merce, United States Senate, Eighty-first Congress, First 
Session, on S. 20S0, a bill to authorize the regulation of 
whaling and to give effect to the international convention 
for the regulation of whaling signed at Washington under 
date of December 2, 1946, by the United States and certain 
other Governments, and for other purposes. July 20, 
1949. iii, 58 pp. 

Joint Development of Hydroelectric Power at Falcon 
Dam on Rio Grande — United States and Mexico. Hearing 
before a Special Subcommittee of the Committee on For- 
eign Affairs, House of Representatives, Eighty-first Con- 
gress, First Session, on H.R. 5773, a bill to authorize the 
carrying out of the provisions of article 7 of the treaty 
of February 3, 1944, between the United States and 
Mexico, regarding the joint development of hydroelectric 
power at Falcon Dam, on the Rio Grande, and for other 
purposes. August 17, 1949. iii, 16 pp. 

Mutual Defense Assistance Act of 1949. Hearings be- 
fore the Committee on Foreign Affairs, House of Repre- 
sentatives. Eighty-first Congress, First Session, on H.R. 
5748 and H.R. 5895, a bill to promote the foreign policy 
and provide for the defense and general welfare of the 
United States by furnishing military assistance to foreign 
nations. July 28, 29, August 1, 2, 5, and 8, 1949. iv, 
3G4 pp. 

Military Assistance Program. Joint Hearings before 
the Committee on Foreign Relations and the Committee 
on Armed Services, United States Senate, Eighty-first 
Congress, First Session, on S. 2388, a bill to ijromote the 
foreign policy and provide for the defense and general 
welfare of the United States by furnishing military as- 
sistance to foreign nations. August 8, 9, 10, 11, 17, 18, 
and 19, 1949. iv, 252 pp. 

Cooperative for American Remittances to Europe, Inc. 
Hearings before a Special Subcommittee of the Committee 
on Foreign Affairs, House of Representatives, Eighty-first 
Congress, First Session, on H.R. 5953, a bill to authorize 
contributions to Cooperative for American Remittances to 
Europe, Inc. August 23, 1949. iii, 64 pp. 

Export-Import Bank Loan Guaranty Authority. Hear- 
ings before the Committee on Banking and Currency, 
House of Representatives, Eighty-first Congress, First 
Session, on H.R. 5594, a bill to amend the Export-Import 
Bank Act of 1945, as amended, to vest in the Export- 
Import Bank of Washington the Power to Guarantee 
United States Investments Abroad. August 17, 19, 22, 23, 
and 24, 1949. iii, 160 pp. 

International Wheat Agreement Funds. Hearings be- 
fore a Subcommittee of the Committee on Agriculture and 
Forestry, United States Senate, Eighty-first Congress, 
First Session, on S. 2287 and S. 2383, bills to give effect 
to the International Wheat Agreement signed by the 
United States and other countries relating to the stabiliza- 
tion of supplies and prices in the international wheat 
market. September 21 and 22, 1949. iii, 52 pp. 

Report on the Congress of American Women. October 
23, 1949. iv, 114 pp. 



January 9, 1950 



71 



General Policy 

Present Kelatious With India. By Loy \V. 
Henderson, American Ambassador to 
India 

Future World Must See Close Association 
of Free Nations 

Joint Statement on U.S.-Iranian Relations — 
Need for Iran's Economic Development 
Seen 

Indonesian Independence Welcomed. State- 
ment by President Truman 

Approaches to Shanghai and Yangtze River 
Mined 

Families Informed That Smith and Bender 
Are Safe in China 

Chinese Communist Announcement on Own- 
erless Land 

The United Nations and 
Specialized Agencies 

Survey Mission Recommends Near East Re- 
lief and Public Works Program. State- 
ment by President Truman 

U.S. Efforts To Expand International Trade . 

The United States in the United Nations . . 

Bodies and Po.sts Established by Fourth 
Session of General Assembly — September 
20-December 10, 1949 

Programs for Non-Self-Governing Areas in 
the Pacific 

U.N. Documents: A Selected Bibliograjjliy . 



Page 
43 

r)2 

54 
55 
50 
56 
57 



55 
59 
(3(3 



08 

09 
70 



Economic Affairs page 

P*roblemsin .\chicvingaStable Tin Indu.stry — 
Background for the Fifth Meeting of the 
International Tin Study Group. By C. 
W. Nichols 47 

Treaty information 

North Atlantic Council To Hold Third Ses- 
sion 57 

U.S. -Canada Make Progress in Colonial 

Airlines Case 57 

U.S. and Cuba To Renegotiate Certain Items 

in G.^TT 58 

U.S.-Yugoslavia Sign Air Transjjort Agree- 
ment 63 

Turkey Signs Fulbright Agreement .... 65 

International Information and 
Cultural Affairs 

VGA To Broadcast in Indonesian and Arabic 

Languages 65 

International Organizations 
and Conferences 

110th Sissiun li,n Governing Body .... 70 

The Department 

Edward W. Barrett Nominated Assistant 

Secretary for Public .MTairs 71 

Appointment of Oflicers 71 

The Congress 

Legislation 71 



6 



^/fC 



C. IV. XirholH, author of the article on the tin 
stud.v group, is adviser, I'.cononiic Resources and 
Security StalT, Department of Slate. Mr. Nichols 
has served on the I'niled Stales (lelegalion of vari- 
ous meetings of the International Tin Study (Jroup 
and its working parties. 



U. S GOVERNMENT PNINTIK6 OFFlCEr ISBO 



^?^:^-^v>: 



tj/ie^ ^e/ia/}^t7}ie7ii/ xw cfCate^ 




niE STATE OF THE UNION 

Message of thr Prr-^ulmf to ii n 

TirE PRORTFATc; OF TnuTAx nTr.TTT^ wn r.FX- 

OCIDI 91 

I S. POLICY TOWARD FORMOSA: 

Statement by President Truman 79 

Extemporaneous Remarks by Secr^-iury /tfiiiv^on 79 



For complete contents see back cover 



Vol. XXII, No. 550 
January 16, 1950 





•»«,„ o» ' 



t^ 



^^^y.^^ bulletin 



Vol. XXII, No. 550 • Publication 3727 
January 16, 1950 



For sale by the Baperlntendent of Docnments 

D.8. QovernmeDt Printing Office 

Washington 25, D.O. 

Prick: 

£2 Issues, domestic $6, foreign $8.60 

Single copy, 20 cents 

The printing of this publication has 
been approved by the Director of the 
Bureau of the Budget (February 18, 1949). 

Note: Contents of this publication are not 
copyrighted and items contained herein may 
be reprinted Ciiallon of the Department 
OF State Bulletin as the source will be 
appreciated. 



The Department of State BULLETIN, 
a weekly publication compiled and 
edited in the Division of Publications, 
Office of Public Affairs, provides the 
public and interested agencies of 
the Government with information on 
developments in the field of foreign 
relations and on the work of the De- 
partment of State and the Foreign 
Service. The BULLETIN includes 
press releases on foreign policy issued 
by the White House and the Depart- 
ment, and statements and addresses 
made by the President and by the 
Secretary of State and other officers 
of the Department, as well as special 
articles on various phases of inter- 
TUitional affairs and the functions of 
the Department. Information is in- 
cluded concerning treaties and in- 
ternational agreements to which the 
United States is or may become a 
party and treaties of general inter- 
national interest. 

Publications of the Department, as 
well as legislative material in the field 
of international relations, are listed 
currently. 



The State of the Union 



Message of the President to the Congress ^ 



»». i. SUHtKINTEHUENT OF WJUUUtHre 

FEB 9 1950 



Mr. President, Mr. Si-eaker, Members of the 
Congress : A year ago I reported to this Congress 
that the state of the Union was good. I am happy 
to be able to report to you today that the state of 
the Union continues to be good. Our Republic 
continues to increase in the enjoyment of freedom 
within its borders, and to offer strength and en- 
couragement to all those who love freedom 
tliroughout the world. 

During the past year we have made notable 
progress in strengthening the foundations of peace 
and freedom, abroad and at home. 

AVe have taken important steps in securing the 
North Atlantic community against aggression. 
We have continued our successful support of 
European recovery. We have returned to our 
established policy of expanding international 
trade through reciprocal agreement. We have 
strengthened our support of the United Nations. 

While great problems still confront us, the 

freatest danger has receded — the possibility which 
aced us 3 years ago that most of Europe and the 
Mediterranean area might collapse under totali- 
tarian pressure. Today, the free peoples of the 
world have new vigor and new hope for the cause 
of peace. 

Today, by the grace of God, we stand a free and 
prosperous nation with greater possibilities for 
the luture than any people have ever had before. 

We are now, in this year of 1950, nearing the 
midpoint of the twentieth century. 

The first half of this century will be known as 
the most turbulent and eventful period in recorded 
history. The swift pace of events promises to 
make the next 50 years decisive in the history of 
man on this planet. 

The scientific and industrial revolution which 
began two centuries ago has, in the last 50 years, 
caught up the peoples of the globe in a common 

' Excerpts from the President's message delivered to the 
Congress on Jan. 4, 19.50, and released to the press by the 
White House on the same date. 



destiny. Two world-shattering wars have proved 
that no corner of the earth can be isolated from the 
affairs of mankind. 

The human race has reached a turning point. 
Man has opened the secrets of nature and mastered 
new powers. If he uses them wisely, he can reach 
new heights of civilization. If he uses them 
foolishly, they may destroy him. 

Man must create the moral and legal framework 
for the world which will insure that his new powers 
are used for good and not for evil. In shaping 
the outcome, flie people of the United States will 
play a leading role. 

Among all the great changes that have occurred 
in the last 50 years, none is more important than 
the change in the position of the United States in 
world affairs. Fifty years ago, we were a country 
devoted largely to our own internal affairs. Our 
industry was growing, and we had new interests 
in the Far East and in the Caribbean, but we were 
primarily concerned with the development of vast 
areas of our own continental territory. 

Today, our population has doubled. Our na- 
tional production has risen from about 50 billion 
dollars, in terms of today's prices, to the stagger- 
ing figure of 255 billion dollars a year. We liave 
a more productive economic system and a greater 
industrial potential than any other nation on the 
globe. Our standard of living is an inspiration 
for all other peoples. Even the slightest changes 
in our economic and social life have their effect 
on other countries all around the world. 

Our tremendous strength has brought with it 
tremendous responsibilities. We have moved from 
the outer edge to the center of world affairs. 
Other nations look to us for a wise exercise of our 
economic and military strength, and for vigorous 
support of the ideals of representative government 
and a free society. We will not fail them. 

Our objective in the world is peace. Our coun- 
try has joined with others in the task of achieving 
peace. We know now that this is not an easy task, 
or a short one. But we are determined to see it 
through. Both of our great political parties are 



January 16, 1950 



75 



committed to working together— and I am sure 
they will contimie to work together— to achieve 
this end. We are prepared to devote our energy 
and our resources to this task, because we know 
that our own security and the future of mankind 
are at stake. 

Our success in working with other nations to 
achieve peace depends largely on what we do at 
home. We must preserve our national strength. 
Strength is not simply a matter of aims and force. 
It is a matter of economic growth, and social 
health, and vigorous institutions, public and pri- 
vate. We can achieve peace only if we maintain 
our productive energy, our democratic institu- 
tions, and our firm belief in individual freedom. 

Our surest guide in the days that lie ahead will 
be the spirit in which this great Republic was 
founded. We must make our decisions in the 
conviction that all men are created equal, that 
they are equally entitled to life, liberty, and the 
pursuit of happiness, and that the duty of govern- 
ment is to serve these ends. 

This country of ours has experienced many 
blessings, but none greater than its dedication to 
these principles. At every point in our history, 
these ideals have served to correct our failures and 
sliortcomings, to spur us on to greater efforts, and 
to keep clearly before us the primary purpose of 
our existence as a nation. They have enshrined 
for us, as a principle of government, the moral 
imperative to do justice, and the divine command 
to men to love one another. 

These principles give meaning to all that we do. 

In foreign policy, they mean that we can never 
be tolerant of oppression or tyranny. They mean 
that we must throw our weight on the side of 
greater freedom and a better life for all peoples. 
These principles confirm us in carrying out the 
specific programs for peace which we have already 
begun. 

We shall continue to give our wholelieaited sup- 
port to the United Nations. We believe that this 



U.S.S.R. Jams VOA Broadcast 
of President's Message 

[Kcleasfd to the jircss Januaru .5] 

Soviet ti-ansiiiill(>i-s jainiMcd tlie rresiiii'iit's State 
of tlic lliiion iiii'ssa',,'!' as l)r(ia(lcast tyvcrscas l)y the 
Viiict' of Aiiii'i-ica accord iiij; to iiioiiiloi-in.:; rc|iorts 
received l)y llie Depart iiieiil of Slate from Mo.scow 
today. 

The jainmliig liefjan with the delivery of tlie 
message, tlie i>reliniiiiarie.'j having l)eeii heard 
clearly and without jamminj.'. Some of the fai'ili- 
ties used to liroadcast the President's adilress 
normally are used at thai hour to iransmit tlie 
Voici''H Itussian-lani;uaf;e [irouram which has lieen 
jamioeil consistently hy Soviet facilities since last 
April. It was not possible to determine wlu-ther the 
jannninK of yesterday's l':nj.'lish-lan;.'Ma;;e transmis- 
sion was a special or routine o|ieralion. Kngllsh 
broadcasts have not been jammed in llii' past. 



organization can ultimately provide the frame- 
work of international law and morality without 
which mankind cannot survive. It has already 
set up new standards for the conduct of nations 
in the Declaration of Human Rights and the Con- 
vention on Genocide. It is moving ahead to give 
meaning to the concept of world brotherhood 
through a wide f ariety of cultural, economic, and 
technical activities. 

The events of the past year again showed the 
value of the United Nations in bringing about 
the peaceful adjustment of tense international 
controversies. In Indonesia and in Palestine, the 
etforts of the United Nations have put a stop to 
bloodshed and paved the way to peaceful settle- 
ments. 

We are working toward the time when the 
United Nations will control weapons of mass 
destruction and will have the forces to preserve 
international law and order. While the world 
remains unsettled, however, and as long as our 
own security and the security of the free world 
require, we will maintain a strong and well- 
balanced defense organization. The selective 
service system is an essential part of our defense 
plans, and it must be continued. 

Under the principles of the United Nations 
Charter, we must continue to share in the common 
defense of free nations against aggression. At 
the last session, this Congress laid the basis for 
this joint eti'ort. We now must put into effect the 
common defense plans that are being worked out. 

We shall continue our efforts for world eco- 
nomic recovery, because world prosperit}' is the 
only sure foundation for permanent peace. 

As an immediate means to this end, we must con- 
tinue our support of the European Recovery Pro- 
gram. This program has achieved great success 
in the first 2 years of operation, but it has not yet 
been c()m])leted. If we were to stop this program 
now, or cripple it, just because it is succeeding, 
we sliould be doing exactly what the enemies of 
democracy want us to do. We should be just as 
foolish as a man who, for reasons of false 
economy, failed to put a roof on his house after 
building the foundation and tlie walls. 

AVorki i)rosperity also requires (hat we do all 
we can to expand worhl trade. As a major step 
in this direction, we siiould promptly join the 
International Trade Organization. The ]iurpose 
of this organization, which the United States has 
been foremost in creating, is to establish a code of 
fair practice, and an international authority for 
adjusting dilTerences in international commercial 
relations. It is an effort to jirevent the kiiul of 
anarchy and irresponsiliility in world trade which 
did so much to l)ring about tlie w(n-ld dei)ression 
in the i:);U)'s. 

An expanding world economy requires the im- 
provement of living standards and the develop- 
ment of resoiii-ces in areas where human i)overty 
and misery now jnevail. Without such improve- 



76 



Department of Stale Bulletin 



nicnt, tlie recovery of Europe and the future of 
our own economy will not be secure. I urpe that 
the Congress adopt the legislation now before it 
to provide for increasing the flow of technical 
assistance and capital investment to underdevel- 
oped regions. 

It is more esesntial now than ever, if the ideals 
of freedom and representative government are to 
prevail in these areas, and particularly in the Far 
East, that their people experience, in their own 
lives, the benefits of scientific and economic ad- 
vances. This program will require the movement 
of large amounts of capital from the industrial 
nations, and particularly from the United States, 
to productive uses in the underdeveloped areas of 
the world. Recent world events make prompt 
action imperative. 

Tliis program is in the interest of all people — 
and it has nothing in common with either the old 
imperialism of the last century of the new im- 
perialism of the Communists. 

Our aim for a peaceful, democratic world of 
free peoples will be achieved in the long run, not 
by force of arms, but by an appeal to the minds 
and hearts of men. If the peace policy of the 
democratic nations is to be successful, they must 
demonstrate that the benefits of their way of life 
can be increased and extended to all nations and 
all races. 

In the world today, we are confronted with the 
danger that the rising demand of people every- 
where for freedom and a better life may be cor- 
rupted and betrayed by the false promises of com- 
munism. In its ruthless struggle for power, 
communism seizes upon our imperfections, and 
takes advantage of the delays and setbacks which 
the democratic nations experience in their effort to 
secure a better life for their citizens. This chal- 
lenge to us is more than a military challenge. It 
is a challenge to the honesty of our profession of 
the democratic faith; it is a cliallenge to the 
efficiency and stability of our economic system ; it 
is a challenge to our willingness to work with 
other peoples for world peace and world pros- 
perity. 

For my part, I welcome the challenge. I be- 
lieve that our country, at this crucial point in 
■world history, will meet that challenge success- 
fully. I believe that, in cooperation with the 
other free nations of the world, we shall extend 
the full benefits of the democratic way of life to 
millions who do not now enjoy them, and preserve 
mankind from dictatorship and tyranny. 

I believe that we shall succeed in our struggle 
for peace, because I have seen the success we have 
had in our own country in following the principles 
of freedom. Over the last 50 years, the ideals of 
liberty and equal opportunity to which our Nation 
is dedicated have been increasingly realized in the 
lives of our people. 

The ideal of equal opportunity no longer means 
simply the opportunity which a man has to ad- 

Janoary 76, 7950 



Vance beyond his fellows. Some of our citizens 
do achieve greater success than others as a reward 
for individual merit and effort, and this is as it 
should be. At the same time, our country must 
bo more than a land of opportunity for a select 
few. It must be a land of opportunity for all of 
us. In such a land, all can grow and prosper 
together. 

The simple truth that we can all go forward 
together is often questioned by selfish or short- 
sighted persons. It is strange that this is so, for 
this proposition is so clearly demonstrated by 
our national history. During the last 50 years, 
for example, our nation has grown enormously in 
material well-being. This growth has come about, 
not by concentrating the benefits of our progress 
in the hands of a few, but by increasing the wealth 
of the great body of our citizens. 

Increasing freedom from poverty and drudgery 
has given a fuller meaning to American life. Our 
people are better educated ; we have more oppor- 
tunities for travel and recreation and enjoyment 
of the arts. We enjoy more personal liberty in 
the United States today than ever before. 

If we can continue in the spirit of cooperative 
adventure which has marked the recent years of 
our progress, we can expect further scientific ad- 
vances, further increases in our standard of living, 
and a still wider enjoyment of democratic freedom. 

At present our total national production is 255 
billion dollars a year. Our working population 
and our output per worker are increasing. If our 
productive power continues to increase at the 
same rate as it has increased for the past 50 years, 
our total national production 50 years from now 
will be nearly 4 times as much as it is today. Al- 
lowing for the expected growth in population, this 
would mean that the real income of the average 
family in the year 2000 A. D. would be about 3 
times what it is today. 

. • • • 

Important resource legislation which should 
be passed at this session includes the authori- 
zation of the St. Lawrence seaway and power 
project and the establishment of the Columbia 
Valley Administration. 

Our democratic ideals, as well as our own best 
interests, require that we do our fair share in 
providing homes for the unfortunate victims 
of war and tyranny. In so doing, we shall add 
strength to our democracy through the abilities 
and skills which these men and women will bring 
here. I urge the prompt enactment by the Con- 
gress of the legislation now before it to extend 
and broaden the existing displaced persons law 
and remove its discriminatory features. 

The measures I am recommending to the Con- 
gress concerning both our foreign and our do- 

77 



mestic policies represent a carefully considered 
program to meet our national needs. It is a 
program which necessarily requires large expen- 
ditures of funds. More than 70 percent of the 
Government's expenditures are required to meet 
the costs of past wars and to work for world 
peace. This is the dominant factor in our fiscal 
policy. At the same time, the Government must 
make substantial expenditures which are neces- 
sary to the growth and expansion of the domestic 
economy. 



As we move forward into the second half of 
the twentieth century, we must always bear in 
mind the central purpose of our national life. 
We do not seek material prosperity for ourselves 
because we love luxury; we do not aid other na- 
tions because we wish to increase our power. 
We have not devised programs for the security 
and well-being of our people because we are 
afraid or unwilling to take risks. This is not 
the meaning of our past history or our present 
course. 

We work for a better life for all, so that all 
men may put to good use the great gifts with 
which they have been endowed by their Creator. 



We seek to establish those material conditions 
of life in which, without exception, men may live 
in dignity, perform useful work, serve their com- 
munities, and worship God as they see fit. 

These may seem simple goals, but they are not 
little ones. They are worth a great deal more 
than all the empires and conquests of history. 
They are not to be achieved by military aggres- 
sion or political fanaticism. They are to be 
achieved by humbler means — by hard work, by 
a spirit of self-restraint in our dealings with 
one another, and by a deep devotion to the prin- 
ciples of justice and equality. 

It should make us truly thankful, as we look 
back to the beginnings of this country, that we 
have come so far along the road to a better life for 
all. It should make us humble to think, as we 
look ahead, how much farther we have to go to 
accomplish, at home and abroad, the objectives 
that were set out for us at the founding of this 
Nation. 

As we approach the halfway mark in the 
twentieth century, we should ask for continued 
strength and guidance from that Almighty 
Power who has placed before us such great op- 
portunities for the good of mankind in the years 
to come. 



THE CONGRESS 



Legislation 

Annual Report. OflBce of Alien Property, Department 
of Justice. H. Doc. 89, Slst Cong., 1st sess. viii, 208. 

Report on Audit of Corporations of the Inter-American 
Affairs Group. Letter from the Comptroller General of 
the United States transmitting a report of the audit of 
the four remaining corporations of the Inter-American 
Affairs group for the fiscal year ended June 30, 1947. H. 
Doc. 165, Slst Cong., 1st sess. vi, 50. 

The Nineteenth and Concluding Report of the Commis- 
sion on Organization of the Executive Branch of the 
Government. Letter from Chairman, Commission on 
Organization of the Executive Branch of the Government 
transmitting the nineteenth and concluding report of the 
Commission on Organization of the Executive Brunch of 
the Government. H. Doc. 197, Slst Cong., 1st sess. 132 pp. 

Technical A.ssistance for the Underdeveloped Areas of 
the World. Message from the President of the United 
States transmitting a recommendation for the enactment 
of legislation to authorize an expanded program of tech- 
nical assistance for the underdeveloped areas of the 
world. H. Doc. 240, Slst Cong., 1st sess. pp. 

Supplemental Estimate of Appropriation Continuing for 
2 Moiitlis the Present Program of Assistance to the Ue- 
puhlic of Korea. Communication from the President of 
the United States transmitting supplemental estimate of 
appropriation for the fiscal year 1950 in the amount of 
$25,000,000 to continue for 2 months the present program 
of assistance to the Republic of Korea. H. Doc. 247, Slst 
Cong., Ist sess. 2 pp. 

Report of Activities of the National Advi.sory Council on 
International Monetary and Financial Proljlems. Mes- 



sage from the President of the United States transmitting 
the report of the National Advisory Council on interna- 
tional monetary and financial problems covering its 
operations from October 1, 1048, to March 31, 1949. H. 
Doc. 250, Slst Cong., 1st sess. vii, 2 pp. 

Supplemental Estimates of Appropriation Together 
With Certain Proposed Provisions Pertaining to Existing 
Appropriations. Communication from the President of 
the United States transmitting supplemental estimates 
of appropriation for the fiscal year 1950 and prior years 
in the amount of $194,514,857.38, and proposed rescissions 
in the amount of $31,300,000, together with certain pro- 
posed provisions pertaining to existing appropriations. 
H. Doc. 2.59, Slst Cong., 1st sess. 16 pp. 

Twenty-Eighth Report to Congress on Lend-Lease Op- 
erations. Message from the President of the United States 
transmitting the twenty-eighth report to Congress on 
Lend-Lease operations — also appendix V, a "Report on 
Lend-Lease Fiscal Operations" prepared by the Treasury 
Department and submitted to the Secretary of State 
in accordance with Executive Order 9720. H. Doc. 263, 
Slst Cong., 1st sess. v, 46 pp. 

Military Aid to the Nations of Western Europe. Mes- 
sage from the President of the United States transmitting 
recommendations for the enactment of legislation author- 
izing military aid to the nations of Western Europe. H. 
Doc. 276, Slst Cong., 1st sess. 6 pp. 

Fourth Report to Congress of the Economic Cooperation 
Administration. H. Doc. 308, Slst Cong., 1st sess. xli, 
134 pp. 

United States Atomic Energy Commission. Letter 
from the Chairman and Meml)crs of the United States 
Atomic Energy Connnission transmitting pursuant to 
law the sixth semiannual report of the United States 
Atomic Energy Commission. S. Doc. 101, Slst Cong., 1st 
sess. viii, 203 pp. 

Convention of the International Recognition of Rights 
in Aircraft. S. Exec. Rept. 9, Slst Cong., 1st sess. 4 pp. 

International Convention for the Northwest Atlantic 
Fisheries. S. Exec. Rept. 10, Slst Cong., 1st sess. 7 pp. 



78 



Department of Stale Bulletin 



United States Policy Toward Formosa 



Statement hy President Truman 

[Released to the press by the White House January 5] 

The United States Government has always stood 
for good faith in international relations. Tradi- 
tional United States policy toward China, as ex- 
emplified in the open-door policy, called for 
international respect for the territorial integrity 
of China. This principle was recently reaffirmed 
in the United Nations General Assembly resolu- 
tion of December 8, 1949, which, in part, calls on 
all states — 

To refrain from (a) seeking to acquire spheres of in- 
fluence or to create foreign controlled regimes within the 
territory of Cliina ; (b) seeking to obtain special rights 
or privileges within the territory of China. 

A specific application of the foregoing prin- 
ciples is seen in the present situation with respect 
to Formosa. In the joint declaration at Cairo on 
December 1, 1943, the President of the United 
States, the British Prime Minister, and the Presi- 
dent of China stated that it was their purpose that 
territories Japan had stolen from China, such as 
Formosa, should be restored to the Republic of 
China. The United States was a signatory to the 
Potsdam declaration of July 26, 1945, which de- 
clared that the terms of the Cairo declaration 
should be carried out. The provisions of this 
declaration were accepted by Japan at the time of 
its surrender. In keeping with these declarations, 
Formosa was surrendered to Generalissimo Chi- 
ang Kai-shek, and for the past 4 years, the United 
States and the other Allied Powers have accepted 
the exercise of Chinese authority over the Island. 

Tlie United States has no predatory designs on 
Formosa or on any other Chinese territory. The 
United States has no desire to obtain special rights 
or priviliges or to establish military bases on For- 
mosa at this time. Nor does it have any intention 
of utilizing its armed forces to interfere in the 
present situation. The United States Government 
will not pursue a course which will lead to involve- 
ment in the civil conflict in China. 

Similarly, the United States Government will 
not provide military aid or advice to Chinese 
forces on Formosa. In the view of the United 



States Government, the resources on Formosa are 
adequate to enable them to obtain the items which 
they might consider necessary for the defense of 
the Island. The United States Government pro- 
poses to continue under existing legislative au- 
thority the present ECA program of economic 
assistance. 

Extemporaneous Remarks hy Secretary Acheson 
[Released to the press January 5] 

I am having this conference this afternoon at 
the request and at the direction of the President 
for the purpose of going into the background of 
the statement which he made this morning on the 
subject of Formosa. 

I should like to make a few remarks on this 
subject for the purpose of trying to put it in its 
setting for you, and then we will get down into 
such details as you want to get into. 

Why was the statement made at this particular 
time? That is a question that arises in all of your 
minds and I want to recall to you that I have said 
very often in these meetings that the foreign pol- 
icy of the United States is determined not merely 
by what the State Department says, or not even 
by what the President says, and not even by what 
the Congress says, but reflects the sum total of 
the activities, thoughts, and speech of the Ameri- 
can people. For the past week or 10 days, this 
subject of Formosa has become one of the foremost 
subjects of discussion throughout the country. 

The ordinary processes of life in this town of 
Washino;ton have made their contribution. We 
have had leak and counterleak, gossip and counter- 
gossip. We have had the contributions of dis- 
tinguished statesmen in the debate. We have had 
a great deal of talk in the press and on the radio. 
Much of that is good and much of that is de- 
sirable, and all of it has to go on to make the United 
States the democracy that it is. But we slide very 
easily from discussion to the statement of fact. I 
have here a distinguished foreign newspaper dated 
Friday last [December 30] which announces as a 
fact that President Truman has decided, et cetera, 
and et cetera, giving something which President 
Truman had not decided and had not intended to 



ianuaty 76, 7950 



79 



decide. Therefore, what has occurred is that we 
have gotten a great deal of confusion in the minds 
of our own people. We have gotten a great deal 
of confusion in the minds of foreign people. We 
have stirred up a good deal of speculation, all of 
which, if allowed to continue, would be highly 
prejudicial to the interests of the United States 
of America. And therefore, it was the President's 
desire to clarify the situation. He was not pri- 
marily concerned in stating anything new, and 
you will find very little which is new in the state- 
ment. What he was interested in doing was bring- 
ing clarity out of confusion. 

That, I think, gives you the background as to 
why it was necessary to make the statement at the 
present time. It would have been desirable from 
our point of view if the whole question of the Far 
East, and all of the parts of the Far East and of 
Formosa, which after all is a small part of the 
great question of the Far East, could have been 
discussed very fully with members of both parties 
on the Hill before any statement was made. But 
one has to choose in this life, and it was more im- 
portant to clarify thinking than it was to go on 
and have the most desirable of all possible things 
which is consultation. 

Now, getting down to this statement, let's be 
clear about one or two things. There has been 
a great deal of amateur military strategy indulged 
in in regard to this matter of Formosa. The 
underlying factors in the decision are not in that 
area. They have to do with the fundamental 
integrity of the United States and with maintain- 
ing in the world the belief that when the United 
States takes a position it sticks to that position and 
does not change it by reason of transitory ex- 
pediency or advantage on its part. If we are going 
to maintain the free nations of the world as a great 
unit opposed to the encroachment of communism 
and other sorts of totalitarian aggression, the 
world must believe that we stand for principle and 
that we are honorable and decent people and that 
we do not put forward words, as propagandists 
do in other countries, to serve their advantage only 
to throw them overboard when some change in 
events makes the position difficult for us. 

We believe in integrity in our foreign relations. 
We believe also in respect of the integrity of other 
countries. That is a view not held by some other 
countries. That is a view not held by some other 
countries with respect to China. 

It is important that our position in regard to 
China should never be subject to the slightest doubt 
or the slightest question. 

Now, what has that position been? In the 
middle of the war, the President of the United 
States, the Prime Minister of Great Britain, and 
the President of China agreed at Cairo that among 
the areas stolen f i-om China by Japan was Formosa 
and Formosa should go back to Cliina. 

As the President pointed out this morning, that 
statement was incorporated in the declaration at 
Potsdam and that declaration at Potsdam was 

80 



conveyed to the Japanese as one of the terms of 
their surrender and was accepted by them, and 
the surrender was made on that basis. 

Shortly after that, the Island of Formosa was 
turned over to the Chinese in accordance with the 
declarations made and with the conditions of the 
surrender. 

The Chinese have administered Fonnosa for 4 
years. Neither the United States nor any other 
ally ever questioned that authority and that oc- 
cupation. Wlien Formosa was made a province 
of China nobody raised any lawyers' doubts about 
that. That was regarded as in accordance with 
the commitments. 

Now, in the opinion of some, the situation is 
changed. They believe that the forces now in 
control of the mainland of China, the forces which 
undoubtedly will soon be recognized by some 
other countries, are not friendly to us, and 
therefore they want to say, "Well, we have to wait 
for a treaty." We did not wait for a treaty on 
Korea. We did not wait for a treaty on the 
Kuriles. We did not wait for a treaty on the 
islands over which we have trusteeship. 

Whatever may be the legal situation, the United 
States of America, Mr. Truman said this morning, 
is not going to quibble on any lawyers' words 
about the integrity of its position. That is 
where we stand. 

Therefore, the President says, we are not going 
to use our forces in connection with the present 
situation in Formosa. We are not going to at- 
tempt to seize the Island. We are not going to 
get involved militarily in any way on the Island 
of Formosa. So far as I know, no responsible 
person in the Govenmient, no military man has 
ever believed that we should involve our forces in 
the island. 

I do not believe that is new policy. It would 
be new policy if we decided to do that. The Presi- 
dent is affirming what so far as I know has been 
the view of his Administration, and the unques- 
tioned view ever since I have known about it. 

The President goes on to say that we do not 
intend to give military assistance or advice, that is 
materiel and military people, to the forces on 
Formosa, and he says why. He says that there 
are resources on that Island which are adequate 
to enable those on the island to obtain whatever 
necessary military supplies they believe they have 
to have. That is against a background of very 
considerable gifts on our part at a time when the 
Government on Formosa was recognized by every- 
body as the Government of China and was in 
control of a very large part of China. AVe gave 
vast amounts of military equipment to that gov- 
ernment after the war up until 1948. In 1948 
another act of Congi'ess was passed, and 125 mil- 
lion dollai's of military equipment was turned 
over. 

That is not where the difficulty lies in maintain- 
ing the Island by the forces on it. It is not that 

Department of State Bulletin 



tlicy lack rifles or ammunition or that, if thoy do 
have any deticiencies in any of those, they cannot 
purchaso what they need. That is not the trouble. 
The trouble lies elsewhere, and it is not the func- 
tion of the United States nor will it or can it 
attempt to furnish a will to resist and a purpose 
for resistance to those who must provide for 
themselves. 

That is the background of this statement. The 
President goes on to say that in regard to economic 
assistance which we have been furnishing, we will 
furnisli it for as long as the legislation that Con- 
gress has passed permits us to. Whether that 
legislation will be extended or not, I don't wish to 

Srejudice this afternoon. That is a matter for 
iscussion with the leaders, and for action by 
the Congi-ess. 

We have been, through the ECA, conducting 
programs one of which has resulted in all the 
fertilizer necessary for the spring crop on the 
Island of Formosa. Others have been the pur- 
chase of necessary oil for refining on the Island 



and for running the power plants and other things 
on the Island. Other programs have had to do 
with keeping their power plants and other fac- 
tories in repair and in operation. Those are going 
forward. 

Now those are the main statements of back- 
ground which I wish to make. I am informed by 
Mr. McDermott that some of you wish me to say 
what if any significance is to be attached to the 
sentence inthe ne.xt-to-last paragraph of the state- 
ment which says, "The United States has no desire 
to obtain special rights or privileges or to establish 
military bases on Formosa at this time." The 
question is, what does that phrase "at this time" 
mean. That phrase does not qualify or modify or 
weaken the fundamental policies stated in this 
declaration by the President in any respect. It is 
a recognition of the fact that, in the unlikely and 
unhappy event that our forces might be attacked 
in the Far East, the United States must be com- 
pletely free to take whatever action in whatever 
area is necessary for its own security. 



PUBLICATIONS 



Recent Releases 

For sale bii the S^uperintendent of Documents. Oovem- 
ment Printing Office, Washington 25, D.C. Address re- 
quests direct to the Superintendent of Documents, except 
in the case of free puhlieations, which may be obtained 
from the Department of State. 

The Point Four Program. Economic Cooperation Series 
23. Pub. 3347. 16 pp. 15«!. 

Discussion of Point 4 with pictorial descriptions of 
world conditions and Point 4 activities. 

Air Transport Services. Treaties and Other International 
Acts Series 1905. Pub. 3516. 26 pp. 100. 

Agreement and accompanying exchanges of notes 
between United States and Chile — Signed at Santiago 
May 10, 1947 ; entered into force December 30, 1948. 

Awa Maru Claim. Treaties and Other International Acts 
Series 1911. Pub. 3528. 11pp. 5^. 

Agreement and agreed terms of understanding between 
the United States and .Japan — Sisnod at Tokyo April 
14, 1949; entered into force April 14, 1949. 

Germany: Removal of Restrictions on Communications, 
Transportation and Trade. Treaties and other Inter- 
national Acts Series 191.x Pub. 3534. 3 pp. 5(f. 

Agreement between the United States and other gov- 
ernments — Dated at New York May 4, 1949 ; entered 
into force May 4, 1949. 

Military and Security Measures Effective Until Comple- 
tion of Withdrawal of United States Forces From Korea. 
Treaties and Other International Acts Series 1918. Pub. 
3537. 7 pp. 5(J. 

January 16, 1950 



Interim agreement between the United States and 
Korea — Signed at Seoul August 24, 1948 ; entered 
into force August 24, 1948. 

Financial and Economic Relations. Treaties and Other 
International Acts Series 1919. Pub. 3.")38. 6 pp. 50. 

Agreement between the United States and Italy inter- 
preting agreement of August 14, 194T — Effected by 
exchange of notes verbales dated at Rome February 
24, 1949; entered into force, February 24, 1949. 

Military Mission to Iran. Treaties and Other Interna- 
tional Acts Series 1924. Pub. 3546. 3 pp. 50. 

Agreement between the United States and Iran 
amending and extending agreement of October 6, 1947 
— Effected by exchange of notes dated at Tehran De- 
cember 29, 1948 and January 5, 1949; entered into 
force .January 5, 1949. 

Passport Visa Fees. Treaties and Other International 
Acts Series 1926. Pub. 3549. 3 pp. 5^. 

Agreement between the United States and the United 
Kingdom of Great Britain and Northern Ireland — 
Effected by exchange of notes signed at London, No- 
vember 9 and 12, 1948 ; entered into force November 12, 
1948. 

Mutual Aid Settlement. Treaties and Other International 
Acts Series 1928. Pub. 3557. 87 pp. 25^. 

Agreements between the United States and France — 
Signed at Washington May 28, 1946; entered into 
force May 28, 1946; and declaration made in Paris 
by the President of the Provisional Government of 
the French Republic and in Washington by the 
President of the United States on May 28, 1946. 

Air Transport Services. Treaties and Other Interna- 
tional Acts Series 1929. Pub. 3.->58. 10 pp. 5«(. 

Agreements between the United States and Switzer- 
land amending agreement of .\ugust 3, in4,>— Effected 
by exchanges of notes signed at Bern May 13, 1949; 
entered into force May 13, 1949. 



(Continued on page lOS) 



81 



DEFINITIONS AND CLASSIFICATION OF MINORITIES 



In a memorandum submitted to the Secretary- 
General on December 27, 1949, the Subcommission 
on Prevention of Discrimination and Protection of 
Minorities of the United Nations Commission on 
Human Rights emphasizes the fundamental prin- 
ciple that the members of all minorities, regardless 
of how they are defined or in what manner they 
may be classified, are entitled to nondiscriminatory 
treatment, especially in respect to the rights and 
freedoms set forth in the Universal Declaration of 
Human Rights.^ 

Over and above the general principle of non- 
discrimination, there are certain "special rights" 
and "positive services" which minorities claim 
they must have in order to attain real equality, to 
preserve their distinctive characteristics, and to de- 
velop their own culture. Claims to such "special 
rights" and "positive services" must be examined, 
each on its own merits, in the light of past and 
present circumstances as well as the light of the 
general principles of the Charter of the United 
Nations. This examination of course does not pre- 
clude the possibility of the development of a gen- 
eral machinery for the protection of minorities. 

Finally, it must be remembered that both the 
Commission on Human Rights and the General 
Assembly rejected proposals for the inclusion in 
the Universal Declaration of Human Rights of 
articles dealing with the preservation of the dis- 
tinctive characteristics of minorities. At its sec- 
ond session the Commission, while it did not at- 
tempt to draft a text of its own on this subject, 

' U. N. doe. E/CN. 4/Snb. 2/85, Dec. 27, 1949. 
^ The test proposed by the Drafting Committee reads 
(doc. E/600, annex A, article 31) : 

In States inhabited by a substantial number of persons 
of a nice, lanRuage or religion other than those of the 
majority of the population, per.sons belonRing to sucli 
ethnic, linguistic or religious groups shall have the rights, 
as far as compatible with public order, to establish and 
maintain schools and cultural or religious institutions, and 
to use their own languiige in the pres.s, in public assembly 
and before the courts and other authorities of the State. 



tentatively included in the draft which it prepared 
two alternative texts, one prepared by its Draft- 
ing Committee,^ the other by the Subcommission on 
Prevention of Discrimination and Protection of 
Minorities.' At its third session, however, the 
Commission definitely decided to include no article 
on the question in its recommended draft. 

The third session of the General Assembly had 
before it three proposals relating to the protection 
of minorities, submitted by the delegations of Den- 
mark, Yugoslavia, and the Union of Soviet Soci- 
alist Republics.* The General Assembly rejected 
all of these proposals, but adopted the following 
resolution (part C, resolution 217 (HI)), on the 
fate of minorities : 

The General Assembly, 

Considering that the United Nations cannot remain In- 
different to the fate of minorities. 

Considering that it is difficult to adopt a uniform solu- 
tion of this complex and delicate question, which has 
special aspects in each State in which it arises, 

Considering the universal character of the Declaration 
of Human Rights, 

Decides not to deal in a specific provision with the 
question of minorities in the text of this Declaration; 

Refers to the Economic and Social Council the texts 
submitted by the delegations of the Union of Soviet Soci- 
alist Republics, Yugoslavia and Denmark on this subject 
contained in document A/C. 3/307/Rev. 2, and requests 
the Council to ask the Commission on Human Rights and 
the Sub-Commission on Prevention of Discrimination and 
Protection of Minorities to make a thorough study of the 
problem of minorities, in order that the United Nations 
may be able to take effective measures for the protection 
of racial, national, religious or linguistic minorities. 



'The text proposed by the Subcommission reads (doc. 
E/600, annex A, article 31) : 

In States inhabited by well-defined ethnic, linguistic or 
religious groups whith are clearly distinguished from 
the rest of the population, and which want to be accorded 
differential Irc.-ifment. persons belonging to such groups 
shall have th(> right, as far as is compatible with public 
order and security, to establish an<l maintain their schools 
and cultural or religious institutions, and to use their 
own language and script in the press, in public assembly, 
and before the courts and other authorities of the State, 
if they so choose. 

'The texts submitted to the Third Committee of the 
General Assembly in the course of Its debate on the adop- 
tion of an article of the protection of minorities for inclu- 



82 



Department of Sfafe Bulletin 



THE CONCEPT OF "MINORITY" 

Minorities entitled to special positive services 
and special rights are restricted to groups of citi- 
zens held together by ties of common descent, lan- 
guage, culture, or religious faith, etc., who feel 
that they ditTer in these respects from the rest 
of the population and desire to preserve their 
special characteristics and to develop them fur- 
ther. 

On the basis of this consciousness of difference, 
minorities will possibly make certain political 
claims. In every case, they desire the enjoyment 
of all human rights without discrimination. In 
addition, they may desire positive support from 
the state in the preservation of their distinctive 
characteristics, or partial or full autonomy, or 
even separation from the state. 

These desires are usually based upon the condi- 
tions and arrangements under which the minority 
was included in the state. The claim of any 
minority to application of the principle of non- 
discrimination cannot be questioned, since this 
principle is proclaimed unequivocably in the Char- 



sion in the Universal Declaration of Human Rights read, 
in the chronological order of their submission to the 
Committee (doc. A/C. 3/307/Rev. 2) : 

Union of Soviet Socialist Repul)lics 

Add to the text adopted a separate new paragraph in 
place of the corresponding article 31 of the Geneva text 
rejected by the Commission : 

"All persons, irrespective of whether they belong to the 
racial, national or religious minority or majority of the 
population, have the riglit to their own ethnic or national 
culture, to establish their own schools and receive teach- 
ing in their native tongue, and to use that tongue in the 
press, at public meetings, in the courts and in other official 
premises." 

Yugoslavia 
Insert the following three articles : 

A. — "Any person has the right to the recognition and pro- 
tection of his nationality and to the free development of 
the nation to which he belongs. 

"National communities which are in a state community 
with other nations are equal in national, political and 
social rights. 

B. — "Any national minority, as an ethnical community, 
has the right to the full development of its ethnical culture 
and to the free use of its language. It is entitled to have 
these rights protected by the State. 

C. — "The rights proclaimed in this Declaration also apply 
to any person belonging to the population of Trust and 
Non-Self-Governing Territories." 

Denmark 

Add the following: 
"All persons belonging to a racial, national, religious or 
linguistic minority have the right to establish their own 
schools and receive teaching in the language of their own 
choice." 



ter of the United Nations and the Universal Dec- 
laration of Human Rights. The validity of the 
claim of specific minorities to additional protec- 
tive measures is, however, a political question nor- 
mally to be decided on the basis of the conditions 
and arrangement under which the minority was 
included in the state and of all other relevant cir- 
cumstances. Hence it would seem that each such 
claim must be examined and passed upon sep- 
arately. 

Groups To Be Studied 

As a provisional orientation, it will be recalled 
that, in modern times, the term "minority" has 
been applied to more or less distinct groups, living 
within a state, which are dominated by other 
groups. 

A fundamental distinction may be drawn 
between (a) minorities whose members desire 
equality with dominant groups in the sense of 
nondiscrimination alone, and (b) those whose 
members desire equality with dominant groups 
in the sense of nondiscrimination plus the recog- 
nition of certain special rights and the rendering 
of certain positive services. 

The minorities in category (a) on the whole do 
not wish to preserve the particular characteristics 
which distinguish them from the dominant group, 
but prefer to be assimilated fully or in part by 
the dominant group. They are therefore pri- 
marily concerned that no discrimination of any 
kind shall be made between various groups, par- 
ticularly in respect of any of the rights and free- 
doms set forth in the Universal Declaration of 
Human Rights. 

The minorities in category (b) are equally con- 
cerned with the principle of nondiscrimination. 
They feel, however, that even full realization of 
this principle would not place their group in a po- 
sition of real equality — but only of formal equal- 
ity — with respect to the dominant group. 

The "positive services" and "special rights," 
which such minorities feel they must have if their 
equality within the state is to be real, vary greatly 
but usually include one or more of the following: 

( 1 ) provision of adequate primary and second- 
ary education for the minority in its own lan- 
guage and its cultural traditions; 

(2) provision for maintenance of the culture of 
the minority through the establishment and 
operation of schools, libraries, museums, media 



January 16, 1950 



83 



of information, and other cultural and educa- 
tional institutions ; 

(3) provision of adequate facilities to the 
minority for the use of its language, either orally 
or in writing, in the legislature, before the courts, 
and in administration, and the granting of the 
right to use that language in private intercourse; 

(4) provision for respect of the family law and 
personal status of the minority and their religious 
practices and interests ; and 

(5) provision of a certain degi'ee of autonomy. 

The rendering of "positive services" may take 
either of two forms : 

(1) provisions effected at the expense of the 
minority, or 

(2) provisions effected out of public funds and 
facilities. 

The task of protecting the minorities which fall 
into category (a), as outlined above, coincides 
largely with the prevention of discrimination. 

The task of protecting the minorities which fall 
into category (b), as outlined above, also coin- 
cides to a certain extent with the prevention of 
discrimination. But it has additional aspects, 
such as those enumerated above. These aspects 
may vary widely in the case of each minority. 

The study is devoted largely to the minorities 
which fall into category (b), since it is not es- 
sential to define or to classify "minorities" before 
providing for the realization of the principle of 
nondiscrimination. 

The Meaning of "Minority" 

The term "minority" cannot, for practical pur- 
poses, be defined simply by interpreting the word 
in its literal sense. If this were the case, nearly 
all the communities existing within a state would 
be styled minorities, including families, social 
classes, cultural groups, speakers of dialects, etc. 
Such a definition would be useless. 

As a matter of fact, the term "minority" is 
frequently used at present in a more restricted 
sense ; it has come to refer mainly to a particular 
kind of community, and especially to a national or 
similar community, which differs from the pre- 
dominant group in the state. Such a minority 
may have originated in any of the following ways : 

(a) it may formerly have constituted an inde- 
pendent nation with its own state, (or a more or 
less independent tribal organization) ; 

(b) it may formerly have been part of a nation 



living under its own state, which was later segre- 
gated from this jurisdiction and annexed to an- 
other state ; or 

(c) it may have been, or may still be, a regional 
or scattered group which although bound to the 
predominant group by certain feelings of soli- 
darity, has not reached even a minimum degree 
of real assimilation with the predominant group. 

Bearing in mind the difficulties of giving a clear- 
cut definition of the term minority from a 
scientific point of view, since the term includes so 
many elements which are changeable both in con- 
tent and in degree of intensity, it is safe to say that 
at least within the field of political science this 
term is most frequently used to apply to com- 
munities with certain characteristics (ethnic, 
linguistic, cultural, or religious groups) and 
almost always to communities of a national type. 
The members of such a minority feel that they con- 
stitute a national group, or subgi-oup, which is 
different from the predominant one. Members 
of purely religious minorities may feel, however, 
that they belong to the predominant national 
group. The fact that the members of a minority 
normally feel that they differ from the predomi- 
nant group does not necessarily imply that no 
larger nation exists, constituted both by the 
minority (or minorities) and by the predominant 
group, under the jurisdiction of the state. Indeed 
it is possible that, despite the difference between 
the minority and the predominant group, the two 
are held together by a sense of nationality which 
is larger, though thinner, in national consciousness, 
than that of either of the separate groups. 

Basic Desires of Minorities 

Some minorities feel that they form a real 
nation, different from the nation of the predomi- 
nant group and different from that of other 
minorities which may exist within the state. 
Other minorities consider themselves to be only 
regional gi-oups having particular distinguishing 
characteristics. Some minorities wish to obtain 
autonomy, while others only wish to keep alive 
the particular characteristic (language, culture, 
etc.) which distinguish them from the dominant 
group. The sense of solidarity of some minorities 
with their co-nationals is intensilied when they are 
placed under another state's jurisdiction, and they 
are willing to accept the authority of the new 
state only on condition tliat they are permitted to 
retain their particular distinguishing character- 



84 



Department of State Bulletin 



istics and to carry on their own collective life by 
means of an autonomous regime. 

Nationalism and Minorities 

Modern nationalism has affected minorities in 
different — even opposite — ways. On the one 
hand, in certain countries it has aided the assimila- 
tion of minorities by the predominant group, re- 
sulting in a real homogeneity. On the other hand, 
in other countries it has aroused a consciousness 
of differences and in some cases has even stirred 
up the antagonism of the minority. Where the 
differences were relatively less marked, national- 
ism has had a unifying effect (e.g. France, Italy 
and Germany) ; w'here they were relatively great 
(e.g. Austria-Hungary), nationalism has caused 
the development of minority consciousness. 

Nationalism owes much to the democratization 
of societies and to the grow-th of democratic 
thought. When the masses gained access to 
political life and to education, they became con- 
scious of their characteristics and national culture. 
Again the democratic philosophy proclaimed the 
right of the "self-determination" of peoples. On 
the other hand, some forms of romanticism, 
especially German romanticism in its social 
philosophy, developed an extreme nationalism. 

Nationality was considered a sacred thing, a 
living spiritual organism engendered by Provi- 
dence throughout the course of history, and the 
importance of the "mother tongue" was strongly 
emphasized. This philosophy engendered an in- 
crease in the national consciousness of certain 
groups and a renewal of their interest in the main- 
tenance of their own language and folkways. 
They began to demand recognition of their lan- 
guages in public administration and fostered a 
revival of literature published in their native ver- 
naculars. The total effect was that some groups 
became more conscious of the factors differentiat- 
ing them from the predominant group. In certain 
cases, nationalism resulted in Irredentist move- 
ments. Thei'e have been cases, moreover, where 
the exaggerated and even oppressive nationalism 
of the predominant group has brought about vio- 
lent reactions on the part of the minority. 

The Categories of Minorities 

The Secretary-General has already drawn atten- 
tion to the fact that under the League of Nations 
Minorities Sj'stem only "racial, religious and lin- 
guistic" minorities were protected, these minori- 



ties being considered of a more or less objective and 
stable nature." The formula "racial, religious and 
linguistic minorities" wsus considered to refer to 
all such grouj)s, regardless of their numerical size. 

In some instruments, certain categories of mi- 
norities were referred to by name, especially when 
it was desired to guarantee specifically to such mi- 
norities certain traditional practices or privileges 
of particular interest to them ; this, however, did 
not mean that such groups were not covered by the 
general formula, "racial, religious and linguistic 
minorities," or that they were not subject to the 
same system of protection. In this connection it 
should be noted that in a very recent instrument 
relating to the protection of minorities, the Austro- 
Italian agreement of September 5, 1946, the follow- 
ing terms are used: "German-speaking inhabi- 
tants," "German-speaking citizens," and "German- 
speaking elements." 

In general, the formula "racial, religious and 
linguistic minorities" was used because these char- 
acteristics were considered (with the possible ex- 
ception of "religious") to constitute the principal 
outward manifestations of the national com- 
munity. However, the concept of the term minor- 
ity was neither then nor now confined to groups 
which constitute national communities ; it was and 
still is extended to include also groups united 
either by a common religion, a common language, 
or a common ethnic origin, or by any two or all 
three of these characteristics, even when such 
groups do not form national communities. Such 
groups are not concerned so much with preserving 
their national existence apart from that of the 
predominant group, as with keeping alive their 
own language, culture, religion, or traditions. 

Thus in a general way, insofar as the rendering 
of positive services and the recognition of special 
rights is concerned — as distinguished from the 
realization of the principle of nondiscrimination, 
— it may be said that the term minority should 
normally be applied to groups whose members 
share a common ethnic origin, language, culture, 
or religion and are interested in preserving either 
their existence as a national community or their 
particular distinguishing characteristics. In this 
connection, it should be borne in mind that the 
terms of reference to the subcommission provide 
that it shall undertake studies . . . and make 
recommendations concerning "the protection of 



• D. N. doc. E/CN.4/Sub. 2/6. 



January 16, 1950 



85 



racial, national, religious and linguistic minor- 
ities." 

The Question of Citizenship 

According to article 2 of the Universal Declara- 
tion of Human Eights, "everyone is entitled to all 
the rights and freedoms set forth in this Declara- 
tion without distinction of any kind . . .". It 
will be noted, however, that article 21 of the Dec- 
laration refers to the right of everyone to take part 
in the government of his country and the right of 
everyone of equal access to public service in his 
country — a recognition that certain political rights 
legitimately may be granted only to citizens. 

In the case of minorities which desire equality 
only in the sense of nondiscrimination, therefore, 
the question of citizenship is not a relevant one 
with the exception noted in the paragraph above. 
However, in the case of minorities desiring to ob- 
tain special positive services or the recognition of 
special rights in order to preserve their particular 
distinguishing characteristics, the question of cit- 
izenship is most important, for it is hardly con- 
ceivable that such special positive services or 
special rights would be granted by any state to 
groups of foreigners except when required by a 
rule of international law. At the same time, it 
should be remembered that one of the riglits for 
which minorities have most persistently struggled 
is the right to citizenship in the country of which 
they are inhabitants. 

The Minority as a Social Reality 

The definition of the term minority is particu- 
larly difficult because of the fact that minorities 
are social realities which are dynamic rather than 
static and which change under the influence of 
varying circumstances. For example, many soci- 
ologists and political scientists have pointed out 
that a minority group which becomes satisfied with 
its relationship toward the predominant group 
tends to become more and more assimilated by the 
latter. On the other hand, they have also re- 
marked that if the members of a minority group 
feel that the rule imposed by the predominant 
group prevents them from maintaining their par- 
ticular distinctive characteristics or inhibits the 
development of their aspirations for the future, 
the group's relationship toward the predominant 
group tends to become more and more strained. 

The degree of self-contentment of the minority 
may, but does not necessarily, depend on the 



amount of autonomy or protection granted by the 
state. Some states have succeeded in promoting 
the progressive voluntary assimilation of the 
minority by arousing in its members a sincere 
enthusiasm for, and feeling of solidarity with, the 
destiny and forms of life embodied in the state. 
Others have achieved precisely contrary results 
when they tried to assimilate the minority. Still 
others have, by granting the minority the protec- 
tion it desired, so increased the solidarity of the 
minority with the predominant group that as a re- 
sult a national state was engendered in spite of 
the existing differences in traditions, language, 
culture, etc. The fair treatment and the freedoms 
accorded to a minority may soften its hostility to- 
ward the dominant group and further its assimi- 
lation by causing it to have closer relations with 
the latter. If the predominant group possesses 
ideals which are capable of winning the support of 
the minority an assimilation often results. 

The Question of Size 

From a purely theoretical point of view, even 
the smallest group which meets the various quali- 
fications set forth above should be considered a 
minority. However, for practical purposes, only 
those groups which represent a considerable pro- 
portion of the population of a state are usually 
referred to as minorities. This does not preclude, 
however, the extension to every individual mem- 
ber of such a group of the principle of nondis- 
ci'imination. 

Also from a purely theoretical point of view, 
even those groups which are principally interested 
in assimilation with the predominant groups 
should be considered as minorities. However, 
since the problems which they pose are entirely 
within the realm of the prevention of discrimina- 
tion, they need not in practice be considered as 
falling within the meaning of the term "minori- 
ties." 

The Question of the Conditions 

Under Which the Minority 

Was Incorporated Within the State 

Enjoyment of human rights must be assured to 
all the inhabitants of a state's territory, irrespec- 
tive of any condition. But it is widely accepted 
that whether or not a minority is entitled to 
special positive services or special rights depends 
in some degree on the conditions under which the 
minority was included within the state. 



86 



Department of Stale Bulletin 



Some Remaining Problems 

Aiiuiiig other problems closely related to the 
definition of minorities, two merit special consid- 
eration in this studj". 

The first is the question of individual member- 
ship in a minority. Should an individual who is 
not religious be considered as a member of a re- 
ligious minority? What of the persons who 
speak several languages as mother tongues? 
Wliat of the individual who stems from a mixed 
ethnic origin? The answer given by most stu- 
dents of the subject is that the subjective decision 
of tiio individual in question is the governing fac- 
tor; that each individual should be able to decide 
voluntarily whether or not he belongs to a specific 
minority. Indeed, this conclusion is reinforced by 
a provision appearing in an international instru- 
ment, the German-Polish convention of Geneva 
of 15 May 1922, of which article 74 reads : 

The question whether a person does or does not belong 
to a racial, linguistic, or religious minority may not be 
verified or disputed by the authorities. 

The meaning of this article was interpreted by 
the Permanent Court of International Justice, in 
its judgment of April 26, 1928, in the following 
words : 

The Court holds that the prohibition as regards any 
verification or dispute does not cease to apply in cases 
where it appears that the declaration is not in accord 
with the facts. ... if a declaration has been made, it 
must always be respected. . . ." 

The second problem is the question whether the 
special measures of protection provided to a mi- 
nority are individual or collective rights. The 
answer depends upon whether or not the state in 
question has recognized the minority as a juridical 
personality. If it has, two kinds of rights exist: 
the rights which the minority as a legal person — 
represented by its legal organs — may claim before 
the state; and the rights which individual mem- 
bers of the minority may claim by virtue of such 
membership. If, on the other hand, the state has 
not recognized the minority as a juridical person- 
ality, but has only granted facilities for the preser- 
vation of its particular distinctive characteristics, 
the related rights may be claimed only by individ- 
uals on the basis of their membership in the mi- 
nority, and not by the minority as such. 

A final problem is the question whether use of 
the special facilities provided for the maintenance 
of the particular distinctive characteristics of the 
minority is optional or compulsory. The consen- 



sus of opinion is that the use of such facilities is 
optional, involving no obligation. Thus if an in- 
dividual member of a minority prefers to attend 
the school of the predominant group, he should be 
free to do so without discrimination of any kind. 
However, it will be recalled that there are certain 
exceptions to this general rule. To cite a single 
example : in the then Austrian and later Czecho- 
slovak province of Moravia, a provincial statute 
was enacted in 1906 providing that a child of obli- 
gatory school age must go to a school of which 
the medium of education corresponded to his na- 
tionality. It was provided, therefore, that the 
children of the Czech ethnic group must attend 
Czech schools and must not attend German 
schools, and vice versa. 

Opinions difi'er regarding the best solution of 
the problem created by the existence of minori- 
ties. This variety of opinion stems from the 
widely varying characteristics of different states 
and from varying conceptions of the goal to be 
aimed at: assimilation on the one hand, or the 
preservation of the distinguishing characteristics 
of particular groups on the other. 

THE CLASSIFICATION OF MINORITIES 

Preliminary Note 

Minorities vary in so many ways (such as in 
their historical origin, numerical quantity, and 
desires) that it is not possible to group them into 
one general classification. They must be grouped 
under a variety of classifications, based on differ- 
ent criteria. Many of these classifications overlap 
or supplement one another. Hence, in order to 
obtain a true characterization of any particular 
minority, it is necessary to examine it under each 
of the various classifications before reaching any 
final conclusions. 

The Criteria of Classification 

FROM A QUANTITATIVE VIEWPOINT 

From a quantitative point of view, minorities 
can be classified according to the number of indi- 
viduals included in the minority as compared to 
the size of the predominant group or to that of 
the remainder of the population. Normal!)-, the 
term minority has a certain numerical significance : 
it usually refers to a smaller number of individuals 
than the number included in the remainder of the 
population. However, there are instances in 



January ?6, 1950 



87 



which the numerical majority of tlie population, 
whether homogeneous or composed of differenti- 
ated groups, is in the position of a minority, the 
state being dominated by a numerically smaller 
group which imposes its own language and culture. 
From an abstract sociological standpoint, no 
specific number or percentage of individuals is 
necessary to the existence of a minority. Even 
the members of the smallest minority are entitled 
to nondiscriminatory treatment, especially in re- 
spect of the rights and freedoms set forth in the 
Universal Declaration of Human Rights. How- 
ever, a minority considered as a group entitled to 
special positive services or special rights should 
properly include a number of persons sufficient by 
themselves to develop their own particular traits. 
Although it is not possible to determine a definite 
figure, it seems that for administrative reasons a 
minority composed of a very small number of 
persons would probably not be considered as en- 
titled to special positive services or special rights. 

FROM THE VIEWPOINT OF CONTIGUITY 

In some cases, the population of a particular 
region consists almost entirely of persons belong- 
ing to a minority. In other cases, the minority 
shai'es a region or area, to a greater or lesser 
degree, with the predominant group. In still 
others, the minority lives scattered through the 
entire territory, or a large part of it, together with 
the predominant group and in some cases with 
other minorities. 

Measured by the criterion of contiguity, the fol- 
lowing types of minorities may be distinguished : 

(a) a minority which constitutes actually or 
nearly the only population of a section of the 
country ; 

(b) a minority which constitutes the largest part 
of the population of a section of the country ; 

(c) a minority, settled in a section of the coun- 
try which constitutes only a small part of the 
population of that section ; 

(d) a minority the members of which live 
partly in a section of the country and partly scat- 
tered tliroughout the remainder of the territory ; 

(e) a minority which is settled in several dif- 
ferent sections of the country, but in different pro- 
portions in each section; 

(f) a minority whicli is scattered throughout 
the whole country ; 

(g) a minority which is scattered through a 



large portion of the country, but not through all 
of it ; and 

(h) a minority which lives partly within the 
country and partly outside that territory. 

The members of each of these types of minorities 
are of course entitled to nondiscriminatory treat- 
ment, especially in respect of the rights and free- 
doms set forth in the Universal Declaration of 
Human Rights. 

However, any specific measures to be taken for 
the protection of particular minorities, with the 
exception of measures for the prevention of dis- 
crimination, must necessarily vary in each of the 
specific cases listed above in order to meet the 
varying problems presented by these different 
types of minorities. 

FROM THE VIEWPOINT OF CITIZENSHIP 

From the sociological point of view, minority 
elements in a given country may be represented 
either by individuals who have the nationality of 
the country or by foreigners. The first is the 
classical instance and the most important one. 
The second is more rare, but an example is offered 
by the Canton of Geneva where at the beginning of 
the twentieth century foreign elements (mainly 
French and Italian) constituted a numerous 
minority. 

From the political and legal points of view, 
foreign elements are only exceptionally considered 
as a minority entitled to enjoy special treatment. 

The case of the foreigners is very different from 
that of minority elements which possess the 
nationality of the country in which they live. The 
foreigners have come voluntarily to reside in the 
country, and they possessed a foreign nationality 
on their arrival. They may be people who have 
come to settle in the country to look after their 
business affairs or other chosen ends, and who had 
not when they arrived any desire to change their 
nationality. They may be workers whose re- 
cruitment has been organized and who have come 
to work in a country where the national labor 
supply is insufficient. They may be migrants who 
have come with a view to a definite settlement in 
the country which will accord to them nationality 
after a greater or lesser period. 

As long as the foreigner belongs to one of these 
categories and keeps his foreign status, he is en- 
titled to all the rights accorded by customary in- 
ternational law to persons in countries other than 



88 



Deparfment of Sfafe Bulletin 



tlieir own. IIi> possesses also such spo^-iiil rights 
as may have been assured to hiui by treaties (coni- 
nierte treaties or treaties rehitin«r to settlement) ; 
thus, it may be provided that the children of 
foreijrn workers are to be able to receive teachin<>: 
in tiieir national hinjriiai;e in special schools. 

Hut from the moment when the foreigner who 
has come with the intention of settling in a country 
is naturalized tliere, and from the moment when 
his children receive the nationality of the coimtry, 
whether on birth by operation of the law, or by 
the eflFect of naturalization, the former foreigner 
and his children who have become the nationals of 
the country will of course be treated like the other 
nationals of that country. There has been no 
question of granting them special rights so that 
they should be able to keep the national character- 
istics of their country of origin. 

In certain special cases, it has happened that 
persons representing a nonforeign element in a 
countrj' have received a foreign nationalit}' and 
have been accorded special rights as minority ele- 
ments. This was the case of the Poles who resided 
in the territory of Danzig. It was, however, a 
completely special situation. 

FROM THE VIEWPOINT OF THE NATIONAL 
CHARACTERISTIC OF THE STATE 

An important distinction may be drawn between 
the following two types of minorities: 

(a) minorities under the jurisdiction of a state 
which is principally the embodiment of the na- 
tional characteristics of the predominant group; 
and 

(b) minorities under the jurisdiction of a state 
which is not identified with any one nation but 
which occupies a neutral position above national 
and cultural differences. 

The members of each of these types of minorities 
are of course entitled to nondiscriminatory treat- 
ment, especially in respect to the rights and free- 
doms set forth in the Univei"sal Declaration of 
Human Rights. Normally the minorities in- 
cluded in category (a) seek special measures for 
the maintenance of their distinctive characteristics, 
while those included in category (b) are usually 
already protected by the very structure of the 
state. Indeed, those in the latter category, be- 
cause thej' represent one of several nations within 
the jurisdiction of a State, may not even be con- 
sidered minorities except in the numerical sense. 

January ?6, 1950 

868948—50 3 



FROM THE VIEWPOINT OF ORIGIN AND SITUATION 
IN RELATION TO THE STATE 

Measured against the criterion of the origin and 
situation of the minority in relation to the state, 
the following types of minorities can be dis- 
tinguished : 

(a) minorities descending from groups which 
existed before the establishment of the state; 

(b) minorities descending from groups which 
formerly belonged to another state, but which 
afterwards were aimexed to the state by virtue of 
an international act such as, for example, a treaty 
effecting territorial readjustments; 

(c) minorities formed by persons having a com- 
mon origin, language, religion, culture, etc., who 
have migrated or who have been imported into a 
country and have become citizens of the state; or 
by their descendants. 

The members of each of these types of minorities 
are, of course, entitled to nondiscriminatory treat- 
ment, especially in respect of the rights and free- 
doms set forth in the Universal Declaration of 
Human Rights. 

In the case of minorities falling into category 
(a) ,as outlined in the paragraph above, any claim 
of the minority to special measures for the protec- 
tion of its distinctive characteristics should be con- 
sidered in relation to historic facts and in par- 
ticular the manner in which the state was con- 
stituted. The state may have been formed, on 
the one hand, on the basis of equality between the 
varying groups which are included, with respect to 
language and religion ; or it may have been formed, 
on the other hand, on the basis of single language 
and religion. In the first case, the minority nor- 
mally has a legal claim to special measures for the 
l)rotection of its distinctive characteristics; 
whether minorities in the second category have 
any claim, legal or otherwise, to such special 
measures will depend on existing circumstances. A 
distinction should be borne in mind that between 
law enforced (national and international) and 
considerations de Jegc fcrenda. 

In the case of nunorities falling into category 
(b), the claim to special measures for the protec- 
tion of the distinctive characteristics of the minor- 
ity may have been met by the instrument bj' which 
the transfer of territory was effected. Irrespec- 
tive of any instrument, however, there may exist 
a moral claim the validity of which would depend 
upon existing circumstances. 

Usually, minorities formed by immigrants or 

89 



their descendants, as in category (c) , are not con- 
sidered as being entitled as a minority to special 
measures of protection. However, those who have 
entered the country under certain specified con- 
ditions (such as contract workers), or those who 
have been forcibly imported into the country (such 
as slaves), or elements brought by a state into its 
territory in pursuance of a plan of internal coloni- 
zation, may have a valid moral claim to special 
measures of protection. 

ACCORDING TO THE CIRCUMSTANCES UNDER WHICH MI- 
NORITIES WERE INCLUDED WITHIN STATE 

Another criterion for classification takes into ac- 
count the voluntary or involuntary nature of the 
inclusion of individuals within a state. This 
classification may overlap with the preceding one, 
yet since it is not entirely covered thereby, it is 
presented here separately. From this point of 
view, it is possible to distinguish the following 
types of minorities : 

(a) minorities which were compulsorily brought 
within the jurisdiction of the state usually in com- 
paratively recent times ; and 

(b) minorities which came within the juris- 
diction of the state voluntarily. 

The members of each of these types of minorities 
are of course entitled to nondiscriminatory treat- 
ment especially in respect of the rights and free- 
doms set forth in the Universal Declaration of 
Human Rights. 

Minorities falling into category (a) may well 
base a claim to special measures for the protec- 
tion of their distinctive characteristics upon the 
fundamental "wrongness" of their compulsory an- 
nexation. However, such a claim would normally 
be considered reasonable only if the annexation 
had taken place in comparatively recent times and 
would normally be considered unreasonable if the 
annexation had taken place in the remote past (for 
example, during the Roman Conquest). Ob- 
viously, a strict limitation of time cannot be ap- 
plied in such cases since the circumstances vary so 
widely. What is important is the question 
whether the feelings of the minority have altered 
in the course of time; the element of time 
is in itself not the criterion. In certain cases, de- 
scendants of such minorities, which may have been 
compulsorily brought within the jurisdiction of a 
state many years ago, may have a legitimate claim 
to special measures for the preservation of their 
distinctive characteristics. This claim would de- 



pend, in large measure, upon whether the later- 
generation members of the minority still preserve 
a consciousness of these characteristics, a desire to 
maintain them, and a keen sense of the "wrongness" 
of the annexation ; or whether, on the other hand, 
they have become practically assimilated with the 
predominant group. 

In the case of minorities falling into category 
(b), any claim of the minority to special measures 
for the protection of its distinctive characteristics 
must be based upon the conditions, formal or in- 
formal, under which the group came under the 
jurisdiction of the state. It may have been an- 
nexed either on the basis of agreements granting 
the minority inter alia special measures of protec- 
tion or on the basis of the minority's explicit or 
tacit acceptance of the laws of the annexing state, 
without any reservations or special conditions. 

FROM VIEWPOINT OF TOTAL OR PARTIAL INCLUSION 
WITHIN STATE 

Taking as another criterion the total or partial 
inclusion of the minority in the state, the follow- 
ing types of minorities can be distinguished : 

(a) minorities forming parts of a group which 
is divided between the jurisdictions of several 
states; and 

(b) a minority which is totally included within 
the territorial jurisdiction of a state. 

In the case of minorities falling into category 
(a) , the following subtypes may be distinguished : 

1. minorities forming parts of a group divided 
between two or more contiguous states ; 

2. minorities forming parts of a group divided 
among two or more noncontiguous states ; 

3. minorities forming parts of a group dis- 
tributed among several states, some contiguous 
and some noncontiguous. 

The members of each of these types of minorities 
are, of course, entitled to nondiscriminatorj' treat- 
ment, especially in respect to the rights and free- 
doms set forth in the Universal Declaration of 
Human Rights. 

When a minority is divided among two or more 
contiguous states, or the minority has the same 
characteristics as the majority in another state, this 
fact may have serious international implications. 

ACCORDING TO DESIRES 

Earlier in this memorandum it was pointed out 
that social groups in general, and those forming 



90 



DepaTtment of State Bulletin 



minorities in particular, are characterized not only 
by thoir inherited distinctive characteristics, but 
also by their desires for the future. If the desires 
of various minority groups are taken as a criterion, 
the following types can be distinguished: 

(a) a minority which wishes at most only to 
preserve certain of its distinguishing character- 
istics and has little or no interest, because of a 
feeling of active solidarrty with the predominant 
group, in becoming autonomous; 

(b) a minority which not only desires preserva- 
tion and further development of its distinguishing 
characteristics but also desires to attain either 



political or administrative autonomy, or full inde- 
pendence or annexation to another state. 

The members of each of these types of minori- 
ties are of course entitled to nondiscriminatory 
treatment, especially in respect of the rights and 
freedoms set forth in the Universal Declaration of 
Human Ilights. 

Minorities falling under category (a) may pose 
the problem of the preservation of their distin- 
guisliing characteristics. The problem posed by 
minorities falling into category (b), however, is 
one which is related to the political organization 
of the state. 



The Problems of Human Rights and Genocide' 



In discussing the genocide convention and the 
Declaration of Human Rights, Jack B. Tate 
pointed out that there is at this time no question 
so far as the United States is concerned of its 
promoting human rights. 

Mr. Tate. Deputy Legal Adviser, said that do- 
mestically, this was settled, at least in theory, with 
the adoption of the Bill of Rights and of the 
thirteenth and fourteenth amendments to the Con- 
stitution. Internationally, it was settled when the 
United States ratified the Charter of the United 
Nations and that treaty came into force in 1945. 

Genocide Convention 

Largely because of experiences suffered during 
World War II, there was proposed as an item of 
the agenda of 1946 session of the General Assem- 
bly of the United Nations, one on "the prevention 
and punishment of the crime of genocide," Mr. 
Tate said. On December 11, 1946, the Assembly 
unanimously adopted a resolution approved by 
its Legal Committee affirming that "genocide is 
a crime under international law," recommending 
international cooperation with a view to facilitat- 
ing the prevention and punishment of genocide, 
and requesting the Economic and Social Council 
to undertake the necessary studies to draw up 
a draft convention on the subject. 

An Ad Hoc Committee on Genocide set up by the 
Economic and Social Council met at New York 
in the spring of 1948 and prepared a draft con- 

' This account is an excerpted version of an address 
given by Mr. Tate before the Law Society of Massa- 
chusetts at Boston. Mass., on Jan. 5, 1950; for complete 
text, see Department of State press release 3 of Jan. 5. 



vention on genocide, which was submitted to the 
Economic and Social Council meeting in the sum- 
mer of 1948 at Geneva, and, in turn, submitted 
by it to the General Assembly meeting at Paris 
in the fall of 1948. After careful consideration 
by the Legal Committee of the Assembly, the 
General Assembly, on December 9, 1948, unani- 
mously adopted the Convention on the Prevention 
and Punishment of the Crime of Genocide. 

Briefly, the Convention provides that genocide, 
whether committed in time of peace or in time 
of war, is a crime under international law, which 
the parties to the Convention undertake to prevent 
and punish. (Article I.) Genocide is denned as 
any of certain listed acts "committed with intent 
to destroy, in whole or in part, a national, ethnical, 
racial, or religious group, as such" : and the listed 
acts are: (a) killing members of the group; (b) 
causing serious bodily or mental harm to members 
of the group; (c) deliberately inflicting on the 
group conditions of life calculated to bring about 
its physical destruction in whole or in part; (d) 
imposing measures intended to prevent births 
within tlie group; or (e) forcibly transferring 
cliildren of tlie group to another group. (Article 
II.) Genocide, complicity in genocide, conspir- 
acy, incitement, or an attempt to commit genocide 
are to be punished (Article HI) and this whether 
the persons committing the acts are rulers, public 
officials, or private individuals (Article IV). 

The Convention, Mr. Tate continued, is not 
self -executing in character : that is to say, domesti- 
cally, it will not automatically become the law of 
the land. Rather, by Article V the contracting 
parties undertake to enact the necessary legislation 
to give effect to the provisions of the Convention 



January 16, 1950 



91 



and to provide effective penalties. Under article 
I, section 8 of the Constitution of the United 
States, it will be recalled, the Congress is given 
power "To define and punish Piracies and Felo- 
nies committed on the high Seas, and Offences 
against the Law of Nations ;". 

Under the Convention, persons charged with 
genocide are to be tried by competent tribunals 
in the state in the territory of which the act was 
committed or by such international penal tribunal 
as may have jurisdiction with respect to those 
contracting parties which shall have accepted its 
jurisdiction. (Article VI.) This means, of 
course, that unless and until the United States 
shall have conferred appropriate jurisdiction on 
an international penal tribunal by the deposit of 
an instrument of ratification to a convention mak- 
ing provision for such a tribunal, the crimes 
enumerated in the Genocide Convention will be 
tried by the appropriate courts in the United 
States. 

The contracting parties agree to grant extradi- 
tion for genocide and the other acts enumerated in 
the Convention, in accordance with their laws and 
treaties in force. 

Under United States law, it is required that ex- 
tradition to a foreign country may take place only 
when there is a treaty in force between the United 
States and the demanding government, and the 
extradition conventions contain lists of extra- 
ditable crimes made punishable in both countries. 
Only after Congress has defined and provided for 
the punishment of the crime of genocide and the 
other acts enumerated in the Convention, assum- 
ing that the Convention i.s ratified on behalf of 
the United States, will it be possible for extradi- 
tion to take place for the crime of genocide or the 
other acts prohibited by the Convention. And 
then extradition will take force, according to the 
language of the new convention "in accordance 
with . . . [the] laws and treaties in force."' 

Other articles of the Genocide Convention, Mr. 
Tate continued, provide that any contracting 
party may call upon the United Nations to take 
such action under the Charter as may be appro- 
priate for the prevention and suppression of acts 
of genocide (Article VIII) and that disputes with 
reference to the iTiterpretation. application, or 
fulfillment of the Convention shall be submitted 
to the International Court of Ju.stice at the re- 
quest of any of tlie j)arties to the dispute (Article 
IX). The Convention is to become effective wlieu 
20 states liave deposited instruments of ratifica- 
tion or accession. 

As of December 21, thirty-seven states had 
signed the Convention; Au.stralia, Ethiopia, Nor- 
way, Iceland, and Ecuador had deposited in.strn- 
ments of ratification. 

On June 16, 1949, the President transmitted the 
Convention to the Senate with a view to receiving 
its advice and consent to ratification. Draft leg- 
islation to implement the Convention is being pre- 



pared for submission to the Congress early in 
January. 

Declaration of Human Rights 

On December 10, 1948 — the day following its 
approval of the Genocide Convention — the Gen- 
eral Assembly at its Paris Session, approved the 
Universal Declaration of Human Rights by a vote 
of 48 to 0, Mr. Tate said. Eight countries, how- 
ever, abstained from the vote — the U.S.S.R., the 
Ukraine, Byelorussia, Poland. Czechoslovakia, 
Yugoslavia, Saudi Arabia, and the Union of South 
Africa. 

In stating that the General Assembly adopted 
the Declaration on the day following the adop- 
tion of the Genocide Convention, it is not intended 
to imply, he said, that the As.sembly gave only a 
single day to the consideration of the Declaration 
of Human Rights. The Declaration had a long 
and tedious history. Hours had been devoted to 
the consideration of its drafting in meeting after 
meetii^, by one body and another. 

In June 1947, an eight-member drafting com- 
mittee of the Commission on Human Rights met 
at Lake Success to prepare a draft of an interna- 
tional bill of human rights, pursuant to instruc- 
tions it had received from the Economic and So- 
cial Council. Two views emerged as to the form 
which the "Bill" should take, and as a result, with- 
out resolving the matter, two documents were cii"- 
culated to governments, prior to the December 
1947 meeting of the Human Rights Commission 
held in Cireneva, one containing provisions of a dec- 
laration and the other articles appropriate for 
inclusion in a convention. 

At Geneva, in 1947, largely because it was felt 
that the world expected the Human Rights Com- 
mission to produce something tangible in the field 
of human rights at a comparatively early date, 
it was agreed by the Commission that the "Bill 
of Human Rights"' should refer to the entirety of 
documents in preparation, the "Declaration," the 
"Covenant" to be cast in treat}' form, and "Meas- 
ures of Implementation"' to be evolved and that 
the Declaration should be drafted as speedily as 
possible. 

The Geneva texts and {proposals on these sub- 
jects were recousidered, together with the com- 
ments received from governments, in the spring 
of 1948 by the Human Rights Connnission. The 
greater part of tlie Conunission"s time at this ses- 
sion was devoted to perfecting the Declaration 
with a view to its being ready for the General 
Assembly in tlie fall of 1948. ' The Third Com- 
mittee of the Paris General Assembly, to which 
the draft declaration was referred, devoted 84 
meetings to reconsidering the Declaration at 
length. Finally, it was ready for approval by 
the General Assembly in Plenary Session on De- 
cember 9 and 10. 

The General Assembly in the Declaration itself 
stated that it proclaimed it as ". . . a connnon 



92 



Department of Stale Bvllelin 



standard of achievement for all peoples and all 
nations, to the end that every individual and every 
organ of society, keeping this Declaration con- 
stantlj- in mind, shall strive by teaching and educa- 
tion to promote respect for these riglits anil free- 
donjs and by progressive measures, national and 
international, secure their imiversal and etl'ective 
recognition and observance, both among the 
peoples of member States themselves and among 
the peoples of territories under their jurisdiction." 
Mr. Tate enunciated the wide range of sul)jects 
tliat the Declaration covers, such as civil, political, 
economic and social; life, liberty, equality, and 
security of the person; nondiscrimination, torture, 
cruel, inhuman, or degrading treatment or punish- 
ment; arbitrary arrest, detention or exile; fair 
and public hearings, presumption of innocence, 
ex post facto laws, arbitrary interference Avith 
privacy, family, home, or correspondence; free- 
dom of movement and residence ; asylum ; the right 
to a nationality: the right to marry and found a 
family; the right to own property; freedom of 
thought and religion; freedom of information; 
freedom of peaceful assembly; participation in 
governments; social security; employment; rest 
and leisure; adequate living standards; education ; 
participation in the cultural life of the community 
and enjoyment of the arts and scientific advance- 
ments. The Declaration concludes with the pro- 
nouncement that "Everyone has duties to the com- 
munity: and a recognition that the rights and 
freedom ai'e subject to limitations necessitated by 
requirements of morality, public order, the rights 
and freedoms of others, and "the general welfare 
in a democratic society." 

Covenant on Human Rights 

Concurrently with, and subsequently to, the 
drafting of the Declaration, the Human Rights 
Commission has been working on a draft of a 
Covenant of Human Rights, a document which 
casts into treaty form certain of the rights and 
freedoms enunciated in the Declaration, Mr. Tate 
continued. This work has also been going on 
since the spring of 1947 when the drafting Com- 
mittee of the Human Rights Commission first met 
to prepare a draft of an international Bill of 
Rights. 

As presently drafted by the Human Rights Com- 
mission, it contains articles on the protection of 
life; on torture, cruel, inhuman, or degrading 
treatment or punishment; slavery, the slave trade, 
servitude, and compulsory labor; arbitrary arrest 
and detention ; imprisonment for inability to ful- 
fill a contractual obligation; liberty of movement 
and freedom of residence, and the right to return 
to the country of which a person is a national; 
expulsion ; certain safeguards in civil and criminal 
cases, particularly for an accused; recognition as 
a person before the law ; freedom of tliouglit and 
religion; freedom of peaceful assembly; freedom 
of association ; and equality before tne law. There 

January 76, 1950 



is also a provision on nondiscrimination with 
respect to the rights and freedoms defined in the 
Covenant. 

In addition, as a result of a Re.solution of 
October 20, 1949, of the recent session of the 
General Assembly, the Human Rights Commission 
is requested to include in the draft of tlie Covenant 
adequate provisions on freedom of information, 
taking into account tlie work done on the drafting 
of a Convention on Freedom of Information at 
the United Nations Conference on Freedom of 
Information and at the third and fourth regular 
sessions of the General Assembly where it should 
perliaps be explained as impasse in the drafting of 
a convention on the subject was reached. 

The Human Riglits Commission has had to 
face up to the fact that certain of the so-called 
fundamental and widely recognized rights are 
nevertheless not entirely unlimited. It has been 
recognized that in any organized society certain 
limitations with respect to the enjoyment of 
valued rights may need to be imposed in the in- 
terest of all. Thus, for example, the Commis- 
sion's draft of article 18 on freedom of peaceful 
assembly reads : 

"Everyone has the right to freedom of peaceful 
assembly. No restrictions shall be placed on the exer- 
cise of this right other than those prescribed by law 
and which are necessary to ensure national security, 
public order, the protection of health or morals, or the 
protection of the rights and freedoms of others." 

Peace Treaties 

Turning to the Peace Treaties with Italy, Bul- 
garia, Hungary, Rumania, and Finland, another 
avenue of attack on the betrayal of human rights, 
Mr. Tate said, is found. In the peace treaties, 
signed at Paris in 1947, with these countries, al- 
most identical provisions were included with re- 
spect to the observance of fundamental freedoms 
and human rights in the several countries. Article 
2 of the Hungarian Treaty of Peace, for example, 
provides : 

"Hungary shall take all measures necessary to secure 
to all persons under Hungarian jurisdiction, without 
distinction as to race, sex, language or religion, the 
enjoyment of human rights and of the fundamental 
freedoms, including freedom of expression, of press 
and publication, of religious worship, of political opin- 
ion and of public meeting." 

There is abundant evidence, he said, that hu- 
man rights and fundamental freedoms have been 
flagrantly violated in Bulgaria, Hungary, and 
Rumania in contravention of the peace treaties 
and in contempt of the conscience of mankind. 
The pattern is familiar and altogether repug- 
nant to humanity. 

In each case, a ruthless minority has seized 
power by force, terror, and intimidation. It has 
maintained itself in power by cruelly suppress- 
ing every fundamental right and essential free- 
dom which these countries have solemnly j^rom- 
ised to uphold. First, the leaders of political 
groups and parties and then, the leaders of re- 

93 



ligious organizations have been liquidated or 
subdued on the pretext that they violated na- 
tional laws — actually to extirpate all inde- 
pendent opinion. 

The judiciary serves only the group in power. 
Freedom of expression, of press and of publica- 
tion, of public meeting, no longer exist. Political 
dissent has been snutfed out. Freedom of worship 
has been curtailed or subverted ; religious leaders 
have been intimidated, jailed, and ruined. Ar- 
bitrary arrest, imprisonment, deportation, and 
forcecl labor are common practices. People are 
seized in their sleep and never heard from again. 
No one is wholly safe from the ominous "two 
o'clock knock." This process is now at work 
among "deviationists" in the ruling group — and 
who is to say who is a "deviationist?" Tyranny 
has become, not for the first time in history, a mon- 
ster that devours even those who serve it. 

Last April 2, the Government of the United 
States sent notes to the Governments of Bulgaria, 
Hungary, and Rumania formally charging them 
with violating the human rights clauses of the 
respective treaties of peace and requesting them to 
take corrective measures.- The three Governments 
in reply denied that they had violated the treaties. 
The Government of the United States then in- 
formed the three Governments of its view that dis- 
putes existed over interpretation and execution of 
the treaties and invoked the treaty-clauses provid- 
ing for settlement of such disputes by the heads of 
the diplomatic missions of the United States, the 
United Kingdom, and the Soviet Union in Sofia, in 
Budapest, and in Bucharest. The representatives 
of the United Kingdom agreed to comply with the 
request but the Soviet Union refused. 

The respective peace treaties provide that "any 
dispute concerning the interpretation or execution 
of the Treaty" which is not resolved by the three 
heads of mission in the capital concerned, within a 
period of 2 months, shall, unless the parties to the 
dispute mutually agree upon another means of 
settlement, "be referred at the request of either 
party to the dispute to a Commission composed of 
one representative of each party and a third mem- 
ber selected by mutual agreement of the two parties 
from nationals of a third country" and that 
"Should the two parties fail to agree within a 
period of 1 month upon the appointment of the 
third member, the Secretary-General of the United 
Nations may be requested by either party to make 
the appointment.^ 

Accordingly, it being impossible to get the three 
heads of mission in the respective capitals to act 
as envisioned in the treaties, the United States took 
the next step provided for in the treaties — steps 
looking to the establishment of commissions com- 
posed of one representative of each party to the 

' For U.S. notes see Bullktin of Apr. 10, li)4n, p. 4.'50 ; 
June 12, 1949, p. 75.5 ; .7nly 11, 1949, p. 29 ; Aug. 15, 1949, 
p. 238 ; Nov. 7, 1949, p. G92. 

' (Article 40 of the Treaty of Peace With Hungary.) 



dispute and the third by agreement or by the 
Secretary-General of the United Nations. The 
Governments of Bulgaria, Hungary, and Rumania 
would not name their commissioners. 

In September last, the matter was brought be- 
fore the General Assembly of the United Nations, 
and that body, on October 22, adopted a resolution 
requesting an Advisory Opinion of the Interna- 
tional Court of Justice on a number of questions. 
The Court is asked, in the first instance, to answer 
the question whether the "diplomatic exchanges 
between Bulgaria, Hungary, and Rumania on the 
one hand and certain Allied and Associated Pow- 
ers signatories to the treaties of peace on the 
other," concerning the implementation of the re- 
spective articles of the peace treaties with those 
countries on the subject of human rights, "disclose 
disputes subject to the provisions for the settle- 
ment of disputes" contained in the respective 
articles dealing with reference of disputes con- 
cerning the interpretation or execution of the 
treaties to the three heads of mission in the re- 
spective capitals or to Commissions established 
for the purpose. In the event that the Court 
decides that there is a "dispute" within the mean- 
ing of the peace treaty articles referred to, it is 
requested to answer the question whether the Gov- 
ernments of Bulgaria, Hungary, and Rumania 
are "obligated to carry out the provisions of the 
articles of the peace treaties referred to in question 
I, including the provisions for the appointment 
of their representatives to the Treaty Com- 
missions." 

Finally, in the event of an affirmative reply to 
the second question and if within 30 days of the 
Court's opinion, the Governments concerned have 
not notified the Secretary-General that they have 
appointed their representatives to the I'reaty 
Commissions, and the Secretary-General has so 
advised the Court, the Court is requested to give r 
a further advisory opinion on the question I 
whether the Secretary-General is authorized to 
appoint the third member of the Commission 
upon the request of a party to the dispute. And 
in the event of an affirmative reply to this third 
question, the Court is requested to give an opinion 
on the question whether a Treaty Commission 
composed of a representative of one party and a 
third member appointed by the Secretary-General 
would "constitute a commission, competent to 
make a definitive and binding decision." 

The Secretary-General of the United Nations 
has communicated this request of the General 
Assembly to the Registry of the International 
Court or Justice and the Registrar of the Court 
has given notice to all States entitled to appear 
before the Court, including all signatories to the 
Peace Treaties, that the Court has fixed Jamiary 
16, 1950, as the time limit for presenting written 
statements to the Court in the matter. A time for 
the hearing of oral statements has not yet been 
fixed by the Court. 



94 



Deparlmeni of State Bulletin 



U.S. Closes Hungarian Consulates 



ACTIONS AGAINST AMERICAN CITIZENS PROTESTED 



[Released to the press January s] 



Folloicing is the text of a further note which 
the American Minister in Budapest, Nathaniel P. 
Davis, today communicated to the Hungarian Min- 
ister for Foreign A/fairs with regard to the case 
of Robert A. Vogeler. There is also given below 
the substantive portions of the text of the Hun- 
garian reply of December 24- to the previous 
United States note of Decemher 20 concerning this 
case. 

United States Note of January 3 

Excellency : I have the honor to refer to the 
note which I communicated to you on December 
20, 1949,' and to the Hungarian Government's 
reply thereto on December 24, concerning the case 
of Mr. Robert A. Vogeler, an American citizen. 

The Government of Hungary has clearly failed 
in this case to live up to its obligations under the 
Treaty of Friendship, Commerce and Consular 
Rights between the United States and Hungary 
and to the accepted standards of international 
practice in regard to the right of consular officers 
to extend protection to nationals of their country. 
This right is in no way limited by the fact that a 
United States national may be accused of violat- 
ing Hungarian law or detained on such charges 
or oy the nature of the accusations levelled against 
him. Indeed it is precisely in the case of those 
nationals who ai'e accused of crime and detained 
that the exercise of the consular ri"ht of protec- 
tion is most urgently required. Yet the Hun- 
garian Government has for more than forty days 
denied all access to Mr. Vogeler. Another Amer- 
ican citizen, Mr. Israel Jacobson, was, moreover, 
held incommunicado for nearly 2 weeks by the 
Hungarian police and has now been expelled from 
Hungary without the charges against him having 
been officially made known to me in spite of re- 
peated requests on my part. 

The Hungarian Government, in its note of De- 
cember 24, accuses Mr. Vogeler of "espionage and 
sabotage" and arbitrarily states that Mr. Vogeler 

' Bulletin of Jan. 2, p. 21. 



is guilty of these charges even before he is afforded 
any sort of public hearing or judicial examina- 
tion. The question arises whether it is now ac- 
cepted judicial procedure in Hungary that the 
police shall draw up the charges, produce a "con- 
fession" and hand down the verdict, before a case 
is even brought before a court of law. The United 
States Goverament states categorically that it can- 
not recognize as just or in any way conclusive as 
to the facts of the case such arbitrary judgment 
by the police or any subsequent action by a court 
which, without impartial examination and weigh- 
ing of the evidence, merely endorses a verdict of 
guilty announced a priori by the police authorities. 

My Government lias seen no shred of evidence 
which would indicate that the charges lodged 
against Mr. Vogeler, or those directed by the Hun- 
garian press and radio against Mr. Jacobson. are 
anything but unfounded. Mr. Vogeler has oeen 
engaged in strictly legitimate private business mu- 
tually advantageous to his company and to the 
Hungarian economy. Mr. Jacobson has been en- 
gaged in the humanitarian work of caring for 
thousands of indigent men, women, and children 
of Hungarian nationality for whom the Hun- 
garion Government was not providing. The Hun- 
garian Government has been fully cognizant of 
the activities of both of these men over a long 
period and has permitted them to continue because 
it jjrofited by those activities. 

Apparently, it has become increasingly incon- 
venient to the Government of Hungary that the 
Hungarian people should have contact with rep- 
resentatives of the free world. It suits its pur- 
pose, moreover, that these contacts should be sev- 
ered in a manner which represents quite normal 
and necessary business practices as "espionage and 
sabotage." Under these circumstances, in which 
any United States businessman or relief admin- 
istrator in Hungary may be subject to arbitrary 
arrest and imprisonment, the United States Gov- 
ernment has found it necessary to refuse to permit 
private American citizens henceforth to travel in 
Hungary. 



ianuarY 16, ?950 



95 



In view, moreover, of the serious restrictions 
placed by the Hungarian Government on the ex- 
ercise of consular rights recognized under inter- 
national law as prescribed in the Treaty of Friend- 
ship, Commerce and Consular Rights between the 
United States and Hungary, the Government of 
the United States finds it inappropriate to continue 
to permit the maintenance of separate Hungarian 
consular establishments in Cleveland, Ohio, and 
New York City. 

I am accordingly instructed by my Government 
to inform you that recognition of the Hungarian 
Consul in New York City is withdrawn and that 
the consular establishments in New York and 
in Cleveland are required to cease all operations 
and to close on or before 12 : 00 midnight, January 
15, 1950. You are further informed that all con- 
sular functions which the Hungarian Government 
may wish to perform within the United States 
must thereafter be conducted through the Lega- 
tion of Hungary in Washington, D. C. 

The Government of Hungary is again reminded 
that, as long as the rights and interests of the 
United States and its nationals continue to be so 
grossly violated in Hungary, other relations be- 
tween the United States and Hungary cannot fail 
to be seriously affected. 

A copy of this communication is being brought 
to the attention of the Minister of Hungary in 
Washington. 

Accept, [etc.] 

Hungarian Note of December 24 

In its above-mentioned note the Government of 
the United States, under the pretext of defense of 
"fundamental human rights" and "concepts of 
justice which prevail among all civilized peoples" 
in fact intervened in favor of the protection of and 
the assistance to an American citizen who made 
use of his business activity and of his economic 
and social position he enjoyed in Hungary to carry 
out subversive work against the Hungarian 
People's Republic and to commit acts of espionage 
and sabotage. 

The Hungarian Government has to point out 
that during the recent months it has become un- 
doubtedly evident on several occasions that United 
States enterprises and individuals, systematically 
abusing their business relations and economic 
])rivileges assured to them by the Hungarian state, 
have displayed an activity of espionage and com- 
mitted economic and political crimes against the 
interests of the Hungarian state violating Hun- 
garian penal law. The Hungarian Government 
categorically declares that such individuals as dis- 



playing activity against the democratic state of the 
People's Republic of Himgary and against the 
Hungarian people, that is to say spies, wreckers, 
and saboteurs, should they be citizens of any coun- 
try, can in no circumstances be assured free 
activity and impunity by the Hungarian Govern- 
ment on its territory. 

The Govermnent of the United States refers 
in its note to the Treaty of Friendship, Commerce 
and Consular Rights between Hungary and 
United States proclaimed in 1926, in the terms of 
which United States nationals shall receive within 
Hungarian territory protection and security re- 
quired by international law. This treaty has al- 
ways been observed by the Government of the 
Hungarian People's Republic whose intention is 
to continue to observe it regarding its citizens stay- 
ing in Hungary and indeed displaying economic, 
cultural, and other peaceful and lawful activities. 
But neither the treaty of 1926 between Hungary 
and the United States nor international law in 
general contains any disposition or regulation 
which would oblige the Govermnent of the Hun- 
garian People's Republic to secure in its own coun- 
try persona] freedom and impunity to spies, 
saboteurs and enemy agents or which would expose 
the United States Consul to claim special rights 
in connection with United States citizens arrested 
for such crimes. 

In its aforesaid note the United States Govern- 
ment, under the guise of well-sounding phrases on 
human rights and concepts of justice prevailing 
among civilized peoples, claims not only the re- 
lease of an individual arrested for espionage but, 
moreover, puts in a claim both on belialf of the 
arrested person and of the United States Govern- 
ment because the Hungarian authorities have dis- 
closed the espionage affair on the American-owned 
enter])rise standard and rendered the criminals 
harmless. 

The Government of the Hungarian People's Re- 
public points out with astonishment and indigna- 
tion that the Government of the United States 
wishes to stress its desires exposed in its note by 
trying to prescribe to threat against Hungary in a 
way most unusual between states maintaining nor- 
mal diplomatic relations with each other and 
roughly offending the sovereignty of the Hini- 
garian People's Republic. 

The Government of the Hungarian People's Re- 
public most emphatically refutes tliese threats, 
and refutes as a wliole the note No. 735 of the 
Government of the United States of December 20, 
1949, as a repeated rude attempt to interfere with 
the interior affairs of the Hungarian People's 
Republic. 



96 



Department of State Bulletin 



Edwin D. Dickinson Named 
to Treaty Commission 

[Rclcaacd to the precis January 6] 

The United States Ministers to Bulgaria, Hun- 
gary, and Rumania, on January 5, 1950, delivered 
to tile Ministries of Foreign Affaii-s of those coun- 
tries parallel notes concerning the respective treaty 
commissions to be established for the purpose of 
resolving the disputes which have arisen over 
charges that these countries have violated their 
peace treaty obligations with respect to human 
rights and fundamental freedoms. The United 
States has designated Professor Edwin D. Dickin- 
son of the University of Pennsylvania Law School 
as its representative on each of the three com- 
missions.' 

On January 6, 1950. the United States represent- 
ative to the United Nations forwarded to the Sec- 
retary-General of the United Nations copies of the 
above-mentioned notes together with a reply of the 
Hungarian Government to a United States note of 
September 19, 1949. The notes transmitted com- 
prise correspondence on the subject between the 
United States and the three countries in question 
subsequent to that which was forwarded to the Sec- 
retary-General on September 20, 1949. 

The Secretary-General was requested by the 
United States representative to the United Na- 
tions to circulate copies of his communication and 
its enclosures to all members of the General As- 
sembly and to forward them to the International 
Court of Justice with reference to the resolution 
adopted by the General Assembly on October 22, 
1949, which submitted several questions in this 
regard to the International Court for an advisory 
opinion. 

The Governments of the United Kingdom and 
Canada, on January 5, addressed notes to the Gov- 
ernments of Bulgaria, Hungary, and Rumania 
similar to the United States notes and, on January 
6, communicated in a like manner with the Sec- 
retary General of the United Nations. 



' Professor Dickinson has had a distin^ished career 
In the field of international law. Holding degrees from 
Carleton College, Dartmouth, Harvard, and the University 
of Michigan Law School, he has over the past 40 years 
taught history, political science, and international law 
at a number of leading American universities as well as 
the Academy of International Law at The Hague, and 
was formerly dean of the School of .Jurisprudence at the 
University of California. Mr. Dickinson has served as 
Special Assistant to the Attorney General, General Counsel 
to the American-Mexican Claims Commission, Assistant 
Diplomatic Adviser to Unbba, United States Commis- 
sioner on the Permanent Commissions of Investigation 
and Conciliation constituted by the American Republics 
under the Protocal of Montevideo, Secretary of the Com- 
mittee on Legal Problems of the United Nations Con- 
ference on International Organization at San Francisco, 
and Chairman of the Alien Enemy Repatriation Hearing 
Board (. Japanese). He is the author of several works on 
phases of international law and contributor to a number 
of scholarly publications. 



The te.xt of the United States note of January 5 
to Rumania follows. The notes to Bulgaria and 
Hungary were substantially the same. 

The Legation of the United States of America 
presents its compliments to the Ministry of Foreign 
AflFairs of Rumania and has the honor to refer to 
the Legation s note of August 1, 1949 asking the 
Runumian Government to join the United States 
Government in naming a Commission, in accord- 
ance with Article ;?8 of the Treaty of Peace, to 
settle the dispute which has arisen over the inter- 
pretation and execution of Article 3 of the Treaty. 
Reference is also made to the Ministry's note of 
September 2, 1949 and to the Legation's note of 
September 19, 1949 on the same subject. 

The Legation has the honor to inform the 
Ministry that the United States Government has 
designated Mr. Edwin D. Dickinson as its repre- 
sentative on the proposed Commission. It is re- 
quested that the Rumanian Government designate 
its representative forthwith and enter into con- 
sultation immediately with the United States Gov- 
ernment through the American Minister in Bucha- 
rest, with a view to the appointment of the third 
member of the Commission as stipulated in Article 
38 of the Peace Treaty. 



Lack off Funds Curtails Effectiveness 
of United States Information Program 

[Released to the press January 4] 

The United States Advisory Commission on 
Information, in a report to Congress made public 
today, asserted that the United States information 
program was falling short of the effectiveness ex- 
pected of it by Congress because of a serious lack 
of funds. 

Despite the slow progress which consequently 
is being made in getting the story of America to 
the world, the Commission said, however, great 
advances have been made in integrating informa- 
t ion operations into over-all policy-making within 
the Department of State. 

The Commission was created under the United 
States Information and Educational Exchange 
Act of 1948 (Public Law 402), designed "to pro- 
mote the better understanding of the United 
States among the peoples of the world and to 
strengthen cooperative international relations." 
The Commission was asked by Congress to formu- 
late and recommend policies and programs for 
carrying out the act. 

The Commission is composed of : 

Mark Ethridge, publisher of the Louisville Courier-Jour- 
nal, Chairman 
Erwin D. Canham, editor of the Christian Science Monitor 



January 16, 1950 



97 



Philip D. Reed, ctiairinan of the Board. General Electric 
Company 

Mark A. May. director. Institute of Human Relations, 
Tale University 

Justin Miller, president. National Association of Broad- 
casters 

"The United States information program falls 
short of the effectiveness expected by Congress be- 
cause it seriously lacks funds," the Commission 
said in an introductory summary of its findings. 

"Needs as estimated by the State Department 
for fiscal 1050 were cut 50 percent by the Bureau 
of the Budget and Congress. 

"For fiscal 1951, the Bureau of the Budget has 
already set a ceiling 61 percent below the pro- 
gram's stated needs. 

"Under these circumstances, . . . the United 
States Advisory Commission on Information re- 
cords slow progress in getting the story of Amer- 
ica to tlie world." 

The Commission reiterated a previously de- 
clared policy of "frankness" in its dealings, and 
added : 

"Not merely because it is accountable to Con- 
gress, but also because the members of the Com- 
mission are convinced of the importance of the 
information program which is under the direction 
of the State Department — indeed, there are cer- 
tain large areas of the world wliere policies of the 
United States are known only through the Voice 
of America and other media — we desire to con- 
tinue to be frank." 

As a result of its earliest investigations, the Com- 
mission said, it felt that not enough money was 
being allocated to the program. 

"That is still true," said the i-eport issued today. 

Another of the Commission's earlier findings 
was that it was difficult to recruit adequate pro- 
fessional personnel — "partly because of the in- 
security of tenure; partly because of slow 
clearances; partly becau.se tlie State Department 
itself was not giving adequate weight to the pro- 
gram to challenge highly competent people in 
private life to come in to render a public service 
at the financial sacrifice involved in governmental 
salaries." 

Tfxlay's report stated : 

"Clearances are now satisfactory, but there is 
still a certain in.=ecurity and still difficulty in 
getting profe.ssioiuil personnel." 

A tiiird previous criticism had been that there 
was not sufficient integration within the dejiart- 
rnent between the policy-making groups and the 
information media heads to achieve the maximum 
results from the program. 

"The State Department has made its greatest 
improvement in that field," the Commission's re- 
port said today. "The machinery now exists . . . 



for a full integration of information into policy- 
making as well as policy exposition." 

The report also cited many specific steps which 
the Commission said had been taken in accordance 
with its recommendations in the fields of broad- 
casting, film production, and other activities. 

"Effective among these," the report stated, "has 
been increased use of local medium-wave radio 
time, documentary and informational films, and 
mobile imits to carrj' the American story to the 
grass roots." 

The report was the second semiannual one made 
by the Commission to Congress. The first was 
transmitted in March 1949. 



French Morocco Will Import Goods 
Without Official Allocation of Exchange 

The Government of the United States announced 
on December 31 that it had extended its assent 
for an indefinite period to the application to 
United States ressortissants of restrictions im- 
posed by the Protectorate authorities under avis 
199 of December 30, 1948. covering the importa- 
tion into the French zone of Morocco of goods with- 
out official allocation of foreign exchange. This 
assent is based on the niemoranduin of conversa- 
tions concluded in Rabat on September 4, 1949, 
as modified on September 8 and as further modified 
on December 31. 

The Government of the United States and Pro- 
tectorate authorities will maintain close liaison and 
consultation regarding the operation of the mem- 
orandum of September 4. 

On .January 2, the protectorate authorities of 
the French zone of Morocco made public a list of 
goods which they had decided to add to the list of 
items which can be imported into the zone without 
official allocation of exchange. 

The list is as follows : 

1. Raw jute fiber. 

2. Raw cotton fiher. 

15. Mannfactured tobacco. 

4. ("crlain pharmaceutical products: 
active and antimalarial iirodncts in qu: 
by the central pliarmaceulical service i 
the need for each product. 

f). Raw ni.'Uerials for soft drinks. 
(I. Radio sols. Includinj; spare parts 
7. I'asscnser car tires of spcci;il sizes 

5. .'Station wagons, not to exceed in v 
list price. 

!>. .lecps (all classes) and similar 
voliiclcs. 

10. Sewing marhinos (all kinds) inci 
spare parts. 

11. Steel tubes and Joints. 



intihiotic, radio- 
uitities authorized 
n accordance with 



and tubes, 
alue !?2250 factory 
four-wheel drive 
uding needles and 



98 



Department of Stale Bulletin 



Higher Production and Living Standards for Europe Reported 



[Released to the press hy ECA January J] 



Reporting industrial and agricultural levels 
duriii;^ 1949 that exceed anything in ])ast history, 
the Marshall Plan countries of Europe today 
joined in forecasting even greater output in 1950. 

Achievement of a much greater degree of eco- 
nomic integration through removal of trade 
obstructions, and much more energetic efforts to 
increase exports to North America were promised 
by tiie countries. These are parts of a whole- 
hearted etfort to stand on their feet by the time 
Marshall Plan help ends in June 1952. 

These plans, together with warm expressions 
of gratitude for United States help, were included 
in year end reports made to the Economic Coop- 
eration Administration by top economic chiefs 
of the countries receiving ECA aid. In special 
and highly revealing statements, made public last 
night by ECA Chief Paul G. Hoffman, the coun- 
tries reported checking of inflation, relaxation of 
trade restrictions and improved financial stability. 

Paul G. Hoffman 

Although gratified by the reports, Mr. Hoffman 
saw more difficult tasks ahead for Europe in its 
effort to assure durable economic recovery. 

"Without undue delay," Mr. Hoffman said, 
"Europe must achieve an economic unification 
which will create a single market of 275 million 
consumers for whom European industi-y and agri- 
culture can produce economically and to whom 
European manufacturers and farmers can sell 
freely. 

"Only within such a framework can Europe be- 
gin to become truly self-supporting. Only within 
such a framework can Europe achieve a rising 
standard of living." 

He warned there will be no political stability in 
Europe until the standard of living there is raised. 

"It is too low for the comfort of the Europeans 
and for the peace of the world," Mr. Hoffman 
declared. 

Paul van Zeeland 

Paul van Zeeland reported in a dual capacity, as 
chairman of the Organization for European Eco- 



nomic Cooperation and as Minister of Foreign 
Affairs of Belgium. As chairman he declared: 

"Europe will not regain its economic health un- 
less it again becomes, in spite of all the frontiers, 
a single great market where goods, services, capi- 
tal, and men without hindrance enjoy a freedom 
built on order, generosity, and intelligent coopera- 
tion. Those who have never doubted Europe's 
future know that the hour for action has come- 
In succeeding, in obtaining its goals, the Oeec will 
have served not only Europeans but Americans, 
too, and it will have demonstrated that the gener- 
ous, realistic, and independent plan of the Mar- 
shall Plan for reinforcing Europe will have 
contributed effectively to the peace and raising 
the standards of the masses of all the countries 
of the Western world." 

Speaking as a Belgian minister, Mr. van Zee- 
land reported : 

"Belgium is ready tomorrow as she was yester- 
day, to take her full responsibility in the rehabili- 
tation of Europe. This will be no easier for her 
than for any other country, but because Belgium 
prepared the groundwork earlier and far more 
energetically than others for international co- 
operation, she is already feeling the favorable 
effect." 



Sir Stafford Cripps 

Industrial production in Great Britain in 1949 
reached the highest point in its history, according 
to Sir Stafford Cripps, Britain's Chancellor of the 
Exchequer. He reported it was 6 to 7 percent 
above last year and some 25 percent more than the 
average for the immediate prewar years. Per- 
sonal consumption has been maintained and some- 
what improved during the year, despite the fact 
that most of the extra production has been going 
into exports. 

Sir Stafford reported the upward movement of 
British internal prices had been considerably 
slowed prior to September 1949. 

"Since that date, special cuts in government ex- 
penditures and capital investments have been 
made to prevent any renewal of inflationary pres- 



January 16, 1950 



99 



sure, and to release additional capacity for exports 
in order to take advantage of opportunities pre- 
sented by devaluation. 

"This is a record of real progress that could 
never have been made without help we have re- 
ceived from the peoples of the United States and 
Canada. The fact that this extraordinary assist- 
ance must cease before long, makes balancing of 
trade between sterling area and dollar area the 
most urgent task. Since devaluation of the 
pound, there has been a marked rise in the volume 
of Britain's exports to the United States and 
Canada. This is an encouraging start," he, 
reported. 

Britain's economic ties with other countries 
of Western Europe have been strengthened," he 
continued. "This trend has been encouraged by 
the relaxations on trade and payments. 

"It is along these lines that Britain is moving 
toward a closer association with Western Europe, 
while maintaining her position at the center of 
the sterling area system," he said. "By helping 
to draw these two great trading groups together 
and to promote a freer flow of trade between them, 
Britain has been able to make an outstanding con- 
tribution towards the development of multilateral 
trade in the world." 



Robert Schuman 

Kobert Schuman, France's Foreign Minister, 
had this report : 

"Construction has begun in Lorraine on three 
grey steel-strip mills, the largest single project in 
Europe financed partly by Marshall Plan funds. 
We intend to put this plant at the disposal of 
Europe as a whole. For we French know that 
what we have obtained and are bringing to reality 
here, we are doing at the same time for all of 
Europe. It is thus that the sentiment of soli- 
darity now flowing through our country will be- 
come a reality. This peaceful task could not be 
without the cooperation of the other European 
democracies, nor without the continued generous 
and independent help which comes to us from the 
United States." 



J. R. M. van den Brink 

Eeporting that Dutch production in 1949 rose 
to about 125 percent of the prewar level, Professor 
J. R. M. van den Brink, the Netherlands' Minis- 
ter of Economic Affairs, said this recovery and 
faith in Europe's future "are a guarantee that 
European Economic Cooperation will continue to 
develop in 1950." 

Through American generosity, the Netherlands 
took a big forward stride in 1949, he reported. 
"As a result, there was a return to more normal 
economic relations. Healthy competition reas- 
serted itself more and more. Government controls 
on economic activity were relaxed . . . Exports 



increased in volume. During the past months, 
some 75 percent of imports on an average were 
covered by exports, which is the same percentage 
as before the war. 

"During this year, every Dutchman grew more 
and more convinced that the recovery accom- 
plished thus far could only be consolidated if the 
Western European countries, either in small or 
in large groups, achieved the greatest possible 
measure of economic cooperation. That is why 
the Netherlands Government energetically sup- 
ports any effort that contributes toward greater 
economic unity in Western Europe," he said. 

Professor van den Brink pointed out the Neth- 
erlands, in cooperation with Belgium and Luxem- 
bourg, has taken "important steps toward the re- 
moval of the obstacles that are still in the way of 
a realization of the Benelux union." He said a 
large part of the trade between the three countries 
already is free from any restrictions. 

Stephan Stephanopoulos 

The year 1949 marked the turning point in 
Greece's postwar history, according to its Min- 
ister of Coordination, Stephan Stephanopoulos. 
He reported that organized guerrilla forces finally 
were beaten and that general economic activity 
showed substantial improvement. 

"From January to December 60 million dol- 
lars worth of reconstruction work was accom- 
plished and industrial production reached a post- 
war high. The cost of living index which climbed 
steadily during the first half of the year, declined 
slightly in July and thereafter remained below the 
June level. The devaluation of the Greek 
drachma in September was a step forward in the 
establishment of realistic rates of exchange, which 
will promote trade with other European countries 
and will help Europe balance accounts with the 
outside world. 

"Another step in connection with intra-Euro- 
pean trade was a recent decision to lift all quanti- 
tative restrictions on 50 percent of imports from 
other participating countries," Mr. Stephanopou- 
los reported. 

The Greek Minister said his country now can 
devote itself entirely to the task of reconstruction 
and development. 

"It will now be possible to start projects in the 
land reclamation, power and industrial fields de- 
signed to reshape and expand the economy of the 
country," he added. 

Cemil Salt Barlas 

Summarizing his personal detailed views, Turk- 
ish Minister of State Comil Salt Barlas said, 
"Turkey is fully adopting the principle of eco- 
nomic integration, niultihileralization and the 
ti'ado liberalization which the Oeeo envisaged. 
She believes that givat advantages have been ob- 
tained from their thorough application." 



100 



Department of Sfafe Bulletin 



Leopold Figl 

In liCiO, Austria will continue to increase its 
production, its cxi^orts and its tourist trade, re- 
ported Chancellor Leopold Figl. 

Describinji; 1!)49 as a period of continued inter- 
nal consolidation. Chancellor Figl said Erp aid 
served chiefly to repair the damages of the war. 
But during the 12 months, new investments, mod- 
ernization, and integration gained more and more 
importance. Various large projects now under- 
way, especially in key industries, not only repre- 
sent a vital development in Austria's economy but 
also contribute their share to improving European 
economic requirements among the participating 
countries, he said. 

"Austria's industrial production capacity 
reached the 1939 levels in almost every field of 
the economy, but the potential of production rose 
above this level," he reported. "The average 
of Austria's midyear total production already 
stood at 8 percent above the 1937 level. ERP im- 
ports of raw materials, food, and machinery made 
this continued production rise possible. As a re- 
sult, productivity rose by 30 percent during the 
first 9 months of 1949," he reported. 

Chancellor Figl predicted the Austrian people 
will do everything in their power to regain by 
1952 the economic balance of their country. 



Bjorn Olafson 

Bjorn Olafson, Iceland Minister of Finance and 
Commerce, said 1949 had been a year of high eco- 
nomic activity. 

"Production in agriculture and fisheries has in- 
creased over the high level of 1948, with the one 
important exception, that of herring and herring 
products. Without the Marshall Plan," he said, 
"the failure of the herring seasons would have 
meant a very grave economic crisis for Iceland 
and the development program would have been 
jeopardized. The dollar deficit has been steadily 
decreasing which gives up hope that, with ECA 
aid and our determined effort, the goal of the 
long-term program can be reached." 



Giuseppe Pella 

Italy's national income in 1949 reached 97 per- 
cent of the 1938 base figure, Giuseppe Pella, Ital- 
ian Minister of Finance, reported in a year-end 
statement. He said Italy has been successful in 
halting inflationary pressures, adjusting state fi- 
nances, stabilizing prices, increasing production, 
and improving some phases of what were grave 
employment problems. 

"Objectives for 1950," he declared, "aim at clari- 
fying and increasing the progress of the nation 
along the same lines followed up to now. National 
income should pass — even though slightly — pre- 
war level and this should be achieved through 
further increases in industrial production (about 



6 percent) and agricultural production (about 3 
percent) while public investments should be at 
least equal to 1919 figures and private investments 
should certainly bo larger." 

In this productive effort, he said, Italy is striv- 
ing for technical improvements particularly 
through modernization of equipment. He assured 
ECA that Italy is ready to cooperate, wherever it 
can, for real and stable European integration. 

Gustav Rasmussen 

Supplies of Marshall Plan raw materials and 
machinery in 1949 have made a major contribution 
to Denmark's increased production and exports, 
its Minister for Foreign Affairs, Gustav Rasmus- 
sen, reported. He said the Danish people realize 
that the European Recovery Program now stands 
on the threshold of a decisive phase. 

"We now face the important task of consoli- 
dating our achievements and of creating a sound 
and lasting economy throughout Europe," he de- 
clared. 

Recognizing that restrictions to European trade 
must be liberalized, he warned that barriers "must 
be removed gradually if we are to guard ourselves 
against relapses into restrictive practices. This 
is particularly true in Denmark, whose economy 
is exceptionally sensitive to changes in her for- 
eign economic relations." 

Sean McBride 

Considerable progress was made in Ireland dur- 
ing 1949 toward achieving objectives of the Euro- 
pean Recovery Program, Sean McBride, Irish 
Minister for External Affairs, said in his report. 

"Our internal financial position is stable and 
sound," he said. "Our production of transport- 
able goods continues to increase. It was eight 
percent higher in the third quarter of 1949 than 
in the same quarter last year. Unemployment 
has decreased accordingly." 

Great strides, he said, were made in agricultural 
production. In the first 9 months of 1949, Ireland 
produced 8 percent more cattle than in the same 
period in 1948; 30 percent more eggs; 127 percent 
more bacon pigs; and 23 percent more creamery 
butter. Exports of cattle in the first 10 months 
of 1949 were 25 percent greater than in the same 
period in 1948, and of eggs were 56 percent greater. 

Continuing, the Irish Minister reported that his 
country reduced its adverse balance of trade by 
about 26 percent and imports now are free from 
quantitative restrictions "which have proved such 
a handicap to the expansion of intra-European 
trade. We are doing more business with other 
Oeec countries than ever before. Our imports 
from them were 71 percent of our total imports 
in the first 10 months of 1949 as compared with 
66 percent in the same period of 1948, while our 
over-all balance of trade showed a marked im- 
provement." 



January 76, 1950 



101 



Tage Eriander 

The Marshall Plan, reported Ta^e Eriander, 
Swedish Prime Minister, has "provided the tools 
for democratic economic cooperation in Europe 
and its assistance has helped our nation through a 
difficult financial period." He said that, as a 
result, there has been greater proauctivity and a 
rising standard of living. 

"The generosity of the American people thus 
not only has contributed to a solution of the dollar 
problem but also to establish closer contact between 
the nations," he declared. 

John E. Feden 

Reporting for the Free Territory of Trieste, 
Colonel John E. Feden, director of finance and 
economics, Allied Military Government, said Amg 
in collaboration with EGA has maintained its 
principal objective of stimulating the shipping 
industry and the activities of the port. If the 
efforts to remove trade baiTiers among Oeec 
countries succeed and if there is reasonable in- 
crease in East-West trade, he said, Trieste can 
safely hope by 1952 to begin balancing its trade. 

Franz Bluecher 

Vice Ghancellor Franz Bluecher gave credit to 
American help and particularly the Marshall Plan 



for German confidence in facing the future. 

"Germany," he declared, "expresses the hope to 
other Marshall Plan countries that an economi- 
cally unified Europe will be created in which the 
people and their economies will be free. Germany 
will exert all of its efforts towards the common 
goal of a free and peaceful society." 

Norway 

The Norwegian report referred to the devalua- 
tion of the kroner and said it should create more 
favorable conditions for increased exports to the 
American market. In order to give exporters 
further encouragement to export to the dollar 
market, the Norwegian Government granted ex- 
porters the right to receive in cash for purchasing 
under certain conditions 10 percent of the value 
of their dollar exports, the report added. Agri- 
cultural production increased during 1949, espe- 
cially milk, meats, eggs, and potatoes. Increased 
production was noted in ores, in the metal extract- 
ing industry, wood pulp, cellulose, and paper, and 
in the chemical and electrochemical industries. 

The participating countries were unanimous in 
reporting that the Marshall Plan had contributed 
materially to higher production and to higher 
standards of living. EGA said additional reports 
were expected later from other participating 
countries. 



U.S.S.R. Urged To Supply Information 
on Detention and Repatriation of Japanese 

[Released to the press January 41 



The De'parttnent of State sent the following 
note to the Soviet Embassy in Washington yester- 
day afternoon. The text of the note was also 
presented to a special session of the Allied Council 
which met in Tokyo the morning of January ^.. 

The Secretary of State presents his compli- 
ments to His Excellency the Ambassador of the 
Union of Soviet Socialist Republics and has the 
honor to refer to the following statement con- 
tained in the Potsdam Declaration, issued on -Tuly 
26, 1945, by the heads of the governments of the 
United States, Great Britain, and China, and 
subsequently subscribed to by the Soviet Govern- 
ment: "The Japanese military forces, after being 
completely disarmed shall be permitted to return 
to their homes with the opportunity to lead peace- 
ful and productive lives." 

From the outset of the occupation of Japan, the 
Supreme Commander for the Allied Powers insti- 
tuted a program for the repatriation of many 



millions of Japanese from areas abroad. Excel- 
lent cooperation was forthcoming from the 
authorities of Australia, China, France, the 
Netherlands, New Zealand, the Philippine Re- 
public, the United Kingdom, and the United 
States, so that the entire program with the single 
exception noted below was virtually completed 
during 1947. The exception relates to the Union 
of Soviet Socialist Republics which, many montlis 
after repatriation of Japanese from other areas 
had been completed, still held several hundreds of 
thousands of Japanese in detainment. 

On May 20, 1949, a Soviet statement reported 
by Tass News Agency declared that, at that time, 
there was a total of 95,000 Japanese prisoners 
in Soviet-held territories remaining to be repatri- 
ated to their homeland. This figure did not 
account for an additional 376,939 Japanese who, 
according to figures compiled by the Japanese 
Government, were then, and still are, held in areas 
under Soviet control. 



102 



\iepatim%n\ of State Bulletin 



This discrepancy in the number of unrepatri- 
ated Japanese is too wide to be attributed to 
clerical error or oversight. At the same time, 
repatriation results from all other areas have uni- 
formly attested to the substantial reliability of 
Japanese Government statistics pertaining to 
Jai)anese to be returned from those areas. The 
Japanese Government's statistics relating to Jap- 
anese detained in Soviet-held areas are further 
supported by letters from Siberia and by inter- 
views with many hundreds of repatriates. 

The supposition therefore arises that the dis- 
crepancy in question may only be explained by the 
continued detention of large numbers of Japanese 
in Soviet -controlled areas and/or by an abnor- 
mally high death factor among these who were 
to be repatriated. As to the latter possibility, 
repeated efforts have been made by the Supreme 
Commander to obtain precise information from 
the Soviet authorities regarding deaths of Jap- 
anese internees. The continued i-efusal of the 
Soviet authorities even to transmit information on 
the approximate number of deceased internees has 
already imposed on the families of all those who 
have not been repatriated many years of uncer- 
tainty and anguish. The withholding of this 
information as well as the prolonged detention of 
prisoners after the cessation of hostilities are in 
patent conflict with accepted international con- 
cepts of fundamental human rights and freedoms 
and with the humanitarian principles set forth 
in the Geneva Convention of 1949 which were 
signed by some forty-five Powers including the 
Soviet Union. 

The United States Government therefore urges, 
in the interests of resolving an issue of long-stand- 
ing concern to the Allied Powers and Japan, that 
the Soviet Government agree to the designation of 
an international humanitarian body or organiza- 
tion which would be charged with making a com- 
plete survey of the situation at first hand with a 
view to obtaining exact information on Japanese 
detained in areas under Soviet control since the 
cessation of hostilities. It is felt that only 
through such means will it be possible, other ap- 
proaches having proved unavailing, to settle a con- 
troversy which is causing unrest in Japan and 
concern everywhere. 



Recent Releases — Continued from page 81 

Mutual Aid Settlement. Treaties and Other Interna- 
tioual Acts Series 1930. Pub. 3562. 6 pp. 5^. 

Agreement between the United States and France 
implementing agreement of May 2S, 1040 — Effi'cted 
by exchange of notes signed at Washington Febru- 
ary 27, I'J-IS ; entered into force Februaiy 27, 1948. 

Mutual Aid Settlement. Treaties and Other Interna- 
tional Acts Series 1031. Pub. 35&4. 5 pp. 5^. 

Agreement between the United States and Ethiopia — 
Signed at Addis Ababa May 20, 1949; entered into 
force May 20, 1949. 



Air Transport Services. Treaties and Other International 

Acts Series 11>34. Pub. 3r)(i7. 11 pp. T)^. 

Agreement between the United States and Canada 
superseding agreement of February 17, 194.'), as 
amended— Signed nt Ottawa June 4, 1949; entered 
Into force June 4, 1949. 

Settlement of Certain Financial Claims and Accounts. 

Treaties and Otiier lutenmtioual Acts Series 1930. Pub. 
3577. 17 pp. 10^. 

Agreement between the United States and France — 
Signed at Washington March 14, 1949; entered into 
force Marcli 14, 1949. 

Army Mission to Peru. Treaties and Other International 
Acts Series 1937. Pub. 3578. 12 pp. 5^. 

Agreement between the United States and Peru — 
Signed at Washington June 20, 1949; entered into 
force June 20, 1949. 

International Rice Commission. Treaties and Other In- 
ternational Acts Series 1938. Pub. 3579. 6 pp. 5f 

Constitution adopted by the United Slates and other 
governments — Formulated at the International Rice 
Meeting at Baguio March 1-13, 1948; approved by a 
resolution at 4th session of the Conference of Fao, 
held in Washington, November 15-29. 1948; instru- 
ment of acceptance deposited by United States Febru- 
ary 28, 1949 ; entered into force January 4, 1948, with 
respect to the United States February 28, 1949. 

Passport Visa Fees. Treaties and Other International 
Acts Series 1940. Pub. 3582. 5 pp. 5<f. 

Agreement between the United States and New Zea- 
land — Effected by exchange of notes signed at Well- 
ington March 14, 1949; entered into force March 14, 
1949, operative April 1, 1949. 

United States Military Mission With the Imperial Iranian 
Gendarmerie. Treaties and Other International Acts 
Series 1941. Pub. 3583. 6 pp. 5(f. 

Agreements between the United States and Iran 
amending and further extending agreement of No- 
vember 27, 1943— Effected by exchanges of notes dated 
at Tehran September 11 and 13, 1948; entered into 
force September 13, 1948. 

Military Aviation Mission to Ecuador. Treaties and 
Other International Acts Series 1942. Pub. 3584. 4 pp. 5^. 

Agreement between the United States and Ecuador 
amending and extending agreement of December 12, 
1940, as modified and extended— Effected by exchange 
of notes signed at Washington March 23 and May 17, 
1949; entered into force May 17, 1949, operative re- 
troactively December 12, 1948. 

Passport Visa Fees. Treaties and Other International 
Acts Series 1943. Pub. 3585. 5 pp. 5^ 

Agreement between United States and Panama — 
Effected by exchange of notes signed at Panama 
August 14, October 27, and November 5, 1948 ; entered 
into force November 5, 1948, operative January 1, 
1949. 

Naval Mission to Ecuador. Treaties and Other Interna- 
tional Acts Series 1944. Pub. 3586. 4 pp. 5((. 

Agreement between the United States and Ecuador 
amending and extending agreement of December 12, 
1940, as modified and extended— Effected by exchange 
of notes signed at Washington January 27 and Febru- 
ary 4, 1949 ; entered into force February 4, 1949, 
operative retroactively December 12, 1948. 



January 16, 1950 



103 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



NAC Approves Paris Recommendations 

[Released to the press January 6] 

The North Atlantic Council met today in Wash- 
ington in its third session. The United States 
was represented by Secretary of State Acheson, 
who is chairman for the first year of the Council's 
operation. Kepresentatives of the North Atlantic 
Treaty signatories were : for Belgium, Ambassador 
Silvercruys; for Canada, Ambassador Wrong; for 
Denmark, Ambassador de Kauffmann ; for France, 
Ambassador Bonnet ; for Iceland, Minister Thors ; 
for Italy, Ambassador Tarchiani; for Luxem- 
bourg, Minister Le Gallais; for the Netherlands, 
Ambassador van Kleffens; for Norway, Am- 
bassador Morgenstierne ; for Portugal, Ambassa- 
dor Pereira ; for the United Kingdom, Ambassador 
Franks. 

The Council considered and approved recom- 
mendations agreed by the Defense Committee in 
Paris on December 1 for the integrated defense of 
the North Atlantic area. These recommendations 
embody the principles of self-help and mutual aid 
and will provide the basis for the common defense 
of the parties. 



unification of certain rules relating to interna- 
tional transportation by air; (3) report of the 
Secretariat; and (4) consideration of the work 
program. 



MDA Meeting in London 

[Released to the press January 6] 

There will be a meeting in London on Janu- 
ary 11 of key American personnel of the Mu- 
tual Defense Assistance Progi-am of Western 
European countries to complete administrative 
arrangements for the implementation of the Mda 
program. Deputy Director John H. Ohly and 
Assistant Director John O. Bell of Mdap, and 
Maj. Gen. J. L. Lemnitzer, Director of the Office 
of Military Assistance in the Office of the Secre- 
tary of Defense, will go to London to attend the 
meeting. 



Haitian Bicentennial 



Legal Committee of iCAO 

The Department of State announced on Janu- 
ary 3 the United States delegation to the fifth ses- 
sion of the Legal Committee of the International 
Civil Aviation Organization (Icao), scheduled to 
convene at Taormina, Sicily, on January 5, 1950. 
G. Nathan Calkins, Jr., Chief, International and 
Rules Division, Civil Aeronautics Board, has 
been named chairman and Stuart G. Tipton, Gen- 
eral Counsel Air Transport Association of 
America, will serve as delegate. 

Included among the items on the meeting's pro- 
posed agenda are (1) questions concerning the re- 
vision of the Home convention of May 29, 1933, for 
the unification of certain rules relating to damages 
caused by aircraft to tliii-d parties on (lie surface; 
(2) questions concerning (he revision of the War- 
saw convention of October 12, 1929, for the 



The Department of State announced on De- 
cember 31 that President Truman has appointed 
John Shaw Young, of New York, as United States 
Commissioner to tlie Haitian Bicentennial Expo- 
sition which commemorates the two hundredth an- 
niversary of the founding of Port-au-Prince, the 
capital city. 

The United States Deputy Commissioner for the 
Exposition is Dr. Warren Kelchner, Chief of the 
Division of International Conferences, De]>art- 
ment of State. In addition Ambassador William 
DeCourcy, Edward (i. Miller, Jr., Assistant Secre- 
tary for Inter- American Affairs, and Warren R. 
Austin, United States representative to the United 
Nations will attend. 

Tlie National Section of the Haitian Bicenten- 
nial Exposition was inaugurated formally by 
President Estime of Haiti on December 8. 
United States Ambassador William DeCourcy on 
that occasion read a message from President Tru- 
man, in whose honor the principal avenue on the 
fair grounds has been named. 



104 



Department of State Bulletin 



The United States in the United Nations 



[January 7-131 

Chinese United Nations Representation 

At the opening of the Security Council meeting 
on January 10, Soviet Ambassador Yakov A. 
Malik, after stating that the Union of Soviet 
Socialist Republics would not take part in the 
CJouncil's deliberations unless the "representative 
of the Kuomintang group" was removed, intro- 
duced a formal resolution whereby the Security 
Council would consider the presence in the Council 
of the repi'esentative of the Chinese Nationalist 
Government illegal, decide not to recognize his 
credentials, and exclude him from the Council. 
After the ruling of Chinese Ambassador Tsiang 
as Security Council President to defer decision on 
the Soviet move was upheld by eight votes, the 
Soviet delegation left the Council chamber. Fol- 
lowing the departure, the Council agreed to post- 
pone action on the substantive item on the 
agenda — the General Assembly resolution con- 
cerning the regulation and reduction of conven- 
tional armaments and armed forces — until Janu- 
ary 12, at which time the Soviet resolution would 
be the first item of business. However, after hear- 
ing statements on that day by Yugoslavia, France, 
the United States, India, China, the Soviet Union, 
and the United Kingdom, the Security Council 
again adjourned, with plans for voting on the 
Soviet resolution at the following day's meeting. 

In his statement United States Ambassador 
Ernest A. Gross said that the United Stales rec- 
ognized the Chinese Nationalist Government and 
considered Ambassador Tsiang's credentials valid. 
The United States would vote against the Soviet 
proposal, he said, but, since it regarded the matter 
as procedural, would not consider its negative vote 
a veto and would accept any Council decision taken 
by a seven-member majority. 

French Ambassador Jean Chauvel also ex- 
pressed the view that the Chinese representation 
question was a procedural matter, but Ambassador 
Tsiang, who relinquished the chair during discus- 
sion of this item, insisted that it was a political 
question of the utmost importance. Yugoslavia 
supported the Soviet proposal. 

The question of Chinese representation was also 
brought up by Soviet representatives this week in 
tlie meetings of the Economic and Social Council's 
Committee on Procedure and the Subcommission 
on the Prevention of Discrimination and the 
Protection of Minorities. 



Former Italian Colonies 

On January 9, the United Nations Trusteeship 
Council's Conunittee on Somaliland held its first 
meeting in Geneva and began consideration of 
three proposed texts, submitted by Italy, the Phil- 
ippines, and the Dominican Republic, of a trustee- 
ship agreement for the former Italian colony. 
The committee, which will submit the agreement, 
when it is drawn up, to the Trusteeship Council 
for approval, is composed of representatives of the 
Dominican Republic (chairman), PVance, Iraq, 
the Philippines, the United Kingdom, and the 
United States. Egypt, Ethiopia, and Italy are 
participating in the committee's work as observers. 
Final approval of the agreement must be obtained 
from the General Assembly. 

The United Nations Eritrean Commission, es- 
tablished by the General Assembly on November 
21, 1949, and composed of representatives of 
Burma, Guatemala, Norway, Pakistan, and the 
Union of South Africa, held its first meeting on 
January 10 at Lake Success and elected Justice 
U Aung Khine of Burma temporary chairman. 
Election of regular officers was postponed because 
of the absence of the Norwegian representative. 
The Commission will next meet in Cairo on Feb- 
ruary 4, after which it will proceed to Asmara, 
Eritrea, where it will establish its headquarters 
and begin its task of ascertaining the wishes and 
best means of promoting the welfare of the in- 
habitants of Eritrea, another former Italian col- 
ony, and preparing a report to the General As- 
sembly, together with any proposals "it may deem 
appropriate for the solution of the problem of 
Eritrea." 



Clapp Mission to Middle East 

The Economic Survey Mission for the Middle 
East, headed by Gordon R. Clapp, chairman of 
the Board of Directors of the Tennessee Valley 
Authority, in its final report released on January 
9, recommended as a beginning of the complex 
process of basic resource development in Lebanon, 
Jordan, Arab Palestine, and Syria, four pilot 
demonstration projects which could feasibly be 
started now. In addition to contributing toward 
the development of the countries concerned, the 
four projects, involving the Wadi Zerqa basin in 
Jordan, the Wadi Qilt watershed and stream bed 
in Arab Palestine, the Litani River in Lebanon, 
and the Ghab Swamps in Syria, "would be spe- 



January 16, 1950 



105 



cially educative in nature and give experience in 
over-all planning to the governments, officials and 
technicians of Middle Eastern countries." Though 
in the beginning the Mission had the hope of being 
able to recommend large-scale development of the 
region's basic river systems or major undeveloped 
land areas, it found that the "region is not ready, 
the people and governments are not ready." 

This final report, "An Approach to Economic 
Development in the Middle East," follows and 
expands the Mission's interim report on the basis 
of which the General Assembly in December 
created the United Nations Relief and Works 
Agency for Palestine Refugees in the Near East, 
provided for an expenditure of $54,900,000 for 
direct relief and works programs through June 
1951, and recommended that direct relief be 
terminated by December 31, 1950, unless other- 
wise determined by the Assembly. The final re- 
port does not deal directly with the problem of 
refugees from Palestine. 

The Mission further recommended establish- 
ment by each of the Middle Eastern governments 
of a national development board "with responsibil- 
ity for planning balanced, over-all development, 
defining and recommending individual projects, 
and providing for their execution," with the tech- 
nical and financial assistance of the international 
community. Liaison with the United Nations Re- 
lief and Works Agency for Palestine Refugees 
would be maintained through these Boards. The 
Mission also appealed to countries represented on 
the Advisory Commission of the Relief and Works 
Agency for Palestine Refugees (at present the 
United States, United Kingdom, France, and 
Turkey) to create a fund not exceeding 10 million 
dollars, to be made available in a manner to be 
determined by the Advisory Commission, as grants 
to facilitate research and experimental work, and 
to assi-st in the completion of pilot demonstration 
projects where there are no United Nations funds 
for this purpose. 

International Labor Organization 

The International Labor Organization's Gov- 
erning Body, composed of representatives of 16 
governments, 8 representatives of management 
and 8 of labor, concluded its 110th session at Mys- 
ore, India on January 7. The Governing Body 
approved procedures for a new fact-finding and 
conciliation commission, comprising nine inde- 
pendent persons, to handle cases involving freedom 
of association and infringement of trade union 
rights referred to it by the General Assembly, the 
Economic and Social Council, or the Ilo General 
Conference. It voted to inform the United Na- 
tions that the Ilo would participate in the techni- 
cal assistance program under conditions adopted 
by the General Assembly at its recent session. 
The Governing Body also approved the convening 



at Geneva in April of a conference on migration 
questions; endorsed the Director-General's pro- 
posals for a Standing Advisory Committee on 
Asian Affairs; and decided to invite the newly 
created United States of Indonesia to be repre- 
sented at the regional conference for Asia begin- 
ning January 14 in Newara Eliya, Ceylon. 

Minorities 

The Sub-Commission on the Prevention of Dis- 
crimination and Protection of Minorities began 
its third session at Lake Success January 9. The 
Sub-Commission, which was established by the 
Human Rights Commission, will take up a 14-item 
agenda. This list includes provisions on the pre- 
vention of discrimination and the protection of 
minorities for incorporation in the draft Covenant 
on Human Rights, and discussion of proposals re- 
garding implementation of the international bill 
of human rights (in the form of the Draft Cove- 
nant and the International Declaration of Human 
Rights) . In connection with its discussion of legal 
and educational measures for prevention of dis- 
crimination, the Sub-Commission has approved a 
proposal submitted by Jonathan Daniels (United 
States) whereby member and other states will be 
requested to submit by December 31, 1950, exam- 
ples of legislation, judicial decisions, and various 
methods they have found useful in preventing 
discrimination. 

Migration 

A conference of nongovernmental organizations 
active in the field of migration opened in Geneva 
January 10. Organizations with headquarters in 
Belgium, France, the Netherlands, Switzerland, 
the United Kingdom, Australia, the United States, 
Chile, and Cuba are represented nt the Conference, 
which was convened under the joint sponsorship 
of the United Nations and the Ilo. The Confer- 
ence will consider the problem of broken families 
resulting from migration, the role of nongovern- 
mental organizations in rendering assistance to 
migrants, and the possibilities of their cooperation 
in the migration programs of international or- 
ganizations. 



New Assistant Secretary-General Appointed 

Secretary-General Trygve Lie announced on 
January 13 the appointment of Shamaldharee 
Lali of India as the new Assistant Secretary Gen- 
eral for the Department of Conference and Gen- 
eral Services. Air. Lall will succeed Adrian Pelt, 
who was elected United Nations Commissioner in 
Libya. Mr. Lall has served as Secretary to the 
Government of India Ministry of Labor, and as 
Indian representative on the Governing Board of 
the Ilo, and in 1949 as chairman of that Board. 



106 



Deparlmenf of State Bulletin 



THE DEPARTMENT 



Charles IVI. Hulten Placed 
in Charge of International 
information Programs 

[Released to the press January 4] 

The Secretary of State today announced that Charles 
M. Hulten has been appointed General Manager in charge 
of the operations of the Department's international in- 
formation programs, Including the Voice of America and 
the educational exchange program. 

The appointment is a further step in carrying out the 
recommendations of the Commission on Organization 
of the Executive Branch of the Government. It is de- 
signed to free the Assistant Secretary for Public Affairs 
for high-level staff work advising the Secretary and other 
top officers of the Department on domestic and foreign 
public opinion as well as giving policy guidance for the 
foreign information and educational exchange programs. 
Primary responsibility for managing these programs will 
be delegated to the General Manager. 

Mr. Hulten has been Deputy to John E. Peurifoy, Deputy 
Under Secretary for Administration. Mr. Hulten became 
Deputy Assistant Secretary for Administration on Febru- 
ary 4, 1947. 



Advisory Committee on 
Personnel and Organizational 
Matters Appointed 

A committee which has been appointed by the Secretary 
of State to advise him as to whetlier fundamental changes 
are required in the personnel systems and relationships 
of the Department and the Foreign Service will meet soon 
to consider this problem. 

Members of the committee are : 

James H. Rowe, chairman. Mr. Rowe was a member of 
the Commission on Organization of the Executive 
Branch of the Government and presently is a partner 
in the Washington law firm of Corcoran, Youngman, 
and Rowe. 

Robert Ramspeck, a former Member of Congress from 
Georgia (1923-47) and presently executive vice presi- 



dent of the Air Transport Association of America In 
Washington. D. C. 
William E. DeCourcy, Ambassador to Haiti. 

The committee will he assisted by William Howell, 
Deputy Director for Administration of the World Bank, 
who will act as staff director. John E. Peurifoy, Deputy 
Under Secretary for Administration, will provide such 
other staff and facilities as the committee may require. 

Several proposals have been made during the past few 
years for changes in the personnel systems and relation- 
ships of the Department and the Foreign Service. The 
Bureau of the Budget, working groups of the Department, 
and the Commission on Organization of the Executive 
Branch of the Government have concerned themselves 
with tills problem. 

Since July, the Department of State has assigned several 
responsible officers the task of pulling together the basic 
data concerning this problem. These officers have com- 
pleted their research, and their report is ready for the 
consideration of the committee. The committee, of course, 
will be free to supplement this basic material with any 
exploration and research which it may feel is necessary 
to its task. 

It Is hoped that the committee will find It possible to 
make specific recommendations as to : 

(1) any change it may feel is required in the existing 
classified personnel system of the Department or the 
career system of the Foreign Service ; 

(2) any action which it feels will bring about a closer 
integration of the two systems ; and 

(3) any factors which wUl contribute to the morale of 
the personnel concerned. 

It is hoped that the committee will be able to submit its 
recommendations as early as possible this year. The time 
factor is, however, a secondary one. It is considered most 
important that the problem be handled with due regard 
to all of the issues involved and in such a manner as to 
contribute to the most effective handling of our foreign 
relations. 



Officers Transferred Under Exchange Plan 

The Department of State announced on January 3 the 
reassignment of two of its German Affairs officers under 
the Department plan to exchange departmental and 
Foreign Service officers. 

John A. Calhoun, Foreign Service ofiicer, has been trans- 
ferred from Berlin, where he has served during the past 
3 years, to the Department of State and has assumed 
duties In the Bureau of German Affairs. Leon W. Fuller, 
who has held this departmental post for the past year, 
will proceed to Germany shortly after January 1 to as- 
sume a post in the Office of the United States High Com- 
missioner for a 2-year period. 



January 16, 1950 



107 




igia^ai'- 



General Policy Page 

The State of the Union. Message of the 

President to the Congress 75 

United States Policy Toward Formosa: 

Statement by President Truman 79 

Extemporaneous Remarks by Secretary 

Acheson 79 

U. S. Closes Hungarian Consulates — Actions 

Against American Citizens Protested . 95 

The United Nations and 
Specialized Agencies 

Definitions and Classification of Minorities . 82 

The Problems of Human Rights and Genocide. 91 

The United States in the United Nations. . 105 

Economic Affairs 

French Morocco Will Import Goods Without 

Official Allocation of Exchange .... 98 

Higher Production and Living Standards for 

Europe Reported 99 

Treaty Information 

Edwin D. Dickinson Named to Treaty Com- 
mission 97 

NAC Approves Paris Recommendations . . 104 



International information and Pase 

Cultural Affairs 

U.S.S.R. Jams VGA Broadcast of President's 

Message 76 

Lack of Funds Curtails Effectiveness of 

L'nited States Information Program . . 97 

Occupation Matters 

U.S.S.R. Urged To Supply Information on 

Detention and Repatriation of Japanese. 102 

International Organizations 
and Conferences 

U.S. Delegations: 

Legal Committee of IcAO 104 

Haitian Bicentennial 104 

National Security 

MDA Meeting in London 104 

The Congress 

Legislation 78 

The Department 

Charles M. Hulten Placed in Charge of In- 
ternational Information Programs . . . 107 

Advisory Committee on Personnel and 

Organizational Matters Appointed . . . 107 

OflScers Transferred Under Exchange Plan . 107 

Publications 

Recent Releases 81 



U. S. GOVERNMENT PRINTING OFriCE: lOSO 



tJ/i€/ ^e/ia/}^l^nienfi ^^ t/tate^ 





CRISIS IN ASIA— AN EXAMINATION OF U.S. 

POLICY • Renwirica by Secretary Achfaon . . . . Ill 

COiMMUNISTb lAKI I ><. PROPEK r\ IN <HINA. . 119 



WORLD AGRICULTURE LOOKS 1() 1 AO FOR 

LEADERSHIP • By Charle» F. Umtnttin, Secretary of 
.igricultuff 12 1 



\MiV rUlVATE BUSL^ESS SIIOLLU Sll'PORT THE 

iro 132 



For complete contents see back cava- 



Vol. XXIU No. SSI 

January 23, 1950 





•>•„,€» 



Me Qle/ia^tme^ ^ y^le JOUllGllIl 



Vol. XXII, No. 551 • Publication 3729 
January 23, 1950 



For Bale by the Superintendent of Documents 

0.8. Oovernnient Printing Office 

WasblDRton 25, DC. 

Pbici: 

C2 Issues, domestic S6, foreign $8.fi0 
Single copy, 20 cents 

The printing of this publication has 
been approved by the Director of the 
Bureau of the Budget (February 18. 
1949). 

/Vote: Contents of this publication are not 
copyrighted and Items contained herein may 
be reprinted. Citation of the Department 
OF State Bulletin as the source will be 
appreciated. 



The Department of State BULLETIN, 
a tveekly publication compiled and 
edited in the Division of Publications, 
Office of Public Affairs, provides the 
public and interested agencies of 
the Governnient with information on 
developments in the field of foreign 
relations and on the work of the De- 
partment of State and the Foreign 
Service. The BULLETIN includes 
press releases on foreign policy issued 
by the White House and the Depart- 
ment, and statements and addresses 
made by the President and by the 
Secretary of State and other officers 
of the Department, as well as special 
articles on various phases of inter- 
national affairs and the functions of 
the Department. Information is in- 
cluded concerning treaties and in- 
ternational agreements to which the 
United States is or may become a 
party and treaties of general inter- 
natioruil interest. 

Publications of the Department, as 
well as legislative material in the field 
of international rt-lations, are listed 
currently. 



CRISIS IN ASIA— AN EXAMINATION OF U.S. POLICY 



Remarks by Secretary Acheson ^ 



«■ S. SUPERINTENDENT OF OOOJMUli^ 

FEB 9 1950 



Foundations of Policy 

Tliis afternoon I should like to discuss with you 
the relations between the jjeoples of the United 
States and the peoples of Asia, and I used the 
words "relations of the peoples of the United 
States and the jjeoijles of Asia"' advisedly. I am 
not talking about governments or nations because 
it seems to nie what I want to discuss with you is 
this feeling of mine that the relations depend upon 
the attitudes of the people; that there are funda- 
mental attitudes, fundamental interests, funda- 
mental purposes of the people of the United States, 
150 million of them, and of the peoples of Asia, 
unnumbered millions, which determine and out of 
which grow the relations of our countries and 
the policies of our governments. Out of these at- 
titudes and interests and purposes grow what we 
do from day to day. 

Now, let's dispose of one idea right at the start 
and not bother witJi it any more. That is that the 
policies of the United States are determined out 
of abstract principles in the Department of State 
or in the White House or in the Congress. That 
is not the case. If these policies are going to be 
good, they must grow out of the fundamental atti- 
tudes of our people on both sides. If they are to 
be effective, they must become articulate through 
all the institutions of our national life, of which 
this is one of the greatest — through the press, 
through the radio, through the churches, through 
the labor unions, through the business organiza- 
tions, through all the groupings of our national 
life, there must become articulate the attitudes of 



' M.ade before the National Press Club, 
D. C, on .Ian. 12, laW. 



Washington, 



our people and the policies which we propose to 
follow. It seems to me that understanding is the 
beginning of wisdom and therefore, we shall begin 
by trying to understand before we announce what 
we are going to do, and that is a proposition so 
heretical in this town that I advance it with some 
hesitation. 

Now, let's consider some of the basic factors 
which go into the making of the attitudes of the 
peoples on both sides. I am frequently asked : Has 
the State Department got an Asian policy ? And 
it seems to me that that discloses such a depth of 
ignorance that it is very hard to begin to deal 
with it. The peoples of Asia are so incredibly di- 
verse and their problems are so incredibly diverse 
that how could anyone, even the most utter charla- 
tan believe that he had a uniform policy which 
would deal with all of them. On the other hand, 
there are very important similarities in ideas and 
in problems among the peoples of Asia and so what 
we come to, after we understand these diversities 
and these common attitudes of mind, is the fact 
that there must be certain similarities of approach, 
and there must be very great dissimilarities in 
action. 

To illustrate this only a moment: If you will 
consider as an example of the diflFerences in Asia 
the subcontinent of India and Pakistan, you wiU 
find there an area which is roughly comparable in 
size and population to Europe. You will find that 
the different states and provinces of that sub- 
continent are roughly comparable in size to the na- 
tions of Europe and yet you will find such 
dilTerences in race, in ideas, in languages, and re- 
ligion, and culture, that compared to that sub- 



January 23, 7950 



111 



continent, Europe is almost one homogeneous 
people. 

Or take the difference, for instance, between the 
people and problems of Japan and Indonesia, both 
in the same Asian area. In Japan, you have a 
people far advanced in the complexities of in- 
dustrial civilization, a people -whose problems 
grow out of overpopulation on small islands and 
the necessity of finding raw materials to bring in 
and finding markets for the finished goods which 
they produce. In Indonesia, you find something 
wholly different — a people on the very threshold 
of their experience with these complexities and a 
people who live in an area which possesses vast 
resources which are awaiting development. Now, 
those are illustrations of complexities. 

Emerging Independence 

Let's come now to the matters which Asia has 
in common. There is in this vast area what we 
might call a developing Asian consciousness, and 
a developing pattern, and this, I think, is based 
upon two factors which are pretty nearly common 
to the entire experience of all these Asian people. 

One of these factors is a revulsion against the 
acceptance of misery and poverty as the normal 
condition of life. Throughout all of this vast 
area, you have that fundamental revolutionary 
aspect in mind and belief. The other common 
aspect that they have is the revulsion against for- 
eign domination. Whether that foreign domina- 
tion takes the form of colonialism or whether it 
takes the form of imperialism, they are through 
with it. They have had enough of it, and they 
want no more. 

These two basic ideas which are held so broadly 
and commonly in Asia tend to fuse in the minds 
of many Asian peoples and many of them tend to 
believe that if you could get rid of foreign dom- 
ination, if you could gain independence, then the 
relief from poverty and misery would follow 
almost in course. It is easy to point out that that 
is not true, and of course, they are discovering 
that it is not true. But underneath that belief, 
there was a very profound understanding of a 
basic truth and it is the basic truth which under- 
lies all our democratic belief and all our demo- 
cratic concept. That truth is that just as no man 
and no government is wise enough or disinterested 
enough to direct the thinking and the action of 
another individual, so no nation and no people are 
wise enough and disinterested enough very long 



to assume the responsibility for another people or 
to control another people's opportunities. 

That great truth they have sensed, and on that 
great truth they are acting. They say and they 
believe that from now on they are on their own. 
They will make their own decisions. They will 
attempt to better their own lot, and on occasion 
they will make their own mistakes. But it will 
be their mistakes, and they are not going to have 
their mistakes dictated to them by anybody else. 

The symbol of these concepts has become na- 
tionalism. National independence has become the 
symbol both of freedom from foreign domination 
and freedom from the tyranny of poverty and 
misery. 

Since the end of the war in Asia, we have seen 
over 500 million people gain their independence 
and over seven new nations come into existence in 
this area. 

We have the Philippines with 20 million citizens. 
We have Pakistan, India, Ceylon, and Burma 
with 400 million citizens, southern Korea with 20 
million, and within the last few weeks, the United 
States of Indonesia with 75 million. 

This is the outward and visible sign of the in- 
ternal ferment of Asia. But this ferment and 
change is not restricted to these countries which 
are just gaining their independence. It is the 
common idea and the common pattern of Asia, 
and as I tried to suggest a moment ago, it is not 
based on purely political conceptions. It is not 
based purely on ideological conceptions. It is 
based on a fundamental and an earthy and a deeply 
individual realization of the problems of their own 
daily lives. This new sense of nationalism means 
that they are going to deal with those daily prob- 
lems — the problems of the relation of man to the 
soil, the problem of how much can be exacted from 
them by the tax collectors of the state. It is rooted 
in those ideas. With those ideas they are going 
forward. Resignation is no longer the typical 
emotion of Asia. It has given way to hope, to 
a sense of effort, and in many cases, to a real sense 
of anger. 

Recent Developments in China 

Now, may I suggest to you that much of the be- 
wilderment which has seized the minds of many 
of us about recent developments in China comes 
from a failure to understand this basic revolu- 
tionary force which is loose in Asia. The reasons 
for the fall of the Nationalist Government in 



112 



Department of State Bulletin 



China are preoccupyiug many people. All sorts 
of reasons have been attributed to it. Most com- 
monly, it is said in various speeches and publica- 
tions that it is the result of American bungling, 
that we are incompetent, that we did not under- 
stand, tliat American aid was too little, that we 
did the wrong things at the wrong time. Other 
people go on and say : ''No. it is not quite that, but 
that an American general did not like Chiang Kai- 
shek and out of all that relationship grows the real 
trouble." And they say : "Well, you have to add 
to that there are a lot of women fooling around 
in politics in China." 

Nobody, I think, says that the Nationalist Gov- 
ernment fell because it was confronted by over- 
whelming military force which it could not resist. 
Certainly no one in his right mind suggests that. 
Now, what I ask you to do is to stop looking for 
a moment under the bed and under the chair and 
under the rug to find out these reasons, but rather 
to look at the broad picture and see whether some- 
thing doesn't suggest itself. 

The broad picture is that after the war. Chiang 
Kai-shek emerged as the undisputed leader of the 
Chinese people. Only one faction, the Com- 
munists, up in the hills, ill-equipped, ragged, a 
very small military force, was determinedly op- 
posed to his position. He had overwhelming mili- 
tary power, greater military power than any ruler 
had ever had in the entire history of China. He 
had tremendous economic and military support 
and backing from the United States. He had the 
acceptance of all other foreign coimtries, whether 
sincerely or insincerely in the case of the Soviet 
Union is not really material to this matter. Here 
he was in this position, and 4 years later what 
do we find ? We find that his armies have melted 
away. His support in the country has melted 
away. His support largely outside the country 
has melted away, and he is a refugee on a small 
island off the coast of China with the remnants of 
his forces. 

As I said, no one says that vast armies moved 
out of the hills and defeated him. To attribute 
this to the inadequacy of American aid is only to 
point out the depth and power of the forces which 
were miscalculated or ignored. \Miat has hap- 
pened in my judgment is that the almost inhaust- 
ible patience of the Chinese people in their misery 
ended. They did not bother to overthrow this 
government. There was really nothing to over- 
throw. They simply ignored it throughout the 



country. They took the solution of their imme- 
diate village problems into their own hands. If 
there was any trouble or interference with the rep- 
resentatives of the government, they simply 
brushed them aside. They completely withdrew 
their support from this government, and when 
that support was withdrawn, the whole militarj- 
establishment disintegrated. Added to the gross- 
est incompetence ever experienced by any military 
command was this total lack of support both in 
the armies and in the country, and so the whole 
matter just simply disintegnited. 

The Communists did not create this. The Com- 
munists did not create this condition. They did 
not create this revolutionary spirit. They did not 
create a great force wliich moved out from under 
Chiang Kai-shek. But they were shrewd and 
cunning to mount it, to ride this tiling into victory 
and into power. 

That, I suggest to you, is an explanation which 
has certain roots in realism aJid which does not 
require all this examination of intricate and per- 
haps irrelevant details. So much for tlie atti- 
tudes of the peoples of Asia. 

U. S. AHitude Toward Asia 

Let's consider for a moment another important 
factor in this relationship. That is the attitude 
of our own people to Asia. What is that funda- 
mental attitude out of which our policy has grown ? 
What is the history of it ? Because history is very 
important, and history furnishes the belief on the 
one side in the reality and truth of the attitude. 

Wliat has our attitude been toward the peoples 
of Asia I It has been, I submit to you, that we are 
interested — that Americans as individuals are in- 
terested in the peoples of Asia, We are not in- 
terested in them as pawns or as subjects for 
exploitation but just as people. 

For 100 years some Americans have gone to 
Asia to bring in what they thought was the most 
valuable thing they had — their faith. They 
wanted to tell them what they thought about the 
nature and relationship of man to God. Others, 
went to them to bring to them what they knew of 
learning. Others went to them to bring them 
healing for their bodies. Otliers and perhaps 
fewer went to them to learn the depth and beauty 
of their own cultures, and some went to them to 
trade and they traded with them. But this trade 
was a very small part of American interest in 
the Far East, and it was a very small part of 



January 23, 1950 



113 



American interest in trade. It was a valid in- 
terest ; it was a good interest. There was nothing 
wrong about it, but out of the total sum of the 
interests of the American people in Asia, it was a 
comparatively small part. 

Through all this period of time also, we had, 
and still have great interests in Asia. But let me 
point out to you one very important factor about 
our interests in Asia. That is that our interests 
have been parallel to the interests of the people 
of Asia. For 50 years, it has been the funda- 
mental belief of the American people — and I am 
not talking about announcements of government 
but I mean a belief of people in little towns and 
villages and churches and missionary forces and 
labor unions throughout the United States — it 
has been their profound belief that the control of 
China by a foreign power was contrary to Ameri- 
can interests. The interesting part about that is 
it was not contrary to the interests of the people 
of China. There was not conflict but parallelism 
in that interest. And so from the time of the an- 
nouncement of the open door policy through the 
9-power treaty to the very latest resolution of the 
General Assembly of the United Nations, we have 
stated that principle and we believe it. And simi- 
larly in all the rest of Asia — in the Philippines, 
in India, in Pakistan and Indonesia, and in 
Korea — for years and years and years, the interests 
of Americans throughout this country have been 
in favor of their independence. This is where 
their independence, societies, and their patriotic 
groups have come for funds and sympathy. The 
whole policy of our government insofar as we have 
responsibility in the Philippines was to bring 
about the accomplishment of this independence 
and our sympathy and help. The very real help 
which we have given other nations in Asia has 
been in that direction, and it is still in that 
direction. 

The.'Factor of Communism 

Now, I stress this, which you may think is a 
platitude, because of a very important fact : I hear 
almost every day someone say that the real interest 
of the United States is to stop the spread of com- 
munism. Nothing seems to me to put the cart 
before the horse more completely than that. Of 
course we are interested in stopping the spread 
of communism. But we are interested for a far 
deeper reason than any conflict between the Soviet 
Union and tlie United States. We are interested 



in stopping the spread of communism because com- 
munism is a doctrine that we don't happen to like. 
Communism is the most subtle instrument of 
Soviet foreign policy that has ever been devised, 
and it is really the spearhead of Russian imperial- 
ism which would, if it could, take from these 
people what they have won, what we want them 
to keep and develop, which is their own national 
independence, their own individual independence, 
their own development of tlieir own resources for 
their own good and not as mere tributary states 
to this great Soviet Union. 

Now, it is fortunate that this point that I made 
does not represent any real conflict. It is an im- 
portant point because people will do more damage 
and create more misrepresentation in the Far East 
by saying our interest is merely to stop the spread 
of communism than any other way. Our real in- 
terest is in those people as people. It is because 
communism is hostile to that interest that we 
want to stop it. But it happens that the best 
way of doing both things is to do just exactly 
what the peoples of Asia want to do and what we 
M'ant to help them to do, which is to develop a 
soundness of administration of these new govern- 
ments and to develop their resources and their 
technical skills so that they are not subject to 
penetration either through ignorance, or because 
they believe these false promises, or because there 
is real distress in their areas. If we can help 
that development, if we can go forward with it, 
then we have brought about the best way that 
anyone knows of stopping this spread of 
communism. 

It is important to take this attitude not as a 
mere negative reaction to communism but as the 
most positive affirmation of the most affirmative 
truth that we hold, which is in the dignity and 
right of every nation, of every people, and of every 
individual to develop in their own way, making 
their own mistakes, reaching their own triumphs 
but acting under their own responsibility. That 
is what we are pressing for in the Far East, and 
that is what we must affirm and not get mixed 
up with purely negative and inconsequential state- 
ments. 

Soviet Attitude 

Now, let me come to another underlying and 
important factor wliicli determines our relations 
and, in turn, our ])()licy with the ])coples of Asia. 
That is the attitude of the Soviet Union toward 



114 



Department of Stale Bulletin 



Asia, and particularly towards those parts of Asia 
which are contiguous to the Soviet Union, and 
with great particularity this afternoon, to north 
China. 

The attitude and interest of the Russians in 
north China, and in these other areas as well, long 
antedates coninuuusni. This is not something that 
has come out of communism at all. It long ante- 
dates it. But the Communist regime has added 
new methods, new skills, and new concepts to the 
thrust of Kussian imperialism. This Conmmnistic 
concept and tecliniques have armed Russian im- 
perialism with a new and most insidious weapon 
of penetration. Armed with these new powers, 
what is happening in China is that the Soviet 
Union is detaching the northern provinces [areas] 
of China from China and is attaching them to the 
Soviet Union. This process is complete in outer 
Mongolia. It is nearly complete in Manchuria, 
and I am sure that in inner Mongolia and in Sin- 
kiang there are very happy reports coming from 
Soviet agents to Moscow. This is what is going 
on. It is the detachment of these whole areas, 
vast areas — populated by Chinese — the detachment 
of these areas from China and their attachment 
to the Soviet Union. 

I wish to state this and perhaps sin against my 
doctrine of nondogmatism, but I should like to 
suggest at any rate that this fact that the Soviet 
Union is taking the four northern provinces of 
China is the single most significant, most impor- 
tant fact, in the relation of any foreign power 
with Asia. 

Two Rules of U.S. Policy 

"\Miat does that mean for us? It means some- 
thing very, very significant. It means that nothing 
that we do and nothing that we say must be al- 
lowed to obscure the reality of this fact. All the 
efforts of propaganda will not be able to obscure 
it. The only thing that can obscure it is the folly 
of ill-conceived adventures on our part which eas- 
ily could do so, and I urge all who are thinking 
about these foolish adventures to remember that 
we must not seize the unenviable position which 
the Russians have carved out for themselves. We 
must not undertake to deflect from the Russians 
to ourselves the righteous anger, and the wrath, 
and the hatred of the Chinese people which must 
develop. It woidd be folly to deflect it to our- 
selves. We must take the position we have always 
taken — that anyone who violates the integrity of 



China is the enemy of China and is acting contrary 
to our own interest. That, I suggest to you this 
afternoon, is the first and the greatest rule in re- 
gard to the formulation of American policy to- 
ward Asia. 

I suggest that the second rule is very like the 
first. That is to keep our own purposes perfectly 
straight, perfectly pure, and perfectly aboveboard 
and do not get them mixed-up with legal quibbles 
or the attempt to do one thing and really achieve 
another. 

The consequences of this Russian attitude and 
this Russian action in China are perfectly enor- 
mous. They are saddling all those in China who 
are proclaiming their loyalty to Moscow, and who 
are allowing themselves to be used as puppets of 
Moscow, with the most awful responsibility which 
they must pay for. Furthermore, these actions of 
the Russians are making plainer than any speech, 
or any utterance, or any legislation can make 
throughout all of Asia, what the true purposes of 
the Soviet Union are and what the true function 
of communism as an agent of Russian imperialism 
is. These I suggest to you are the fundamental 
factors, fundamental realities of attitude out of 
which our relations and policies must grow. 

Military Security in the Pacific 

Now, let's in the light of that consider some of 
these policies. First of all, let's deal with the 
question of military security. I deal with it first 
because it is important and because, having stated 
our policy in that regard, we must clearly under- 
stand that the military menace is not the most 
immediate. 

What is the situation in regard to the military 
security of the Pacific area, and what is our policy 
in regard to it ? 

In the first place, the defeat and the disarma- 
ment of Japan has placed upon the United States 
the necessity of assuming the military defense of 
Japan so long as that is required, both in the 
interest of our security and in the interests of the 
security of the entire Pacific area and, in all honor, 
in the interest of Japanese security. We have 
American — and there are Australian — troops in 
Japan. I am not in a position to speak for the 
Australians, but I can assure you that there is no 
intention of any sort of abandoning or weakening 
the defenses of Japan and that whatever arrange- 
ments are to be made either through permanent 



January 23, 1950 



115 



settlement or otherwise, that defense must and 
shall be maintained. 

This defensive perimeter runs along the Aleu- 
tians to Japan and then goes to the Kyukyus. We 
hold important defense positions in the Ryukyu 
Islands, and those we will continue to hold. In 
the interest of the population of the Ryukyu 
Islands, we will at an appropriate time offer to 
hold these islands under trusteeship of the United 
Nations. But they are essential parts of the de- 
fensive perimeter of the Pacific, and they must 
and will be held. 

The defensive perimeter runs from the Ryukyus 
to the Philippine Islands. Our relations, our de- 
fensive relations with the Philippines are con- 
tained in agreements between us. Those agree- 
ments are being loyally carried out and will be 
loyally carried out. Both peoples have learned 
by bitter experience the vital connections between 
our mutual defense requirements. We are in no 
doubt about that, and it is hardly necessary for 
me to say an attack on the Philippines could not 
and would not be tolerated by the United States. 
But I hasten to add that no one perceives the im- 
minence of any such attack. 

So far as the military security of other areas in 
the Pacific is concerned, it must be clear that no 
person can guarantee these areas against military 
attack. But it must also be clear that such a 
guarantee is hardly sensible or necessary within 
the realm of practical relationship. 

Should such an attack occur — one hesitates to 
say where sucli an armed attack could come from — 
the initial reliance must be on the people attacked 
to resist it and then upon the commitments of the 
entire civilized world under the Charter of the 
United Nations which so far has not proved a weak 
reed to lean on by any people who are determined 
to protect their independence against outside ag- 
gression. But it is a mistake, I think, in consider- 
ing Pacific and Far Eastern problems to become 
obsessed with military considerations. Impor- 
tant as they are, there are other problems that 
press, and these other problems are not capable of 
solution through military means. These other 
problems arise out of the susceptibility of many 
areas, and many countries in the Pacific area, to 
subversion and penetration. That cannot be 
stopped by military means. 

Susceptibility to Penetration 

The susceptibility to penetration arises because 



in many areas there are new governments which 
have little experience in governmental adminis- 
tration and have not become firmly established or 
perhaps firmly accepted in their countries. They 
grow, in part, from very serious economic prob- 
lems, some of them growing out directly from the 
last war, others growing indirectly out of the last 
war because of the disruptions of trade with other 
parts of the world, with the disruption of arrange- 
ments which furnished credit and management to 
these areas for many years. That has resulted 
in dislocation of economic effort and in a good deal 
of suffering among the peoples concerned. In 
part this susceptibility to penetration comes from 
the great social upheaval about which I have been 
speaking, an upheaval which was carried on and 
confused a great deal by the Japanese occupation 
and by the propaganda which has gone on from 
Soviet sources since the war. 

Here, then, are the problems in these other areas 
which require some policy on our part, and I 
should like to point out two facts to you and then 
discuss in more detail some of these areas. 

The first fact is the great difference between our 
responsibility and our opportunities in the north- 
ern part of the Pacific area and in the southern 
part of the Pacific area. In the north, we have 
direct responsibility in Japan and we have direct 
opportunity to act. The same thing to a lesser 
degree is true in Korea. There we had direct 
responsibility, and there we did act, and there 
we have a greater opportunity to be effective than 
we have in the more southerly part. 

In the southerly part of the area, we are one of 
many nations who can do no more than help. The 
direct responsibility lies with the peoples con- 
cerned. They are proud of their new national 
responsibility. You can not sit around in Wash- 
ington, or London, or Paris, or The Hague and 
determine what the policies are going to be in 
those areas. You can be willing to help, and you 
can help only when the conditions are right for 
help to be effective. 

Limitations of U.S. Assistance 

That leads me to the other thing that I wanted 
to point out, and that is the limitation of effective 
American assistance. American assistance can be 
effective when it is the missing component in a 
situation which might otherwise be solved. The 
United States cannot furnish all these components 
to solve the question. It can not furnish determi- 



116 



DeparfmenI of State Bulletin 



nation, it can not furnish the will, and it can not 
furnish the loyalty of a people to its government. 
But if the will and if the dctenniiiation exists and 
if the people are behind their t^overninent, then, 
and not always then, is there a very good chance. 
In that situation, American help can be effective 
and it can lead to an accomplishment which could 
not otherwise be achieved. 

Japan. — Now, with that statement, let's deal very 
briefly — because the time is going on and I am 
almost equaling my performance in the Senate 
and House — let's deal very briefly with some of 
the problems. Let's take the situation in Japan 
for a moment. There are three great factors to 
be faced. The security matter I have dealt with. 
Aside from that, there are the economic questions 
and the political questions. In the political field, 
General MacArthur has been very successful and 
the Japanese are hammering out with some effort, 
and with some backsliding, and regaining and 
backsliding again of progress, a political system 
wliich is based on nonmilitaristic institutions. 

In the economic field, we have not been so suc- 
cessful. That is in very large part due to the in- 
herent difficulty of the problem. The problem 
arises with the necessity of Japan being able to 
buy raw materials and sell goods. The former 
connections of Japan with the mainland and with 
some of the islands have been disrupted. That 
has produced difficulties. The willingness of 
other countries to receive Japanese goods has very 
much contracted since the war. 

Difficulties of currency have added to those 
problems. But those matters have got to be faced 
and have got to be solved. Whether they are 
solved under a treaty or if the procedural diffi- 
culties of that are too great under some other 
mechanism, they must be solved along lines which 
permit the Japanese greater freedom — complete 
freedom if possible — to buy what they need in the 
world and to sell what they have to offer on the 
mainland of Asia, in southeast Asia, and in other 
parts of the world. That is the nature of the 
problem and it is a very tough one. It is one on 
which the occupation authorities, the Japanese 
government, ourselves, and others are working. 
There can be no magic solution to it. 

Korea. — In Korea, we have taken great steps 
which have ended our military occupation, and in 
cooperation with the United Nations, have es- 
tablished an independent and sovereign country 
recognized by nearly all the rest of the world. 



We have given that nation great help in getting 
itself established. We are asking the Congress to 
continue that help until it is firmly estal)lished, 
and that legislation is now pending before the 
Congress. The idea that we should scrap all of 
that, that we should stop half way through the 
aciiievement of the establisliment of this country, 
seems to me to be the most utter defeatism and 
utter madness in our interests in Asia. But there 
our responsibilities are more direct and our oppor- 
tunities more clear. When you move to the south, 
you find that our opportunity is much slighter and 
that our responsibilities, except in the Philippines 
and there indirectly, are very small. Those prob- 
lems are very confusing. 

Philippines. — In the Philippines, we acted with 
vigor and speed to set up an independent sovereign 
nation which we have done. We have given the 
Philippines a billion dollars of direct economic aid 
since the war. We have spent another billion dol- 
lars in such matters as veterans' benefits and other 
payments in the Philippines. Much of that money 
has not been used as wisely as we wish it had been 
used, but here again, we come up against the 
matter of responsibility. It is the Philippine 
Government which is responsible. It is the Phil- 
ippine Government which must make its own mis- 
takes. What we can do is advise and urge, and 
if help continues to be misused, to stop giving the 
help. We cannot direct, we should not direct, we 
have not the slightest desire to direct. I believe 
that there are indications that the Philippines may 
be facing serious economic difficulties. With ener- 
getic, determined action, they can perhaps be 
avoided or certainly minimized. Whether that 
will be true or not, I can not say, but it does not 
rest within the power of the American Govern- 
ment to determine that. We are always ready to 
help and to advise. That is all we can and all we 
should do. 

Anla. — Elsewhere in southeast Asia, the limits of 
what we can do are to help where we are wanted. 
We are organizing the machinery through which 
we can make effective help possible. The western 
powers are all interested. We all know the tech- 
niques. We have all had experiences which can 
be useful to those governments which are newly 
starting out if they want it. It cannot be useful 
if they don't want it. We know techniques of ad- 
ministration. We know techniques of organizing 
school districts, and road districts, and taxation 
districts. We know agricultural and industrial 



January 23, ?950 



117 



techniques, all of which can be helpful, and those 
we are preparing to make available if they are 
wanted, where they are wanted, and under cir- 
cumstances where they have a fighting chance to 
be successful. We will not do these things for the 
mere purpose of being active. They will not bt> 
done for the mere purpose of running around and 
doing good, but for the purpose of moving in 
where we are wanted to a situation where we have 
the missing component which, if put into the rest 
of the picture, will spell success. 

The situation in the different countries of south- 
east Asia is difiicult. It is highly confused in 
Burma where five different factions have utterly 
disrupted the immediate government of the coun- 
try. Progress is being made in Indochina where 
the French, although moving slowly, are moving. 
There are noticeable signs of progress in trans- 
ferring responsibility to a local administration 
and getting the adherence of the population to this 
local administration. We hope that the situation 
will be such that tlie French can make further 
progress and make it quickly, but I know full well 
the difficulties which are faced by the Foreign 
Minister of France and my admiration and re- 
spect for him are so great that I would not want 
one word I say to add a featlier to the burden that 
he carries. 

In Malaya, the British have and are discharg- 
ing their responsibility harmoniously with the 
peo])le of Malaya and are making progress. 

Indonesia. — In Indonesia, a great success has 
been achieved within the last few weeks and over 
a period of months. The round table conferences 
at The Hague in which great statesmanship and 
restraint were disi)]ayed, both on the Dutch and 
the Indonesian side, have resulted in this new 
government being formed. Rehitions of tliis gov- 
ernment with the Dutcli will lie very good, and 
tjie Dutch can furnish tJicin great help and ad- 
vice, and we will be willing to stand l)y to give 
whatever help we can rightly and i)rolitab]y give. 
That situation is one which is full of encourage- 
ment althouirh it is full of difficulty also. 

I nd'ia and Pakistan.- — As one goes to the end of 
this semicircle and comes to India and Pakistan, 



we find really grave troubles facing the world and 
facing these two countries there, both with re- 
spect to Kashmir, and to the utter difficulties — 
economic difficulties growing out of the differences 
in devaluation, settlement of monetary plans back 
and forth, et cetera. We know that they have as- 
sured one another, and they have assured the 
world, that as stubborn as these difficulties may 
be and difficult as they may be of solution, they 
are not going to resort to war to solve them. We 
are glad to hear those assurances and the whole 
world is glad to hear it, but we know also that 
the problems are in such a situation and in such an 
area that they are most inflammable, and we be- 
lieve that in addition to these most desirable as- 
surances there should be some accommodation of 
wills to bring about a result as soon as possible. 
In India and in Pakistan we are willing to be 
of such help as we can be. Again, the responsi- 
bility is not ours. Again we can only be helpful 
friends. Again the responsibility lies with people 
who have won their freedom and who are very 
proud of it. 

The New Day for Asia 

So after this survey, what we conclude, I be- 
lieve, is that there is a new day which has dawned 
in Asia. It is a day in which the Asian peoples 
are on their own, and know it, and intend to con- 
tinue on their own. It is a day in which the old 
relationships between east and west are gone, re- 
lationshi]is which at their worst were exj^loitation, 
and which at their best were paternalism. That 
relationsliip is ovei-, and the relationsliip of east 
and west nmst now be in the Far East one of 
nuitual respect and nnitual helpfulness. We are 
their friends. Others are their friends. We and 
those others are willing to lielp, but we can help 
only where we aie wanted and only where the 
conditions of helj) are really sensible and possible. 
So what we can see is that this new day in Asia, 
this new day which is dawning, may go on to a 
glorious noon or it may darken and it nniy drizzle 
out. But that decision lies within the countries 
of A^ia and within the power of the Asian people. 
Tt is not a decision which a friend or even an 
enemy from (he outside can decide for them. 



118 



Department of State Bulletin 



COMIVIUNISTS TAKE U.S. PROPERTY IN CHINA 



[Released to the press January H] 



SEIZURE VIOLATES TREATY RIGHTS 

Chinese C'oninuiiiist authorities in Peiping have 
ordered the taking over of United States Govern- 
ment consular property in Peiping and today have 
seized that property in defiance of protests by the 
United States Government. This seizure is in vio- 
hition of long standing treaty rights granted the 
United States in 1901 and reaffirmed in the Sino- 
United States treaty of 1943 by which the United 
States voluntarily relinquished its extraterritorial 
rights in China.^ 

Tlie United States Government takes an ex- 
tremely serious view of this situation, which con- 
stitutes a flagrant violation of our treaty rights 
and of the most elementary standards of interna- 
tional usage and conduct. 

The seizure was carried out despite our protests 
and our announced intention to withdraw all 
American official personnel from Communist 
China if the Chinese Communists attempted to 
seize our office and properties. 

The Department is now preparing instructions 
for the recall of all American official personnel 
from Communist China. Arrangements for the 
withdrawal of our official personnel will be made 
as expeditiously as possible and when completed 
our official establishments will be closed. Any 
facilities for evacuation from China which are 
arranged for our official personnel will be made 
available for all American citizens who desire to 
depart. 

This violation of American consular property 
has arisen in almost immediate sequence to the 
harsh and unjustified treatment of United States 
Consul General Angus Ward and his staff at 



'Treaty Series 984. 
January 23, 1950 



Mukden.^ It also is one in the long series of 
mistreatment of Americans, which included the 
beating of Vice Counsul Olive in Shanghai and 
the continued detention of Messrs. Smith and 
Bender, United States Navy personnel.^ 

On January 6, the Chinese Communist military 
authorities issued a proclamation for the seizure 
of former foreign military barracks in Peiping. 
In our case, the former United States military bar- 
racks has long since been converted into the con- 
sular offices. The compound in which this build- 
ing is located also contains residences occupied by 
members of the Consulate General staff. On Janu- 
ary 7, the Communist authorities addressed an 
order to the Consul General for requisition under 
the proclamation of the United States Govern- 
ment-occupied property at 22 Legation Street. 
This address includes not only our consular office 
but also certain of our residences. 

Following this action by the Chinese Communist 
authorities, the United States Government took 
every possible step to insure that the highest 
Chinese Communist authorities were aware of the 
seriousness with which we would view an attempt 
to carry out this requisition order. We not only 
brought the matter to the attention of the highest 
Chinese Communist authorities but asked the 
good offices of the British Government, which in- 
structed its officer in charge at Peiping also to 
bring the matter to the attention of the Chinese 
Communist officials and to state that the United 
States Govermnent would be compelled to with- 
draw all official American personnel and to close 
all its establishments if the Chinese Conununist 
authorities persisted in this move. 

The Chinese Communists apparently chose to 
ignore our representations and at 9 : 50 a. m. Jan- 

' Bulletin of Dec. 26, 1949, p. 95.5. 
• BULLCTIN of Dec. 12, 1949, p. 908. 

119 



uary 14 (8:50 p. m. Jan. 13 "Washington time) 
invaded the American consular compound. 

The background of this unprecedented act by 
the Chinese Communists is as follows : 

On January 6, the Chinese Communist military 
authorities at Peiping issued a proclamation 
which stated that "certain foreign countries in 
the past, utilizing the so-called 'right of stationing 
troops' of unequal treaties, have occupied land in 
the Peking municipality and constructed military 
barracks" and expressing their intention of re- 
covering "this type of real property right." The 
proclamation further stated that "because of mili- 
tary exigencies, this type of military barracks and 
other installations will first be requisitioned." On 
January 7, the Chinese Communist military au- 
thorities addressed a communication to the Amer- 
ican Consul General at Peiping represented as an 
order for the requisitioning of United States Gov- 
ernment official property at No. 22 Legation 
Street in Peiping and directed the Consul Gen- 
eral to send a messenger with authority to turn 
over this propei'ty, which was being used by the 
American Consulate General for official purposes. 

The Department of State instructed the Amer- 
ican Consul General at Peiping on January 7 to 
transmit to Gen. Chou En-lai a communication 
pointing out that the United States Government 
acquired the right to use for official purposes the 
land in question under the protocol signed at 
Peking [Peiping] on September 7, 1901, by China 
and eleven other powers and that this right was 
reaffirmed in tlie Sino-United States treaty of 
1913, under which this Government relinquished 
its extraterritorial rights in China. The Consul 
General was further instructed to state that this 
land and the buildings thereon were now being 
used for official purposes and that the so-called 
military barracks mentioned in the communica- 
tion from the Chinese Communist military author- 
ities had long since been converted into an office 
building and used as the office of the American 
Consulate General. In conclusion, he was di- 
rected to express the United States Government's 
expectation that no action would be taken con- 
stituting any violation of the rights of the United 
States Government as set forth above. 

Mr. Clubb reported that he had sent the above- 
mentioned communication to General Chou on 
January 9 and that the communication had been 
returned to him without answer or acknowledg- 
ment but with indications that it had been opened 



and read. Mr. Clubb later informed the Depart- 
ment that he had delivered a second communica- 
tion on this subject to General Chou on January 
10, which was designed to clarify to the local au- 
thorities that the property in question was in 
fact the office of the American Consulate General. 
This communication was also returned to Mr. 
Clubb with indications that it had been opened 
and read. On' January 8 Mr. Clubb had made a 
simple acknowledgment of the communication of 
January 7 from the Chinese Communist military 
authorities and on January 11, in accordance with 
instructions from tlie Department, he forwarded 
a second communication to these authorities, en- 
closing a copy of each of his letters to General 
Chou. All these communications were returned 
to Mr. Clubb with indications that they had been 
opened and read. 

In recognition of the limitations of time and in 
view of the extremely serious concern of the 
United States Government over the developments 
at Peiping, the Department, having informed the 
British Embassy in Washington on January 7 of 
this development, on January 10 requested the 
good offices of the British Foreign Office to the end 
that the British officer-in-charge at Peiping be in- 
structed to convey personally on behalf of the 
United States Government to General Chou En- 
lai or, in his absence, to the highest ranking Clii- 
nese Communist official available to him a state- 
ment to the following effect : 

"General Chou will liave by now received the 
communication regarding the question of requisi- 
tion of the former military barracks area of the 
United States Government at Peiping forwarded 
to him by Mr. Clubb on instructions from this 
Government. In accordance with the provisions 
of Article II of the Sino-United States treaty of 
1943, under which the United States Government 
relinquished its extraterritorial rights in China, 
the United States Government would have no 
objection to turning over to the authorities at 
Peiping the Glacis property* to the west of the 
United States Government consular compounds. 
The United States Government would also be pre- 



' The boundary area on three sides of the diplomatic 
quarter, wliicli for defense purposes had orisinally been 
cleared of l)uildings. This area was under the joint ad- 
ministration of the diplomatic quarter and its return to 
Chinese control was envisaged in the various treaties 
between China and foreign powers for the relinquishment 
of extraterritorial rights. 



120 



Department of Stale Bulletin 



pared to turn over to the authorities at Peiping 
for immediate occupancy the United States Uov- 
ernment-owned building on this property and 
enter into discussions regarding indenniilication 
for the buiUling. 

"Should the requisition order of the Chinese 
Communist military authorities be made appli- 
cable, however, to any part of the United States 
Government's consular compounds, the United 
States Government would consider such action a 
violation of its rights and would conclude that it 
had no alternative to closing all of its official es- 
tablishments in Communist China and to with- 
drawing all of ite official personnel from Com- 
munist China."' 

The British Government was good enough to 
send appropriate instructions to its officer-in- 
charge at Peiping. In view of the time limitations 
involved and in order to ensure that the Chinese 
Communist authorities be aware of the views and 
intentions of the United States Government and 
not act without full realization of the inevitable 
results of a violation of United States rights, Mr. 
Clubb was authorized as a last resort, in the event 
that the British Government's instructions to its 
officer-in-charge did not arrive prior to the expira- 
tion of the time limit, to bring directly or indi- 
rectly to the attention of General Chou En-lai or 
some other Chinese Communist official the views 
and intentions of the United States Government. 
This Mr. Clubb did in a communication to General 
Chou on January 12, which was received and sub- 
sequently returned. At 3 : 30 p. m. on January 13, 
Mr. Clubb received an oral communication from 
a representative of the Military Control Commis- 
sion that the requisition order would be put into 
effect from 9 : 00 a.m. the following day. Im- 
mediately upon receipt of this notice, Mr. Clubb 
orally informed this representative that if the 
order was carried out it would be the full re- 
sponsibility of those concerned and against United 
States Government official protests. Mr. Clubb 
later in the same day confirmed this message by 
formal letter. 

At 9 : 50 a.m. on January 14 the premises of the 
Consulate General were invaded by the police and 
four civilian officials. 

RELATED DOCUMENTS 

Proclamation of Peking Municipal Military 
Control Commission of Chinese Peop^s Libera- 
tion Army, PU Number 16. 



1. Certain foreign countries in the pa.st, utiliz- 
ing so-called "riglit of stationing troops'' of un- 
equal treaties, have occupied land in Peking 
municipality and constructed military barracks. 
Because unequal treaties have now been abolished 
this type of real property right naturally should 
be recovered. 

2. Our government will separately establish 
measures for settling questions of buildings which 
may arise from there having been constructed mili- 
tary barracks and other installations on this type 
of real property. 

3. At present, because of military exigencies, 
this type of military barracks and other installa- 
tions will first be requisitioned. 

4. This type of requisition will be effective seven 
days after date of proclamation. 



January 6, 1950 



Director Nieu Jtjng-chen » 



Comm,unication received by American consul 
general on Jammry 7, 1960 from the Peking Mu- 
nicipal Military Central Commission. 

Order of Peking Municipal Military Control 
Commission of Chinese People's Liberation Army 
Kuan Mi No. 507. This commission has already 
made generally known in proclamation Pu No. 15 
of January 6, matter requisition foreign countries 
military barracks. It is observed that No. 22 Le- 
gation Street is former American military bar- 
racks. Per precedent requisitioning by U.S., after 
arrival this order it is expected special messenger 
will promptly be dispatched with authority turn 
over on schedule. Delay not to be permitted, this 
order. 

Director Nieh Jung-chen 
January 7, 1960 

Communication dated January 9, I960, from 
American consul general at Peiping to General 
Chou En-Lai 

Having reference to my note of January 9, 1960 
regarding the expressed intention of the Peking 
Municipal Militax-y Control Commission to requi- 
sition the premises located at 22 Legation Street, 
for complete clarity respecting the matter in point 
I would inform you that the entrance to the former 
military compound at that address was early 
closed and the entrance area incorporated into the 



ianuatf 23, 1950 



121 



adjoining buildings, with the result that that 
number went into disuse, so that there is now not 
even a street numberplate affixed to identify that 
location; the two compounds at 22 Legation 
Street and 23 Legation Street were thereafter des- 
ignated only by the one street address, namely 23 
Legation Street. This is clearly indicated in both 
my application of November 30, 194U to the Bu- 
reau of Land Administration for registration of 
the property in question and its accompanying 
sketch map, both designating the western bound- 
ary of 23 Legation Street as being the adjoining 
places and, as stated in my above-mentioned let- 
ter, the actual office of the American Consulate 
(ieneral is located in the former barracks of tlie 
comjiounds technically identified in the Military 
Control Commission's order as 22 Legation Street, 
but uses the address 23 Legation Street. 

It is thought that this circumstance may have 
been overlooked by tlie concerned authorities, with 
tlie result that it was not api)reciated that the 
American Consulate (ieneral ollice now (X'cupies 
the former military barracks in the comi)Ound 
which in the piist bore the street number, 22 Lega- 
tion Street. 



Commm/mcatloti dated Jantiar-y 10, 1D50, from 
Amei-'tcan consul general at Peipiny to General 
Chou En-Lai 

I wish to bring the following matter to Your 
Excellency's attention : 

I have received by messenger a communication 
from the Peking Municipal MiHtary Control 
Commission of the Chinese People's Liberation 
Army. Oi-der No. 507, dated January 7, l!)."i(), con- 
cerning its expressed intention to re<iuisiti()n tlie 
military barracks of foreign governments. Since 
it is stated that the office of the American Con- 
sulate General at No. 22 Legation Street is to be 
requisitioned under this order, it can only be as- 
sumed that the local authorities have acted with- 
out consultation with or instructions from higher' 
authoi-ities. 1 have forwarded the text of tliis 
order to my Govcrnnu'iit, and h:i\(' been instructed 
by my Government to transmit to your l^xcelleiiey 
the following conununication : 

Jn accordance with Article VII of the l'r((to(<)l 
signed at Peking on Sejjtember 7, 1!)()1, by repre- 
sentatives of Austria-Hungary, Belgium, France. 
(Jermany, Great Biitain, Italy, Jai)aM, The Nether- 



lands, Russia, Spain, the United States, and China, 
the United States Government acquired the right 
to use for official purposes the land which was al- 
located to the United States Government pui-suant 
to that Protocol and on parts of which are located 
buildings belonging to the United States Govern- 
ment aiul used for official purposes. This right 
was reaffirmed in Article II of the Treaty between 
the United States and China signed at Washing- 
ton on January 11, 1943, under which the United 
States relinquished its extraterritorial rights in 
China. This land and the buildings thereon are 
now being used for official purposes by the Ameri- 
can Consulate General at Peking. The so-called 
military barracks mentioned in the order under 
reference has long since been converted into an 
office building and used as the office of the Ameri- 
can Consulate General. 

I am instructed to expre.ss my Government's ex- 
pectation that no action will be taken constituting 
any violation of the rights of the United States 
Governnu'ut set forth above. 

Coimnuiiiration dated Januanj 13, 1950, from 
American conmd general at Peiping to General 
Nieli Jiing-chen 

Witli reference to the Military Control Com- 
mission's order Kuan Mi No. 507 of Janvuirv 7, 
1950 delivered on the same date to me in respect 
to the projected requisitioning of the real ]u-operty 
designated by the address, 22 Legation Street, it 
is ol)served that the title to the premises in ques- 
tion is held by the United States Government and 
that the premises are used foi- tliat government's 
official ])urposes, namely for the housing of the 
American ct)nsMlar establislunent in Piking. The 
office of tlie C(insiilal(> (ieneral itself is located in 
the former barracks. 

I would state at this time that, whether per- 
sonally or in my capacity as American Consul 
(ieiiei-al, 1 am without legal auihority or instruc- 
tions to deliver above properly lielonging to the 
United States (Jovernment. As rejiorted in my 
lettei- of January !~i to the Military Control Com- 
mission, I promptly reiiuested instructions of my 
(lovernmeiit. I'tuler the instructions of the 
I niled Stales ( iovernmenl , I lia\t' made certain 
I'epresentations in respect to llie mailer in point 
to the .Ministry for Foreign .Vil'aiis of the Central 
Peoples Govermnent . 



122 



Department of State Bulletin 



I am not informed rexpectinji; any decisions 
which may have been rearlunl as a result of the 
American representations, but it is presumed that 
those concerned are jjivinfi the matter due con- 
sideration. Having reference to the oral com- 
nmnication received at 3 : 30 p.m. today from a 
messeiifrer of the Military Control Commission 
to the effect that the reijuisition onler will be made 
etfective at 9 : 00 a.m. tomorrow, January 14, 1950, 
I would repeat that I am without any authority or 
instructions to deliver over that property and that 
any requisition will be on the full responsibility 
of the Central Peoples Government and against 
the foruial protest of tlie I'uited Stales Gov- 
ernment. 

Comvntmcation sent January 13, 1950, 6 p.m., 
by American conaul general at Peiping, to Gen- 
eral Chou En-lai 

Have reference to my note of January 12, 1950 
regarding the proposed requisition of certain real 
property appertaining to the United States Gov- 
ernment, there is enclosed for your further infor- 
mation regarding the matter in point a copy of a 
self-explanatory letter sent under today's date to 
( ieneral Xieh Jung-chen, Director of the Peking 
Municipal Military Control Commission. 

You will observe that I have just received a noti- 
fication to the effect that the Commission proposes 
to requisition the premises in question as of 9 
a.m. January 14, 1950. You will note further 
tliat I have informed the Military Control Com- 
mission that I am without authority or instruc- 
tions to hand over such property of the United 
States Government and that such requisitioning 
would be on the full responsibility of the Central 
People's Government and against the formal pro- 
test of the United States Government. 



Treaty between the United States of America 
and the Republic of China for the relinquishment 
of extraterritorial rights in China and the regula- 
tion of related 7nutters 

Signed at WasliinBtoii January 11. li)43; exrliuuge of 
ratifications at Wasliiiigton May 20, 1!)43 

Article II 

The Government of the United States of Amer- 
ica considers that the Final Protocol concluded at 
Peking on September 7, 1901, between the (Chinese 
Government and other governments, including the 
Government of the United States of America, 
should be terminated and agrees that the rights 
accorded to the Government of the United States 
of America under that Protocol and under agree- 
ments supplementary thereto shall cease. 

The Government of the United States of Amer- 
ica will cooperate with the Government of the Re- 
public of China for the reaching of any necessary 
agreements with other governments concerned for 
the transfer to the Government of the Republic 
of China of the administration and control of the 
Diplomatic Quarter at Peiping, including the of- 
ficial assets and the official obligations of the Dip- 
lomatic Quarter, it being mutually undei-stood 
that the Government of the Republic of China in 
taking over administration and control of the Dip- 
lomatic Quarter will make provision for the as- 
sumption and discharge of the official obligations 
and protection of all legitimate rights therein. 

The Government of the Republic of China 
hereby accords to the Government of the United 
States of America a continued right to use for offi- 
cial purposes the land which has been allocated to 
the Government of the United States of America 
in the Diplomatic Quarter in Peiping, on parts 
of which are located buildings belonging to the 
Government of tlie United States of America. 



January 23, 1950 



123 



WORLD AGRICULTURE LOOKS TO FAO FOR LEADERSHIP 



ty Charles F. Brannan, Secretary of Agriculture 



BACKGROUND 

Fao is a small, young organization. Created 
in 1945, it has a budget of only 5 million dollars — 
less than that of many bureaus of our Depart- 
ments of Federal Govermiient — and only 680 em- 
ployees. Yet it is expected to give leadership to 
that two-thirds of the world's population which 
lives on the land, and to aid all people on that 
basic necessity of life — food. 

It might be of considerable surprise, in view of 
its small size, that ministers of agriculture and 
other top officials in the fields of agriculture, for- 
estry, and fisheries gather from all parts of the 
world to determine the policy of this organization. 

Part of the answer lies in the fact that Fao, 
working through governments, can accomplish 
more than its budget might suggest. It supplies 
ideas and international leadership, as well as the 
maximum technical assistance which its funds 
will permit. But the action is carried out pri- 
marily by member governments. Thus in such 
programs as the control of rinderpest disease 
throughout the world, conducting a world census 
of agriculture in 1950, and improving extension 
services for getting scientific knowledge to farm- 
ers, Fao is pointing up the problem, bringing 
leaders together for discussions, furnishing in- 
formation where needed, and spark plugging the 
work. The final carrying out of the program is 
done by member governments. 

Another part of the explanation for this great 
interest lies in the fact that an Fao conference 
is more than a meeting of governmental repre- 
sentatives to determine the work program of the 
organization for the next year. A major seg- 
ment of the conference is given over to the dis- 



cussion by top government officials — not of what 
the organization should do — but of what govern- 
ments should do in their domestic program and 
through international action to achieve the Fao 
objectives of a better fed world and a sounder 
agricultural economy. 

A final part of the answer is that these people 
believe in the idea of Fao. They believe that the 
organization will grow in usefulness and play 
an increasing role in world affairs provided it 
gets the proper leadersliip and support. 

In short, the work of Fao personifies the possi- 
bilities of a better fed and more stable world in 
which all men of good will believe. The staff of 
Fao, by keeping alive the issues and pointing the 
direction to national governments, is performing 
a service that reaches far beyond the financial 
scope of the organization. 

Job Before This Conference 

The Fao conferences have the responsibility 
of planning the program for the organization and 
determining its budget. How much emphasis 
shall be placed on developing marketing coopera- 
tives as compared with education on weevil con- 
trol in stored grain or spreading knowledge of 
hybrid corn? What shall be the budget of the 
Fislieries Division, and how shall it be spent? 
Those problems require technicians in the various 
fields of Fao's work as well as budget officials who 
are familiar with the program. 

The Conference had before it Fag's proposals 
for a technical assistance program (the now fa- 
mous Point 4 wliich had been suggested by Presi- 
dent Truman in liis inaugural address) . The job 

' U.S. delegation report on r)th session of Fao. 



124 



Department of State Bulletin 



was to lay careful plans so that Fao could launch 
action as soon as funds become available. 

There were also a number of administrative 
problems such as the site of permanent head- 
quarters, and the development of a pension plan 
for its employees. Some of those problems were 
not spectacular, but they were important and re- 
quired attention. 

Food surpluses constituted the big question 
facing the Ministers of Agriculture in their policy 
discussions. Though the Conference emphasized 
the need for increasing production in under- 
developed nations, the picture in terms of world 
agricultural trade was one of potential surpluses. 
This problem represented an interesting shift of 
emphasis from previous conferences. Two years 
ago there was an acute world food shortage. Dis- 
cussion was still on emergency measures to increase 
production and how the limited food supplies 
might best be divided among competing nations. 
Last year the exporting nations were stressing 
the impending surpluses, but importing nations 
were still stressing shortages and increased pro- 
duction. 

Conference Organization 

The fifth session of the Conference met in Wash- 
ington from November 21 to December 6, 1949; 
fiftj'-eiglit members attended its opening. When 
it closed this number had been increased to sixty- 
three by the addition of Afghanistan, Indonesia, 
Israel, Korea, and Sweden. 

President Trimian appeared before one of the 
plenary sessions and reemphasized his firm belief 
in Fao and the willingness of the United States 
to make its technical knowledge and technicians 
available to Fao in helping underdeveloped 
nations.^ 

For its major work the Conference divided into 
three "Commissions" which met simultaneously. 
Commission I took up the question of surpluses 
and other broad policy matters. Commission II 
considered Fao's program for work for 1950 and 
proposed technical assistance program. Commis- 
sion III was responsible for the budget and 
administrative matters. 

Seiior Dr. Oscar Gans, Cuban Ambassador to 
the United States and head of the Cuban delega- 
tion, was elected Chairman of the Conference. 
S. L. Mansholt, Minister of Agriculture, Food and 
Fisheries for the Netherlands: Norman J. O. 



Makin, Ambassador to the United States from 
Australia; and Darwisii Al-Haidri, Director 
General of Agriculture in Iraq were elected Vice 
Chairmen. 

Lord Bruce of Melbourne, Independent Chair- 
man of Fag's Council, was elected Chairman of 
Commission I; Louis Maire of Switzerland was 
made Chairman of Conunission II; and B. R. Sen 
of India was made Chairman of Commission III. 

The United States delegation was headed by 
Secretary of Agriculture Charles F. Brannan 
with Under Secretary of Agriculture Albert J. 
Loveland and Deputy Assistant Secretary of State 
for United Nations Affairs Durward V. Sandifer 
serving as alternates. The delegation included 
Members of the Congress and representatives of 
the major farm organizations, organized con- 
sumers, forestry and fisheries industries, the Land- 
Grant College Association, and the Federal De- 
partments of Agriculture, Commerce, Interior, 
Labor, State, and Federal Security Agency.' 



COMMISSION I 

The three main items discussed by Commission 
I were the state of the current world food situa- 
tion, international commodity problems, and in- 
ternational investments. 

The Fao Secretariat had prepared documents 
on these and other subjects on the agenda and 
circulated them well in advance of the Conference 
so that delegates could receive instructions from 
their governments. 

World Food Situation and Outlook 

After full discussion extending over 7 days and 
participated in by most nations represented, the 
Commission approved a report of the current 
world food situation and outlook for the future. 
Following are a few highlights from the report, 
giving only a broad indication of its content : 

Total world agricultural production has re- 
gained prewar levels, but, population having in- 
creased about 10 percent, the supplies available 
per person are still below prewar. The supply 
per person will probably not reach prewar levels 
for some 6 or 7 years. Furthermore, the quality 
of the diet is still inferior to that of prewar. 

Since prewar some of the best fed nations have 



' Bxn,i.ETiN of Dec. 5, 1949, p. 857a. 



• Bulletin of November 28, 1949, p. 823. 



January 23, J 950 



125 



become better fed, some of the worst fed, even 
worse. 

The world has become much more dependent 
upon the United States, and to a lesser extent 
upon Canada, for its food supply. These two 
nations' share in world food exports has risen in 
the past 10 years from less than one-seventh to 
about two-fifths of the total. The United States 
share in world exports of bread grains rose from 
about one-tenth before the war to close to one-half 
since the war. 

At the same time the means which other nations 
have of paying for our goods has decreased. 

Out of this need has grown a situation of in- 
herent instability in which even the present inade- 
quate consumption levels of the food-deficit areas 
are precariously held. 

Any sudden fall in the dollar earnings of the 
food-deficit countries or in the volume of United 
States gifts and loans might precipitate a food 
shortage in those countries and a surplus disposal 
problem in North America. 

Thus, efficient production in the soft currency 
and underdeveloped areas must be maintained and 
expanded to bring about a more balanced agri- 
cultural economy in the world. 

Faced with decreasing dollars, some food-im- 
porting nations are turning to uneconomic pro- 
duction in an effort to increase their own food 
production. At the same time, some surplus- 
producing countries, faced with decreasing mar- 
kets, are taking steps to reduce their production 
of certain export crops. 

This analysis of the situation pointed up two 
specific problems: 

1. How to bring about the necessary expansion 
of agricultural production in underdeveloped 
countries, and 

2. How to maintain and expand high levels of 
agricultural production and exports from the 
developed countries in the face of the current 
buying-power shortage in the importing nations. 

These questions were the key to much of the 
Conference discussions that followed. A number 
or recommendations was made, including a re- 
quest that the Director General study needed mi- 
gration of agricultural manpower from areas of 
labor surplus to those of shortage, that a study 
be made of national price policies as they aflfect 
[)roduction and trade in agricultural products and 
a number of specific recommendations made to 



member govei'uments. The most important of 
the related discussions, however, were those on 
commodity problems, international investment, 
and technical assistance. 

International Commodity Problems 

Growing out of previous Fao discussion, the 
Director General had appointed an independent 
expert committee to study means of moving sur- 
pluses during the current period when nations are 
still trying to overcome the dislocations caused by 
the war and its aftermath. The expert committee 
proposed, among other things, the creation of an 
International Commodity Clearing House (Icch). 

IccH M'ould begin with a capital of 1 billion 
dollars. (The figure was first set at 5 billion dol- 
lars and later reduced to 1 billion.) With this it 
could buy and sell a limited amount of agricul- 
tural surpluses. Its major function, however, 
would be to expedite transactions between nations. 
Surpluses could be sold through Icch for soft cur- 
rencies at market prices or for hard currencies 
(dollars) at reduced prices. For example, if the 
United States sold surpluses to England and took 
pounds, those pounds would be held for the United 
States by Icch until such time as England might 
be able to make them convertible. 

In the Conference discussion of this proposal, 
practically all nations were in favor of its objec- 
tives of international cooperation in surplus dis- 
posal measures, but its financial features or other 
aspects were objected to in major statements by 
delegates from the United Kingdom. Australia, 
India, the Netherlands, Canada, and the United 
States. Of the 13 nations which made state- 
ments, only two were generally favorable. 

The delegate from the United States stated that 
the basic agi'icultural production policy of this 
country had been to jiroduce enough for home 
consumption, to have a fair share of exports, to 
have a reserve in case of imforeseen crop failures, 
and to stimulate additional consumption at home 
and abroad. He stated, however, that the accumu- 
lation of soft currencies by the United States or 
other governments was not a sound solution and 
tliat, in the opinion of his Government, the long- 
(imo solution would be built aroinid helinng deficit 
countries help themselves. That was the reason 
for the United States proposal of the Point 4 
program. 

The delegate from the United Kingdom 
pointed out that no country in balance-of-pay- 



126 



Deparfment of Sfafe Bulleiin 



iiient difficulties fould accept a proposal involving 
tlie accuimilation of huge and growing amounts 
of their currency on the assumption that they 
would one day be made convertible. A second 
danger which would have to be avoidetl, he said, 
was the possible use of blocked currencies for 
buying goods from the nondollar world which 
could otherwise be sold for dollars. Furthermore, 
he pointed out tliat no emergency or general 
scheme should be operated in such a way 
as to militate against the commodity by com- 
modity approach agreed on internationally and 
on which considerable progress had already been 
made. The latter reference was to the Wheat 
Agreement which went into effect during the past 
3'ear and to discussions which are now taking 
place regarding the possibility of agreements in 
one or more other commodities. 

After all nations had been given an opportunity 
to express themselves on the Icch proposal, the 
question was turned over to a working party. 
This working party prepared a report which, 
with minor amendments, was adopted by the 
Conference. 

This report recommended that there be estab- 
lished forthwith a Committee on Commodity 
Problems which would be supervised by the Coun- 
cil of Fad. The committee would be advisory and 
its functions would be : 

(a) to consider such statements as to their needs 
as may be received from the governments of coun- 
tries experiencing difficulties in securing supplies 
and to transmit such statements to governments of 
countries holding surpluses; 

(b) to consider such statements as may be sub- 
mitted by the governments of countries holding 
surpluses concerning their proposals for dispos- 
ing of supplies on special terms and to make 
recommendations thereon to the governments con- 
cerned, having regard to the effects of such trans- 
actions on the interests of other importing and 
exporting countries ; 

(c) to review information relating to commod- 
ity surplus and deficit situations and, where con- 
sidered desirable, to initiate discussion between 
governments with a view to promoting appropri- 
ate international action. 

The head of the United States delegation en- 
dorsed the report of this working party and 
pledged the wholehearted support of the United 
States Government to the proposed Conmiittee. 
He pointed out that this new Committee, by tak- 



ing the initiative in seeking means for moving 
particular surpluses to needy countries, by initiat- 
ing consultation between governments in this field, 
and by bringing international judgment to bear on 
the plans of individual governments, would, in the 
opinion of this Government, achieve the basic ob- 
jectives that had been so strongly endorsed at the 
Conference by member governments and by public 
organizations. 

If we accept the new proposal, he said, "we can 
say in all honesty that we agreed to the workable 
heart of the Icch proposal and have only rejected 
the corporate superstructure which, as is seen by 
careful analysis, could have made little contribu- 
tion to the solution of the problem and might have 
been misleading to the millions of people who are 
so earnestly seeking international cooperation in 
this vexing problem." * 

International Investment 
and Financing Facilities 

At the previous conference attention had been 
called to the fact that underdeveloped countries, 
generally having a low standard of living, find 
it almost impossible to save the money required 
for capital investments in agriculture as well as 
in industry. Therefore, it was pointed out, if 
such nations are to acquire the tools necessary to 
raise their levels of agricultural productions and 
to build the processing and distribution systems 
which must accompany expanded production, 
their small domestic savings must be supplemented 
with intei'national investment from abroad. Fol- 
lowing that discussion, the Director General was 
requested to prepare a report on the adequacy of 
international investment funds to supply the agri- 
cultural development needs of member nations. 

That study found that the resources of the Inter- 
national Bank and other institutions making 
foreign loans were greatly inadequate to finance 
all the development plans of member nations. 
Conference discussion, however, disclosed that 
many of those plans were not fully developed and 
liad been turned down by the International Bank. 

The Conference decided that one important part 
of the technical assistance program should be to 

' After the Conference closed and subsequent to prepara- 
tion of this report, the Council of Fao upon instructions 
from the Conference to appoint an Fao Committee on 
Commodity Problems, on December 8, 1949, named the 
following countries to the Committee: Australia, Rrazll, 
Canada, Cuba, Egypt, France, India, Indonesia, the 
Netherlands, Pakistan, Poland, United Kingdom, United 
States, and Uruguay. 



January 23, 1950 



127 



lielp nations work out the complete, scientific de- 
tails of such plans so that they could be presented 
in a businesslike manner. Member governments 
were requested to report to the Director General 
any instance where such plans were turned down 
because of inadequate international financial fa- 
cilities so that the Conference can continue to keep 
the problem under review. 

COMMISSION II 

Commission II had the resjionsibility of con- 
sidering Fag's proposed program of work for 105U 
and directing the Director General as to major 
fields of activity. In addition, it laid out plans 
for Fao's participaticjn in an expanded jirogram 
of technical assistance and gave particular atten- 
tion to tlie role of extension work in Fao"s 
progi-am. 

Expanded Program of Technical Assistance 

Following President Truman's inaugural ad- 
dress in which he proposed a greatly expanded 
program of technical assistance, carried on inso- 
far as possible through the United Xations, the 
Economic and Social Council worked out detailed 
proposals on how the United Nations and the 
specialized agencies might participate in such a 
program. Those proposals were later aj^proved 
by the General Assembly of the United Nations.^ 
They provide that all funds made available will be 
put into a general fund set up by the Uniled Na- 
tions and distributed the first year according to 
a formula. Under this fornuda Fao will get -lU 
percent, the largest segment going to any one 
agency. 

A Technical Assistance Boai'd will be scl up 
consisting of the Direcloi's General or their des- 
ignee fi'om all the specialized agencies. AViieii 
Fao or any other agency gets a re(}uest for assist- 
ance, it will first be referred to (his IJoard S(j there 
can bi- proper coordination. Assistance in irriga- 
tion and drainage work i(H{uesled of Fao, for ex- 
ample, could I bus be coonbnated with malaria 
control assistance which the World Jleallb 
Organization might be considering in the same 
country. 

Each sj)ecializi'd agency had also |)re])arcd lor 
(he Economic and Soi-ial Council a statement ol 



° For !ili Mrfirlc liy lliildorc Ilims 
Illy ;ir|iiiii (in IccliiiicMl MssislMiHc. 
I'.t. 1!M!I. ir. 91.", 



I nil Cii'iicral .Xssciii- 

I'C I'.fl.l.KlIN llf I 'I'l'. 



the types of work which it would expect to carry 
out under the technical assistance program. Fao 
cannot work out an exact program in advance 
because it does not know what requests will be 
made of it. But it did map out fields of activity. 
Since most of its regular work consists of giving 
technical assistance to governments, the iiew pro- 
posals primarily involve an expansion of present 
lines of work. Both the suggested Fao progi-am 
and the United Nations administrative arrange- 
ments were before the Conference for adoption. 
The Conference approved the steps already 
taken by the Director General and the United 
Nations General Assemblj' gave its full endorse- 
ment to the proposed program, and authorized 
the Director General, so far as resources permit, to 
undertake certain preliminary work with govern- 
ments, including assisting them in preparing de- 
tailed requests for technical assistance. How- 
ever, no commitments are to be made before funds 
become available. A number of nations have 
indicated their intention to provide funds for this 
progi-am. 

Extension Services 

The United S(a(es delegation felt that one of 
the ways in which Fao could be of maxinnnn help 
to govermnents in increasing the efficiency of 
their food production would be in helping them 
establish strong agricultural extension services 
which wotdil (ake to farmers (he scientific knowl- 
edge of (he world and help (hem pu( it into prac- 
tice on the land. The delegation further believed 
that the Fao staff is not yet fully organized in such 
a way as to be of maxinnnn assistance in this 
field." 

The United Slates delegadon accordingly pro- 
jiosed a resolu(ion along (hese lines which received 
widesjiread support and was adopted by the 
Conference. 

Cooperatives 

'I'he United S(a(es also urged ihal eiforts be 
made (o liiid funds during IDHO for a i)rogram to 
assist go\-eriunents in setting up cooperatives ami 
the stimulation of trading by and between coopcra- 
lives as a pari of intenialionid trade. The Con- 
ference decitled (ha( fluids did no( permit (he 
eslablishment of a full-scale coojierative program 
at I he preseni I iine bul il did recommend expanded 
work in (his field. 

Much of (he pi-ograin of work ])ropose(l for !'.>.')() 



128 



Departmenf of Sfafe Bulletin 



was a contimiiition of projects launcheil in past 
yeai-s. The Conference approved the program of 
the various divisions substantially as suggested by 
the Director General, which was in line with the 
United States position. However, through panels 
set up in Commission II to consider the work of 
each division, the division directors and the tech- 
nicians from member countries were able to arrive 
at valuable conclusions regarding the future di- 
rections of the work. 

Division Work 

AGRICULTURE DIVISION 

The Conference expressed particular interest in 
the establishment of new world reporting services 
covering the distribution and control of animal 
and plant diseases and insect pests, the interchange 
of information on fertilizers, the establishment 
of national programs for the conservation and 
utilization of land and water resources, and the 
joint malaria program with the World Health 
Organization. It was clear, however, that the pest 
reporting services cannot be organized in full by 
Fao under its present resources, and that for 1950 
it will be necessary to confine its work to stimulat- 
ing the organization of national services of these 
types and assisting in the improvement of these 
services. 

Among the list of other subjects which the Con- 
ference would like Fao to study are technological 
aspects of the fertilizer pi'oblem, rinderpest, 
machinery for small farms, international inter- 
change of plants likely to be of value in new 
areas, weed killers, better organization of plant 
pest activities within and between interested gov- 
ernments, and rice and corn breedino-. 

DISTRIBUTIONJD IVISION 

Tlie Conference expressed particular interest 
in the annual world commodity reviews contained 
in the report State of Food and Agriculture. The 
need for collaboration between the division and 
specialized international commodity bodies, such 
as those on wheat, cotton, and wool, was em- 
phasized. This division, in cooperation with the 
Economics Division, is expected to do much of 
the staff work for the new Committee on Com- 
modity Problems discussed above. 

ECONOMICS, MARKETING, AND^STATISTICS DIVISION 

The Conference agreed with the United States 
recommendation that yearbooks on both produc- 



tion and trade should be published during 1950. 

It recommended the continuance and extension 
of the food balance sheet program and noted with 
satisfaction that some countries have already taken 
a census of agriculture as part of the 1950 world 
census program, and that a considerable number of 
other countries have plans for taking such a census 
in 1950 and 1951. It asked the Director General 
to submit proposals on the publication of the 
results of the census to the next session of the 
Conference. 

FISHERIES DIVISION 

The Conference thought that the world food 
supply could be materially increased through aid- 
ing in the development of fisheries industries in 
several regions. Underdeveloped countries need 
guidance in stimulating local fisheries for improv- 
ing the nutrition of local populations. 

Fao's work in the field of fisheries commodity 
studies and statistical services was stated to be 
of particular importance. The establishment of a 
regional fisheries council for the Mediterranean 
was approved. 

FORESTRY^DIVISION 

The United States did not agree with a pro- 
posal before the Conference that member govern- 
ments enter into an international agreement 
obligating themselves to adoption of a world-wide 
policy of sustained yield forestry and the appli- 
cation of regulatory measures to insure the suc- 
cess of the policy. The Conference decided not to 
recommend the formulation of such an agreement 
at this time, although it recommends to member 
countries formulation of their own forestry poli- 
cies aiming at the conservation and use of forests 
on the basis of continuous and improved produc- 
tion and including the support of research, edu- 
cation of forest owners, and the training of 
professional foresters. 

The Commission recommended that for 1950 
the Fad staff should give the highest priority to 
helping member governments in providing for 
forest inventories, range and forest land con- 
servation, reforestation methods, and the develop- 
ment of integrated forest industries. 

INFORMATIONIDIVISION 

The Conference stressed the importance of get- 
ting Faos technical information to all those who 
can use it and the responsibility of member gov- 



January 23, 1950 



129 



ernments in this field. It also stressed the im- 
portance of acquainting "the general public of 
all countries with the problems in the field of food 
and agriculture and the objectives and progress 
of Fao." 

In order to save money for other work and 
fairly apportion copies of publications, a formula 
was adopted which would greatly reduce the num- 
ber of free copies of Fao publications distributed 
to member governments. Efforts are being made 
to increase the sale of Fao publications. 

NUTRITION DIVISION 

The Conference agreed that increasing interest 
is being shown by many countries in the field of 
nutrition research and the improvement of nutri- 
tional levels, particularly in underdeveloped re- 
gions. It is now widely recognized that there is 
a general shortage of trained and capable nutri- 
tion workers, and the governments were urged to 
train more persons in nutrition and to provide 
them with the necessary facilities and equipment. 

It also urged that national programs to raise 
nutritional levels should be initiated and devel- 
oped in countries where this has not already been 
done. 

RURAL WELFARE DIVISION 

The Conference approved the proposal to bring 
together and imjirove the available statistics on 
rural welfare conditions. It also approved the 
holding of national and regional rural life con- 
ventions as a means of collecting information on 
and defining more clearly the problems of rural 
welfare, and it approved the holding of interna- 
tional meetings for the consideration of rural wel- 
fare objectives similar to that recently held in 
Lucknow, India. 



COMMISSION III 

Permanent Site of FAO 

One of the most important and controversial of 
these questions was a permanent home for Fao. 

The organization was created before the United 
Nations, but decided that its permanent head- 
quarters should be at the site chosen by United 
Nations. In the meantime, Fao established its 
temporary headquarters in Washington. A num- 



ber of sites in four different countries were of- 
fered to Fao, all of them including genei'ous gifts, 
or loans to cover land and buildings. These sites 
were in Copenhagen, Denmark; four locations in 
or near Geneva, Switzerland; Eome, Italy; the 
United Nations headquarters in New York ; Uni- 
versity of Maryland ; three sites in the Bethesda- 
Chevy Chase area near Washington, D.C. ; and 
a site near Laurel, Maryland. 

In connection with the United States offer, legis- 
lation providing for an interest-free loan of up to 
7 million dollars for a headquarters building in 
the United States had been passed by the Senate. 
The President of the University of Maryland of- 
fered to finance a building on the Maryland 
campus by a long-term, interest-free loan. Presi- 
dent Truman, in his address before the Conference, 
urged selection of a United States site. 

Eai"ly in the Conference it was evident that 
opinion was sharply divided between the European 
and the United States sites. A number of coun- 
tries including the United Kingdom, France, and 
India urged the acceptance of an European site 
in a ''soft-currency"' country. They stressed the 
difficulty which they were now having in paying 
their annual assessments in United States dollars 
and the fact that a move to a soft -currency country 
would save dollars. They also cited estimates 
which showed that annual savings in operating 
costs might amount to as much as 1 million dollars. 

In addition, they stressed the social and cultural 
values of Europe and mentioned the racial dis- 
crimination in the United States. The United 
States delegation outlined in considerable detail 
the increased effectiveness which might result from 
selection of a site in the United States, but indi- 
cated that the United States expected to leave to 
Fao the choice of the various United States sites 
offered. 

It was decided to vote between Copenhagen, 
Geneva, Rome, the United States excluding the 
United Nations, and the United Nations sites. The 
next ballot resulted in a decision for Rome, 30 to 28. 

Since the building in Rome is not yet completed, 
the move is not expected to take place before the 
spring of 1951. Although the building will be 
made available free of charge, the move, accord- 
ing to estimates by Director General, will cost in 
the neighborhood of 1.5 million dollars. The ques- 
tion of how the move will be financed has been 
referred for study to a special committee of the 
Council. 



130 



Deparlment of State Bulletin 



Scale of Contributions 

Another involved question was tlie scale of con- 
tributions — what perceiit:ij»e of the budsiet should 
be contributed by eacli member nation. When 
Fao was formed and the original scale drawn up, 
a portion of the scale was allocated to tlie Soviet 
Union and several smaller nations that were ex- 
pected to join but never ilid. The budget has 
been set at T) million dollars each year, but because 
these nations did not join, the income has been 
somewhat less than that. The difference has been 
made up out of unexpended balance carried over 
from the tii-st 2 years. A special conmiittee liad 
been set up to draft a new scale which would total 
100 percent and correct certain other inadequacies 
in the old scale. 

A key question has been the size of the United 
States contribution. The United States has been 
paying 25 percent and United States representa- 
tives have argued that as a matter of principle no 
nation should pay more than that — if a single 
nation contributes too large a share, it will lead 
to suspicions of one-nation domination. Other 
nations, pressed by dollar shortages, have urged 
that we pay a larger portion, and pointed out 
that we do pay more in other agencies. The 
United States pointed out that it is attempting 
to get its contributions in U.N., Unesco, and Who 
reduced. However, it did state its willingness to 
recommend to Congress that we accept on a tem- 
porary basis the new scale recommended by the 
special committee. That new scale would assess 
the United States 27.17 percent and would provide 
the full 5 million dollars. It was pointed out, how- 
ever, that such action would necessitate Congress' 
raising the present legislative ceiling on our 
contribution. 

The scale proposed by the committee was 
adopted for 1950 and the special committee was 
directed to give the matter further study after 
consultation with the United Nations. 



¥ 



other Action 

Other action taken in the field of Commission 
III included the following: 

A 5 million dollar expenditure budget was ap- 
proved for 1950. 

The frequency of conferences was changed from 
once a year to every 2 years, so that more of the 
funds and time of the Fao Secretariat can be used 
to serve member governments. More frequent 



conferences can be called if necessary. The next 
one is tentatively schedviled for April 1951. 

The rules of Fao were changed in order to allow 
it to cooperate more effectively with international 
private organizations which have an interest in 
one or more phases of Fao's work. 

A staff assessment plan was adopted which, it 
is hoped, will alleviate the problem residting from 
different employees of Fao having to pay varying 
rates of income taxes because of differences 
between the tax laws in their respective countries. 

The Conference voted for Fao to affiliate with 
the United Nations pension fund so that Fao em- 
ployees will receive the same retirement benefits 
as United Nations employees and transfer of 
pei-sonnel between the two agencies will be made 
easier. 

In the future, Fao will make use of the United 
Nations Administrative Tribunal under which 
staff members can appeal certain types of actions 
taken by the Director General. 



CONCLUSIONS 

Several general conclusions may be drawn from 
this Conference : 

1. The preliminary organizing stage is passed 
and Fao is now geared up to do its fundamental 
work in the collection and distribution of statistical 
and technical information, the provision of techni- 
cal assistance to member governments, and the 
promotion of international action with respect to 
food and agricultural problems; 

2. member governments of Fao consider that 
Fao should place increasing emphasis on direct, 
practical technical assistance to governments es- 
pecially on a demonstration basis and through 
extension services, and less emphasis upon formal 
meetings and highly technical publications. The 
proposed program of technical assistance will 
offer Fao important opportunities in these fields; 

3. the move of Fao to Rome will i-equire marked 
administrative and financial adjustments which 
will call for high caliber leadership both in the 
Secretariat and in conference and Council delega- 
tions from member governments during the next 
few years. 

Fao can succeed only if member goverimients 
give it their full support and take actions necessary 
to attain the desired objectives both domestically 
and internationally. 



January 23, 1950 



131 



WHY PRIVATE BUSINESS SHOULD SUPPORT THE ITO 



"Everyone ^Yho believes in the private-enter- 
prise system and in the American way should 
support tlie It. I cliarter," AVinthrop G. Brown, 
Director of the Office of International Trade 
Policy, said on January 11. 

Speaking before the Synthetic Organic Chemi- 
cal Manufacturers Association at New York, 
N.Y.. Mr. Brown said that it is liis conviction that 
the Ito will "materially advance the interests of 
the private-enterprise system and the interests of 
the United States." 

Since most countries are sluirt of dollais, he 
said, they cannot ju'ruiit tlieir citizens to use the 
few dollars wliich they do have at will. The}' 
will have to limit tlieir purchases from the dollar 
ai'ca to be sui'e that they get the things titat they 
cannot do without. 

The techniques of control and govcrmnent in- 
terference with the flow of trade can be used for 
necessary and legitimate purposes such as the 
budgeting of foreign exchange, or they can be 
used for straight protection, or they can be used 
for economic warfare, or they can be used for 
political advantage, or they can be used to pro- 
mote bilateralism. 

Faced with smh a world and with such condi- 
tions, what then is the wise course to pursue, Mi'. 
Brown asked. Should we just let things drift? 
Slioidd we leave each cdUiiti'y free to use all of 
these techni(|U('s for any ])ur|)os(' it desires with- 
out restraint, without the jMJssibility of complaint 
or redress? Shall we follow the policy of every 
man for Iiimself and the devil talvc the hindmost? 

The I'lo charter. Mi'. Brown emphasized, gives 
no new powers to governments to interfere with 
business; on the otlici- hand, it dues limit the 



'This is an oxci'i-i)tc(l vcrsitm (if an .■nldrrss liy Wiii- 
throp G. Urown ; for ccjiiiplctc text, see I)c|i;iiliiii'Ut nl" 
State press release 26 of .Inn. K), lO.IO. 



powers which governments now have and which 
they are using to interfere with business. 

Answer to Critics of the Charter 

The critics of the charter, he said, have so often 
implied that the charter gives governments per- 
mission to use new devices, that it sanctions new 
interference and new discrimination. 

In answering this criticism, he said that what 
these critics are thinking and have misunderstood 
"is the fact that tlie charter limitations upon the 
powers of governments are not all-embracing; 
they do not require the abandonment of every use 
of these control devices." Just because one cannot 
get agreement to eliminate all govermnent re- 
strictions and interferences with trade, he said, is 
no reason not to get agreement to eliminate or 
reduce as many as one can. "And that is what the 
charter does." 

Mr. Brown illustrated that point by the follow- 
ing comments on the relation of the charter to 
conmiercial policj', discriminations, state trading, 
subsidies, and cartels. 

The core of the charter, so far as the United 
States is concerned, is the chapter on commei'cial 
|)olicy. The first article commits member coun- 
tries to give general most-favored-nation treat- 
ment. This is good United States ])olicy. We 
follow it for everybody except Cuba and the 
Philippines where we have long-established pref- 
erential systems. It did not seem sensible to 
abandon a world conunitment not to discriminate 
in taritf treatment simi)ly because we and the 
British could not overnight eliminate long-estab- 
lished trading relations with i-erlain comitrics, 
even (hough we were willing to undertake the 
conunitment to negotiate for their elimination. 

Another article in (his chapter limits the powers 
of governments to use internal (axes and regula- 
tions as a discrimination against im]iorts. It did 



132 



Department of Stale Bulletin 



not seem sensible to throw away this world-wide 
commitment to limit a governmental interference 
with trade used against us much more than by us 
simply because we could not and would not give up 
our mixing regulations designed to protect our 
synthetic rubber industry. 

Article 20 provides for general elimination of 
quotas, the worst of all restrictive devices. It did 
not seem to us sensible to give up a world-wide 
commitment against the use of this restrictive de- 
vice simply because exchange shortages required 
even a large number of countries to use the device 
until their exchange reserves were restored or 
because we would not abandon our agricultural 
price-support programs. 

The recognition in the charter of this fact that 
it is permissible to use quotas and to discriminate 
because of the shortages of foreign exchange has 
been the central basis for one of tlie main objec- 
tions to the charter — namely, that it allows dis- 
crimination against the United States. It is said 
that since the United States and possibly Switzer- 
land are almost the only countries in the world 
which aren't in balance-of -payments difficulties, 
this is in some way unfair to the United States 
and Switzerland. Other countries of the world 
are spending every dollar that they have in the 
United States and every dollar that they can get. 
They are doing everything they possibly can to 
get more dollars and to cease this discrimination 
against the United States, if it be in any colloquial 
sense a discrimination. 

It is also said that because the charter permits 
this type of discrimination, it prevents the United 
States from retaliating and that this is unfair. 
What would our retaliation be? It would be to 
impose some barrier or quota to imports from the 
countries that are not buying from us. All that 
would do would be to decrease the amount of 
dollars they have and to increase their need to 
discriminate against us. 

Another set of articles in this chapter, Mr. 
Brown continued, limits the activities of state- 
trading enterprises by requiring that they be 
guided by commercial considerations, that they 
give private and public enterprises of other coun- 
tries opportunity under normal business terms to 
bid for their business, and that they negotiate for 
the reduction of protective margins in their op- 
erations. It did not seem sensible to give up a 
commitment to restrict the operations of state- 
trading enterprises simply because we could not 



get agreement to eliminate state trading. The 
United States, of course, could not agree to aban- 
don state trading. 

The cliapter also deals with subsidies, limiting 
their use. The whole set of articles dealing with 
the invisible tariflF of customs regulations is de- 
signed to prevent and limit arbitrary interfer- 
ences with trade through the use of these regula- 
tions. 

The chapter on cartels establishes the first in- 
ternational mechanism for limiting the operations 
of international private cartels. The chapter on 
commodity agreements, which has been described 
as sanctioning government cartels, is a limitation 
upon the occasions on which such agreements can 
be entered into and the nature of the agreement 
when it is entered into. At present, governments 
are free to make commodity agreements, and they 
will make commodity agreements when the needs 
of their people impel them to do so. Now, they 
can make them when they will, without consulta- 
tion, if they will, and in any form that they want, 
without regard to their consequences to others 
and to us. Under the charter, they can make 
them only under certain circumstances which are 
specified. If they do make them, we have to be 
consulted. As the largest consumer of almost 
everything, we would have to be represented. The 
consuming countries would have to have an equal 
voice with the producing countries. And we in- 
tend to submit any agreement which we may ne- 
gotiate under tliis chapter to the Congress for its 
approval. 

The Matter of Investments 

Under the Ito charter, Mr. Brown explained, 
other countries are not free to impose any require- 
ments or limitation that they choose, arbitrary or 
otherwise, upon the admission of our capital to 
tlieir borders or upon the treatment of our capital 
now invested there. Members are required, under 
the charter, to provide "adequate security for 
existing and future investments, and any require- 
ments that they do impose must be just and 
reasonable." 

We would under the charter, Mr. Brown said, 
have a basis for protest if any regulations or re- 
quirements are considered arbitrary, oppressive, 
unreasonable, or unjust: first, we would protest to 
the organization and, if necessary or if we wished 
it, to the International Court of Justice. 

He made one further point on the matter of 



January 23, 1950 



133 



investment : an effort was made to introduce into 
the charter the principle that compensation in the 
case of expropriation would be in local currencies. 
This effort, he said, was unequivocally and flatly 
rejected. 

Use of the Tariff in tlie Cliarter 

The opinion has been expressed, Mr. Brown 
said, that the charter condemns the use of tariffs 
and that it takes the tariff-making power out of 
the hands of the United States and gives it to the 
organization. 

"Let me make two things explicitly clear," he 
said. "The charter does not condemn the use of 
the tariff. The charter does not affect the com- 
plete control of the United States Government over 
its tariff policy." 

Tlie charter does, however, he continued, "com- 
mit the other countries of the world to the policy 
which the United States has been following since 
1934 of standing ready to negotiate with other 
countries for the selective reduction of tariffs on a 
mutually advantageous basis." It makes a very 
important distinction, he said, between tariffs and 
certain other forms of trade restrictions. 

Mr. Brown continued with the following ex- 
planation of the Administration's attitude toward 
the tariff: 

"We agree that tariffs are far less objectionable 
obstacles to trade than the quota, because if one 
pays the tariff and the demand is there, he can get 
his product into the country, whereas the quota is 
an absolute bar. But we think that the Smoot- 
Hawley tariff established many rates which were 
unnecessarily high. We believe tliat in many 
cases a tariff can be an embargo just as effectively 
as a quota, and we don't believe in embargoes. 
Like American businessmen, the Administration 
believes in competition. 

"We believe that we should not deal with any 
tariff rate without consultation with people in 
labor or agriculture or industry whose interests 
may be affected. 

"Any dispassionate study of the tariff schedules 
of the agi-eements which have been negotiated 
under the Trade Agreements Act will show the 
influence which the facts presented by various 
industries have had upon the final outcome of the 
negotiations. 

"Under the charter, each country is the judge 
of what tariff concessions it Avill make. Each 
country is the judge of how it will handle the 



negotiations and what procedures it will follow. 
And the organization has no power whatsoever to 
order or direct any country to alter those 
judgments." 

Voting and Representation 

Mr. Brown stated that the fear of our "being 
ganged up on and outvoted" on important ques- 
tions affecting our interests is based upon several 
false assumptions. 

"First, that the influence of a country in inter- 
national councils is measured only by its numeri- 
cal vote. That is, of course, not true." The 
prominent position of the United States in the 
world, he said, obviously gives us an influence far 
greater than that of smaller countries since the 
accomplishment of most important international 
measures depends upon our support and co- 
operation. 

"Secondly, this fear assumes that the interests 
of tlie other 50 or so countries will be the same and 
predominantly adverse to that of the United 
States. This, again, is a false assumption. 

"More important, perhaps, this fear assumes bad 
faith on the part of the other countries in accept- 
ing the commitments of the charter or stupidity 
and incompetence on the part of the representa- 
tives of the United States in presenting the United 
States case.'' Mr. Brown said tliat he did not 
accept the assmnption of bad faith on the part of 
other governments nor the assumption of incom- 
petence on the part of our representatives. 

"My personal experiences in Wall Street," he 
continued, "in Washington, and in international 
negotiations has been tliat our representatives 
compare favorably in both competence and negoti- 
ating ability with men in other walks of life in this 
country and with the representatives of foreign 
countries. I am not afraid to go into a meeting 
representing the United States even though I have 
only one vote." 

Conclusion 

"What does all this add up to?" Mr. Brown 
asked. 

"It adds up to the fact that we are confronted 
witli the amazing and unprecedented achievement 
of having secured agreement between the repre- 
sentatives of 54 nations, representing every stage 
of economic development and a wide variety of 
political philosophies, on a code of rules to guide 
their international trade which embodies funda- 



134 



Department of State Bulletin 



mentally the United States philosophy of the 
inuxiinum amount of competition and the mini- 
nuim of government control. 

"Under this agreement even governments them- 
selves when in business will be required to be 
guided by commercial considerations. This 
agreenu'Mt does not attempt to have every country 
adopt the same form of government or the same 
political or economic system. It provides a means 
whereby countries with different political and 
economic systems can trade together in an orderly 
way. It commits them to the obligation to con- 
sult with each other before they take action which 
will adversely atFect each other's interests. It is 
essentially a limitation on the power of govern- 
ments to interfere with trade. It does not abolish 
all interferences. It does abolish some, it reduces 
others, and it limits still others to precisely defined 
areas. 

"Wliat is the alternative ? Governments are in 
the international trade picture more than ever 
before. At their disposal are new, highly effective 
and ingenious devices for the control of trade. 
The circumstances in which many countries find 
themselves create powerful demands for the use 
of tliese techniques for narrow, short-run, selfish 
interests. If the rules of the Ito are not accepted, 
countries will be free to use these techniques not 
only in the cases not prohibited by the charter but 
also in all other cases not specifically covered by 
treaty or agreement. 

''Where does the private trader stand in such 
a world ? And where does his government stand 
when he comes to it and asks it to protest on his 
behalf against the arbitrary action of some other 
government which injures his business? We can 
say to the other government that we don't like 
what it is doing and that its action hurts our 
citizens. This often produces results. If this 
fails, in extreme cases we might impose counter- 
restrictions on their trade. But this is self de- 
feating. Restriction breeds restriction, and before 
long the government is controlling the destinies of 
private business. 

"With the Ito we will be able to say to that other 
government that we are protesting what it has 
done not only because it hurts our citizens, but 
also because it violates an obligation which it has 
assumed not only to us but to other governments 
as well. Moreover, if necessary, we will be in 
a position to call that government to account before 
the other Ito members, before the International 



Court of Justice, and before the public opinion 
of the world. 

I submit to you that the choice is clear." 



THE CONGRESS 



Legislation 

Supplemental Estimate — Department of State. Com- 
munication from the President of the United States trans- 
mitting a supplemental estimate of appropriation fiscal 
year 1950, involving an additional $170,000 for the De- 
partment of State. S. Doc. 112, Slst Cong., 1st sess. 
1 p. 

Supplemental Estimate — Department of Defense. Com- 
munication from the President of the United States trans- 
mitting a supplemental estimate of appropriation, fiscal 
year 1950, in the amount of $6,000,000 and contract 
authorization in the amount of $24,000,000 for the De- 
partment of Defense. S. Doc. 121, 81st Cong., 1st sess. 
Ip. 

Inter-American Tropical Tuna Commission. Message 
from the President of the United States transmitting a 
convention between the United States of America and 
Costa Rica for the establishment of an Inter-American 
Tropical Tuna Commission, signed at Washington, May 
31, 1949. S. Exec. P, Slst Cong., 1st sess. 6 pp. 

Convention With Norway Relating to Double Taxaticm 
on Income. Message from the President of the United 
States transmitting the convention between the United 
States and Norway for the avoidance of double taxation 
and the prevention of fiscal evasion with respect to taxes 
on income, signed at Washington, June 13, 1949. S. Exec. 
Q, Slst Cong., 1st sess. 12 pp. 

Convention with Norway Relating to Double Taxation 
on Estates and Inheritances. Message from the Presi- 
dent of the United States transmitting the convention 
between the United States and Norway for the avoidance 
of double taxation and the prevention of fiscal evasion 
with respect to taxes on estates and inheritances, signed 
at Washington on June 13, 1949. S. Exec. R, Slst Cong., 
1st sess. 11 pp. 

Convention Concerning Freedom of Association and 
Protection of the Right to Organize. Message from the 
President of the United States transmitting the conven- 
tion (No. S7) concerning freedom of association and pro- 
tection of the right to organize, adopted by the interna- 
tional labor conference at its thirty-first session, held at 
San Francisco June 17 to July 10, 1948. S. Exec. S, Slst 
Cong., 1st sess. 10 pp. 

Two Tuna Conventions Between the United States and 
Mexico and Costa Rica. S. Exec. Rept. 11, Slst Cong., 1st 
sess. 6 pp. 

Consular Convention Between the United States and 
the Republic of Costa Rica. S. Exec. Rept. 12, Slst Cong., 
1st sess. 2 pp. 

Protocol Prolonging the International Agreement Re- 
garding the Regulation of Production and Marketing of 
Sugar. S. Exec. Rept. 13, Slst Cong., l.st sess. 5 pp. 

Commission to Study the Administration of Overseas 
Areas. S. Rept. &S9, Slst Cong., 1st sess. 5 pp. 

Continuing until the Close of June 30, 1950, the Sus- 
pension of Duties and Import Taxes on Metal Scrap. S. 
Rept. 898, Slst Cong., 1 sess. 4 pp. 

Anicniling the Atomic Energy Act. S. Rept. 934, Slst 
Cdiig., 1st se.ss. () pp. 



January 23, 1950 



135 



International Affairs and Finance 



In 1951, as in every year since the war, the cost 
of our international programs will be large be- 
cause far-reaching problems remain to be solved. 
Notable progress has been made toward foreign 
economic recovery, but some of the most difficult 
steps lie ahead. The threat of aggression still 
exists, requiring continued efforts to bolster the 
defenses of free nations. The economic under- 
development of great areas of the world deprives 
their peoples of the adequate living standards in 
which free institutions can flourish, and deprives 
other peoples of needed resources which expanded 
world trade could bring. 

The 1951 Budget provides for 4.7 billion dollars 
of expenditures on our international activities. 
This is 1.3 billion dollars, or more than 20 percent, 
below estimated expenditures in 1950. This very 
substantial reduction reflects the declining costs 
of our recovery and relief programs as they have 
stimulated and supported economic reconstruc- 
tion, rising living standards, and growing politi- 
cal stability. My recommendations for 1951 
represent the minimum amount required to carry 
our plans forward toward a successful conclusion. 
The continuing and grave uncertainties which re- 
main in the world situation make it imperative 
that we be prepared to adjust our efforts to accord 
with developments. If, however, we make at this 
time the investment necessary to achieve contin- 
ued economic recovery, I expect the trend in total 
expenditures for our international activities to 
continue downward in subsequent years. 

Kecovery and relief costs, which in 1951 will be 
over 75 percent of international expenditures, will 
diminish rapidly as recovery programs near com- 
pletion, although new measures may become nec- 
essary to attain specific objectives in particular 
areas. At the same time, our programs for stimu- 
lating foreign economic development assume in- 
creasing importance, and expenditures for this 
purpose .should increase somewhat in future years 
as political conditions stabilize and opportunities 
for mutually advantageous technological im- 
provement and productive investment abroad in- 
crease. Furthermore, expenditures for foreign 

' Excerpts from the President's Budget Message ^or 
1951, which was released to the press by the White House 
on Jan. 9, 1950. 



military assistance will remain substantial for 
several years as shipments are made under the 
programs authorized in 1950 and proposed for 
1951. 

Conduot of foreign affairs. — Expenditures in 
1951 for the State Department, through which we 
conduct our foreign affairs, will be about the same 
as for the current year. The decline of war claims 
payments will be about offset by increased require- 
ments in other programs, notably the Depart- 
ment's recent assumption of responsibilities in 
Germany. The international information and 
education program will continue at the expanded 
level to be reached this year. 

Our Government also participates in many 
international agencies, principally the United 
Nations and its affiliates. Through such partici- 
pation we are actively engaged in a cooperative 
and world-wide effort to build the foundations for 
continued peace and the social and economic bet- 
terment of all peoples. One important aspect of 
this effort has oeen the development of a set of 
principles and a mechanism, through the proposed 
International Trade Organization, for facilitating 
the growth of world trade on a multilateral basis. 
I again urge that the Congress approve the charter 
of the International Trade Organization and pass 
the necessary implementing legislation. 

European recovery program. — A major problem 
of foreign policy today is the fact that certain key 
areas of the world, principally western Europe, 
are faced with the necessity of making funda- 
mental and complex adjustments to the far-reach- 
ing changes in their trade and financial relation- 
ships which resulted from the war. The great 
achievement of the European recovery program to 
date has been to help these countries to recover 
from the devastation of warj to restore living 
standards, and to maintain political stability, and 
thus to place them in a position to make the ad- 
justments that are i-equired. 

As a consequence of their situation, the countries 
have experienced an extraordinary need in recent 
years for commodities and equipment which could, 
for the most part, be supplied only by this country, 
but for which they were not able to pay by the 
export of goods and services. If we had per- 
mitted their imports to sink to the temporarily 



136 



Department of State Bulletin 



international Affairs and Finance 

[Fiscal years. In millions] 



Program or agency 



Conduct of foreign affaire: 

State Department 

Participation in international organizations (present programs and 

proposed legislation) 

Other 

International recovery and relief: 

European recovery program and other foreign aid (present programs 

and proposed legislation) 

Aid to occupied areas 

Aid to Korea (present programs and proposed legislation) 

Reconstruction Finance Corporation (loan repayment) 

Aid to refugees: 

International Refugee Organization 

Displaced persons program (present programs and proposed 

legislation) 

Palestine refugees (present programs and proposed legislation) 

Other 

Foreign economic development: 

Export-Import Bank loans 

Inter- American development 

Technical assistance to underdeveloped areas (proposed legislation) . 
Foreign military assistance: 

jilutual defense assistance program (present programs and proposed 

legislation) 

Greek-Turkish aid (acts of 1947 and 1948) 

Assistance to China (act of 1948) 

Philippine aid 



Total. 



Ebcpenditures 



1949 
actual 



$134 

38 
1 



4,040 

1,349 

' 6 

-41 

73 

1 

8 

288 

-57 
12 



289 
125 
197 



6,462 



1950 
esti- 
mated 



' $187 

58 
1 



' 4, 062 

831 

' 93 

-38 

70 

5 
15 
23 

71 
11 



160 
195 



221 



5,964 



1951 

esti- 
mated 



' $190 

49 
1 



3,250 

279 

' 111 

-38 

25 

4 

20 

3 

48 

8 

25 



645 



91 



4,711 



New obligational 
authority for 1951 



Appro- 
pria- 
tions 



$175 

31 

(') 



3, 100 
320 
115 



25 
4 



7 
35 



648 
"45 



3 4, 505 



Other 



$30 



500 



530 



' Includes transfer from funds for aid to occupied areas. 

' Less than one-half million dollars. 

• This Budget also includes 518 million dollars of appropriations to liquidate prior year contract authorizations. 



reduced level which they could finance, it would 
have drastically reduced their living standards 
and invited unrest and destructive economic na- 
tionalism. Instead, we have undertaken a planned 
and mutual effort designed to achieve, during a 
relatively short period of United States assistance, 
expanded foreign production and trade, an in- 
crease in exports yielding dollars and a lessening 
need for imports requiring dollars, and an in- 
creased international flow of investment capital, 
thus establishing the basis for economic growth 
and prosperity. 

The European recovery program has made not- 
able progress toward these objectives since its in- 
ception almost 2 years ago. As a result, 1951 
appropriation requirements for all segments of the 
program, including that portion of our aid to 
western Germany which has previously been pro- 
vided separately from funds for aid to occupied 
areas, will be more than 1 billion dollars below the 
amounts provided by the Congress for the same 
purposes in 1950. Serious obstacles, however, 
remain to be surmounted. A substantial expan- 
sion in international trade and investment is neces- 



sary if the remaining adjustments are to be 
completed without involving serious economic and 
political dislocation. 

The past year has shown that this task will not 
be easy. To achieve an increased flow of trade 
and investment will require far-sighted and vig- 
orous steps by the European countries, and by 
other nations as well, including our own, if inter- 
national economic relationships are to be estab- 
lished on a sound basis. The funds included in 
this Budget for continuing our participation in 
the European recovery program are an essential 
element for further progress. 

Other international recovery and relief pro- 
grams. — Our economic aid to occupied areas simi- 
larly takes the form of recovery programs 
designed to balance their trade at levels adequate 
to maintain stability without continued United 
States assi.stance. During the current flscal year, 
responsibility for economic aid to western Ger- 
many has been transferred from the Department 
of the Army to the Economic Cooperation Ad- 
ministration, and these costs will be met in 1951 
from European recovery program funds. Army- 



January 23, 7950 



137 



administered aid to occupied areas in 1951 will 
therefore be limited almost wholly to Japan and 
the Ryukyu Islands. The substantial sums in- 
vested in Japanese recovery since the end of the 
war are yielding results which permit a reduction 
in 1951 outlays for this purpose, and bring us 
nearer to termination of this program. 

Although I have urged the Congress to author- 
ize a similar recovery program for the Eepublic 
of Korea, funds provided to date permit operation 
at only a relief level. Early enactment of the 
legislation now pending will permit recovery to 
proceed and hasten the date when our aid can be 
concluded. The estimates in this Budget antici- 
pate a start toward recovery in the remainder of 
the current fiscal year and substantial further 
progress in 1951. 

Our remaining international requirements for 
purposes of relief, as contrasted with recovery, 
are chiefly those for assistance to refugees. The 
work of the International Refugee Organization 
will extend through 1951 ; its remaining work 
load, however, is substantially reduced, allowing 
a 65 percent reduction in our contribution below 
the 1950 level. The estimate for the Displaced 
Persons Commission reflects my recommendation 
that the present Displaced Persons Act be speedily 
amended to make it fair and workable. The pro- 
vision for aid to Palestine refugees is the present 
estimate of our share of the cost of the proposed 
United Nations' program for restoring to produc- 
tive activity the several hundred thousand per- 
sons displaced during the recent conflict in 
Palestine. 

Foreign Economic Development. — Since the 
end of the war, the urgent, though temporary, re- 
quii-ements for international recovery and relief 
have of necessity taken priority over longer-range 
efforts to promote world economic development. 
The devastation left by war had to be overcome. 
The restoration of economic strength to the 
world's principal industrial areas necessarily had 
to precede any real economic progress in the less- 
developed parts of the world. 

Now that recovery is well under way, we must 
increasingly turn our attention to measures for 
the gradual and permanent expansion of world 
production, trade, and living standards which are 
necessary for enduring world peace. Great po- 
tentialities for such expansion lie in the underde- 
veloped areas of the world, with resulting benefits 
to the peoples of these areas and to other coun- 
tries, including our own. 

I again urge the Congress to authorize a pro- 
gram of technical assistance to enable the peoples 
of these areas to learn, and to adapt to their own 
needs, modern technological and scientific knowl- 
edge in such fields as agriculture, health, educa- 
tion, transportation, and industry. The achieve- 
ments of our present technical assistance activities 
in the American Republics and in Europe attest 
to the success and practicability of this approach. 



This Budget provides for expenditures of 25 mil- 
lion dollars for the new program. This includes 
the United States share in the cost of the program 
for technical assistance recently approved by the 
United Nations. 

A second basic requirement for economic prog- 
ress in underdeveloped areas is a substantial in- 
crease in the inflow of capital for productive 
investment. These areas should offer opportuni- 
ties for private capital and private enterprise, if 
there is assurance of fair and equitable treatment 
for foreign capital such as is contained in the 
commercial treaties which are now being nego- 
tiated with many nations. Nevertheless, there 
will remain certain abnormal risks which deter 
potential investors, and I again urge the enact- 
ment of legislation authorizing an experimental 
program by the Export-Import Bank to guaran- 
tee private developmental investments against 
such risks. 

In many cases the flow of private capital may 
not be available or adequate, or particular circum- 
stances may make governmental action preferable. 
In such cases, the investment of public funds may 
be needed, through such institutions as the Inter- 
national Bank for Reconstruction and Develop- 
ment and the Export-Import Bank. These 
institutions are currently directing their emphasis 
to loans for developmental purposes. 

Foreign military assistance. — Although eco- 
nomic recovery is the most essential condition of 
the maintenance of freedom and stability in 
western Europe and other regions of vital im- 
portance to our own security, economic vitality 
alone will not suffice to prevent aggression. 
Stronger military defenses are required, but these 
nations cannot unaided strengthen their defenses 
to a point sufficient to deter aggression without 
seriously retarding their recovery efforts. To 
solve their dilemma and to strengthen our own 
defenses, we agreed last year to unite with our 
neighbors of the North Atlantic community in 
developing and putting into effect an integrated 
defense plan for that area. 

We have implemented that decision through the 
Mutual Defense Assistance Act of 1919, which 
provides for the supply of arms to the Treaty 
nations to supplement their own defense measures. 
The act also continues our previous program of 
assistance to Greece and Turkey, which has already 
achieved substantial success in ending the guerrilla 
threat to Greek independence and in strengthening 
Turkish defenses. In addition the act provides 
for military aid to certain other areas in the 
Middle and Far East. 

The North Atlantic Treaty nations are now pro- 
ceeding with the development of an integrated 
defense plan, the translation of that plan into 
equipment and supply needs, and a realistic de- 
termination of what each participant can do, both 
for itself and for the others, in meeting those re- 
quirements. For the current year the Congress 



138 



Department of State Bulletin 



provided 1 billion dollars for military assistance 
to the Treaty nations, and ;?r)9 million dollars for 
the other nations covered by the act. For the 
fiscal year 1951 I am recommending new obliga- 
tional authority of 1.1 billion dollarSj including 
500 million dollars new contract authority. 

Except for the previously authorized Greek- 
Turkish program, expenditures in 1950 will be 
relatively low, owing to late enactment of the new 
program and the time required for agreement 
on joint plans and for the subsequent determina- 
tion of detailed requirements. Expenditures in 
1951 for foreign military assistance will be almost 
twice as great a.s in 1950, and may rise somewhnt 
further thereafter, owing to the long delivery time 
characteristic of military procurement. 

Philippine aid. — The special concern and re- 
sponsibility we feel for the progress of the Philip- 
pine Republic have taken the principal form, since 
the war. of assistance in the physical rehabilitation 
of damaged facilities and the payment of war 
damage claims. The cost of both of these pro- 
grams will decline sharply in 1951 as they ap- 
proach completion. We will continue to follow 
with sympathetic interest the achievements of the 
Philippine people and to assist them in making 
their contribution to our conunon objectives. 



Committee of Reciprocity Information 
Moves to Tariff Commission Building 

[Released to the press January 9] 

The Department of State announced today that 
the headquarters of the Committee for Reciprocity 
Information, formerly in the Department of Com- 
merce, have been moved to the Tariff Conunission 
Building, where the Committee will function 
under the chairmanship of Lynn R. Edminster, 
Vice Chairman of the United States Tariff Com- 
mission. 

The function of the Committee for Reciprocity 
Information is to accord reasonable opportimity 
to interested persons to present their views on any 
proposed reciprocal trade agreement or with re- 
spect to the operation of a trade agreement which 
is in force, under the provisions of the Trade 
Agreements Act of 1934 as amended. The Com- 
mittee holds public hearings following announce- 
ments of proposed trade agreement negotiations. 

The move of the Committee's headquarters is in 
accord with an Executive order of the President, 
dated October 5, which revised the organization 
of the Committee for Reciprocity Information and 
provided that a member named by the Chairman 
of the United States Tariff Commission shall serve 
as its chairman. Other members of the Committee 
are designated by the Secretaries of State, Treas- 
ury, Defense, Agriculture, Commerce, and Labor, 



January 23, 1950 



and the Atlministrator for Economic Cooperation. 
The rules of procedure of the Committee and 
suggestions regarding the preparation and pres- 
entation of written and oral views concerning 
trade agreement negotiations may be obtained by 
addressing the Committee for Reciprocity Infor- 
mation, Tariff Commission Building, Washing- 
ton 25, D.C. 



Supreme Court Decision Due 
on U.S.-Canada Air Agreement 

[Released to the press January 13] 

Civil aviation discussions between representa- 
tives of the Governments of the United States and 
Canada, which were concluded today, have been 
carried on in the traditional atmosphere of mutual 
confidence and cordiality which always exists be- 
tween the two governments. The consultations 
covered a wide field of questions relevant to the 
bilateral air transport agreement of June 4, 1949, 
between the United States and Canada, including 
the operations of Colonial Airlines between 
Canada and the United States and the contem- 
plated operations of a Canadian carrier between 
the United States and Canada, as provided for 
under the terms of the agreement. 

Under the terms of the bilateral air transport 
agreement of June 4, 1949, which was entered into 
by the two governments with the object of insur- 
ing mutuality of benefit, a Canadian carrier is to 
be authorized to operate on the Montreal-New 
York route, which, under the terms of the inter- 
governmental agreement is to be flown by both 
United States and Canadian air lines. 

As it is inequitable, having regard to the terms 
of the air transport agreement of June 4, 1949, 
that a Canadian carrier should be denied the right 
to operate on the Montreal-New York route while 
Colonial Airlines continues to do so pending a 
final adjudication in the courts of the United 
States of the validity of the air transport agree- 
ment, the representatives of the United States 
have agreed that the United States will not desig- 
nate a United States carrier to operate the direct 
New York-Toronto route, nor will the United 
States expect the Air Transport Board to license 
a United States carrier on the transborder route 
from Great Falls to Edmonton until such time as 
the United States authorities are in a position to 
grant authority to a Canadian carrier to operate 
between Montreal and New York. These routes 
represent two of the new rights granted to the 
United States under the 1949 air transport agree- 
ment. 

In the meantime, successful efforts have been 
made to expedite the proceedings in the courts of 
the United States. On January 5, 1950, there 

139 



was filed with the Supreme Court of the United 
States a motion urging that the decision of the 
lower court in favor of the United States Govern- 
ment become effective at once unless prompt action 
was taken by Colonial Airlines to prosecute an 
appeal to the Supreme Court of the United States. 
Agreement was reached by the interested parties 
to the appeal, which was approved by the Chief 
Justice of the United States Supreme Court, that 
the appeal will be pressed, and that on the assump- 
tion that the Sujireme Court of the United States 
decides to entertain the appeal of Colonial Air- 
lines from the decision against it in the lower 
court, the case is to be argued on February 17, 
1950. The United States representatives gave 
assurance that if the decision of the Supreme 
Court is favorable the Civil Aeronautics Board 
would submit to the President with the greatest 
expedition their decision concerning the applica- 
tion of Trans-Canada Airlines to operate between 
Montreal and New York. 



Editors To Evaluate Marshall 
Plan Abroad 

[Released to the press hy EC A January fi] 

A group of 15 American editors will leave for 
Europe Sunday under the sponsorship of their 
respective newspapers to make an evaluation of 
the Marshall Plan. 

The editoi-s will meet in Washington Saturday 
morning for a conference with Paul G. Hoffman, 
Economic Cooperation Administrator, and will fly 
from New York Sunday, arriving in London 
Monday. They will visit England, Western Ger- 
many, Italy, and France, returning to the United 
States February 1. 

While overseas they will interview labor and 
industrial leaders and government officials in 
Marshall Plan countries and will inspect various 
projects designed to speed the ERP. 

Editors in the group are : 

Forrest W. Seymour, editor, Editorial Page, The Des 

Moines Register and Trihune 
John Love, associate editor, The Cleveland Press 
Willis K. McArdle, associate editor, The San Francisco 

Chronicle 
Sevellon Brown III, associate editor. The Providence 

Journal and Bulletin 
Carroll Binder, editorial page editor. The Minneapolis 

Tribune 
Michael Bradshaw, associate editor. The Toledo Blade 
M. H. Williams, executive editor. The Worcester Mass. 

Teleyram and Qazettc-Post 
Edward E. Lindsay, editor. The Decatur 111. Herald and 

Review 
John P. Uarris, editor, The Hutchinson Kans. News- 
Herald 
Robert S. Bates, editor and publisher, The Meadville Pa. 

Trihune-Repuhlican 
Alvand Dunkleberger, editor. The Nashville Banner 



C. B. Lartz, publisher. The Sharon, Pa. Herald 
William P. McDowell, editor. The Sharon Herald 
G. Prescott Low, editor, Quincy Mass. Patriot-Ledger 
Samuel W. Miller, editor, AUentown, Pa. Call-Chronicle 

In England the editors will confer with Sir 
Stafford Cripps, Chancellor of the Exchequer; 
Aneuran Bevan, Minister of Health ; Hector Mc- 
Neil, Minister of State, Foreign Office; British 
members of the Anglo-American Council on Pro- 
ductivity; officials of the Federation of British 
Industries and the Trades Union Congress. 

With British leaders they will discuss such sub- 
jects as the dollar shortage, export trade prob- 
lems, application of controls to limit consumption 
and to increase exports; and problems faced by 
United Kingdom exporters to the dollar market. 
Some members of the group tentatively plan in- 
spections of industrial aeras. 

From England, the editors will fly to Frankfort, 
Germany, on January 15. They will confer with 
John J. McCloy, United States High Commis- 
sioner and others of his cabinet, including Robert 
M. Hanes, chief of ECA activities in Western 
Germany. They also will meet with government 
and political leaders of Western Germany, in- 
cluding Konrad Adenauer and Kurt Schumacher, 
and Mayor Eeuter, of Berlin; as well as with 
United States military authorities. Some mem- 
bers of the group will look into industrial op- 
erations in the Ruhr, and others plan to inspect 
DP camps. 

The editors will fly to Rome on January 18. In 
Italy they will inquire into such subjects as un- 
employment, emigration, agrarian reform, fiscal 
system reforms and financial stabilization. They 
will inspect recovery projects including the new 
main railroad station in Rome which is being com- 
pleted with 2,170 billion lire from the ECA coun- 
terpart fund, the Naples drydock and petroleum 
dock, main railroad station, and other ERP works 
in the latter city. They will inspect the new city 
of Cassino, constructed near the ruins of the one 
razed by Allied bombers during World War II. 

The editors will be granted an interview with 
the Pope; they will confer with Minister of the 
Treasury Pella, chairman of the ERP Interminis- 
terial Committee for Reconstruction; and with 
ECA Mission Chief James D. Zellerbach, as well 
as with Italian labor industrial leaders. 

In Paris, where the editors arrive on January 
25, they will discuss the over-all European Re- 
covery Program with W. Averell Harriman, 
United States special representative in Europe. 
They also will meet Barry Bingham, ECA Mis- 
sion Chief to France, and officials of the Organi- 
zation for European Economic Cooperation; as 
well as French Government officials to discuss such 
subjects as taxation, wages, prices, inflation, and 
trade liberalization. 

While in France, the group also will meet with 
labor and industrial leaders, and will inspect 
various recovery projects. 



140 



Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



U.S. Delegations to International Conferences 



Committee on 1950 Census of the Americas 

On January 9 the Department of State an- 
nounced that Henry S. Shryock, Jr., Assistant 
Chief of the Publications Division, Bureau of the 
Census, has been named acting United States 
representative to the third session of the Com- 
mittee on the 1950 Census of the Americas to be 
held at Bogota, Colombia, January 9-21, 1950. 

The Committee on the 1950 Census of the 
Americas was established in January 1946 by the 
Executive Committee of the Inter-American Sta- 
tistical Institute (Iasi) pursuant to a resolution 
of the First Inter-American Demographic Con- 
gress held at Mexico City in October 1943. Its 
first and second sessions were held at Washington 
and Rio de Janeiro in September 1947 and Febru- 
ary 1949, respectively. The third session, which 
will be co-sponsored by the Colombian Govern- 
ment and the Iasi, will be the last general meeting 
of the Committee before the 1950 censuses are 
taken and will provide the various countries with 
an opportunity to agree on the final standards and 
definitions to be used for the censuses. 

The 1950 Census of the Americas, in which all 
21 American Republics and Canada are to par- 
ticipate, represents the most ambitious statistical 
project ever undertaken by a group of nations. 
It will be the first hemisphere census in the world's 
history. It is expected that the census, which will 
begin in April and probably continue well into 
1951, will yield: (1) reliable data for the use of 
business and industry in the United States and 
in all other countries of the Western Hemisphere ; 
(2) data essential for the economic development 
of the less advanced areas of the Western Hemi- 
sphere; and (3) answers to many economic and 
sociological "unknowns" which have hindered 
public and private officials for years. "Most im- 
portant of all," according to Dr. Philip M. Hauser, 
Acting Director, Bureau of the Census, ". . . is 
the cooperative enterprise of 22 nations working 



together to find solutions for their common prob- 
lems — each one helping itself and, through its 
efforts, helping others. This is truly in the Ameri- 
can tradition." 



Inter-American Statistical Congress 

The Department of State announced on Janu- 
ary 11 the composition of the United States dele- 
gation to the Second Inter-American Statistical 
Congress, scheduled to be held at Bogota, Colom- 
bia, beginning January 16, 1950. 

The delegation is as follows : 

Chairman 

Stuart A. Rice, Ph.D., assistant director of the budget in 
charge of statistical standards, Bureau of the Budget 

Delegates 

Joseph A. Beckner, International Commodities Branch, 
Office of Foreign Agricultural Relations, Department 
of Agriculture 

Selwyn DeWitt Collins, Ph.D., Office of Public Health 
Methods, Federal Security Agency 

Lawrence E. Cron, technical consultant to the Bureau 
of Agricultural Economics, Department of Agricul- 
ture 

Calvert L. Dedriek, Ph.D., coordinator. International 
Statistics, Bureau of the Census, Department of 
Commerce 

Halbert L. Dunn, Ph.D., chief. National Office of Vital 
Statistics, United States Public Health Service, Fed- 
eral Security Agency ; Secretary General of Inter- 
American Statistical Institute 

Edward Ely, Ph.D., chief. Foreign Trade Division, Bureau 
of the Census, Department of Commerce 

Marian Hamilton Gillim, Ph.D., statistical consultant. De- 
partment of Labor 

Vladimir S. Kolesnikoff, chief economist of the Division 
of Statistical Standards, Bureau of the Budget 

Thomas F. Mosimann, chief. International Training Sec- 
tion, Office of Foreign Labor Conditions, Department 
of Labor 

Harlow D. Osborne, National Income Division Office of 
Business Economics, Bureau of Foreign and Domestic 
Commerce, Department of Commerce 

Paul Stanchfield, Bureau of Labor Statistics, Department 
of Labor 



January 23, 1950 



141 



Knud Stowman, Ph.D., Office of International Health 
Relations, Public Health Service, Federal Security 
Agency 

Henry S. Shryock, Jr., Ph.D., assistant chief. Publications 
Division, Bureau of the Census, Department of 
Commerce 

Sidney W. Wilcox, Ph.D., Bureau of Labor Statistics, 
Department of Labor 

Samuel S. Wilks, Ph.D., professor of mathematics, Prince- 
ton University, Princeton, N.J. 

Faith M. Williams, Ph.D., chief. Office of Foreign Labor 
Conditions, Bureau of Labor Statistics, Department 
of Labor 

This Congress, as was the first, held in Washing- 
ton in 1947, has been organized by the Inter- 
American Statistical Institute, a professional 
organization established in 1940 to promote de- 
velopment of statistical science in the Western 
Hemisphere. 

The objectives of the Congress are to consider 
■waj's and means by which statistical methodology 
and skills, and also the administrative facilities 
and procedures to implement them, may be more 
fully developed inside the nations of the Western 
Hemisphere in order to serve better both national 
and international needs. 

Included among the items on the meeting's 
agenda are: (1) Statistical organization and ad- 
ministration; (2) Statistical education and train- 
ing; statistical science in general; (3) Demo- 
graphic and social statistics; and (4) Economic 
and financial statistics. 



ILO Asian Regional Conference 

On January 9, the Department of State an- 
nounced that the International Labor Office has 
invited the United States Government to send an 
observer delegation to the First Asian Regional 
Conference of the International Labor Organi- 
zation scheduled to convene at Nuwara Eliya, Cey- 
lon from January 16-28, 1950. Arnold L. Zem- 
pel, Executive Director, Office of International 
Labor Affairs, Department of Labor, and Philip 
B. Sullivan, Bureau of Far Eastern Affairs, De- 
partment of State, have been designated to repre- 
sent the Government of the United States as ob- 
server delegates to this meeting. Henri Sokolove, 
labor attache, American Embassy, New Delhi, has 
been named adviser to these delegates. 

The First Asian Regional Conference has been 
called pursuant to a resolution adopted by the 
Preparatory Asian Regional Conference held at 
New Delhi, November 1947, with the approval of 
the 109th session of the Governing Body in Ge- 
neva, July 1949. Considerable importance is 
being attached to this conference in view of its 
consideration of problems affecting the social 
progress and industrial development of the Asian 
countries. 



U.S.-U.K.-France Discuss Looted 
Monetary Gold Problems 

[Released to the press January 111 

In pursuance of part 3 of the Paris reparations 
agreement of January 1946, representatives of 
the Governments of France, the United Kingdom, 
and the United States have been meeting in Brus- 
sels to consider means of furthering the program 
concerning return of monetary gold looted by the 
Nazis from the occupied countries during the war. 
Together with other problems officials of the three 
governments are giving attention to technical mat- 
ters related to the recovery of gold from countries 
which acquired it from the Nazis. 

Ely Maurer and Otto F. Fletcher of the De- 
partment of State and Fred B. Smith of the De- 
partment of the Treasury are representing the 
United States at the talks, which started on Jan- 
uary 5 and which are expected to last about 10 
days. 



Letters of Credence 

Guatemala 

The newly appointed Ambassador of Guate- 
mala, Seiior Don Antonio Boubaud Carrera, pre- 
sented his letters of credence to the President on 
January 11, 1950. For the text of the Ambassa- 
dor's remarks and the President's reply, see De- 
partment of State press release 29 of January 
11, 1950. 



THE DEPARTMENT 



Appointment off Officers 



Dr. II. van Zile Hyde as Dirt'otor of Division of Health 
and Sanitation, Institute of Inter-American .-VlTairs, ef- 
fective Decemlier 27, 1949. 

Horace H. Smith as Congressional Liaison Officer (Sen- 
ate), Office of the Assistant Secretary for Congressional 
Relations, effective December 29, ltM9. 

Paul T. Me.ver as Director, Kxecvjtive StaflT, Bureau of 
United Nations Affairs, effective January (5, 19.'i0. 

Carlisle II. Humelsine as Deputy Assistant Secretary 
for Administration, effective January 18, 1950. 



142 



Department of Stale Bulletin 



Fourth Session Meeting of ITU Council 



by Hehii G. KeUy 



Meeting at Geneva, Switzerland, from August 
15 to October 3, 1!)4!), the Administrative Council 
of the International Telecommunication Union 
held its fourth session, a session lasting 6 weeks, 
the longest one to date. Seventeen of the eight- 
een members were present. Since no meniber 
ma}' send a representative to sit on the Council if it 
has not ratified the Atlantic City convention, 
Turkey was the absent member due to failure to 
deposit its instrument of ratification. The mem- 
bers present were : 

France 

Italy 

Lebanon 

Pakistan 

Poland 

Portugal 



Switzerland 
U.S.S.R. 

United Kingdom 
United States 
Yugoslavia 



the International 
in Atlantic City 



Argentina 

Brazil 

Canada 

China 

Colombia 

Eg}-pt 

The Council was set up by 
Telecommunication convention 
1947, to act on behalf of the plenipotentiary con- 
ference of the Union in the interval between these 
conferences and is, next to the conference, the 
supreme organ of the Union. Because of the in- 
creased use of radio and the complexity of the 
resulting problems, the officials at the Atlantic 
City conference felt the need for such a governing 
body in the 5-year period between plenipotentiary 
conferences, but no one had envisaged the respon- 
sibility which would devolve upon it. 

Since the International Teleconmiunication 
Union had never had such a guiding body, all 
ideas as to the type of problems and the length of 
the se.ssions of the Council were theoretical, but it 
had been expected that the problems would be 
rather few and that the sessions would not last 
more than 3 weeks. As the members of the Union 
luive become accustomed to the Council, more and 
more problems have been referred to it, particu- 
larly by delegates of international administrative 
conferences who did not feel themselves qiuilified 
to interpret the convention and in addition did not 
wij-h to take the time of representatives from per- 
haps 60 countries in long arguments wiien the 
small body constituting the Council could resolve 
them authoritatively in much less time. 



The Council, besides performing its adminis- 
trative and budgetary duties, has been called upon 
to serve in a quasi-judicial capacity in interpi'et- 
ing the convention and the annexed regulations. 
In addition, it is sometimes confronted with 
political problems and in which case, a representa- 
tive has difficulty in reaching a decision beneficial 
to the whole Union and at the same time bear- 
ing in mind his own country's interests. The 
members of the Council have, in general, dis- 
played a most gratifying international attitude. 
Since the members are not purely national, they 
should not make reservations to decisions of the 
Council on behalf of their governments. This 
principle has been faithfully observed by all the 
members except the U.S.S.R., Poland, and 
Yugoslavia. 

The representative of the U.S.S.R. had been 
chosen by the five vice chairmen to serve as chair- 
man for the fourth session. The United States 
had served in this capacity at the second and third 
sessions in 1948. Francis Colt de Wolf, Chief, 
Telecommunications Policy staff of the Depart- 
ment, who had represented the United States at the 
previous sessions of the Council, also served as its 
representative at the fourth session. 

The decisions of the Council are generally ex- 
pressed in the form of resolutions ; the fourth ses- 
sion approved 48 resolutions. 

The principal administrative task confronting 
the Coimcil was the election of a new Secretary 
General. Dr. Franz von Ernst, who had served 
as Secretary General for 13 years, had announced 
at the third session that he planned to retire at 
the end of 1949. There were eight candidates for 
the post and on the fourth ballot Leon Mulatier, 
one of the Assistant Secretaries General, was 
elected to replace Dr. von Ernst. His election 
automatically vacated his post, and it was neces- 
sary to have a second election for Assistant Secre- 
tary General. Again the vote went to the fourth 
ballot, at which time Hugh Townshend, Director 
of Overseas Teleconununications in the British 
Post Office, was elected. 

Tlie Council approved the amended budget for 
1949 and the draft budget for 1950, both cases re- 



Janwory 23, J 950 



143 



mainin<r within the ceilin<; of 4 million Swiss 
francs set by the Atlantic City convention. The 
budget difficulty is due principally to tlie fact that 
after tlie ceiling was set in 1947 the Atlantic City 
conference approved the adoption of three work- 
ing languages and iive official languages for the 
Union, resulting in a great increase in expenditure 
for linguistic services. 

A long discussion took place rexrarding the 
reason for the inordinate length of^recent con- 
ferences of the Union, notably the Mexico City 
Higli Fre(iuency Bioadcasting conference which 
lasted G inontlis. Tlie Portuguese representative 
in an excellent sunnnary listed these reasons as 
(1) the failure of the Atlantic City conferences 
to realize the magnitude of the tasks which they 
were assigning to the conferences, (2) inex- 
perienced delegations due. in i)art, to the loss of 
jjersonnel in World War II, (3) the use of three 
or four languages, and (4) the existing world 
I)oliticaI situation. 

One of the most difficult problems to resolve was 
tlie question of contiiniation of tlie Provisional 
Frequency Board (Pfk). Tlie differences of 
opinion on this question were almost as numerous 
as the Council members but the broad line of 
demarcation lay between the United Kingdoin- 
U.S.S.R. opinion and that held bv tlie United 
States. 

The Provisional Frequency Board was set Tip 
by the Atlantic City Telecommunication con- 
ference to prepare a new draft frecpiency list based 
on sound engineeriiio- principles. Tlie Board had 
not been able to finisli its task within the time 
allotted. The third session of the Council ex- 
tended its duration anil at the beginning of the 
fourth session, although the deadline for its termi- 
nation had [lassed, the Hoard was still in ojieration. 

This Hoard had not been able to dissolve itself 
hccause it had to await the convening of the 
Council for final action. Agreement was finally 
made that the Board should continue until Febru- 
ary 28, lOrjO, that the work it had linished by 
that date would lie considei-ed by all the Adminis- 
trations, and that an Extraordinary Radio Ad- 
minislralive •conference whose main purpose 
woulil be to approve the draft frequency list 
would convene on September 1, l!).-)(). in (leneva. 

.lapan had depositetl its instrument of accession 
to the Atlantic ('ity convention witli tlie Secretary 
fJeneral, but there was some question involving 
interpretation of the convention and an annexed 
protocol of whether fJapan had the right to deposit 
this instrument. 'I'lie deposit of an instrument of 
ratification or accession to the Atlantic City con- 
vention automatically includes recognition of 
menib('rshi|) in the t^nion. 'I"he United States 
siipjjorted (he contention that ScAr had the right 
to authorize the .Ja|ianese Government to deposit 
its instrument of accession although other govern- 
ments insisted that (he Far Eastern Commission 
was the body to so authori/.e .Japan. 'Ihc (i nest ion 
had been raised at the Telegraph and Telephone 



conference, Paris, May 1949 but had been referred 
to the Council as beincr outside the scope of an 
Administrative Conference. The Council adopted 
a resolution confirming the action of the Secretary 
General in accepting the instrument of accession 
and recognized that Japan was a member of the 
International Telecommunication Union. 

An important group of questions was that con- 
cerning the relations of the International Tele- 
communication Union with the United Nations. 
The United States representative served as chair- 
man of the committee which considered this group 
of ([uestions. Representatives of the United Na- 
tions attended the meetings and provided helpful 
information and assistance. With the exception 
of the question of the application of article 4 of 
the convention on privileges and immunities of 
the specialized agencies, which was carried over 
from the third session, these questions were re- 
s<jlved amicably. 

Article 4 provides that the specialized agencies 
of the United Nations shall be granted the same 
privileges with regard to telecommunications as 
governments. These privileges, in substance, 
mean that these agencies would receive a 50 per- 
cent reduction in telegraph rates. Naturally, the 
telegraph interests in the various countries view 
this reduction with some anxiety since it means 
a loss of revenue. 

The Council in effect requested the members of 
the International 'lelecommunication Union who 
were also members of the United Nations to place 
this matter on the agenda of the General Assem- 
bly with a view to having the article in question 
abrogated. (The Sixth Committee of the Assem- 
bly, in November 1949. recommended that the 
United Nations take no action on the recommenda- 
tion of the Intei-national Telecommunication 
Union. Shortly thereafter, this recommendation 
was adopted by the General Assembly.) 

Many problems considered at the fourth session 
had been carried over from the third session 
which met in (Jeneva from Seiitember 1 to October 
.3, 1!)18. That session also had a very heavy 
agenda and, while each item on the agenda was 
considered, those re(|uiring extended study were 
deferred for final resolution by the fourth session. 
For exam]>le. iirovisioiial personnel regulations 
were adopted by the third session and reconsid- 
ered and adopted in the light of a year's practical 
experience and study by the interested adminis- 
trations. 

It was thought that resolutions 84 and 85 of 
the third session had solved the language ques- 
tion within the Union. However, this question 
was again one of the difficult items on the agenda 
since the interpretation of the two resolutions led 
to amiiiguily. The two resolutions were revised 
by the fourth session and, in addition, as a meas- 
ure of economy, the Council resolved to use Eng- 
lish, Frendi. and Spanish at the fifth session — to 
be held in Geneva on August 21, 195() — omitting 
Russian. 



144 



Deparlmenf of Stale Bulletin 



The United States in the United Nations 



[January 14-20] 
Security Council 

The Security Council, on January 13, rejected 
the Soviet proposal to unseat the Chinese repre- 
sentative. After announcing that the Soviet 
Union would not participate in the Security Coun- 
cil unless the "representative of the Kuomintang 
group" was removed, the Soviet representative 
again walked out of the Council Chamber. He 
also declared that the Soviet Union would "not 
recognize as legal any decision of the Security 
Council adopted with the participation of the 
representative of the Kuomintang group," and 
would not consider itself bound by any such 
decision. 

United States Ambassador Ernest A. Gross re- 
gretted the Soviet action and stated that the ab- 
sence of the Soviet representative would not, how- 
ever, prevent the Council from conducting its 
business, nor would the absence of a permanent 
member diminish the Council's powers or its 
authority to act. 

After rejection of a Yugoslav move to adjourn, 
the Cotuicil turned to consideration of a French 
proposal to transmit to the Commission for Con- 
ventional Armaments the General Assembly reso- 
lution recommending that the Security Council 
continue through the Commission its study of the 
question of the regulation and reduction of con- 
ventional armaments "despite the lack of unanim- 
ity among its permanent members." At its next 
meeting on January 17, which the Soviet Union 
did not attend, the Council accepted the French 
proposal. 

Endorsing this proposal. Ambassador Gross 
recalled the regret expressed at the fourth General 
Assembly that Soviet opposition had made it im- 
possible to take the constructive step that imple- 
mentation of the proposal for a census and veri- 
fication of conventional armaments would mean. 
The United States, he said, shared the hope of the 
last Assembly that in continuing its study, the 
Commission for Conventional Armaments might 
find some area of agreement for the solution of the 
problems assigned it. 

The Yugoslav representative explained that he 
could not participate in the vote on the French 
proposal since the credentials of the representa- 
tive of one of the permanent members had been 
challenged and the representative of another per- 



manent member had absented himself. The Coun- 
cil rejected the first part of a Yugoslav resolution 
suspending the rule under which the Council's 
presidency is currently held by Chinese Ambassa- 
dor Tsiang, following which the Yugoslav repre- 
sentative withdrew that part inviting the Cuban 
representative to preside. 

The Soviet Union boycotted all United Nations 
meetings at Lake Success this week. 

Interim Committee 

The Interim Committee of the General As- 
sembly convened in its third session at Lake Suc- 
cess on January 16. The Committee elected 
Ambassador Carlos Muniz of Brazil as President 
and adopted its agenda, which includes three new 
items referred to it by the recent General Assem- 
bly: (1) the charges of violation of the Charter 
and of the 1945 Sino-Soviet treaty brought against 
the Soviet Union by the Chinese delegation at the 
last Assembly; (2) the procedure to be adopted to 
delimit such boundaries of the former Italian 
colonies as are not already fixed by international 
agreement; and (3) the report of the Commission 
for Eritrea, which is to be submitted not later than 
June 15. The Committee will report on these 
items to the fifth session of the General Assembly 
next autumn. 

Substantive debate on the agenda items was de- 
layed until a date to be fixed by the President. 
The two subcommittees established to review the 
committee rules of procedure and to continue sys- 
tematic study of the promotion of international 
cooperation in the political field, include United 
States representation. As in the past, neither the 
U. S. S. R., its four satellite states, nor Yugo- 
slavia attended the session. 

Economic and Employment Commission 

The 15-member Economic and Employment 
Commission, on which the United States is repre- 
sented by Isador Lubin, opened its fifth session 
at Lake Success on January 18. The most im- 
portant item before the Commission is a report on 
national and international measures for full em- 
ployment, which was prepared b}' a group of live 
experts in accordance with a resolution of the 
Economic and Social Council. 



January 23, J 950 



145 



With regiird to the domestic aspects of the full 
eniplovnient problem, tlie experts recommeml that 
each government should ( 1 ) adopt and make pub- 
lic "a full employment target" which would define 
in operational terms "the meaning of full employ- 
ment in the country concerned": (2) announce a 
comprehensive program for the attainment of this 
full employment objective: (3) announce a sys- 
tem of "compensatory measures" to be applied in 
case its general program for maintaining full em- 
ployment falls short of the objective: (4) an- 
nounce "the nature of the jtolicies" to be adopted 
for the ]iurpose of stabilizing prices and combat- 
ing inflation: and (5) adapt its legislative and 
administrative procedures to tlie implementation 
of this program. "Witli respect to the interna- 
tional aspects of the problem, the ex|)erts recom- 
mend that govcrmnents should (1) establish a 
jirogram. tlirough consultation under the auspices 
of the Economic and Social Coimcil. "to eliminate 
the i)rest'nt .structural disequilibrium in world 
tratle": ('2) ''create a stable flow of international 
investment," to be channeli'd to luulerdeveloped 
areas largely through the Intei-national Bank: 
aiul {'■'>) "stabilize international trade by main- 
taining external disbursements on current account 
in the face of inteinal fluctuations of ell'ective de- 
mand," under a proposed scliiMue to be operated 
tlu-DUgli the International Monetary Fund. 

Statelessness 

'Jhe i;i-member .1(7 Tlnf C'onunittee on State- 
lessness liegan a series of meetings at Lake Success 
on Jaiuiary IG to consider the desirability of pre- 
|)aring a revised and consolidated convention on 
the international status of refugees and disphued 
persons and, if it considers sucii a course desir- 
able, to draft the text of such a convention. '11 ir 
Connnittee. which was established by the Kio- 
nomic and ."social Council and on which the United 
.Stales is rejjresented, will also consider means of 
eliminating tlie problem of statelessni'ss and the 
desirability of having the Intei'iiationai Law Coni- 
mi.ssion ])repare a study and make reconnnenda- 
tions on this subject. 

The Secretary-tieneial has recommemled to the 
Committee that a new convention be concluded, 
and, as a basis for iliscussion, has submittccl a 
4()-article draft, which was prepared in consulta- 
tion with the International Kefugee Organization. 
To a large extent, this draft is derived from ])|-e- 
ceding inlei'national agreements ImiI contains a 
numl)er of innovat ions i)rimariiy because "■general 
usage with icgard to the treatment of foreigners 
has advanced"" since the l!)l'.:'. and lilHS conventions 
in this field were concluded. .\ guiding piinci])le 
in i)repaiiiig the draft w.is tlie importance of en- 
abling the refugee "to lead a iionnal and self- 
respecting life", and of facilitating '"his I'apid 
assimilatU)!! in the country where he li;ibitually 
resides."" Provision is made for cooi)erafion be- 
tween the jiai'lics to tli(> convention in relieving 



the Burden assumed by the countries initially 
affording asylum to refugees. No attempt is made 
to define the categories of refugees to be benefited 
by the convention, but various possible solutions to 
this "complicated and delicate question" are dis- 
cussed. Persons who are ''stateless de jure''' be- 
cause they either did not obtain a nationality at 
birth or have since lost their original nationality 
without acquiring a new one, are covered in this 
preliminary draft. 

After the Committee reached general agreement 
on the desirability of drafting a convention, de- 
liate centered on whether the convention should 
include both refugees and stateless persons as well 
as on the problem of defining the categories of 
refugees. The Committee decided to defer de- 
cision on the inclusion of stateless persons and 
accepted the LTnited States position that the defi- 
nite categories of refugees to be covered by the 
proposed convention should be enumerated. Both 
the British and French representatives reserved 
their right to raise their question again in higher 
organs of the United Xations. 

International Labor Organization 

The lnternati(mal Labor (Jrganizations's first 
regional conference for Asia opened January 16 at 
Nnwaia Eliya. Ceylon. The conference was called 
to f(u-iiiulate reconunendations regarding labor 
ins])ection, workers welfare, the cooperative 
movement, agricultural wage regulations, and 
nianjiower organization and to discuss the report 
of Director-General David A. Morse on promo- 
tion of planned action for the social and economic 
development of Asia. The conference, which 
will last for 2 weeks, is being attended by delega- 
tions from Afghanistan, .Vustralia, Burma, Cam- 
bodia, Ceylon, France, Iloiig Kong, India. Laos, 
Malayan Fedei'ation, the Netherlands. New Zea- 
land, Pakistan, Philippines, Singapore. Ignited 
Kingdom, Indonesia, and Vietnam. The United 
States and Japan are represented by observers. 

World Health Organization 

The fifth session of the World Health Organi- 
zation's Fxecntive Board opened in (ieneva Jan- 
uary 1(). The IS-iiiember Executive Board is 
I'oniposed of medical authoi'ities designated by 
govei-nments hut representing AViio as a wliole. 
Among the items before the Board are a re]>ort 
on the ])ro])osed I'.».')l ])rognim and budget: mat- 
ters arising from the operation of the three re- 
gional ollices in '\^'as!lington. New Delhi, India, 
and .\lexandria, Egy])t : major health progi-ams; 
I'ecomiiiendations of vai-ious exjiert committees; 
certain ]>roposed constitutional amendments; the 
wilhihawal of the Soviet Union, the Ukraine, 
Byeloiiissia, and Bulgaria fioin the oi-ganization, 
and coUaboial ion with the United Nations and 
vai-ions of its bodies. 



146 



Deparlmenf of State Bulletin 



PUBLICATIONS 



Recent Releases 

For saU' hy the Superintendent of Documents, Govern- 
mint Printing Offlfc, Washington 25, D.C. Address re- 
quests direct to the Superintendent of Documents, etecept 
in the ease of free publications, which may be obtained 
from the Department of State. 

Air Transport Services. Treaties nnd Other Interna- 
tional Acts Series 1945. Pub. 3587. 10 pp. 5(f. 

Agreement between the United States and Finland — 
Signed at Helsinki March 29, 1949 ; entered into force 
April 28, 1949. 

Health and Sanitation: Cooperative Program in Brazil. 

Treaties and Other International Acts Series 1939. Pub. 
3592. 14 pp. 5^. 

Agreements between the United States and Brazil 
amending and extending agreement of November 25, 
194.'?, as modified — Effected by exchange of notes 
signed at Rio de Janeiro December 15 and 30, 1948 ; 
entered into force January 14, 1949, operative 
retroactively January 1, 1949 ; and exchange of notes 
signed at Rio de Janeiro July 28 and August 23, 1944 ; 
entered into force August 23, 1944. 

Air Force Mission to Mexico. Treaties and Other Inter- 
national Acts Series 1947. Pub. 3593. 10 pp. 5^. 

Agreement between the United States and Mexico — 
Signed at Washington July 5, 1949 ; entered into 
force July 5, 1949. 

Reciprocal Trade: Quantitative Import Restrictions and 
Deferment of Payments. Treaties and Other Interna- 
tional Acts Series 1953. Pub. 3602. 2 pp. 5<f. 

Agreement between the United States and Sweden 
extending agreement of June 24, 1947, as modified, 
after June 30, 1949 — Effected by exchange of memo- 
randums dated at Washington June 27, 1949 ; entered 
into force June 27, 1949. 

Educational Exchanges Under the Fulbright Act. Inter- 
national Information and Cultural Series 9. Pub. 3657. 
14 pp. 54- 

Includes background, provisions, applications, grants 
of aid, benefits to Americans and foreign nationals, 
necessary qualifications, procedure for application, 
and administration of the act. 

The United Nations: Publications of the Department of 
State. Pub. 3673. Folder. Free. 

Lists free and priced publications pertaining to the 
United Nations. Also lists Area Centers in United 
States which distribute Department of State publica- 
tions. 



New Volume of Foreign Relations Released 

[Released to the press January 6] 

The Department of State is releasing today 
Foreign Relation-t of the United Statci, 1933, 
volume II, containing diplomatic correspondence 



on relations with the individual countries of the 
British Commonwealth, Euroi)e, the Near East, 
and Africa. Volume III, dealing with the Far 
East in 1933, was released on August 27. Three 
additional volumes will complete the series for 
1933 : volume I, General, and volumes IV and V, 
the American Republics. 

Outstanding subjects treated in the present 
volume are the coming to power in Germany of 
the Nazi Party and the recognition by the United 
States of the Union of Soviet Socialist Republics. 
As a background for later developments leading 
to World War II, reports have been printed show- 
ing the extension of Nazi control first in the po- 
litical field and then over business, industry, labor, 
the churches, and schools. Friction with the 
United States resulted from the persecution of 
Jews, attacks upon American citizens, and dis- 
criminatory business practices. On February 2, 
1933, the German Ambassador assured Under Sec- 
retary of State Castle that the policy of the new 
German Government would not differ so far as 
external relations were concerned from that of 
former governments and that the men in power, 
including Hitler, had almost a pacifist mentality. 
The reports of American diplomats, however, in- 
dicate a pretty clear conception of the nature of 
the forces which had gained control of the country. 

With regard to the recognition of the Soviet 
Union, in addition to the formal documents which 
were published at the time a considerable number 
of preliminary papers by Department of State 
officials are now printed concerning the issues 
which they believed should be settled as a con- 
dition of recognition. There is also included a 
"gentleman's agreement" initialed on November 
15, 1933, by President Roosevelt and Mr. Litvinoff 
regarding payment on account of the debt of the 
Kerensky government to the United States 
through added interest rates on a loan to be 
granted by the Government of the United States 
or its nationals. No detailed settlement of this 
question was reached. Among other papers re- 
garding relations with the Soviet Union are re- 
ports by Ambassador Bullitt on his preliminary 
visit to Moscow in December 1933. 

Correspondence under other country headings 
deals for the most part with such matters as the 
protection of American business interests and 
trade relations. Preliminary discussions are re- 
corded with several countries for the inauguration 
of Secretary of State Hull's trade agreement 
program. 

Foreign Relations of the United States, 1933, 
Volum-e II, The British Commomcealth, Europe, 
Near East and Africa was compiled in the Divi- 
sion of Historical Policy Research under the di- 
rection of E. R. Perkins, Editor of Foreign. Re- 
lations. Copies of this volume (c, 1031 pp.) may 
be purchased from the Superintendent of Docu- 
ments. Government Printing Office, Washington 
25, D.C, for $3.50 each. 



January 23, 1950 



147 



^4yrUerUil^ 



General Policy ''"se 

Crisis in Asia— An Examination of U.S. 

Policy. Remarks by Secretary Acheson . Ill 

Commiini.sts Take U.S. Property in China: 

Seizure \'iolates Treaty Kights 119 

Related Documents 121 

Letters of Credence: Guatemala 142 

United Nations and 
Specialized Agencies 

World .Agriculture Looks to Fao for Leader- 
sliip. By Charles F. Brannan, Secretary 
of Agriculture 124 

The United States in the United Nations . . 145 

Economic Affairs 

Why I'rivaU; Lu.siness Should Support the 

Ito 132 

Committee of Reciprocity Information Moves 

to Tariff Commission Ruilding .... 139 

Editors To Evaluate .Marshall Plan Abroad . 140 

Treaty Information 

Why Private Business Should Support the 

Ito 132 

Supreme Court Decision Due on U.S.-Canada 

Air Agreement 139 



1 



Treaty Information — Continued Page 

U.S.-U.K.-France Discuss Looted Monetary 

Gold Problems 142 

International Organizations 
and Conferences 

World Agriculture Looks to Fao for Leader- 
ship. By Charles F. Brannan, Secretary 

of Agriculture 124 

U.S. Delegations to International Confer- 
ences: 
Committee on 1950 Census of the Amer- 
icas 141 

Inter-American Statistical Congress . . . 141 

Ilo Asian Regional Conference 142 

Fourth Session of Itu Council. By Helen G. 

Kelly 143 

The Congress 

Legislation 135 

International Affairs and Finance. Presi- 
dent's Budget Message 136 

The Foreign Service 

Communists Take U.S. Property in China: 

Seizure Violates Treaty Rights 119 

Related Documents 121 

Publications 

Recent Releases 147 

New Volume of Foreign Relations Released . 147 



U S COVCRHHCHT PRINTINC OFFICE) 1*10 



mmp:r 



tyne^ ^eha^tTtienl/ aw Cnaie/ 




THE PLACE OF GENOCIDE CONVENTION IN GEN- 
ERAL PATTERN OF U.S. FOKKIGN RELATIONS* 

/fv rtt'fintv I'ntlpr Si'<Tflttr\ ItdsL 163 

REPORT OF THE FIRST RECIONAL CONFERENCE 
OF U.S. AMBASSADOR SHE CARIBBEAN 

AREA 160 



I'UOltLL.Ms I.N UiK A' 
SCIENTIFIC PUBLI* 
Reuben Peiss .... 



\S • .iriirlr by 



ir.i 



For complete contents see back cover 



Vnl \xn. No. 55 

j,u,,„ir" v^ '050 




^«»To, 



U. S. SUPERINVEHDtNT OF 00CUMO*Ti 

FEB 17 191J0 




Me Q)e/iwH(m.e^ ^/ S/Lle IDllllGllIl 



Vol. XXII, No. 552 • Publication 3734 
January 30, 1950 



For sale by the Superintendent of Documents 

U.S. Qovernment Printing OOice 

Washington 25, D.C. 

Price: 

62 Issues, domestic $6, foreign $8.50 

Single copy, 20 cents 

The printing of this publication has 

been approved by the Director of tho 

Bureau of the Budget (February 18, 1949). 

Note: Contents of this publication are not 
copyrighted and Items contained herein may 
be reprinted. Citation of the Department 
Of State Bulletin as tho source wUl bo 
appreciated. 



The Department of State BULLETIN, 
a weekly publication compiled and 
edited in tlie Division of Publications, 
Office of Public Affairs, provides the 
public and interested agencies of 
the Government with information on 
developments in the field of foreign 
relations and on the u-ork of the De- 
partment of State and the Foreign 
Service. The BULLETIN includes 
press releases on foreign policy issued 
by the White House and the Depart- 
ment, and statements and addresses 
made by the President and by the 
Secretary of State and other officers 
of the Department, as well as special 
articles on various phases of inter- 
national affairs and the functions of 
the Department. Information is in- 
cluded concerning treaties and in- 
ternational agreements to which the 
United States is or may become a 
party and treaties of general inter- 
national interest. 

Publications of the Department, as 
well as legislative material in the field 
of international relations, are listed 
currently. 



PROBLEMS IN THE ACQUISITION OF FOREIGN 
SCIENTIFIC PUBLICATIONS' 



hy Reuben Peiss 



In the normal course of its operations, the United 
States Government is a prodigious consumer of 
publications. Not only do the vai'ious Depart- 
ments of the Government require publications, 
both domestic and foreign, for their day-to-day 
operations, but the libraries of the Government, 
particularly the three great research libraries (Li- 
brary of Congress, Army Medical Library, and 
Department of Agriculture Library), regularly 
acquire and service vast collections of publications. 
During the past decade, and particularly since the 
end of the war, there has been an increasingly un- 
easy awareness that the Government has serious 
lacunae in its collections of publications pertain- 
ing to foreign countries. In the past, the col- 
lection of such publications has been relatively 
unsystematic, and even today there is not yet a 
sufficiently comprehensive acquisition of current 
foreign publications. 

Acquisition Procedures 

For many years, the Department of State has 
aided the several departments of the Federal Es- 
tablishment in obtaining foreign publications. As 
a result of the growing awareness of the inade- 
quacy of the collections of the United States Gov- 
ernment, the Department of State has in recent 
years become increasingly conscious of its obli- 
gation to lielp supply foreign publications, and it 
has taken steps to meet that obligation. 

In addition to intensifying the effort of the For- 
eign Service throughout the world, the Depart- 

' This article is based on an address made before the 
116th National Meeting of the -•Vmerlcan Chemical Society 
held in Washington, D. C, on Sept. 19, 1949. 



ment has assigned specialists to certain countries 
where special problems exist. These specialists 
are designated Publications Procurement officers. 
They are individuals who have training and ex- 
perience in library or research techniques, knowl- 
edge of bibliographical sources, and familiarity 
with the requirements of the various depart- 
ments of the Federal Government and, in par- 
ticular, of its libraries. At the present time, 
budgetary limitations permit the assignment of 
only a small number of these Publications 
Procurement officers. They are assigned to two 
types of countries or areas: 1) those in which 
there is a large amount of publishing, both official 
and private, and from which the United States 
Government requires large quantities of publi- 
cations, and 2) those in which, even though the 
volume of publications may be relatively small, 
there is difficulty in obtaining publications be- 
cause of poor organization of trade channels or for 
other reasons. An example of the first is Great 
Britain ; an example of the second is Egypt, where 
the book trade is poorly organized and where, 
nevertheless, publications from the whole Arabic 
world are available if expertly pursued.^ 

Government Needs 

The activities of the Department of State in 
acquiring foreign publications are confined essen- 
tially to meeting the needs of the Department and 
of other agencies of the United States Government. 
Nevertheless, the Department recognizes that in 

" For an article by Richard A. Humphrey entitled "Pro- 
curement of Foreign Research Materials," see Bvnusmx 
of Jan. 6 and 13, 1946, p. 22. 



Jonuory 30, 1950 



151 



the process of acquiring these publications certain 
useful information comes into its hands which can 
be of great benefit to scientists and scholars, 
whether they be working at academic institutions 
or in industrial research. Such information the 
Department endeavors to pass on to the world of 
science, learning, and industry. Wlienever pos- 
sible the Department places the information at 
the disposal of the Library of Congress with a re- 
quest that the information be disseminated 
through the various informational or biblio- 
graphical facilities of the national library. For 
example, early this year the Department received 
a list of Spanish periodical publications currently 
being transmitted to the Department of State and 
other Federal Agencies. Since it constituted a 
valuable bibliography of current Spanish period- 
icals, the Department sent a copy of this list to 
the Library of Congress and requested that a no- 
tice be printed in the Library of Congress Infor- 
mation Bulletin, describing the list and stating 
that copies could be obtained by reproduction from 
the Library of Congress. 

Aid to Nongovernmental Groups 

Tlie assistance of the Department of State in 
acquiring foreign publications cannot be extended 
in general to nongovernment institutions or to in- 
dividuals. There are, nevertheless, certain ex- 
ceptions to this general principle. The exchange 
of publications among nongovernment institutions 
as a method of improving cultural relations be- 
tween the United States and other countries has 
been encouraged and assisted by the Department. 
This operation has been carried on by cultural 
attach^ of the various diplomatic establishments 
and by the information libraries established in 
many countries throughout the world. In ex- 
ceptional instances, the Department will lend its 
support to approved cooperative acquisitions proj- 
ects involving nongovernment institutions when 
tliey are clearly in the national interest. Within 
the past 5 years there have been two such projects ; 
Ihe fir.st was a cooperative acquisitions project to 
collect German wartime and postwar publications 
for the Library of Congress and a group of Ameri- 
can college and university libraries. The second 
is a current contract between the State Central 
Book House in Moscow {M ezdunarodnaya Kniga) 
and the Library of Congress and 14 American 
university libraries, negotiated with the aid of tlie 



American Embassy in Moscow, for the purchase of 
current Soviet books. 

During the first year or two after the war, it was 
difficult for institutions, societies, or individuals in 
the United States to acquire publications even 
from those countries where good trade conditions 
used to prevail. These difficulties have now 
largely disappeared. In considering the six for- 
eign countries whose chemical literature is most 
frequently abstracted in Chemical Abstracts, for 
example, it will be found that normal trade con- 
ditions have virtually been restored in Great 
Britain, France, and Italy. It is possible to buy 
German publications either through American 
dealers or from German dealers through mecha- 
nisms set up by the occupying powers. Publica- 
tions from Japan can now be obtained through 
two American dealers. The quantity of both 
German and Japanese scientific publications is 
once again considerable, although qualitatively 
there have been changes, usually not for the better. 
It is interesting to note that all through the war 
a few Japanese continued to prepare abstracts for 
appearance in Cheinical Abstracts, apparently on 
the principle that wars come and go but science 
and Chemical Abstracts go on forever. Under the 
occupation, an abstracting program covering Jap- 
anese scientific periodicals for the period De- 
cember 1941-1948 has been carried on under the 
supervision of the Economic and Scientific Sec- 
tion, Scientific and Technical Division, General 
Headquarters, Supreme Commander for the Al- 
lied Powers. The one country concerning which 
it may fairly be said that the supply of publica- 
tions does not nearly meet the demand is the Soviet 
Union. 

Efforts to Exchange Publications 
in the Soviet Union 

Tiie Department of State has made repeated 
efforts to increase the flow of publications from 
the Soviet Union to the United States. In 1946, 
a Publications Procurement officer was assigned to 
the American Embassy at Moscow to acquire pub- 
lications for the various departments of the United 
States (lovernment and to explore with the Soviet 
authorities the possibility of improving cultural 
rapport between the two nations by increasing the 
oxcliange of publications. At this time, the De- 
partment of State approved a program whereby 
the Library of Congress and 14 university and 
research libraries would place so-called "blanket 



152 



Department of State Bulletin 



I 



orders" for jjostwar Soviet books in various fields 
with Mezhduiuirodnaya Kniga. 

A contract was ent«red into with Mezhdinwrod- 
naya Kniga and has been renewed annually by the 
Library of Conjircss and the other libraries. Al- 
though no final conclusions can yet be drawn con- 
cernin<r the operation of this contract, the feeling 
is quite general among the Ajnerican parties that 
the performance of Mezhdv/narodnaya Kniga has 
been poor and that only a small fraction of the 
Soviet books appearing in the specified fields is 
being received. 

Since the war, the efforts of the American Em- 
bassy and of institutions in the United States to 
obtain publications from the Soviet Union by ex- 
change have met with very little success. The 
all-union Lenin Library is the one and only central 
agency in the Soviet Union officially designated to 
exchange publications with institutions abroad, 
and the fact that there is only one such institution 
creates administrative difficulties which are them- 
selves a restriction upon free and effective ex- 
change. Only during the past year, has the Lenin 
Library resumed some of its earlier contacts with 
American organizations, the Library of Congress, 
and the American Chemical Society as well as at 
least one univei-sity library having received Soviet 
publications on an exchange basis from the Lenin 
Library. Neither in the number of contacts re- 
sumed nor in the volume or quality of materials 
sent, however, are there any grounds for inferring 
an encouraging trend. 

For scientific research, it is a truism that peri- 
odicals are the most important type of publica- 
tion. Since the war, receipt of scientific periodi- 
cals from the Soviet Union has been unsatisfac- 
tory. During 1947 and 1948, the number of 
abstracts of Soviet articles in Chemical Abstracts 
fell considerably below the prewar totals. Dur- 
ing these years, much of the material which did 
get into Chemical Abstracts was acquired by the 
American Embassy in Moscow for American (lov- 
ernment agencies and was made available to 
Chemical Abstracts through special arrangements 
set up by the Library of Congress. 

The United States Government itself has been 
able to obtain by subscription in Moscow a little 
over 200 titles each year for the past 3 years. The 
average number of copies of each title has been 
one although in some cases as many as six copies 
have been furnished. In general, these titles are 
identical witli those that appear in the official 



list of periodicals available for export {Periodica 
SSSR) and to which subscriptions can be entered 
through the official distributors of Soviet books in 
various countries. 

In the United States, the two official outlets for 
Soviet books and periodicals are the Four Conti- 
nent Book Corporation and Universal Distribu- 
tors, both in New York. Unfortunately for non- 
government institutions or individuals the per- 
formance of these two outlets has been poor, and 
subscribers have had a hard time obtJiining the 
titles they want in anything like complete files. 
It may be mentioned parenthetically that the per- 
formance of the official outlet for periodicals at 
Moscow has also been poor and the American 
Embassy has not always been able to forward 
complete files of its titles for which subscriptions 
were accepted. 

In an effort to make available to the public the 
materials which were obtained for the United 
States Government, microfilm copies of every- 
thing received by any agency of the United States 
Government through the facilities of the Depart- 
ment of State have been deposited with the Library 
of Congress, from which copies are obtainable. 
This has been the chief measure taken by the De- 
partment of State to facilitate the flow of publi- 
cations to scholars, and it is the only practicable 
measure that has been available. It has been 
made much moi'e effective by the publication by 
the Library of Congress, beginning in June 1948, 
of its Monthly List of Russian Accessions. Re- 
peated efforts have been made both by the Gov- 
ernment and by private individuals to improve 
the situation, thus far with very little success." 

Soviet Restrictions 

The indubitable fact is that the flow of certain 
types of Soviet publications to the United States 
has been deliberately restricted. Any attempt to 
explain the phenomenon or to deduce the motives 
behind it involves a certain amount of conjecture 
simply because much essential information is it- 
self withheld. During the past 3 years, for in- 
stance, there has been no way to determine how 
many books have been published in the Soviet 
Union since it has been impossible to obtain the 
national bibliography, Knizhnaya Letopis. Nev- 

' For a summary of thpse efforts seo the article "Cul- 
tural Relations: U.S.-U.S.S.R." see Botxetin of Apr. 3, 
1949, p. 403-^17 (reprinted as Department of State pub- 
lication 3480). 



January 30, 1950 



153 



ertheless certain generalizations may quite safely 
be made. 

It is clear, without further elaboration, that, 
since the war, the Soviet Union has progressively 
withdrawn behind the cloak of "security" and has 
contracted rather than expanded cultural rela- 
tions with the nations of the western hemisphere. 
Eegardless of political differences, the United 
States has tried persistently and in good faith to 
broaden cultural contacts and improve and extend 
cultural relations between the two nations, but 
these efforts have met with indifference or rejec- 
tion by the Soviet Government. 

In 1947 a new set of security regulations was 
promulgated by the Soviet Union forbidding the 
disclosure of certain types of information, de- 
scribed as state secrets, to other nations, and mak- 
ing such disclosures serious crimes. Included in 
the category of state secrets were subjects such as 
state finance, economic resources, and scientific 
discoveries, which in most countries normally ap- 
pear in published form. It is certain, therefore, 
that several classes of publications have been auto- 
matically excluded by these regulations from 
expoi't abroad. 

A further motive for the restriction upon the 
export of publications may very well be conscious- 
ness on tlie part of the Soviet Government of the 
inadequacy of its own performance and of the 
backwardness of the Soviet Union as compared 
with otlier nations. In 1947, for example, Soviet 
scientific periodicals were ordered to cease print- 
ing abstracts of their articles in languages other 
tlian Kussian. It had long been noted by compe- 
tent scientists that the English abstracts were 
poorly done, especially as regard technical termi- 
nology. Elimination of tliese abstracts was in 
line with the increasingly nationalistic attitudes 
within the Soviet Union, but consciousness of their 
])oor quality and the discredit cast thereby upon 
the journals and their producers may also have 
played a part. 

Finally, it is not too much to say that the Soviet 
Government does not attribute sufficient impor- 
tance to cultural exchange with otlier nations or it 
would make determined efforts to improve its per- 
formance in this respect. 

Aside from the attitude of the Soviet Govern- 
ment and other general considerations, certain 
technical aspects of the matter must be taken into 
account. One of these concerns publishing and 
distribution practices in the Soviet Union. It ap- 



pears that publishing has been "rationalized" in 
the Soviet Union in the sense that only a limited 
number of major journals are issued to cover im- 
portant research results in the main fields of 
knowledge. Except for those fields in which se- 
curity considerations interfere, these major jour- 
nals are exported. If minor journals are pub- 
lished, they are not exported. Their distribution 
must be restricted even within the Soviet Union 
itself, and they are probably published in a small 
number of copies. 

Examination reveals that the major scientific 
periodicals are issued in editions considerably 
smaller than those of comparable periodicals in 
the United States or Germany. (The United 
States and Germany have been chosen for com- 
parison because, in the field of chemistry, they 
have represented the two most prolific sources of 
chemical literature.) A check of nine Soviet 
journals which might be described as general 
chemical journals reveals that the average num- 
ber of copies published is 4,500. Of 11 Soviet 
journals dealing with industrial chemistry the 
average number of copies is 3,500. Compare these 
figures with Chemical and Engineering News (62,- 
500) or Industrial and Engineering Chemistry 
(34,500) or Chemical Abstracts (20,750) or the 
Journal of the A?nerican Chemical Society (18,- 
700) or M-ith Chemisches Zentralhlatt (5,500). In 
1949, although the size of edition in Germany is 
generally much lower than it was in 1939, certain 
chemical and other scientific journals are once 
more approximating the size of edition of 1939 
journals. For example, Kunstoffe (8,000 in 1949) 
compares favorably with the 1939 editions of 
Angewandte Chemie (10,800) ^\\d Die Ghemische 
Fahrik (10,200) ; and the 5,500 copies of Chem- 
isches Zentralhlatt in 1949 actually exceeds the 
3,150 in 1939. 

It would appear that Soviet scientific journals 
are being published in a number insufficient to 
meet the demand, which may very well be one 
reason why it has been difficult to obtain them 
in this country. "WTiy they should be published 
in .«o small an edition is a question concerning 
which one can only propose hypotheses. Prob- 
ably the vast destruction of the war and the con- 
sequent dislocation of the Soviet economy pro- 
duced shortages of pajier and printing material 
which are reflected in snuill editions, just as short- 
ages of paper have curtailed printing in other 
countries involved in the war, including our own. 



154 



Department of Stale Bulletin 



It is also possible that a deliberate decision has 
been made in the Soviet Union, where such mat- 
ters are cixrefully controlled, to keep the number 
of copies at a low level. This second hypothesis 
is somewhat contradicted by the fact that exam- 
ination of monthly issues of Soviet scientific 
periodicals during the past year reveals in many 
cases increases in the number of copies as the 
months pass. Immediately after the war, even 
Soviet librarians were known to complain of being 
unable to obtain publications for their own insti- 
tutions. There seems to be some response to a 
growing demand. This theory is confirmed by 
the fact that the Four Continent Book Corpora- 
tion has recently been able to give better service 
in supplj'ing Soviet periodicals than at any time 
since the war. 

Distribution of Soviet Publications 

The distribution of Soviet publications is 
handled centrally by Mezhdunarodnaya Kniga, 
which in turn supplies materials to outlets in other 
countries. The erratic performance of Mezh- 
dunarodnaya Kniga in fulfilling its contractual 
obligations to the Library of Congress and the 
other American libraries and the erratic per- 
formance of Four Continent in supplying ma- 
terials to its American consumers are decidedly 
parallel. Such perfoi-mances suggest poor ad- 
ministration on the part of Mezhdunarodnaya 
Kniga. Similar difficulties have been encountered 
by the United States Superintendent of Docu- 
ments in attempting to discharge the vast respon- 
sibilities placed upon him. Moreover, in times of 
economic distress, when supplies are short, pub- 
lishers or book distributors naturally attempt to 
supply the local market first. It is not uncommon 
for books to be sold out within a few days — or 
hours — after their appearance in Moscow. Dur- 
ing the war, there were loud complaints from neu- 
tral countries which used to buy books in the 
United States and which could no longer obtain 
them. After the war, the situation remained un- 
satisfactory and USIBA was set up by the Ameri- 
can booksellers to attempt to remedy the situation 
during the period when supplies were still short 
and editions still limited. Even before the war, 
when relations between the Soviet Union and other 
countries were somewhat easier, only a few of the 
many periodicals published were placed on the 



export list. A plausible explanation is that only 
those titles were listed for export for which there 
would be a large foreign demand and wliicli it 
would be economic to handle. In those years, one 
could obtain other titles; now, however, they are 
refused. Unfortunately, it has not been possible 
to provide figures concerning the percentage of 
American and German scientific periodicals which 
used to be exported. These would give us a kind 
of base against which to compare the receipt of 
current Soviet periodicals. It is undoubtedly safe 
to say, however, that it has always been easier for 
foreigners to obtain scientific periodicals from 
either Germany or the United States than from 
the Soviet Union. 

Conclusions 

Wlien all these considerations are weighed and 
a balance struck, what general conclusions can 
be drawn ? 

1. The current attitude of the Soviet Govern- 
ment tends to hinder rather than help acquisition 
of printed materials from the Soviet Union. Sus- 
picion and distrust of the rest of the world com- 
bined with sweeping security measures must elim- 
inate many publications which would normally 
be exported. Secretiveness, even about such mat- 
ters as the existence of schools, universities, and 
scientific institutions, makes it impossible to know 
whether such institutions are publishing, and re- 
fusal to export Knizhnaya Letopis deprives 
scholars and scientists of the knowledge of what 
books are being published in the Soviet Union. 

2. Much of the difficulty experienced by those 
who wish to acquire Soviet publications is likely 
caused by mechanical or technical factors such as 
shortage of supply and poor administration of 
book distribution. 

Taken in combination, these two conditions are 
more than sufficient to bring about the present 
situation. The fact that the leading scientific 
journals are in some cases being published in a 
larger number of copies as time goes on is an en- 
couraging sign as is also the improved perform- 
ance, in recent months, of the outlets for Soviet 
publications. Any marked improvement in the 
situation, however, would seem to be contingent 
upon a decided change in some of the fundamental 
attitudes of the Soviet Government. 



January 30, 1950 



155 



Return to Normal Exchange of Diplomatic 
Representation With Spain Urged 

AMENDMENT OF U.N. RESOLUTION FAVORED 

[lirlcanfd to the prcsn January /fl] 



Text of a Utter jrom Secretary of State Dean 
Acheson to Senator Tom Connally, Chainnan. of 
the Senate Foreign Relation.^ Committee, which 
wa-s released for publication hy Senator ConnaUy. 

January IS. 19o0 

My Dkau Sknator Coxnally : In response to 
vour letter of Januiu y IG and followinji: my con- 
snltiition with the Foreifxii Relations Conunittee I 
am pleased to send you a more detailed statement 
on United States jwlicy toward Spain, partieu- 
larly as it affects the problem of sendin<r an Am- 
bassador to Spain. I am sendin<_' a similar letter 
to Senator Vandenber;?, Jud<,'e Kec and Dr. Katon. 

The Spanish question has been ma^niiied by 
controvei-sy to a position amonp our present day 
foreijrn policy problems which is disproportionate 
to it.s intrinsic importance. Organized propa- 
ganda and pressures have kept this controversy 
alive both here and abroad and liave served to 
stimulate moi-e emotional feeling than rational 
thinking. Thus far, we have succeeded in dealing 
with tliis question on a broad bii)artisan basis 
through our distinguished delegations to the 
United Nations. A clarification of some of the 
issues might help now to put this (piestion in its 
proper framework in relation to the broader as- 
pects of our ])olicy. 

Since the end of the war there have been a innn- 
ber of international actions with res])ect to Spain. 
It was agiced at the Potsdam Conference in the 
sununei- of \U\'> and at the San l"'rancisco Con- 
ference of the United Nations tiiat same year that 
Spain could not be a member of tiie United Nations 
as long as the present GovermuenI remains in 
powei-. 'I'his ]iosilion was endoised by the first 
session of the General Assembly of tiie I'nited 
.Nations in London in February lHHi. 

In Api-il V.)\('>. tlie Security Council discussed 
liilly rehilions with the Spanish (lovernmenl, and 
airain in December the matter was debated by the 



General Assembly at even greater length.^ The 
resolution which "finally passed the General As- 
sembly recommended that the Franco Government 
be barred from membership in specialized agen- 
cies of the United Nations and that all members 
of the United Nations immediately recall from 
Madrid their Ambassadors and Ministers Plenipo- 
tentiary accredited there. 

Thisinatter was discussed again by the General 
A.ssembly in November 1947. In the voting on 
various resolutions the two-thirds rule resulted in 
tiie refusal to reallirm the lOKl resolution. How- 
ever, the resolution was not repealed. 

In May 1949, the General Assembly undertook 
a furthei" discussion of the Spanish question, but 
no chaiiL^e was made in the resolution. - 

The United Slates has opposed moves in the 
United .Nations to bring about a break in diplo- 
matic relations with or to impose economic sanc- 
tions against Sjiain."' This position is based on 
the Security Council view that the existence of the 
Franco Regime in Spain is not a threat to peace, 
and on our view that such outside pressures would 
either unite the Sjianish people against the devel- 
opment of democi-alic freedoms or would j)recip- 
itate the .Spanish people themselves toward civil 
war with unknown but inevitably costh' conse- 
quences. 

Entirely aside from its views concerning the 
])i'esent regime in Spain, the United States has 
long questioned the wisdom and efficacy of the ac- 
tions i-ecoinmended in the 191() resolution. At the 
time that resolution was debated, the United 
States delegation, because of its reservations on 
the sections (k'aling with Chiefs of Mission and 
with Security Council action abstained in the vote 
in llie Political Conunittee. It voted for the res- 
obuion in the iilenary session of the General 



' l!>-i.i.r.TiN of Doc. -SZ. 1!>l(!, p. 111.!, 

' Iti'i.i.iiiN (if .May UJ. VM'.\ p. (iri:{, Ciuninitlpc 1 resolu- 
(i>Mi wliicli WHS ailmillcd In Ilic (ieni'riil .Vss('iul)ly. 
" Uri.ii TIN (pf May l.'!l, ^•JV.\. ji. CSli. 



156 



Dcparfmenf of Sfafe Bulletin 



Assembly "in the interests of harmony and of 
obtaininji the closest possible approacli to unanim- 
ity in the General Assembly on the Spanish 
problem." 

Experience since that time has served to con- 
firm our doubts about these recommendations. 
They were intended as a gesture of disapproval 
and an attempt to bring about a change in the 
iSjianish Government. In retrospect, it is now 
clear, however, that this action has not only failed 
in its intended purpose but has served to 
strengthen the position of the present regime. 
This action of the United Nations and discussions 
of tlie Spanish question in subsequent sessions of 
the General Assembly have all been represented 
in Spain as foreign interference in Spanish inter- 
nal affairs. The Spanish reaction has been no 
different from that to be expected from any proud 
people. 

Although some members of the United Nations 
no longer observe the recommendation with re- 
spect to Chiefs of Mission and have returned Am- 
bassadors or Ministers to Madrid, the recommen- 
dation has not been amended or repealed by the 
General Assembly. Since the support and 
strenthening of the United Nations is a funda- 
mental principle of our foreign policy and since 
we attach importance as a matter of policy to 
compliance witJi United Nations recommenda- 
tions, we are continuing to adhere to the 1946 res- 
olution so long as it remains in effect. 

The question arises, therefore, whether the res- 
olution itself should, be changed. Political con- 
siderations which have created general reluctance 
to accept Spain as a partner in the close coopera- 
tion among the Western European nations also 
apply to this situation. This is a problem which 
requires consideration by many nations and is not 
a matter which can be solved by the United States 
alone. 

This is not a problem of recognition, as it has 
frequently been portrayed. The 1946 resolution 
on Spain does not call for a break in diplomatic 
relations with Spain. The United States for- 
mally recognized the present Spanish Government 
on April 1, 1939, and we have had continuous dip- 
lomatic relations ever since. Three American 
Ambassadors had been accredited to that Govern- 
ment before the 1946 resolution was passed. "\^nien 
the resolution came into force, the United States 
abided by the recommendation that Ambassadors 
be withdrawn by refraining from appointing an- 
other Ambassador to fill a vacancy which existed 
at that time. 

In our view, the withdrawal of Ambassadors 
from Spain as a means of political pressure was 
a mistaken departure from established principle. 
It is traditional practice, once a state has been 
formally recognized, to exchange Ambassadors 
or Ministers and is usually without political sig- 
nificance. At the Ninth International Confer- 
ence of American States in Bogota, this principle 



was incorporated in Resolution 3.5 which states in 
part that "the establishment or maintenance of 
tli]>l()matic relations with a government does not 
imply any judgment upon the domestic policy of 
that government.'' However, the withdrawal of 
Ambassadors from S])ain disregarded this prin- 
ciple. By attaching moral significance to the re- 
fusal to maintain full diplomatic relations with 
Spain, this action has also implied moral signifi- 
cance to the maintenance of full diplomatic rela- 
tions through the return of Ambassadors. This 
situation inevitably led to confusion in public 
o])inion both here and abroad. On the one hand, 
the question of returning Ambassadors to Spain 
has tended to become identified with the larger 
issue of whether it is desirable to have closer rela- 
tions with the present Spanish Government. On 
the other 'hand, public bewilderment has been in- 
creased over the inconsistency of accrediting Am- 
bassadors to such countries as those in Eastern 
Europe whose regimes we do not condone while, at 
the same time, refusing to appoint an Ambassador 
to Spain. 

At the General Assembly last spring, a majority 
of the members who voted on the Latin American 
resolution relating to Spain expressed a wish to 
review the 1946 resolution in such a way as to 
permit members to exercise freedom of action in 
determining whether to return Ambassadors or 
Ministers to Madrid. It is the opinion of this 
Government that the anomalous situation with 
respect to Spain should be resolved. The United 
States is therefore prepared to vote for a resolu- 
tion in the General Assembly which will leave 
members free to send an Ambassador or ^linister 
to Spain if they choose. We would do this for 
the reasons I have already stated and in the hope 
that this aspect of the Spanish issue would no 
longer be available to be used by hostile propa- 
ganda to create unnecessary divisions within the 
United Nations and among our own people. Our 
vote would in no sense signify approval of the 
regime in Spain. It would merely indicate our 
desire, in the interests of orderly international 
intercourse, to return to normal practice in ex- 
changing diplomatic representation. 

We have stated on a number of occasions that 
we would favor the amendment of the 1946 reso- 
lution of the General Assembly to permit spe- 
cialized agencies to admit Spain to membership 
if, in the opinion of the specialized agencies, 
Spanish membership would contribute to the ef- 
fective work of these organizations. We believe 
that membership in these agencies should be deter- 
mined, to the extent practicable, on the technical 
and nonjjolitical basis. It has already been dis- 
covered on a number of occasions that the work 
of these specialized organizations has been im- 
paired through the inability of Spain to accept 
the obligations and restraints, as well as the priv- 
ileges of their activities. 

These conclusions by the United States Govern- 



January 30, 1950 



157 



nient do not imply anj- change in the basic attitude 
of this Government toward Spain. 

The policy of the United States toward Spain 
is based on' the recognition of certain essential 
facts. First, there is no sign of an alternative to 
the present Government. 

Second, tlie internal position of the present re- 
gime is strong and enjoys the support of many 
wlio, although thoy iniglit prefer anotlier form of 
government or chief of state, fear that chaos and 
civil strife wo\ild follow a move to overthrow the 
Government. 

Third. Spain is a ])art of Western Europe which 
should not be permanently isolated from noi-mal 
relations with that area. There are, however, 
certain obstacles to the achievement of this. 
Spain, for reasons associated with the nature, 
origin and history of the present Spanish Gov- 
ernment, is still unacceptable to many of (he West- 
ern European nations as an associate in such co- 
o])erative projects as the Euroi)ean Recovery Pro- 
gram and the Council of Europe. We believe (hat 
this is a matter in which the Western European 
nations nnist have a leading voice. These pro- 
grams, which require for their success the closest 
possible cooperation between the i)articipants, arc 
dii'ected to the strengthening and development of 
the democratic way of life as ojjjjosed to the 
threats to it posed by Communist expansion. This 
is a policy which we and the Western Eui'opean 
nations have agreed upon. It is not merely a 
negative reaction to counnunism. It is. rather, a 
positive program to support and strongtlien demo- 
cratic freedoms, politically, economically, and 
militarily. In that context, the paHicipation of 
the prcs(>nt Spanish Govei'inuent, unless and until 
there has been some iiulication of evolution toward 
more demociatic government in Spain, would 
weaken i-alher than strengthen the collective ell'ort 
to safeguard and strengthen democi'acy. 

We are therefore con( inning our efforts in a 
fraidv and friendly numner to persuade the Span- 
isii (lovernnuuit that its own interest in pardci- 
paling in (he in(ei-national conmnnn(y, and 
particularly in (lie Western European connnunity, 
requires steps toward democratic government 
which otfcis the best hope for the growth of basic 
human righ(sand fundameiUal freedoms in S])ain. 
It lecpiires cooiiera(ion on the j)art of all parties, 
aiui. as must be evident, it is not fundamentally a 
matter which ciin lie successfully brought about by 
American action. The decision as (o wha( s(eps 
can and should I)e (id^eu is obviously one for 
.'-Spaniards alone. At the same time, it is didlcult 
to envisage Spain as a full member of the free 
\\'estern connnunity without suiis(antial advances 
ill such dii'ections as incieased civil liberties and 
as religious fi-ec(iom and (he freedom to e.xercise 
tlie elementarj' rights of organized labor. It is 
significant (ha( one of (he fiist acts of (he new 
International Confederation of Tree Trade Unions 
was (o pass a resoludou condemning (he ]n'esen( 



government of Spain, and opposing any assistance 
to Spain "until such time as democratic and full 
trade union rights have been restored and the 
workers are once more able to make their contri- 
bution to the country's recovery." 

United States economic policy toward Spain is 
directed to the development of mutually benefi- 
cial economic relations. This policy is based on 
purely economic, as distinct from political, 
grounds. We believe that private business and 
banking arrangements and trade activities with 
Spain should be conducted on a free and normal 
basis. The Department interposes no political 
objections and restrictions on such activities. 

So far as economic assistance from this Gov- 
ernment is concerned, Spain is free to apply to 
and consult with the Export-Import Bank for 
credits for specific (irojects on the same basis as 
any other country. While the United States Gov- 
ernment definitely does not favor the extension of 
a general balance of jiayments loan to the Span- 
ish (iovernment to use as it sees tit, it is quite 
]»repared to acquiesce in the extension of credits 
to Spain covering specific and economically jus- 
tifiable projects. It has been made clear to all 
Spaniards, both private and official, that Spanish 
ajiplications for such projects will be considered 
on the same basis as those from any other country 
and the final decision will be made, in accordance 
with the Bank's regular ])olicy, not only on the 
basis of the need for the credit and the suitability 
of the particular purpose to be served, but also 
oil whether there is a reasonable prospect of 
repayment. 

The successful develoiniient of mutually bene- 
ficial economic relations between the United 
States and Spain is entirely dependent upon the 
equal cooperation of both parties. Unfortu- 
nately, however, little progress has been made. 
The United States sincerely desires to facilitate 
normal business and trade with Spain, but ulti- 
mate success depends on the cooperation of the 
Spanish (lovernmeut in taking constructive steps 
to promote i(s trade and (o attract foreign invest- 
ment. Ill order to assist in the development of 
these activities, (he negotiations of a new Treaty 
of I'riendship, Commerce and Navigation was of- 
fei-ed by (he Uni(ed S(a(es. To date, the Spanish 
Government has indicated no interest in such ar- 
rangements. EfToHs have also been made (o en- 
courage (he Spanish Government to simplify its 
expoH and import controls and its foreign' ex- 
change system, which is based upon a multiplicity 
of rates, in order (o establish an exchange rate 
which would ])ermit Spanish goods to compete, 
jiarticularly in (he dollar market. Furthermore, 
efforls have been made to encourage the Spanish 
(iovernment to lift (he restricdon of 25 percent on 
the i)ar(ici|i!i(ion of foreign inves(ors in any Span- 
ish eiUerprise and to accord better treatment to 
existing JForeign investments, both of which are 
(odav distinc( hindrances to (he flow of invesdnent 



158 



Department of Slate Bulletin 



to Spain. We have, in connection with these 
problems, pointed out to interested Spaniards and 
to the Spanish Government that the present criti- 
cal situation in tlie Spanish doUar balance of 
payments seems to derive from difficulties many of 
which it is believed could be substantially rectified 
by action of the Spanish Government. To date, 
however, that Government has taken little action 
alonjr these lines. In the Department's opinion 
tlie next steps to be taken in furthering mutually 
beneficial economic relations between Spain and 
the United States are up to the Spanish 
Government. 

Sincerely yours, 

Dean Acheson 



Bulgaria Warned Actions 

Threaten Normal Relations With U.S. 

[Released to the press January 20] 

REQUEST WITHDRAWAL OF NOTE ASKING 
RECALL OF MINISTER HEATH 

The following is the text of a note delivered 
today in Sofia by the American Legation to the 
Bulgarian Foreign Office. A similar note was de- 
livered today to the Bulgarian Legation in 
Washington. 

The Lregation of the United States of America 
has been instructed by the United States Gov- 
ernment to deliver to the Bulgarian Government 
the following reply to the note verhale delivered 
to the Department of State by the Bulgarian 
Legation in Washington on January 19, 1950, re- 
questing the recall from Bulgaria of the Ameri- 
can Minister. 

The charges on which the Bulgarian Govern- 
ment has based this demand are wholly unfounded, 
as the Bulgarian Government itself is fully aware. 
Moreover, the Under Secretary of State, James E. 
Webb, on December 12, 1949, stressed to Peter 
Voutov, the Bulgarian Charge d'Affaires in Wash- 
ington, that the United States took a very serious 
view of such reckless accusations aga'inst the 
American Minister, which caused this Govern- 
ment to question the Bulgarian Government's in- 
tentions with respect to the maintenance of nor- 
mal and friendly relations with the United States. 

The Bulgarian Government has over a period 
of 2 years increasingly subjected the Legation 
to a series of indignities and restrictions which 
have now made it virtually impossible for the 
Legation to perform its nornial diplomatic and 
consular functions. In addition to crippling re- 
strictions on the entry and movement of United 
States officials assigned to the Legation, the Bul- 



garian Government has pursued a campaign of 
persecution against the Legation's Bulgarian em- 
l)loyees whose only crime has been their associa- 
tion with the Legation. This campaign has re- 
sulted in the execution of two such employees, the 
death of a third after maltreatment by the police, 
and the arrest and torture of others. All of these 
employees were engaged only in such routine 
duties as is accepted as normal practice in diplo- 
matic missions throughout the civilized world. 

The United States, in renewing formal relations 
with Bulgaria in 1947, pointed out that the estab- 
lishment of diplomatic relations did not in itself 
imply approval or disapproval of the acts and 
policies of the Bulgarian Government. It has 
been the hope of the United States Government 
that minimum standards of international comity 
with regard to the maintenance of diplomatic 
intercourse would be observed. The Bulgarian 
Government has, however, fallen far below even 
those minimum standards in conducting its rela- 
tions with the United States. 

Accordingly, unless the Bulgarian Government 
withdraws its note of January 19 and demon- 
strates its willingness to observe established inter- 
national standards of conduct, the United States 
Government must conclude that the Bulgarian 
Government does not desire to maintain normal 
relations. In these circumstances the United 
States Government will be obliged to withdraw 
the United States diplomatic mission from Bul- 
garia and ask for the recall of the Bulgarian 
diplomatic mission from the United States. 

Following is the text of the Bulgarian note of 
January 19 : 

The Legation of the People's Republic of Bul- 
garia in Washington, D. C., has been requested by 
the Bulgarian Government to notify the State De- 
partment of the following : 

The evidence from the trial of the criminal 
group of flagrant spies and traitors led by Traicho 
Kostov, which was planning to overthrow the 
legally established Powers in Bulgaria, proved 
before the court that His Excellency, the Pleni- 
potentiary Minister of the United States in Sofia, 
Donald Read Heath, had been in contact with 
Traicho Kostov and Tzonu Tzontchev, convicted 
by the Bulgarian Court for treason and espionage, 
and had allowed himself to take action not in line 
with his diplomatic functions. By this, he had 
shown abrupt interference in the interior affairs 
of the People's Republic of Bulgaria concerning 
its sovereignty as well as its National Security. 

In view of these circumstances, the Bulgarian 
Government announces to the Government of the 
United States that it considers its Plenipotentiary 
Minister in Sofia, Donald Read Heath, as persona 
non grata and requests the United States Gov- 
ernment for his immediate recall from Bulgaria. 



January 30, J 950 



159 



Report of the First Regional Conference 
of U.S. Arrtbassadors in the Caribbean Area 

lli'rliascd to the pri'ss .lanunnj il] 



Tlie fii-st rejfional coiifcnMicc of riiitcil States 
Aiiilwssadors in the Caiiblifuii area lias iiict in 
Ilahana, January lS-:2(), 1050, in pursuance of tlie 
present policy of the Departineiit of State to con- 
vene periodically it^s (lii)ioniatic representatives 
in the various regions of tlie world to review poli- 
cies and |)ro(:edures. The Habana conference has 
been marked by full and frank discussion of the 
most important current problems both adniinis- 
ti-ative and substantive. 

It is the unanimous view of all those present 
that meetings of this tyi)e aie of the utmost value 
toward the end of keeping our policies and our 
administraticm of them positive and progressive. 

The following is a summary of the more imi)or- 
laiit conclusions reached by the conference: 



|)or- 
the 
and 
the 
r in 
lem- 
evei' 



Inter-American System 

The conference alToi-ded an exct^llent o])] 
t unity to reii.sse.ss and reaflirm tlie interest of 
United States in the inter- American system 
in the Organization of American States as 
most important expression of law and orde 
the hemisphere. All those jjrescnt pledged 11 
selves to work with renewed vigor lowanl 
closer relations between the free R<'])iililics of 
America. 

Democratic Institutions 

'I"he conference reviewed \\\ some detail the 
progres,s that had been made in the tlevelopmeiit 
of democratic institutions in the area. While il 
was noted thai tlu! extent of [)rogress has not been 
as great as could have been desired, it was felt 
that in the long run the will of the peojiles could 
not, be denied whei(( tiiere existed a real desii'c 
for progress toward democracy. All those pres- 
ent felt lliat the I'liited States "should aid in every 
possible way the promotion of denioci-atic insti- 
tutions, subject always to our basic commit meni of 
nonintervention and to the realization that real 
progress toward democracy must come through 
the elTorls of the ])eoi)les themselves. 



Caribbean Conflict 

The conference took a very serious view of the 
state of political tension that has existed between 
some countries in the Caribbean area for the past 
several years as most recently emphasized by the 
Haitian and Dominican complaints to the Organ- 
ization of Amei-ican States. The conference ex- 
pressed satisfaction over the manner in which the 
entire situation was now being handled by the 
Council of the Organization of American States 
in Washington. The nieiiibers of the conference 
felt that progress toward a solution of jiresent 
problems in the Caribbean area, or the relaxation 
of present tension, would follow from a thorougli 
ventilation of all the facts. The conference felt 
that through the examination and possible elimi- 
nation of many factors and charges which may 
have been uniluly exagirerated. the matter would 
be reduci'd to its ])roper pi-oportions. 

.Ml present felt that the United States should 
fully support the present efforts of the Council 
of the Organizati(m of American States and in 
this way help that organization to achieve ever 
greater ])rogress in the direction of becoming the 
true and lasting guarantor of peace and tran- 
(luility in the hemisphere. 

The conference also felt that much could be 
done towai-d the easing of the jiresent situation 
if the nations involved show a real and sincere 
desire to engage in direct discussions for the i)ur- 
posc of composing their ditference in a spirit of 
iiiiil iial conciliat ion. 



Role of Labor 

Tlie conference reviewed in detail the role of 
organized laboi' in the h(>niis])liei'i> and reached 
the conclusion that the growth of a responsible 
and pidgressi ve I lade-iinion movement throughout 
the liemis]ihere is one of the most iini)ortant fac- 
tors toward llic dcxclopmenl ol' dcniocral ic insti- 
tut ions. 

The conference wi^lcomed the recent foi'mation 
in London of the International (^uifedei'alion of 
Fice Trade I'nions and observed with satisfac- 



160 



Department of State Bulletin 



tion that both major tratk'-union jiroiips in the 
United States were participatinjj in tiie new body. 
Tlie conference felt that tliis new ])attern of 
democratic international labor organization wonld 
liave a helpftd effect on the development of a free 
and responsible trade union movement in the hem- 
isphere. 

Point 4 and Economic Development 

The conference felt that the most important con- 
tribution that the United States could make to 
democratic progress in the hemisphere would be 
through reasonable and well-directed programs of 
economic and technical cooperation. It was felt 
that a higher degree of both industrial and agri- 
cultural activity in all coinitries would result not 
only in increased prosperity but in greater politi- 
cal stability. The conference expressed satis- 
faction over repoi'ts received from Washington 
concerning progress made by our Congress in the 
consideration of Point 4 legislation. It felt that 
if and when the present legislative program on 
Point 4 had been approved by the Congress tliere 
would then be available the tools necessary to per- 
mit the United States Government to play an even 
more affirmative role in hemispheric develop- 
ment — adequate financial resources being now 
available to the Export-Import Bank in addition 
to those contributed by our government to the In- 
ternational Bank. 

The problem discussed, therefore, concerned pri- 
marilj' the implementation of our progi-ams of as- 
sistance. The conference felt that it was basic to 
a proper understanding of our programs that 
United States assistance could not of itself bring 
about development of other countries. In fact, 
the role of United States assistance is entirely sub- 
ordinate to local efforts of self-help. The con- 
ference was deeply impressed by the principle ex- 
pounded by Secretary Acheson in his speech be- 
fore the National Press Club on January 12, 1950, 
when he said that United States assistance to any 
independent foreign country can only be effective 
when it is the one "missing component" in a situa- 
tion otherwise favorable with respect to economic 
and political progress. 

The conference felt that when the principle so 
expounded by Secretary Acheson is applied in this 
area, it will be found that in some countries the 
degree of internal activity is not propitious toward 
effective utilization of external aid. In some 
countries so many difficulties have been erected 
in the way of private investment — local as well as 
foreign — that the rate of private productive in- 
vestment has stopped or greatly decreased, with 
the result that the resources of the countries are 
not being put to full use. The conference, there- 
fore, felt that under such circumstances the exten- 
sion of United States cooperation would be largely 
fruitless from the standpoint of our basic objective 
of assisting sound economic development. It was 
felt that the attainment of this objective depends 



to a large degree upon the readiness of the people 
and their governments to create conditions essen- 
tial to expanding economic activity. 

International Trade 

The conference reviewed the present situation 
and future prospects relating to international 
trade. The conference noted with satisfaction the 
prosperous state of foreign trade in many coun- 
tries of the area, particularly in such products as 
coffee, sugar, bananas, and petroleum. The con- 
ference reaffirmed its faith in the trade agreements 
program as an important instrument toward ex- 
j)andiiig international commerce. It felt that one 
of the gi'eatest contributions that the United 
States could make to the prosperity of the area 
was to strive for a constantly expanding rate of 
United States imports from abroad. 

In reviewing the prospects for the future, the 
conference noted the probability that progi'essive 
reductions would occur in dollar availabilities 
from EcA purchases in Latin America which 
have totaled G75 million dollars in the last 18 
months. The conference noted that severe reduc- 
tions or discontinuance of these purchases could 
result in serious political, economic, and social 
problems throughout the area, with the strong 
possibility that many of the countries might resort 
to bilateral or barter arrangements in an effort to 
protect their export markets. 

In the light of the seriousness of this problem 
and the urgent need for immediate planning so as 
to minimize the impact of this situation on the 
Latin American countries, the conference recom- 
mends : 

(A) that the Department of State and other 
appropriate agencies of our government give early 
consideration to whatever cooperative arrange- 
ments may be required to maintain a satisfactory 
two-way flow of trade between Latin America and 
the Western European countries ; 

(B) that the existing arrangements for the im- 
portation into the United States of Latin Ameri- 
can output be maintained, and that consideration 
be given to the specific measures needed to expand 
United States imports of Latin American prod- 
ucts; 

(C) that the Latin American countries be en- 
couraged to increase their production of those 
items needed by Western Europe and other areas 
to the advantage of the economies of those areas 
and of Latin America. 

Information and Cultural Activities 

The conference reviewed in detail the informa- 
tion and cultural activities now being conducted 
by the United States Government. It felt that 
this type of activity is of great value in bringing 
about a basic undei-standing between the peoples 
of the countries, which is the basis of all construc- 



January 30, 1950 



161 



tive iiiternationiil relations. The conference felt 
that our progress in the information and cultural 
field should be intensified wherever possible. 

International Travel 

The conference felt that a healthy de<rree of in- 
ternal ional travel and tourist trade could be 
brought about through siniiilificalion of consular 
and customs procedure in all countries, including 
the United States, and through the eliminati(jn of 
other impediments to travel. 

The conference deeply appreciates the hospital- 
ity of the Cuban (jovernmont and people wiio 
through their friendliness and generosity made it 
possible for the conference to be held in their 
midst under the most happy circumstances. 

The stimulating free ])ress of Cuba provided a 
most familiar and democratic background for the 
discussions. 

In particular, tlie conference recorded its ap- 
preciation of the generous hos]iitalit\- extended to 
its nuMiibers by Carlos Prio Socarras, President of 
tile Rep\iblic of Cuba, and the jMinisler of State, 
Carlos Ilevia, and other oflicials of the Cuban 
Government. 

The conference also recorded its deep apprecia- 
tion of all of the courtesies and elForts of the host, 
Ambassador Robert Butler, and of all the mem- 
bers of his staff. 



U.S., U.K., France Discuss 

Austrian Treaty Deadlock With U.S.S.R. 

[I{<Jij(iS(d to the press ■January 19] 

The United States Ambassador in Moscow, to- 
gether with the British and Fi-ench Ambassadors, 
called on Mr. (iromyko at the Soviet Foreign 
Office on January 18 {o protest the delays which 
have been encountered in the negotiations on the 
Austrian treaty. 

The (iovernmenis of the United States, United 
Kingdom, and France are deeply concerneil at the 
delay in the conclusion of the Austrian treaty 
whicii has been the sul)ject of negotiation since 
V.)U'>. The Soviet authorities have made re[)ealed 
statements to tiie effect that the remaining articles 
in the treaty woidd ])resent no dillic iilties if the 
Soviet position was met on the settlement of Ger- 
man assets in Eastern Austria which are claimed 
by the Soviet Union under the Potsdam Declara- 
tion. Agreement was reached on the German 



assets question by the four Foreign Ministers in 
Paris on June 20, 1949.^ The details involved in 
the Paris Agreement were settled by the deputies 
in New York on November 18, 1949. Since that 
time, however, the Soviet Government has im- 
posed new obstacles to the completion of the treaty 
in connection with its claims for repayment for 
relief supplies furnished to Austria in the early 
days of the occupation. 

The Soviet delegation, on November 19, declared 
that it was in no position to negotiate on these 
claims, which involve an article of the draft treaty, 
until certain bilateral negotiations with the 
Austrian Government in Vienna had been con- 
cluded. Agreement in Vienna was subsequently 
made a condition for the discussion of other im- 
{)ort articles. The Soviet deputy, on December 2, 
refused to discuss the treaty article (no. 42) deal- 
ing with the protection of United Nations prop- 
erty in Austria until the unrelated negotiations 
in Vienna had been concluded. Similarly, all 
iu\gotiations on the article relating to prewar 
Austrian indebtedness (art. 48) proved impossible 
in view of the unwillingness of the Soviet delega- 
tion even to discuss the subject. After a recess 
designed to allow the Vienna negotiations to be 
concluded, the deputies met again in London on 
January 9 of this year, but neither at that time 
nor at a subsequent meeting on January 13 was 
the Soviet delegation in a position to indicate when 
the obstacle to the discussion and settlement of the 
three articles in question would be removed. 

Ambassador Kirk and the British and French 
Ambassadors asked Mr. (iromyko what assurances 
coidd be given that the Vienna negotiations would 
be conq)leted, thus permitting the deputies to con- 
clude the .Vustrian treaty on the basis of the agree- 
ment in Paris of June 20, 1949. No assurances 
were given by Mr. (hoinyko that this obstacle 
wouhl be removed in the near future. 

The United States Government desires an early 
conclusion of the treaty and the long overdue 
reestablishment of conq)iete Austrian sovereignty 
and inde]u'ndence, which was ju'omised by the 
Moscow (leclaration of 1943. 

Although the deputies are scheduled to meet 
again in London on Monday. January 23, in view 
of the altitude of Mr. (iromyko, it is doubtful 
whether further progress can" be made. Under 
the circumstances, consideration will be given to 
future approi)riate action that may be taken to 
reestaiilish Austrian freedom and indei)endence in 
accordance with the publicly stated i)olicy of this 
(i<ivernmenl. 



' Bri.i.i:nN of .Inly 1, 1949, p. STtl. 



162 



Department of Sfofe Bulletin 



I The Place of the Genocide Convention in General Pattern 
of U.S. Foreign Relations 



Statement by Deputy Under Secretary Busk 



Mr. Chairman, and Members of the Subcom- 
MiTiEE, I should first like to express my appre- 
ciation for this opportunity to present the State 
Department's views with respect to the Genocide 
convention. As j'ou will recall, the State De- 
partment's memorandum, which was transmitted 
to the Senate on June 16, 1949/ recommended to 
the President tliat the Genocide convention be sub- 
mitted to the Senate for its advice and consent 
for ratification. The President endorsed this rec- 
ommendation and has urged that the Senate give 
advice and consent to the ratification of the 
convention. 

Mr. Chairman, it is my purpose here to indi- 
cate the place this convention has in the general 
pattern of the foreign relations of the United 
States. The historical origin of the Genocide 
convention is a matter of record. Genocide is un- 
fortunately as old as the history of man. The 
history of our own civilization begins with the de- 
liberate mass exterminations of Christians by the 
imperial government of Rome. But the worst 
atrocities of Nero against the Christians failed to 
reach the level of those perpetrated by Hitler 
against the Jews. No one can yet have forgotten 
the organized butchery of racial groups by the 
Nazis, our enemies in World War II, which has 
resulted in the extermination of some 6 million 
Jews. Decent men everywhere were outraged 
and revolted by the barbaric and bestial conduct 
of the rulers of Germany at that time. These 
events so shocked the conscience of civilized men 
that, after World War II, it had come to be ac- 
cepted that such conduct could no longer be tol- 
erated in civilized society and that it should be 
prohibited by the international community. 

' Ex. O, 81st Cong., 1st Sess. 

Editor's Note : Made before the subcommittee of the 
Senate Foreign Relations Committee ou Jan. 23, 1950, and 
released to the press on the same date. 



Origin in the United Nations 

This was the psychological framework witliin 
which the United Nations began to function as a 
permanent international organization. The next 
step was quite logically the adoption of a resolu- 
tion condemning genocide as a crime under inter- 
national law by the General Assembly of the 
United Nations at its first session in December 
1946. The delegations of three countries — Cuba, 
India and Panama — had proposed that the Gen- 
eral Assembly consider the problem of the pre- 
vention and punishment of the crime of genocide. 
The matter was considered at length by the Legal 
Committee of the General Assembly, a commit- 
tee composed of lawyers representing each of the 
more than 50 states members of the United Na- 
tions. That committee submitted a resolution 
which was adopted without a single dissenting vote 
and without change by the plenary session of the 
General Assembly on December 11, 1946 

This resolution declared that genocide, the "de- 
nial of the right of existence of entire human 
groups, shocks the conscience of mankind, results 
in great losses to humanity in the form of cultural 
and other contributions represented by these hu- 
man groups, and is contrary to moral law and to 
the spirit and aims of the United Nations." The 
resolution further declared that the "punishment 
of the crime of genocide is a matter of interna- 
tional concern" and affirmed "that genocide is a 
crime under international law which the civi- 
lized world condemns." Finally, the resolution 
recommended "that international cooperation be 
organized between States with a view to facili- 
tating the speedy prevention and punishment of 
the crime of genocide" and to this end requested 
that studies be undertaken with a view to drawing 
up a draft convention on the subject. 



January 30, 1950 



163 



Pursuant to this resolution, a special United 
Nations coniniittee met in the spring of 1!)4S, and 
under the ciiainnansliii) of the United States rep- 
resentative, prepared a draft convention on geno- 
cide, whicli was reviewed by tlie Economic and 
Social Council of the United" Nations in tlie sum- 
mer of 1!)48 and tiien transmitted to tlie (ieneral 
Assemblv in the fall of I'.XS. This convention 
was studied at length by the Legal Connnittee of 
that body and was finally fornndated by that 
committee. It was adoptetl witliout a single dis- 
senting vote bv the (ieneral Assembly on Decem- 
ber J). 1948. 

Thus, twice all of tiie states memliers of tlie 
United Nations have declared that genocide is a 
matter of international concern. Twice all states 
members of the United Nations have declared 
that genocide is a crime under international law. 
All liave declared that international cooperation 
is neech'd to stop this practice and that states have 
a duty to put a stop to such j)ractices within their 
own respective borders. In view of this histoiy, 
no one can doubt that genocide is a subject within 
the constitutional power of tlie federal govern- 
ment to define and punish offenses against tlie law 
of nations.- 

Tlie Slate Department memorancbim, wiiich was 
transmilled to llie Senate in dune VM'.K reviews in 
some detail the various i)rovisions of the ( ienoride 
convention. 

Genocide as Denned in the Convention 

1 siio'dd like to state iiere in general that the 
convention does two things: It defines the crime 
of genocide, and it obligates states to take meas- 
ures to jirevent and ])iiiiish genocide witiiin their 
respective territories. 

(lenocide, as defined in article II of the conven- 
tion, consists of the commission of certain specified 
acts, such as killing or causing serious bodily harm 
to individuals who are members of a national, 
ethnical, racial, or religious grouii, with the intent 
to destroy that grouji. The legislative history of 
article 11 shows that the Uniteil Nations negoti- 
ators felt that it should not be necessary that an 
entire human grou]) be destroyed to conslitule the 
crime of genocide; but lather that genocide meant 
the partial destruction of such a group with the 
intent to (lestroy the entire group concerned. In 
terms of practical ai)plication within (he United 
Sla(es. genocide means I lie commission of such acts 
as killing meuibers of a specified group and thus 
destroying a subslanlial portion of tiiat group, 
as pari of a plan to destroy that entire group with- 
in Ihe territory of (he United States. It can thus 
be readily seen that genocide, as <lefineil in (his 
convention, has never occurre<l in the Ignited 
Slates and is not likely to occur here in the future. 

The purpose of the convention is, however, to 
provide for the prevention and |>unishmenl of 

'Art. I. sec. H, clmiso 1U, I'nilcd SliiU-s Ciinsl il\il Iciii. 



the crime of cenocide. The convention does not 
purport to substitute international responsibility 
for states responsibility, but does obligate each 
state to take steps within its own borders to pro- 
tect entire human groups in their right to live. 

Obligation of the United States 

It is iuniorlant to understand the basic inter- 
national obligation the United States will assume 
under this convention. In the language of article 
V of the convention, the United States and the 
other contracting states would ''undertake to en- 
act, in accordance with their resjiective constitu- 
tions, the necessary legislation to give effect to the 
provisions of the present convention, and, in par- 
ticular, to proviile effective penalties for persons 
guilty of genocide or of any of the other acts 
enumerated in article III." 

The State Deiiartment does not consider this 
convention to be '"self -executing'" in the sense that 
inunediately upon its ratification prosecutions 
could lie instituted in the federal courts. Before 
this could take place, the federal criminal code 
would have to be amended by Congress. As one 
federal court has well put it : "It is not the func- 
tion of treaties to enact the fiscal or criminal law 
of a nation. For this purpose no treaty is self- 
executing . . .' The United States will be under 
a duty to enact what has been agreed upon in this 
convent ion. 

It should be noted that the Genocide convention 
does not represent the first instance in which the 
United States has coojierated with other nations 
to suppress criminal or quasi-criminal conduct 
which has become a matter of international con- 
cei-ii. The United States is party to the nndti- 
lateral convention foi' protection of subniarine 
cables of ISSl,' by which the contracting states 
have agreed to punish persons breaking or in- 
jui-ing submarine cables." The United States is 
paify to a convention of 1911 with (Jreat Britain, 
Kussia, and Jajian for the preservation and i^ro- 
tection of fur seals in the North Pacific Oi-ean,* 
whereby the contracting states undertook to pre- 
vent their citizens from engaging in pelagic seal- 
ing in certain areas of the North Pacific Ocean 
and "to enact and enforce such legislation as may 
be necessary to make effective the foregoing pro- 
visions with a])])ropriate jienalties for violations 
I hereof." " The United Slates is also party to the 
mullilateral convention to suppress the slave trade 
and slavery of ]9-J(;.^ whereby the contracting 
slates agreed lo impose se\ere jienalties not only 



• Thr Onr tlir To,). 5 F. (M) 838 (D. Conn.. W2r>.). 

*r.S. Treaty Series No. :!S0. •_' MmUo.v's Treaties 1049. 

'This wns iiniilenieiiled liv llie act of Fpl>. 20. 1888, 47 
r.S. Code I'l ;«. 

" r.S. 'I'reiit.v SiTies no. .'■|(11.:{, ."i M.iUoy 251(10. 

'■j'liis w;is inipleinenleil liy tlie act »{ AuiZ. 24. 1!M2, ll! 
U.S. ('o.le (aL'-(14:!. 

"r.S. Treaty Series no. 778, IV U.S. Treaties (Treii- 
wilhi ,''.1122. 



164 



Department of State Bulletin 



to repress the slave trade and slavery but also 
conditions of forced labor." 

Tlie United States has also entered into other 
international agreements designed to repress anti- 
social conduct, such as the white slave trallic, traf- 
fic in and manufacture of narcotic drugs, and the 
traflic in arms. 

Thus, tlie United States has cooperated in the 

f)ast with other nations in the suppression of such 
esser offenses as the killing of fur seals. It is 
natural tiiat other nations look to the United States 
for cooperation in the suppression of the most 
heinous offense of all — the destruction of human 
groups. 

U.S. Record of Humanitarian Diplomacy 

It is an inescapable fact that other nations of 
the world expect tlie United States to assert moral 
leadership in international affairs. The United 
States has a record of humanitarian dijilomacy, 
beginning with the early days of the Kepublic 
when President John Quinc}' Adams expressed the 
public sympathies of the American people with the 
Greeks in their struggle for independence from 
Turkish rule. The United States Government has 
remonstrated more than once with other govern- 
ments regarding their persecution of the Jews: 
with Rumania, in 1902; and with Czarist Russia, 
in 1S!)1 and 1004. In addition, the United States 
has also intervened diplomatically with other gov- 
ernments for the protection of Christians, not only 
on behalf of American missionaries but also on 
behalf of converts. For example, it is interesting 
to note that in the treaty of October 8, 1903, be- 
tween China and the United States,^" the Chinese 
Government specificallj' agreed not to persecute 
teachers of Christian doctrine nor to molest Chi- 
nese converts in the peaceable practices of Chris- 
tianity. This Government has also intervened 
diplomatically on behalf of native Christians in 
the case of the Armenian population of Turkey. 

Finally, it should be recalled that the United 
States intervened in Cuba in 1898, in the cause of 
humanitv and to put an end, to quote the joint 
resolution of April 20, 1898," to "the abliorrent 
conditions which have existed for more than 3 
years in the Island of Cuba, . . . have shocked 
tlie moral sense of the peoi)le of the United States, 
have been a disgrace to Christian civilization. . . ." 
It is a familiar role, therefore, for the United 
States to take the lead in raising moral standards 
of international society. And, prevailing inter- 
national conditions make it imperative that the 
United States continue to play this role. We all 
know too well tliat millions of luiman beings are 
still subjected to tlie domination of ruthless totali- 
tarian regimes and that the .spectre of genocide 
still haunts mankind. It should be made clear 

'Existing legislation was adequate, so this convention 
was not specifically implemented. 
"' I Mallov 261. 
"30 Stat. 738-739. 

January 30, 1950 

871157—50 3 



to such govermneiits tliat the United States and 
other civilized countries do not condone such con- 
duct now any more than in the past. • 

Importance of U.S. Action 

'I'lie Genocide couvetition has been signed on 
behalf of 43 states and has been ratified on behalf 
of Australia, Ecuador, Etiiiopia, Guatemala, Ice- 
land, Norway, and Panama. There can be no 
doubt that the other nations of the world will be 
ti'emendously influenced by the action of the 
United Staes Senate. 

The United States took a leading part in the 
United Nations in the international effort to out- 
law this shocking crime of genocide. I can only 
express, on behalf of the State Department, our 
earnest hope that the Senate of the United States, 
by giving its advice and consent to the ratifica- 
tion of this convention, will demonstrate to the 
rest of the world that the United Stales is de- 
termined to maintain its moral leadership in in- 
ternational affairs and to participate in the de- 
velopment of international law on the basis of 
human justice. 



THE CONGRESS 



Legislation 

Authorizing the Carrying Out of the Provisions of 
Article 7 of the Treaty of February 3, 1944, Between the 
United States and Mexico, Regarding the Joint Develop- 
ment of Hydroelectric Power at falcon Dam, on tlie Rio 
Grande. S. Rept. 907, 81st Cong., 1st sess. 3 pp. 

Certain Cases in which the Attorney General has Sus- 
pended Deiwrtation for More than 6 Months. S. Rept. 
l(Xi6, 81st Cong., 1st se.ss. 2 pp. 

Erecting a Jlemorial to the Memory of Mohandas K. 
Gandhi. S. Rept. 1070, 81st Cong., 1st sess. 2 pp. 

Investigation of Infestations of the EuroiM-an Corn 
Borer. S. Rept. 1085, 81st Cong., 1st sess. 1 p. 

Supplemental Appro|)riation Bill, 1950. S. Rept. 1092, 
81st Cong., 1st sess. 20 pp. 

Expanding Activities Within Foreign-Trade Zones. S. 
Rept. 1107, 81st Cong., 1st sess. 7 pp. 

Discharge of Fiduciary Obligation to Iran. S. Rept. 
1145, 81st Cong., 1st sess. pp. 

Payment of Claims for Finnish Vessels. S. Rept. 1166, 
81st Cong., 1st sess. 13 pp. 

Authorizing the Return to Mexico of the Flags, Stand- 
ards, Colors, and Emblems that were Captured by the 
United .States in tlic Mexican War. S. Rept. 1199, 81st 
Cong., 1st sess. 1 p. 

Amending the Independent Offices Appropriation Act 
for the Fiscal Year 1950. S. Rept. 1201, 81st Cong., 1st 
sess. 2 pp. 

Knowledge of the Marshall Plan in Europe: France. 
Report of tlie .loint Connnittee on Foreign Economic Co- 
operation created pursuant to .Section 124 of Public Law 
472, Eightieth Congress. S. Rept. 1203, 81st Cong., ist 
sess. 17 pp. 

165 



Soviet Methods Cannot 
Delay Security Council 

Statement byEmest A. Gross 
Deputy U.S. Representative ' 

Mr. President : I tliiiik that it is not necessary 
for any member of this Council to defend itself 
against the type of charge that has been made by 
the representative of the Soviet Union, that it is 
propaganda which is now so threadbare that I 
believe it has lost all its color and shape. 

I am afraid, sir, in turning to another matter 
that we are in some danger of being deflected from 
the item which is on the agenda today. The 
agenda does not contain an item calling for action 
by the Council on the Presidency today. There 
is an item listed which relates to a matter which, 
as I said on January 10 at our meeting, my Gov- 
ernment believes is of considerable importance. 
I refer of course to the resolution of the Ceneral 
Assembly concerning the regulation and reduc- 
tion of general armaments and armed forces. 
That is our next item on the agenda. Speaking 
for my delegation, I had hoped that we might pro- 
ceed to it and if any resolutions are to be made 
calling for suspension of rules or changes in the 
rules or other matters not related to the issue on 
tlie agenda today, that they might be made and 
circulated in the appropriate manner. 

I should like, Mr. President, at this time to make 
certain remarks which I should have preferred not 
to have to make at all and which are necessarily 
made in the absence of the Soviet representative 
since they deal with his absence. They might be 
criticized by liim on the ground that he was not 
present while they were uttered but I am sure that 
ho will realize, if he does me the honor to read 
the remarks I have to make, that they are directed 
against his absence and spring from it. I should 
like him to know that I greatly prefer if in the 
future he would see lit to be present upon all oc- 
casions including those when criticism of him is 
being made. 

I e.xj)ioss again the regret of my Government 
that the Soviet Union is unwilling to abide by the 
Charter of the United Nations and that it has 
cho.sen to ignore and to violate the rules of pro- 
cedure of the Security Council. 

Mr. President, the United Nations is strong 
enough to withstand such tactics as tliese. The 
absence of the Soviet representative will not pre- 
vent us from conducting tiie business to which we 
are pledged. It is the view of my Government 
that tlie absence of a permanent member from a 
meeting of the Security Council in no way dimin- 



'Made in the Security Council on Jan. 13, 19.W, and 
released to tlie press by the U.S. Mission to tlie United 
Nntiona on the same date. 



ishes its powers or its authority to act. The Char- 
ter provides in article 28 that the Council shall 
be organized so as to be able to function con- 
tinuously. We cannot permit this arbitrary ac- 
tion of our Soviet colleague to prevent us from 
fulfilling our obligation to the Charter. 

There is an additional reason of fundamental 
importance which should impel us to carry on 
with our duties in his absence as well as in his 
presence. Our work here in the United Nations 
is too important to the people of the world to be 
imperiled at the whim of a member motivated by 
malice or a desire for propaganda, whichever it 
may be. The vitality and prestige of this organi- 
zation has been developing in the past 4 years. 
We dare not permit its strength to be dissipated 
by this gesture of contempt for its orderly proc- 
esses. Our business here, Mr. President, is to seek 
to conciliate our differences, to create in the words 
of the Charter, "a center for harmonizing the 
actions of nations." This objective is under- 
mined if one member absents himself when his 
point of view does not prevail. The principles 
of the Charter are placed in dire peril if other 
members allow such arbitrary action to deter them 
from proceeding. 

Mr. President, there are five states represented 
on the Security Council which do not now rec- 
ognize as the Government of China the Govern- 
ment which Dr. Tsiang represents. This, of 
course, creates difficulties for these states when 
confronted by the Soviet proposal but only one 
of these five for reasons of its own chooses to act 
in a way that is disloyal to the United Nations and 
to the Security Council. Only one of them re- 
fuses to accept the decision of the Security Council 
taken in accordance with the Charter and the rules 
of procedure. 

Mr. President, we hope that a decent sense of 
respect for the United Nations and the work be- 
fore us will soon restore the Soviet representative 
to his place in our councils. In the meantime, let 
us proceed. 

In conclusion, Mr. President, I should like to 
urge upon the distinguished delegate of Yugo- 
slavia that it would seem more appropriate at this 
meeting to continue as required by the rules, as 
has been so clearly pointed out by the distin- 
guished representative of France, in a normal 
manner proceeding to the next item on the agenda. 



Engineering Professor Visits Brazil 

John H. Kuhlmaiin, iirofessor of electrical design, Uni- 
versity of Minnesota, 1ms been awarded a grant to enable 
him to serve as visitinf: professor for a year at the Univer- 
sity of SHo Paulo, Hrazil. He has been invited to give 
a special course in the design and construction of elec- 
trical machinery for interested teachers, engineers, and 
students. He will leave for Sao Paulo on January 14. 



166 



Deparfmenf of S/a/e BuWetin 



Action on Political and Security Problems in the United Nations 



Four years ago the first meeting of the Secirity 
Council was held at Church House in London on 
January IS. Since that day in 1946 the Council 
has held 4G'2 meetings, an average of more than 
two per week. During the same period the Gen- 
eral Assembly has completed four regular sessions 
and two special sessions, consisting of a total of 
about 360 working days, or 66-day weeks. 

What have all these meetings accomplished? 
It is too early to make a final assessment of the 
accomplishments of the United Nations. In the 
field of peaceful settlement at least we can, at best, 
have only a short-range perspective. But the time 
has come, even though it is only after 4 years, for 
us to judge the United Nations on the basis of its 
performance. 

With strict adherence to the two precepts im- 
posed by the Charter — to settle international dis- 
putes by peaceful means and to refrain in inter- 
national relations from the threat or use of force 
against the territorial integrity or political inde- 
pendence of any state — we would have some assur- 
ance of a peaceful world. 

In addition to providing standards of interna- 
tional conduct, the United Nations makes avail- 
able procedures and techniques that make the task 
of peaceful settlement easier. 

The machinery available to the United Nations 
and its organs was created on an assumption that 
there would be cooperation among nations, that it 
would be used in good faith, in bona fide efforts to 
reach the objectives for which it was designed. 
That cooperation and good faith has often been 
lacking. The available machinery has had to be 
adapted to a contrary situation. It has had to be 
adapted to national policies of propaganda and 
veto and walkout. This is not an apologia for 
the United Nations ; it is a fact. It is the type of 
fact that tests the ingenuity of the men in the for- 
eign offices whose job it is to make the United 
Nations machinery meet the production schedules 
that determine whether the United Nations is in 
the black or the red. 



' An excerpted version of an address made by Harding 
F. Bancroft, Director of the Office of United Nations 
Political and Security Affairs, Department of State, before 
the United Nations Association of Chicago on Jan. 19, 1950, 
and released to the press on the same date. 



In so far as the United States is concerned our 
wholehearted support of the United Nations 
means that in contemplating any course of action 
in our foreign policy we test that course against 
the standards of the Charter and we ask ourselves 
how this or that step would look in the United 
Nations. The foreign offices throughout the 
world make the same tests and ask the same ques- 
tions. Even though in some cases there may be a 
tendency to a very liberal, if not distorted, con- 
struction of the words of the Charter. 

It is significant that thus far in the work of the 
United Nations no nation has been cynical about 
the standards of the Charter. No nation has been 
willing to admit that any action it has taken or 
proposes to take is contrary to the Charter. In- 
deed, in all cases representatives have been quick 
to assert that what they have done conforms with 
the Charter and their arguments run to the mean- 
ing of the Charter rather than to the validity or 
propriety of its provisions. 

Mr. Vyshinsky's statement on his arrival in 
New York for the last session of the General 
Assembly illustrates this point: 

The Soviet Delegation feels confident that the United 
Nations is — as head of the Soviet Government, Stalin, had 
said — a serious instrument for the maintenance of peace 
and international security. There can be no doubt that 
the General Assembly will be able to solve successfully 
the important tasks it faces, provided that the members 
display a sincere desire to cooperate with each other 
and act in accordance with the principles of the United 
Nations Charter. 

Last week the representative of the Soviet 
Union walked out of the Security Council on the 
ground that he could not participate so long as the 
representative of Nationalist China was repre- 
sented at the table. 

The Council voted by a vote of 6 to 3, with 2 
abstentions, against a Soviet resolution to unseat 
the Nationalist representative. Mr. Malik used 
the technique of walk-out to show his disagree- 
ment with the Council's decision. He attempted 
to justify his illegal action by an expression of 
respect for the prestige of the United Nations. 

Tlie position of the Soviet Union, is a consistent posi- 
tion ; it is a position of principle. The Soviet Union will 
not participate in the Security Council until the repre- 
sentative of the Kuomintang group, who is illegally occu- 



January 30, J 950 



167 



pyinK a seat in this organ of the United Nations, has 
been removed therefrom. His presence undermines the 
prestige and the authority of the Security Council and 
the United Nations. 

The present question is whether the machinery 
that has been established under the Charter is 
adequate to assist the nations of the world m 
meetin<5 these high standards of international 
conduct, and whether the procedures and tech- 
niques of peaceful settlement are in fact helping 
to create a harmonious community of nations. 

A partial test can be made by reviewing some 
of the questions in the political field that have 
been before the United Nations and contrasting 
the situation as it was about a year ago and the 
situation today. 

A year ago the Soviet blockade of Berlin was 
still in effect. On December IS, 1948, the Dutch 
had launched a new military action in Indonesia. 
In Palestine, not much more than a year ago, 
fighting was continuing between Israel and the 
Arab armies. Throughout 1948 in Kashmir, there 
was fighting between the regular armies of India 
and Pakistan. 

In Greece, the guerrilla warfare against the 
Government still continued with the active aid 
and assistance from Albania, Bulgaria, and Yugo- 
slavia, its neighbors to the north. 

All the cases have a common denominator in 
that the United Nations has been instrumental in 
making some progress toward a settlement. By 
using differing procedures adapted to the differ- 
ing international problems the United Nations has 
been able to isolate issues, to narrow the points of 
difference between the parties, and to bring to bear 
to a lesser or greater degree the pressure of world 
opinion by tTie use of what "Woodrow Wilson 
called lhe""power of pitiless publicity." 

The Berlin case was brought to the attention 
of the Security Council in September 1948 as a 
threat to the peace. It was a form of duress under 
which the Western Allied Powers could not ne- 
gotiate with the Soviet Union on the technical 
problem of currency which the Soviets had alleged 
was the reason for the blockade. However, be- 
cause it was a direct dispute between the Great 
I'owers, the veto existed to block any substantive 
decision which the Council might make on the 
merits. So the Council tried a different approach. 
After a full statement of the facts, the President 
of the Council. Dr. Bramuglia of Argentina, en- 
listed the aid of five other members of the Council 
who were not directly involved. These six repre- 
sentatives acted as g()-l)etweens between the West- 
ern nations and the Soviet Union and explored 
every i)os.sibility to find a conunon grotmd. De- 
spite the Soviet" [)osition that they were unwilling 
to participate in the Security Council discussion, 
the}' did consider Dr. Branuiglia's ])roposals. But 
they did not budge an inch and insisted there must 
be agreement on t'he Berlin currency problem be- 
fore liiey would lift the blockade. 
When the efforts of the six neutrals failed, the 



Security Councirs resources were not exhausted. 
The President of the Council then established a 
technical committee to study the currency problem 
as an isolated issue on a technical basis. Again, 
the Soviet Union did not budge and after weeks 
of work in Paris and Geneva the technical com- 
mittee had to report that it could find no basis for 
agreement. There were, however, various infor- 
mal indications that the Soviets in fact wanted a 
solution. That was understandable because the 
continuance of the blockade was a real political 
liability to the Soviets among the German people 
and the review of the case at the bar of world opin- 
ion had made it clear where the blame for the tense 
situation lay. Then last winter Premier Stalin in 
one of his press interviews restated the Soviet po- 
sition on the case but did not mention the necessity 
for prerequisite agreement on the currency prob- 
lem. The significance of that omission was taken 
advantage of by another less formal United Na- 
tions technique, namely, the delegates' lounge at 
Lake Success. Dr. Jessup asked the Soviet repre- 
sentative if Stalin had purposely omitted any men- 
tion of currency, and Mr. Malik promised to cable 
back to Moscow to find out. In a short time, he 
called on Dr. Jessup to report that the omission 
was "not accidental." 

From that point forward it was easy, and the 
four powers agi'eed that the blockade would be 
lifted and immediately thereafter a meeting of 
the four Foreign Ministers would be held. 

The problem of Berlin and the problem of Ger- 
many were not solved at the meeting of the For- 
eign Ministers, but the resources of the United 
Nations that paved the way for sensible negotia- 
tions rather than nonsensical use of force. 

The outcome of the Indonesian question has 
been the most successful of any problem with 
which the United Nations has dealt, and in pass- 
ing, a number of points might be stressed. The 
first point is that ever since the first Dutch mili- 
tary action in July 1947, there has been a United 
Nations connnission in Ratavia doing its best to 
reconcile the parties. That commission negoti- 
ated the steps which have now liecome a normal 
pattern in cases where fighting has broken out; 
namely, a cease-fire, a truce, and an armistice with 
demai'cation lines between the territories of both 
sides under the observation of United Nations mil- 
itary observers. The commission also negotiated 
a stage of agreement on ])rinciples when the Ren- 
ville agreement of January 1948 was concluded. 
The fact that these principles were ignored by 
the Dutch military action in December 1948 does 
not lessen their imjiortance as a milestone, because 
the Security Council and the Commission based 
United Nations action on their continued validity. 

A second significant feature of the Indonesian 
case is the fact that when it was finally agreed 
that a conference at The Hague would determine 
the methods of transfer of sovereignty and the 
nature of the relations between the Dutch and 



168 



Department of Slate Bulletin 



the new nations, tlie commission went to that con- 
ference and helped it along on every troublesome 
point. 

The third interesting feature is the influence 
that the United Nations had on the Republic dur- 
ing its long struggle with the Dutch. The exist- 
ence of the Commission in its territory gave the 
leaders of the Kepublic added strength to carry 
forward a nationalistic cause and at the same time 
to combat within their own ranks the influence of 
Connnunists. The Republican leaders knew that 
they had the moral support of the non-Commu- 
nist countries in the United Nations. They knew 
further that this support would be weakened or 
lost if they permitted the Communists in Indo- 
nesia to subvert their nationalist aspirations. Ac- 
cordingly, the Republicans were able to sujjpress 
the Communist uprising in the summer of 1948 
and to maintain tlie integrity of a liberal and 
progressive leadership for a new nation. 

This was a case where the United Nations and 
the high statesmanship of both the Dutch and the 
Indonesians all contriouted to a final success. 

The Palestine case is not easy to analyze because 
it has had such a long and complicated history. 
Althoug'h it is still unsolved the outstanding prob- 
lems have now reached manageable proportions. 
The United Nations has provided a wide variety 
of instrumentalities to deal with its various as- 
pects which have acted both separately and in co- 
ordination with each other. After the British 
mandate in Palestine ended in 19i7, the General 
Assembly sent a commission to the area to study 
the problem and to make proposals. Thereafter, 
acting in a quasi-legislative capacity, the General 
Assembly adopted the partition plan. Wlien hos- 
tilities broke out in 1948 the Security Council 
ordered the parties to stop fighting and created 
a truce commission. In the spring of 1948, the 
General Assembly at a special session created the 
office of mediator who was to work in close cooper- 
ation with the Security Council. In the fall of 
1948, the General Assembly created the Palestine 
Conciliation Commission to attempt to bring the 
parties together on outstanding questions. Also, 
in 1948, the General Assembly created the United 
Nations Relief for Palestine Refugees (Unrpr) 
whose job it was to look after the more than three 
quarters of a million Arab refugees who were 
wandering about the area hungry and destitute. 
Complex machinery was created to meet a com- 
plex situation. 

As late as December 1948, there was large-scale 
fighting in the Negeb in the southern tip of Pales- 
tine, and it was only last summer that armistice 
agreements had been reached between Israel and 
all the Arab governments. The work of the 
United Nations was slow and unspectacular, but 
it was proceeding. The boundary question is still 
unresolved, but it is quiescent, and territorial set- 
tlements are never quickly made. Wlien the par- 
ties are ready to find a common ground, the Pales- 



tine Conciliation Commission will be available to 
help them. 

It is now possible to see a glinmier of hope in 
the grave economic dislocations that followed the 
hostilities. Last year the refugees were cared 
for by the Unrpr on a straight relief basis. This 
year the General Assembly has provided for a 
different approach based on the recommendations 
of the Economic Survey Mission. The signifi- 
cant feature of the new approach is that it looks 
toward the end of direct relief by the integration 
of the refugees into the economic life of the area 
and by providing employment opportunities for 
them in useful ])ublic works. The General As- 
sembly has estimated that 57 million dollars will 
be required for this agency for an 18-month pe- 
riod, which is not much more on a monthly basis 
than was expended last year for direct relief of 
the soup kitchen type. The new agency to carry 
out this work is called the United Nations Relief 
and Works Agency for Palestine Refugees in the 
Near East. 

The Palestine case has aroused such strong feel- 
ing and strong criticism, it is not easy to evalu- 
ate the role of the United Nations. What would 
have happened if there had been no United Na- 
tions? Wlio or what would have accepted re- 
sponsibility when Britain gave up its mandate? 
Would a new state have come out of it like Israel 
to take its place in the community of nations? 

Turning to Kashmir, here is a problem which 
the Security Council has had for 2 years. A set- 
tlement has not been reached, but by action of the 
Council and the work of its commission in the field, 
the fighting between the regular armies of India 
and Pakistan has been stopped. A truce with 
established demarcation lines supervised by 
United Nations observers is in effect. The Com- 
mission has succeeded in obtaining the parties' 
agreement to the important principle that the fate 
of Kashmir shall be determined by the people, in 
a plebiscite under the supervision of the United 
Nations. Despite that agreement India and Paki- 
stan have not been able to agree on the procedures 
to be worked out as to how the plebiscite shall be 
held. The outstanding issue between them is the 
question of demilitarization of the area, that is the 
synchronized withdrawal of the Indian and Paki- 
stan troops that are in Kashmir and the disband- 
ment of local militia which sprang up as defense 
forces while the fighting was going on. The Com- 
mission is still in existence, a United Nations pleb- 
iscite administrator, Admiral Nimitz, has been 
appointed and is ready to conduct the plebiscite 
when it is held. Even now, General McNaughton 
of Canada, the President of the Security Council 
in December, is helping with his good offices at 
Lake Success in the laborious process of peaceful 
negotiation. 

In Greece since the General Assembly has had a 
Commission in that country, we have seen the 
guerrillas reduced fi'om their peak of 27,000 to a 



January 30, 1950 



169 



present handful of about 800. Many factors led 
to this result in addition to the United Nations: 
the good showiufr of the Greek army, the United 
States aid profirani, and Tito's break-away from 
the .'^oviet orbit. The technique used by the 
United Nations was dilicrent here than that used 
elsewhere. The Greek rebels in their light against 
their Government were actively aided by the three 
countries to the north— Albania, Bulgaria, and 
Yugoslavia. Those countries provided arms and 
ammunition for the guerrillas, niaintained train- 
ing centers for them, and provided avenues of 
escape across the frontier. 

Tlie ])r()cess of negotiation or conciliation was 
unavailable because tlie three northern neighbors 
refused to recognize the United Nations Conunit- 
tee or to cooperate with it in any way. The As- 
sembly used the technique of "i)itiless publicity." 
It maintained a connnission in Greece with observ- 
ers wearing United Nations arm bands stationed 
at strategic ])oints along the frontier. The com- 
mission was thus able to get first-hand evideni'e 
as to the fact of assistance from the north and the 
extent of it. This evidence was transmitted to 
the members of the United Nations, and the As- 
sembly adojited appropriate resolutions based on 
the commission's (indings and called upon those 
countries to cease their aid. The United Nations, 



by focusing the spotlight of world attention on 
the facts, inspired an articulate expression of 
world opinion. Yugoslavia has recently ceased 
its aid to the guerrillas and a normaliza- 
tion of its relations with Greece is now possible. 
The Balkan Commission has always had within 
its terms of reference the authority to use its good 
offices to mediate between Greece and its northern 
neighbors. 

These cases are not the only political problems 
that face the United Nations. They illustrate a 
jjattern of adaptable process in questions of dis- 
putes between nations. They also show a poten- 
tial that is hopeful in cases where a nation is deter- 
mined to maintain its integrity against outside 
aggression. For example, wth the help of the 
United Nations, the Iranian people succeeded in 
V.)ii') in resisting Soviet aggression. Similarly, 
the people of South Korea have established a 
democratic government elected by themselves. 
That Government has resisted outside interference 
from the North, even though Soviet imperialism 
has made impossible the unification of the country 
as a whole. As the Secretary of State said in his 
statement last week, "the United Nations has not 
so far proved a weak reed to lean on by any people 
who are determined to protect their independence 
airainst outside atrizression." 



Importance of American Relations With the Near East and South Asia ' 



In reviewing the jiai-ticular problems of South 
and Southeast Asia, the British Ccmunonwealth of 
Nations at a conference of Foreign Ministers at 
Ceylon, early this month, ''found ihat in the light 
ofthe i-ajiid changes taking place in that area, 
progress will depend mainly upon the improve- 
nient of basic economic conditions.'' George C. 
McGliee told the Annual Pi'ess Institute on ,)an\i- 
ary 19. 

.Ml-. McGhee, A.'-sistant Secretary for Near East- 
ern, South Asian and African Affairs, said that 
the task of the Conunonweallh Consultative Coin- 
mitlee, which will hold its first meeting shortly 
in Australia, will be to plan "an economic i)r()- 
gram foi' South and Southeast Asia based on prin- 
ciples of self-hel]) and mutual aid." 

"The United States," Mr. .McGhee said, "ap- 
])lauds this decision of the Conunonwealth Con- 
ference and finds hope in the spirit of unanimity 
with which it was adopted. Many elements must 
be coniiniied to bring about success for an under- 
taking of the magnitude envisaged at Ceylon. Es- 
sential elements which are lacking in individual 

"I'his ncidiint Is nil pxcorpti'il vcrsiDn of Assistant 
Scent a ly .M<(;iiei''s address; for cuinpli'te text, see Dc- 
|i:irliiiciit I'f suite press relouse 53 of Juii. 19. 



states can be i)rovided thi-ough a pooling of re- 
sources in a connnon effort. 

"There is a long tradition of friendly and co- 
oiH'rative relations between the United States and 
the Commonwealth of Nations. The United 
States has given practical expression to its in- 
terest in the economic stability of the United King- 
dom ami has hel]>ed to strengthen the economic 
sinews of the Commonwealth. The United States 
wishes the Commonwealth nations success in the 
high endeavor upon which they have embarked 
on their own initiative in South and Southeast 
Asia. We on our ])art are ready to adapt our 
own efforts in furtherance of this endeavor." 

The vast regions of the Near East aiul South 
Asia have great ])roblems I'esulling in part from 
their long history as colonies, and from the dis- 
locations which accompanied their emergence as 
indej)endent states. I regret to say, Mr. McGhee 
contiiuied, that there is .some tendency among these 
people to associate the United States with the 
former jiract ices of the colonizing powers, of whom 
they tii'e still suspicious. Moreover, they are in- 
clined to feel that the United States has neglected 
them because of its concentration on the jiroblems 
of \\'eslern Europe. Vet an increasing number of 



170 



Department of Stale Bulletin 



tlicir people are coming to realize that the United 
States, perhaps by virtue of the fact that we won 
freedom from colonial status, has a genuine desire 
to encourage nationalist aspirations, and to assist 
them with their basic problems. 

Thej' provide in comparison with other areas in 
the East a relatively stable base, upon which can 
be built an orderly society of free people. It is 
particularly in the light of the situation in the 
Far East, the Assistant Secretary said, that we 
must view with increased importance the attain- 
ment of this objective, as well as the voluntary 
association of the peoples of this area with the 
other free peoples of the world. The problem of 
this area is not to put out a fire that is tnreatening 
to consume its social and economic structure. The 
problem is to build that structure. The needs are 
pressing, but there is still time to build wisely 
and well. 

Strategic Importance of Area 

This area, containing almost one-fourth of the 
people of the world, includes parts of three con- 
tinents. Greece and a part of Turkey are in Eu- 
rope. The Greek guerrilla war and the question 
of the Turkish Straits are primarilj^ European 
problems, but strategically both countries are im- 
portant to the whole Near East. The Egyptians 
live in Africa, but their historic, cultural, religious, 
and political ties are largely with Asia. In 
Asia itself, the region includes Turkey, the Arab 
states and Israel, Iran, Afghanistan, India, Paki- 
stan, and Ceylon. It comprises the whole area 
south of the Black and Caspian Seas and the Him- 
alayas. The future of India, Pakistan, and Ceylon 
is closely linked with that of East Asia; neverthe- 
less, their internal stability at this time shows 
marked contrast to the condition of their fellow 
Asians to the East. 

A factor of great significance, Mr. McGhee said, 
is that of its geographic and strategic position. 
In this vast sweep of territory, the historic con- 
nection between its 500 million peoples has been 
the narrow land bridge where the three continents 
come together in the eastern Mediterranean. 

"As an indication of increasing American in- 
terests in this region, an American flag was rarely 
seen at the masthead of a ship passing through 
the Suez Canal before 1930. Now, more than half 
the tonnage which goes through that narrow 
waterway is American. During the interval be- 
tween World AVars I and II commercial aviation 
spread its network through the Near East to link 
Europe with South and Southeast Asia. The im- 
portance of the area has been further increased 
by the modern techniques of telecommunications. 
Freedom of movement through this area is vital 
to a peaceful world. Control by a totalitarian 
powder would split the free world into two uncon- 
nected segments and endanger the future of free- 
dom in the whole world." 

A second factor of importance, Mr. McGhee 



continued, is the concentration of population in 
this area. India alone has more people than the 
whole of the Western Hemisphere. Yet this great 
supply of manpower, under present conditions, 
suffers from archaic methods, lack of modern 
skills, and inhibiting social patterns. The aver- 
age laborer has little opportunity to supplement 
his physical energy through the full utilization 
of the natural resources about him. As a result, 
his productivity is low, and his standard of living 
is often little higher than the minimum for exist- 
ence itself. Yet, as they have demonstrated over 
centuries in the handicrafts and in the works of 
art which they have produced, these people are 
capable of developing remarkable skills. 

"Also, the area is important because of its 
wealth potential. Great rivers flow into the sea 
during a part of the year. At other times their 
banks suffer from a lack of water. This results 
in undeveloped power facilities, wasted lands, and 
in drudging human hardships. Recent years 
have also brought to light the great mineral re- 
sources of this area; particularly, the petroleum 
reserves in the region of the Persian Gulf. Al- 
though still only partially developed, it is esti- 
mated that they contain perhaps 50 percent of the 
world's known oil reserves. There are also in the 
area other large deposits of mineral wealth, in- 
cluding manganese and mica. 

Development of U.S. Interest 

"The relatively recent development of our in- 
terest in this area arises in part from the fact 
that, until a half century ago, these hundreds 
of millions of people were generally living as de- 
pendent peoples under the aegis of European pow- 
ers. But the First World War greatly weakened 
the empires of Europe. The partial exhaustion 
of the European states and the spread of the con- 
cept of self-determination combined to create the 
external conditions under which the peoples of 
the Near East and South Asia could successfully 
demand their freedom. Concurrently there de- 
veloped intense nationalistic feelings on the part 
of the colonial populations themselves. 

"The period between the World Wars marked 
the gradual development of United States interest 
in the Near East, particularly along educational 
and commercial lines. But it was the Second 
World War that catapulted America into the very 
center of Near Eastern and South Asian life, and 
led to an appreciation by us of the importance of 
this part of the world. For World War II had 
four important effects on this area which have in- 
fluenced relations with the United States. 

"First, the necessity to protect the vital com- 
munications and resources of the Near East and 
South Asia demanded American participation in 
the military campaigns and supply operations in 
that area. Many thousands of American troops 
lived there and saw the conditions under which 
people lived. 



January 30, 1950 



U^ 



"Second, World "War II hastened the relinquish- 
ment of European responsibility over many parts 
of this area because of the inability of the Euro- 
pean powers to continue the heavy financial and 
security responsibilities which they had borne in 

the past. , ^ , 1 

"A third factor resulting partly from the second 
was the emergence of new states, including Syria, 
Lebanon, Jordan, Israel, India, Pakistan, Nepal, 
and Ceylon. Some of these states were small and 
were not viable economic units. In most of them 
there was a deficiency of experienced leadere and 
administrators. The result was that many of 
these nations were launched into independence 
without stable and progressive governments. This 
fact, coupled with the partial withdrawal of 
European power from the East, tended to create 
a power vacuum over an enormous area along the 
southern boundaries of the Soviet Union. 

"A fourth factor was the emergence of Soviet 
imperialism under the guise of communism, with 
the goal of conquering the Near East and South 
AsiiK This objective was clearly expressed by the 
Soviet Government itself in agreements with Ger- 
many in 1940. In the draft agreements for a pact 
between Hitler and Stalin, the Soviet Union de- 
clared that 'its territorial aspirations center south 
of the national territory of the Soviet Union in the 
direction of the Indian Ocean.' Again on No- 
vember 26, 1940, Mr. Molotov asked the German 
Foreign Office to collaborate with the Soviet Union 
in agreeing to establishment of land and naval 
bases within range of the Bosphorus and the Dar- 
danelles and specified that 'the area south of 
Batum and Baku in the general direction of the 
Persian Gulf should be recognized as the center 
of the aspirations of the Soviet Union.' " 

Soviet Moves Fail 

The Soviet Union, Mr. McGhee said, must have 
thought the situation peculiarly favorable for 
her designs in 1945. The weakened European 
jiowers could no longer assure the Near East of 
security against encroachment from the north. 
"The United States was far away, traditionally 
isolationist, and jjrobably unaware of the real 
facts involved. Therefore, the Soviet Union set 
in motion a series of intrigues and attacks calcu- 
lated to destroy Greece, penetrate Turkey, and 
paralyze Iran. 

"The United States recognized the danger and 
accepted the challenge. In a series of unpre- 
cedented actions tlirough the United Nations and 
through direct aid to Greece and Turkey and later 
to Iran, we have assisted the peoples of the Near 
Ea.st in resisting aggression. Four years is not 
a long time for peoples whose history is counted 
in millennia. Yet perhaps 4 years is enough to 
see the results which these people have achieved 
with United States assistance, and to assay the 
role that the United States is assuming in this 



region. The Soviet Union first failed in its effort 
to absorb northwestern Iran and thereby to 
paralyze Iranian economic life. 

"Iran successfully resisted this threat with the 
support of the United Nations and the United 
States. In order to assist Iran in strengthening 
its internal security, the United States has ex- 
tended military assistance. Last December, at 
the close of the visit of the Shah of Iran, Presi- 
dent Truman stressed our desire to help Iran in 
her seven-year plan for economic and social de- 
velopment" by supporting Iran's application for a 
loan from the International Bank. With the in- 
creasing payments in foreign currency oRained 
for her oil royalties, Iran is now in a position to 
proceed with the development of her latent re- 
sources." 

The Soviet Union, Mr. McGhee continued, also 
failed to make headway against the Turks, who 
showed a remarkable courage and firmness in 
dealing with Soviet threats and pressure. United 
States military assistance has greatly modernized 
Turkish security forces. A barrier has been in- 
terposed to Soviet penetration that has given Tur- 
key and the free peoples of adjoining territories 
greater assurance of security. Eca assistance 
has given strength to the Turkish economy and in- 
creased confidence to the Turkish people in their 
economic betterment. 

"Soviet threats to the integi-ity of Greece have 
been well documented," he said. "The Commu- 
nists inspired and supplied a painful and costly 
guerrilla war against a Greek Government, 
elected by a majority of its people. But the Greeks, 
when given tools in the form of American eco- 
nomic and military assistance, proved victorious, 
and the rebels have either been driven back into 
satellite territory or have surrendered. Greece 
now faces her first year of peace in a decade. The 
greatly improved military situation, however, must 
be supplemented by a corresponding economic im- 
provement and the development of stable govern- 
ment. Demobilization of the Greek forces has 
begun, thus releasing funds for economic develop- 
ment. Martial law has been lifted in several parts 
of the countr}'. Broad clemency legislation has 
been enacted, and general elections are scheduled 
for February or March," IMr. McGhee concluded. 

The Palestine Problem 

Tile problem of Palestine is very different in its 
origins and development from that of other prob- 
lems in the Near East, Mr. McGhee said. "United 
States interest in Palestine and in the development 
of the State of Israel has in no way lessened our 
interest in the Arab states. We have demon- 
strated that interest in a number of important 
actions in the i)ast few years." 

A tragic result of the armed conflict which took 
place between Israel and the Arab states was the 
exile of three-quarters of a million people who 
are now living under deplorable conditions in 



172 



Department of Sfafe Bulletin 



Aral) territory. The presence of these refugees, 
Mr. Mc(}lice said, perpetuates the ill feelings en- 
genilered by the conllict and continues to retard 
the economic progress of the whole region. The 
I'nited Nations recognized in 1048 that hope for 
the restoration of peace between Israel and the 
Arab world depended upon some solution of the 
refugee problem. The United Nations asked its 
member states to contribute a sum of -yi million 
dollars for the relief of these unfortunate people. 
The United States contributed half of that sum. 
But it was recognized that relief in itself docs not 
provide a solution to the basic problem. Accord- 
ingly, the Palestine Conciliation Commission 
organized in the fall of 1949 an Economic Survey 
Mission under the chairmanship of (iordon Clapp. 
The General Assembly has asked member states to 
contribute a total of 54.9 million dollars for a 
works and relief program, to be expended over a 
period of IS months. 

About 60 percent of these funds, he continued, 
will be spent on modest demonstration projects, 
which will have the dual purpose of benefiting 
the countries concerned while allowing many of 
the refugees to earn a living rather than receive 
a dole. These projects are largely agi-icultural. 
One is in the drainage of swamps in the Ghab, a 
rich and fertile valley in North Syria. Another 
is in tiie valley of the Zai'qa River, which flows 
into the Jordan through an area which was rich 
in Biblical times, but where the ravages of erosion 
and neglect have permitted reversion to the desert. 

"Mr. Clapp feels that the peoples of the Near 
East must gain experience through these and sim- 
ilar projects before they can launch the more am- 
bitious plans proposed for the Near East — which 
are too grandiose for present realization because 
of limitations in the states concerned in such basic 
factors as administrative experience, local capi- 
tal, and skilled labor," Mr. McGhee said. 

"Like ourselves, the Near Eastern peoples must 
learn the slow way from small beginnings. 
Through these, they will acquire the capacity to 
attack larger problems. It is the view of the 
administration that the United States should con- 
tribute about 50 percent of the funds necessary 
for these projects, the same percentage as for the 
refugee relief program, and Congress will be re- 
quested to appropriate this sum. American skills 
can be made available to this progi-am under the 
President's Point 4 Program. 

'"It is ho])ed that Mr. Clapp's plan, which re- 
quires a cooperative effort by the states concerned, 
the United Nations, and assisting states, will pro- 
vide the missing element, the inspiration to gal- 
vanize the latent enei'gies and abilities of the 
peoples of the Near East. Through this plan, it 
is hoped that strong forces for economic and social 
betterment will be released," Mr. McGhee said. 

"Our proposed participation in this program 
points up a guiding principle of United States 
foreign assistance, which has been stated nowhere 

January 30, 1950 



more clearly than by the Secretary of State a week 
ago today at the National Press Club : 

'American assistance can not furnish determina- 
tion, it can not furnish the will, and it can not 
furnish the loyalty of a people to its government. 
But if the will and if the determination exists 
and if the people are behind their government, 
then, and not always then, is that a very good 
chance.' 

The missing component may be provided in a 
number of ways, Mr. McGhee said. Technical 
assistance is needed almost universally. Teams 
of United States experts have been hired by for- 
eign governments, or sent by United States agen- 
cies to advise on specific matters of engineering, 
health, or administration. When approved by 
Congress, such technical assistance will be or- 
ganized under the President's Point 4 Program 
through the United Nations. The United States 
can help also through loans by the Export-Import 
Bank. 

Several states in this area are now seeking loans 
from the International Bank for conservation 
and development projects. The case of Iran has 
already been mentioned. The missing component 
in other cases may be United States private in- 
vestment and managerial talent, in situations 
where it is desired and a suitable "climate" 
provided. 



U.S. Representatives in Far East 
To Stop Sailings of Ciiinese Ships 
With Defaulted Payments 

[Released to the press January 18] 

The Department of State, following consulta- 
tion with the United States Maritime Commis- 
sion and the Export-Import Bank of Washington, 
has instructed its representatives in various ports 
in the Far East today to request local authorities 
to take steps to prevent the sailing of certain 
vessels, owned by the Chinese National Govern- 
ment and operated by that Government or by 
Chinese private interests, on which mortgages 
held by the Maritime Commission and Export- 
Import Bank are in default both as to principal 
and interest payments. 

This action is being taken at this time to protect 
the interests of the United States under the de- 
faulted mortgages which it holds on these vessels 
in view of the defection on Monday of certain of 
these vessels currently at Hong Kong. 

It is anticipated that legal action will be taken 
within a few days by the Maritime Commission 
and the Export-Import Bank in the various juris- 
dictions where the ships are presently located in 
order to protect the interests of the United States 
in these vessels. 

173 



These vessels, 42 in number, were sold by the 
United States Government to the Chinese National 
Government in I'J-iT and early 19-i8. The total 
amount of principal and interest presently owing 
the United States Government on these vessels 
is almost 19 million dollars. 

The State DeiJartment, Maritime Commission, 
and Export-Import Bank have been discussing 
witii the Chinese Embassy in Washington the 
problems connected with the default on payments 
on the mortgages during the past several months 
and recently informed the Chinese Embassy of 
the likeliliood that the United States would be 
required to avail itself of its legal remedies under 
the UKjrt gages on these vessels. 

The Secretary of State has today addressed the 
following letter to Dr. V. K. AVellington Koo, 
Ambassador of the Chinese National Government: 

Tlu' Dopartniciit nf State lia.s, this day, informod its 
repri'scntativcs in vari(nis foreijrn ports ttiat tlic Maritime 
('otiiiiiission and the Kxiiort-Inipnrt Bank of Wasliinf;ton 
have decided lliat they liave no alteiiialiv(> liut to take 
iininediulely siicli iesal aetion as is re(|uired in order to 
Iiroleet tlieir interests under morl.i,'a,L:es lield hy tlieni 
wliieli are in default on certain vessels owned and oper- 
Mied hy the Chinese National Government and Chinese 
private interests. This <lecision was taken at this time 
in consultation with and upon the recommendation of 
the Kepartment of State, In view of the recent detections 
cairied out hy the crews of certain vessels in Honj; 
KonK. In view of the seriousness with which the Kovern- 
ment agencies wliich hold lliese niortu'n^es have discussed 
the matter of your Government's default with you and 
memhers of your staff over a period of months, I feel sure 
the action now taken hy them will come as no surprise. 

The nepai-tment of State is conscious of the possihle 
effect u|ion the economy of the Chinese National Govern- 
ment which unfortunately may How from this decision. 
You will appreciate, however, I am sure, the necessity for 
the action hein;; taken. The Department is fully con- 
scious of the transportation requirements of F"orniosa 
in order to maintain its e<'ononiic viahllity and will con- 
sider. In C(jnsnltation with (jther United States Govern- 
nient ap'ticies, such measures as may he possihle and 
apliropriate in the li;;ht of such needs. 



Tientsin Paper Publishes Notice 
for Registering Property 

[Udtuacd to the prcs,H Jdnuiirn J~] 

Tlie Department of State announced today that 
it has been informed liiat the December 2.5,' 1S)4!), 
issue of tlie Tientsin ne\vHpii|)er, 7'icfi Chin Jih 
I'd" — jjublislied under Chinese Comimmist aus- 
pices, contaitied ti "notification of tlie Cliinwang- 
tao People's Ciovernmenf in regard to the regis- 
tration of jirivate i)ropeily at Peilaiho. The 
following is iui unodicial translation of the noti- 
fication : 

Notice l.s herehy served that re;:lslrallon has l)e^'un 
from the heglnniii); of this nionlh In the heach area under 
the Jurisdiction of Chinwant:tao ("Hy for the protection 
of jirivate pjoperly. It Is hoped that iiroperty owners 
will hrln;; all documentary evidence to the heach ward 



office to complete the rejiistration procedure within two 
months after puhlication of this notice. Where special 
reasons prevent such owners frota making prompt regis- 
tration, they shall specify the reasons and notify [the 
ward otfice] accordingly. Failure to carry out registra- 
tion without a statement of cause shall lead to temporary 
government custody [of the property]. 

The Department has instructed the American 
consulate general in Tientsin to transmit to the ap- 
propriate local Communist authorities a statement 
that in the event that the notification is intended 
to a[)ply to foreign-owned property the rights of 
absent American owners are reserved. 

The Department's announcements of November 
7 and 23. lOfO. dealt with the registration of 
property at Tientsin.* 



Austrian Decree Exempts 
U.S. Citizen From Taxes 

[Released to the press January 10] 

The Department of State today announced that the 
-Austrian Minister of Finance has issued a decree, dated 
I'ecember 31, 1940, exempting United States citizens who 
do not reside in Austria from the payment of taxes OQ 
certain types of property located in Austria which would 
(Jtherwise have to he paid under the Austrian Capital Levy 
Law of July 7, 194S, and the Austrian Capital Appre- 
ciation Levy Law of the same date. 

If such taxes on these particular kinds of assets have 
already heen paid, application for refund should he made 
to local tax otiices in Austria. The exemption does not 
affect the obligation of United States citizens to tile decla- 
rations anil to p:iy taxes on other assets in Austria affected 
hv the Capital Levy and Capital Appreciation Levy Laws 
of .luly 7, 1!»4S. 

The particular assets located in Austria which are 
exempted from taxation if owned by United States citizens 
are described in the laws as "domestic capital," which is 
ilcfined as "means of payment and securities located 
within this country [.\ustria], furthermore deposits and 
other credits with domestic haidcing institutions as well 
;is claims against domestic debtors. Not included under 
domcslic capital ai-e claims resulting from reinsurance 
contracts with donn'stic banking institutions as far as it 
can be shown that they result from such reinsurance con- 
tracts." 



Stage Designer To Lecture in 
Latin America 

Ddiiald Ocnslager, stage designer of New York, 
and i)roressor of scenic design ;it Yale Univer.sity 
since 1I>2.'">. has been awarded a grant by the De- 
part ineni of Slate for a .H-moiith series of lectures 
in (he lield of stage design, beginning in Fcbrtiary, 
at the United Stales-assisted cultural institutes in 
Chile. Argentina, Brazil, Cuba, Mexico, and Peru. 



' Itn.i.MiN of Nov. L'l, I'.tlH, p. 7i;0 and Dec. S, 19!;>, 
p. Stisa. 



174 



Department of State Bulletin 



Report by the Secretary of State on U.S.-U.K. Consular Convention^ 



January 6, 1950. 
The President, 
The White House: 

The undersigned, the Secretary of State, has 
the honor to lay before the President, with a view 
to its transmission to the Senate to receive the 
advice and consent of that body to ratification, 
if his judgment approve thereof, a consuhir con- 
vention, with an accompanying protocol of signa- 
ture, between the United States of America and 
the United Kingdom of Great Britain and North- 
ern Ireland, signed at Washington on February 
16, 1949, and an exchange of notes dated October 
12, 1949, relating to the nonapplication of the 
convention to Newfoundland and Newfoundland 
citizens. 

The purpose of the convention, like that of con- 
sular provisions in force between the United 
States and numerous other countries, is to regu- 
late the consular affairs of each country in the ter- 
ritory of the other country. In most respects the 
convention confirms the principles and practices 
which have long been effective in the relations be- 
tween the two countries. Considering that it is 
desirable as far as possible, that these principles 
and practices be governed by a treaty, officials of 
the Governments of the United States and the 
United Kingdom entered into negotiations many 
years a"0 with a view to concluding such a treaty. 
While tiie object and, for the most part, the sub- 
stance of the provisions of the resulting consular 
convention are essentially the same as those of the 
provisions customarily included in consular con- 
ventions of the United States with other countries, 
there are many improvements in terminology 
which, in the light of experience, are intended to 
make the application and effect of the provisions 
clearer. 

The convention covers such matters as the status 
of a consular establishment, the duties and func- 
tions of consular officers, and the rights, privileges, 
and immunities of the consular personnel of each 
country stationed in the territory of the other 
country. More specifically, the convention con- 
tains, as usual in the case of consular conventions 



' S. Exec. A, 81st Cong., 2d sess. 
January 30, 1950 



negotiated by the United States with foreign 
countries, provisions relating to the appointments 
and districts of consular officers (pt. II) ; their 
legal rights and immunities and the inviolability 
of consular offices, archives, and correspondence 
(pt. Ill) ; the financial privileges of consular offi- 
cers and employees, including certain tax exemp- 
tions and customs privileges (pt. IV) ; the rights 
of consular officers in connection with the protec- 
tion of nationals of their country (pt. V) ; notarial 
acts and other services (pt. VI) ; the authority of 
consular officers in connection with the settlement 
of estates and transfers of property (pt. VII); 
and their authority in regard to shipping mat- 
ters (pt. VIII). 

As stated in article 28 of the convention, the 
provisions relating to the functions which con- 
sular officers may perform are not exhaustive; 
that is, they shall be permitted to perform other 
functions which involve no conflict with the law 
of the territory in which they are stationed and 
which either are in accordance with international 
law or practice relating to consular officers or are 
acts to which no objection is taken by the Govern- 
ment in whose territory they exercise their func- 
tions. 

The only treaty provisions presently in force 
between tlie United States and the United King- 
dom relating to consular officers are those in article 
IV of the treaty of commerce and navigation of 
July 3, 1815 (Treaty Series 110; 8 Stat. 228; 18 
Stat., pt. 2, Public Treaties, 292), and article III 
of the convention of March 2, 1899, relating to 
tenure and disposition of real and personal prop- 
erty (Treaty Series 146; 31 Stat. 1939). Pur- 
suant to article 29 of the consular convention 
transmitted herewith, those provisions will be 
superseded, upon the entry into force of the con- 
vention, in respect of the territories to which the 
latter applies. 

As set forth in article 1, the convention shall 
apply to all territories subject to the sovereignty 
or authority of the United States, excepting the 
Panama Canal Zone, and shall apply "to the 
United Kingdom of Great Britain and Northern 
Ireland, Newfoundland, Southern Rhodesia, to all 
His Majesty's colonies and protectorates, to all 
territories under His protection, and to all terri- 

175 



tories under trusteeship administered by His Gov- 
ernment in the United Kingdom." By reason of 
the fact, however, that the United Kingdom ceased 
to be responsible for the international relations of 
Newfoundland, which has become a part of 
Canada, it has become necessary to amend the 
convention in order to omit Newfoundland and 
citizens of Newfoundland from the application of 
the convention. This has been accomplished by 
the exchange of diplomatic notes, to be considered 
as an integral ))art of the convention. 

With respect to certain provisions (par. (1) of 
art. 7) relating to the acquisition by the Govern- 
ment of either country, for specified official pur- 
poses, of land, buildings, parts of buildings and 
appurtenances in the territory of the other coun- 
try, T.he protocol of signature which accompanies 
the convention provides that those provisions shall 
not apply to certain territories, named in the pro- 
tocol, until notice is given by the United Kingdom 
(Government to the United States Government that 
the law of such territories, or any of them, has 
been amended to permit of effect being given to 
those provisions. The protocol names compara- 
tively few of the ovei-seas territories under United 
Kingdom jurisdiction, and the United Kingdom 
(jovewiment has committed itself to take all meas- 
ures appropriate, having regard to its relationship 
to the governments in the particular territories 
concerned, to obtain the consent of the latter to 
tlie prompt application of the provisions of para- 
graph (1) of article 7 to those territories. 

Among the more important provisions are the 
following, in summary : 

In paragraph (4) of article 8 it is provided that 
a consular office shall not be entered by the police 
or other authorities, provided such office is devoted 
exclusively to consular business, except with the 
consent of the consular officer or, if such consent 
cannot be obtained, pursuant to appropriate writ 
or process and with the consent of the Secretary 
of State for F(u-oign Affairs, in the case of United 
States consular offices in territory to which the 
convention api)lies, and of the Secretary of State, 
in the case of United Kingdom consular offices in 
United States territory. The consent of the con- 
sular officer is to be presumed in the event of fire 
or other disaster or in the event that the aiithori- 
ties of the territory have probable cause to believe 
tliat a crime of violence has been or is being or is 
about to be committed in the consular office. The 
provisions with resi)ect to the entry of consular 
offices by police or other authorities are not to 
apj)Iy in the case of a consular office which is in 
the charge of a consular officer who is a national 
of the receiving state (e. g., a United States na- 
tional in charge of a TTnited Kingdom consular 
office) or who is not a national of the sending state 
(e. g., a national of any third country in charge of 
a United Kingdom consular office). 

Under article 12 government lu-ojierty (includ- 
ing land, buildings, parts of buildings, and appur- 



tenances, as well as movable property owned or 
otherwise held, occupied, or used by or on behalf 
of the sending state) , used exclusively for the offi- 
cial purposes specified, shall be exempt from all 
taxes or other similar charges. Provisions of this 
kind are included in treaties or conventions in 
force between the United States and numerous 
other countries. 

Under article 13 consular officers and consular 
employees are accorded exemptions from taxation, 
upon certain conditions and with certain excep- 
tions. These provisions are, in effect, similar to 
provisions in other consular conventions of the 
United States (e. g., art. IV of the consular con- 
vention of March 14, 1947, now in force between 
the United States and the Republic of the Philip- 
pines, S. Ex. Q, 80th Cong., 1st sess.). 

Article 14 contains the provisions, customary 
in consular conventions, with respect to exemption 
from customs duties on furniture, equipment, sup- 
plies, and other articles intended for official use in 
connection with the consular establishment and 
with respect to the exemption from duties on the 
importation of baggage and other personal prop- 
erty of the consular personnel. It is provided, as 
is usual in such cases, that nothing in the conven- 
tion shall be construed to permit entry of any 
article the importation of which is specifically 
prohibited by law. 

Articles 15 and 16 relate to the authority of 
consular officers in connection with the protec- 
tion of their countrymen. A national of the state 
which has appointed the consular officer shall have 
the right at all times to communicate with the ap- 
proi)riate consular officer and, unless subject to 
lawful detention, to visit that officer at his con- 
sulate. In the case of any such national who is 
confined or detained, the consular officer shall be 
permitted to visit him without delay and to con- 
verse privately with him and arrange legal rep- 
resentation for him. 

It is provided in article 30 that the convention 
shall be ratified, that the instruments of ratifica- 
tion thereof shall be exchanged at London, and that 
the convention shall take effect on the 30th day 
after the date of such exchange and shall continue 
in force for a term of 5 years. It is provided fur- 
ther that, unless 6 months before the expiration of 
the 5-year term either Government shall have given 
notice to the other of intention to terminate the 
convention, the convention shall continue in force 
thereafter until 6 months from the date on which 
either Government shall have given to the other 
Govermnent notice of termination. 

KespectfuUy submitted. 

Dean Acheson. 

Enrlosures: (1) Consular convention with the United 
Kingdcini, (2) protocol of siiinature acoouipanyiug the 
convention, (3) exchange of notes." 



' The text of the convention and the protocol are printed 
in PociniH'iils anti Stntr Pnitrr.'t, March-April 1949, p. 717. 



176 



Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



U.S. Delegations to International Conferences 



FAG Nutrition Committee and 
International Rice Commission 

On January 17, the Secretary of State desig- 
nated Ruth M. Leverton, professor of nutrition at 
the University of Nebraska Agricultural Experi- 
ment Station, and Graham Sheppard Quate, agri- 
cultural attache. American Embassy, Bangkok, 
Thailand, to be the United States delegates to the 
second meeting of the Nutrition Committee for 
Southeast Asia which is to be convened by the 
Food and Agi'iculture Organization of the United 
Nations at Eangoon, Burma, from January 30 to 
February 4, 1950. 

The following are among the subjects which 
may be considered by the Committee : The prog- 
ress made in the different countries in the region 
in carrj-ing out the recommendations of the first 
meeting of the Nutrition Committee held at Ba- 
gnio, Philippines, in February 1948. Special at- 
tention will be given to the following subjects re- 
ferred to in its report: nutritional aspects of rice 
milling, improvement of rice diets, the feeding of 
undernourished groups, nutrition education, com- 
position of Asiatic foods, national nutrition or- 
ganizations or committees. 

Both Dr. Leverton and Mr. Quate will remain in 
Rangoon an additional week to serve as advisers 
to the United States delegation to the second ses- 
sion of the International Rice Commission which 
will convene in that city on February 6. 

6th Session Trusteeship Council 

On January IT, the Department of State an- 
nounced that the United States representative on 
the United Nations Trusteeship Council, Francis 
B. Sayre, and the Deputy United States repre- 
sentative, Benjamin Gerig, had arrived at Geneva, 
Switzerland, for the sixth session of the Trustee- 
ship Council, scheduled to convene on January 19, 
for a period of approximately 10 weeks. 



Accompanying the United States representa- 
tives on the delegation are the following officers 
from the Department of State, who will serve as 
advisers: Vernon McKay, Office of Dependent 
Area Affairs; William B. Sale, Office of Western 
European Affairs ; Wells Stabler, Office of African 
and Near Eastern Affairs; Alfred E. Wellons, Of- 
fice of African and Near Eastern Affairs; and 
William L. Yeomans, Office of Dependent Area 
Affairs. Mrs. Gladys Hart, United States Mis- 
sion to the United Nations, has been named as re- 
porter. 

Representatives and their advisers from Argen- 
tina, Australia, Belgium, China, the Dominican 
Republic, France, Iraq, New Zealand, the Philip- 
pines, the United Kingdom, and the U. S. S. R. are 
also expected to attend the session. 

The major items on the provisional agenda will 
include the examination of re]ioi-ts on six trust 
territories — French Togoland, French Cameroons, 
Tanganyika, Ruanda-Urundi, British Cameroons, 
and British Togoland; formulation of a trustee- 
ship agreement for Italian Somaliland; revision 
of the Statute for Jerusalem ; examination of pe- 
titions ; the question of administrative unions ; and 
the flying of the United Nations flag in trust ter- 
ritories. 

The United Nations Trusteeship Council is 
scheduled to convene in Geneva on January 19, to 
consider the Jerusalem question in the framework 
of the instructions of the Council contained in the 
December 9, 1949 resolution of the General Assem- 
bly. Although it opposed this resolution in the 
A.ssembly, the United States, consistent in its pol- 
icy of respect for decisions taken in the United 
Nations by a majority of the members, abides by 
the decision and is prepared as a member of the 
Trusteeship Council to participate constructively 
when the Council undertakes the task concerning 
Jerusalem given it by the Assembly. 



January 30, 1950 



\77 



The United States in the United Nations 



[January 21-27] 

Atomic Energy Consultations 

Following Soviet withdrawal from the four- 
teenth meeting of the permanent members ot the 
Atomic Energy Commission, the other five mem- 
bers-Canada, China, France, the United Knigdom 
and the United States— announced that they con- 
sidered it impossible in the Soviet absence to 
achieve the primary purpose of their consultations 
but would continue to consult together on such 
"limited obiectives as are possible of achievement 
in the circumstances." The Soviet representative 
had refused to participate, so long as the present 
Chinese representative is not excluded, in the con- 
sultations, which are for the purpose of determm- 
in<r pursuant to a General Assembly resolution 
whether a basis for agreement exists on the inter- 
national control of atomic energy. 

Trusteeship Council 

The sixth session of the Trusteeship Council 
opened in Geneva on January 19. The principal 
matters on its 19-item agenda are the draft trustee- 
ship ao-reement for Italian Somaliland; the ques- 
tion of an international regime for the Jerusalem 
area and protection of the Holy Places; examina- 
tion of annual reports on the administration ot 
trust territories; consideration of seven resolu- 
tions relative to trust territories adopted at the 
last session of the General Assembly ; examination 
of a number of petitions from trust territories; 
and the reports of the United Nations Visiting 
Mission to Trust Territories in West Africa. 

At its first meetings, the Council elected the 
Dominican Republic delegate Vice I resident; 
established a committee to study modification ot 
the rules of procedure, with a view to facilitating 
the Council's examination of petitions from trust 
territories; and elected Sir Alan Burns (United 
Kingdom) chairman of the visiting mission to the 
trusr territories in the Pacific, which will also in- 
clude members named by China, France, and the 
Philippines. 

The Council then turned its attention to the 
draft trusteeship agreement for Somaliland that 
had been drawn up and unanimously approved by 
its special committee established for this purpose 
in December. Under the recent General Asseinbly 
resolution on the disposition of the former Italian 
colonies, which recommends a trust status for 

178 



Somaliland under Italian administration prepara- 
tory to independence ten years after the date ot 
Assembly approval of a trusteeship agreement, the 
Council 'is invited to negotiate such an agreement 
with Italy for submission to the Assembly not later 
than at its fifth regular session next autumn. Invi- 
tations to participate in the Council s discussions 
of this matter have been extended to Colombia, 
Egypt, Ethiopia, India, and Italy, although they 
are not members of the Council. , , , , 

In preparing its text, the committee had before 
it three drafts submitted by the Dominican Ke- 
public, Italy, and the Philippines and the recotti- 
mendations of the General Assembly, which call 
for the establishment of an Advisory Council com- 
posed of Colombia, Egypt, and the Philippines to 
assist and advise the administering authority and 
for the inclusion of a declaration of constitutional 
principles as an annex to the agreement tor the 
purpose of "guaranteeing the rights of the inhabi- 
tants of Somaliland and providing for institutions 
designed to ensure the inauguration, deve opment 
and subsequent establishment of full selt- 
government." ,. 

The Council has now finished the first reading 
of the Committee text and the President has set 
January 30 as the date for opening discussion ot 
the Jerusalem problem. The Soviet Union has not 
been represented at this session of the Council. 

Full Employment 

Following detailed discussion of the experts' 
report on national and international measures for 
full employment, the Economic and Employment 
Commission on January 26 unanimously adopted 
an amended United States resolution under which 
the Economic and Social Council would commend 
the report, in conjunction with the comments of 
the Commission, to member governments, inter- 
ested specialized agencies, and nongovernmental 
oiganizations for their detailed consideration. 
The Governments would also be urged to facilitate 
widespread public consideration and discussion 
of the report in their respective countries. Mem- 
bers of the Economic and Social Council would 
be invited to be prepared at its eleventh session 
in July 1950 to give their views on the proposals 
contained in the report and to submit any further 
proposals they may have for solving the problems 
with which the report deals. 

Deparfmenf of Sfafe Bullefin 



THE FOREIGN SERVICE 



American Foreign Service Personnel and 
Dependents in Communist China 

Department National Military 
Cities of State Estabtislimctit 

Nanking 21 

Peiping 39 3 

Shanghai 30 33 

Tientsin 7 

Tsingtao 3 2 

Subtotal 100 38 

Grand total 138 

Nanking Personnel 

Abramson, Norman, general clerk. 

Bacon, Leonard L., second secretary and consul, Roches- 
ter, N. Y., 1 dependent. 

Clough, Ralph N., second secretary and consul, Seattle, 
Wash., 3 dependents. 

Corippo, E. P., clerk, San Francisco, Calif. 

Gordhamer, Elise B., clerk. College Point, N.Y. 

Gordhamer, John, building superintendent, Minneapolis, 
Minn. 

Kiermaii, Frank A., attach^, Seattle, Wash., 2 dependents. 

Kinkoff, B. F., guard, Cleveland, Ohio. 

Lucas, Jame.s E., huilding superintendent, Los Angeles, 
Calif., 4 dependents. 

Mason, J. D., clerk, Elkhart, Ind. 

Mote, Frederick, research assistant, Denver, Colo. 

Total American Foreign Service personnel and de- 
pendents in Nanking, 21 dependents. 

Peiping Personnel 

Anderson. John G., vice consul, San Mateo, Calif. 
Aylward. Robert A., language officer, Pittsfield, Mass., 1 

dependent. 
Boorman, Howard L., vice consul, Sherman Oaks, Calif., 

2 dependents. 

Carpenter, Gardner C, vice consul, San Francisco, Calif., 

3 dependents. 

Clubb, O. Edmund, consul general. South St. Paul R. I., 

Minn., 3 dependents. 
Farrior, John M., language officer, Montreat, N. C. 
Goodwin, Ruth F., clerk, Tooele, Utah. 
Graham, William I., accounting clerk. Burton, Kans. 
Harding, Alfred, clerk-typist, Hasting.s-on-Hudson, N.Y. 
Hein, G. M., vice consul, Hancock, Minn., 1 dependent. 
Kepler, Alexander R., vice consul, Arlington, Va. 
MacDonald, John E., language officer, Peterborough, 

N. H., 2 dependents. 
Marvin, David K., vice consul, Lincoln 4, Nebr., 1 

dependent. 
McCarthy, Richard M., vice consul, Webster City, Iowa, 

2 dependents. 
Sehwarz, Marjorie, clerk. New York, N.Y. 
Sollenberger, Howard, Foreign Service officer, Duluth, 

Minn., 3 dependents. 
Tait, Thomas E., administrative assistant, Bloomfield, 

N.J. 
Van Putten, James D., consul. New York, N.Y., 3 de- 
pendents. 

Total American Foreign Service personnel and depend- 
ents in Peiping, 39 dependents. 

January 30, 1950 



Shanghai Personnel 

Chase, Augustus S., first secretary and consul, Middle- 
bury, Conn. 

Collins, Guy T., general clerk, Red Wing, Minn. 

Fiirnsworth, Frederich E., consul, Colorado Springs, Colo. 

Fleming, Andrew C, economic officer (maritime), Eliza- 
beth, N.J. 

Gebhardt, W. F. D., vice consul and visa officer, Ore- 
gon, Mo. 

Hinke, Frederick W., consul, Auburn, N.Y. 

Holloway, J. K., Jr., vice consul. Silver Spring, Md. 

Holmes, A. S., records superintendent, Evansvllle, Wis. 

Kretzman, Edwin M. J., consul, Providence, R.l. 

Manning, Henry J., accounting clerk, Denver, Colo. 

Masingill, Wm. T., guard, Chattanooga, Tenn. 

McConoughy, W. P., consul general, Montevalla, Ala. 

Meyer, G. E. Robert, vice consul and visa officer, Wells- 
ton, Ohio. 

Morgan, John F., vice consul-administrative officer, Provi- 
dence, R.I. 

Myers, John W., clerk, Northumberland, Pa. 

PenhoUow, Grenfall, garage superintendent, Omaha, Nebr. 

Perry, Glenn O., disbursing officer, Washington, D.C. 

Reeder, Lorin G., administrative assistant, Kensington, 
Ohio. 

Robertson, James H., consular attach^, Rushford, Minn. 

Shrouf, Don H., clerk, Concordia, Kans. 

Stolar, Carl H., guard, Philadelphia, Pa. 

Sutter, John O., vice consul and consular officer. Over- 
land, Mo. 

Turner, Allen R., vice consul, Bloomfield, N.J. 

Turner, Patsy M., clerk-stenographer, Warrensburg, Mo. 

Updyke, Milton C, accounting clerk, Courtdale, Pa., 1 
dependent. 

Van Oss, Hendrik, vice consul, Plainfield, N.J., 1 dependent. 

Huso, Rolf J., clerk, Columbia Falls, Mont. 

Callanan, Leo. J., first secretary and consul general. 
Ware, Mass. 

Total American Foreign Service personnel and de- 
pendents in Shanghai, 30 dependents. 

Tientsin Personnel 

Manhard, Philip W., vice consul, Los Angeles, Calif. 
Nichols, Virginia L., administrative assistant, Marian, N.C. 
Payne, Maxine, clerk, Allentown, Pa. 
Tullock, Gordon C, vice consul, Rockford, 111. 
Wellborn, Alfred T., consul. New Orleans, La., 2 de- 
pendents. 

Total American Foreign Service personnel and de- 
pendents in Tientsin, 7 dependents. 

Tsingtao Personnel 

Blackerhy, W. W., general clerk, Iowa Park, Tex. 
Clemens, L. D., general clerk, Oakland, Calif. 
Hawthorne, C. O., consul, Seligman, Mo. 

Total American Foreign Service personnel and de- 
pendents in Tsingtao, 3 dependents. 

There are also the following National Defense person- 
nel in the Chinese mainland : 18 military, 4 civilians, 16 
dependents or a grand total of 38. 



Consular Offices 

The American Consulate at Valletta, Malta, was re- 
established November l.'i, 1940. The consular district of 
Valletta will be the island of Malta. 

The American consulate general, Tsingtao, was closed 
to the public October 15, 1949. 

179 



Foreign Service Selection Board Meets 

[Released to the press January 11] 

Six distinguished American citizens, two of 
them well-known labor officials, are meeting in 
executive session with officers of the United States 
Foreigii Service in Washington to help recom- 
mend promotions to be made this year. 

They are Franklin S. Harris, president of Utah 
State Agricultural College; Francis A. Truslow, 
president of the Xew York Curb Exchange; John 
B. Hutson, president, Tobacco Associates, Inc., 
formerly Under Secretary of Agriculture; Phil 
E. Ziegler. general secretary-treasurer, Brother- 
hood of Kailway Clerks, AFL; Stanley H. Rut- 
tenberg, director, Department of P^ducation and 
Research, CIO ; and Robert B. Stewart, dean and 
jirofessor of international relations, Fletcher 
School of Law and Diplomacy, operated by Tufts 
University with the cooperation of Harvard. 

These six are public members of three selection 
boards who with officers of the Foreign Service 
will examine the records of officers and decide not 
merely which officers are worthy of recommenda- 
tion for promotion but establish the relative rat- 
ings of all of them as well. They constitute, in 
effect, a Jury of Peers. The meetings are annual 
events, seldom publicized, in implementation of 
the Foreign Service Act of 1946. 

The Foreign Service officials who are members 
of the board are: Herbert S. Bursley, Ambassa- 
dor to Honduras ; John M. Cabot, recently Consul 
(leneral at Shanghai; J. Klahr Huddle, recently 
Ambassador to Burma; George Wadsworth, Am- 
bassador to Turkey; Don C. Bliss, Counselor for 
Economic Affairs, London; Cecil Wayne Gray, 
Consul (leneral and Counselor of Embassy, Paris; 
U. Alexis Johnson, recently Consul General at 
Yokohama; Edward S. Maney, First Secretary of 
Embassy and Consul (ieneral, Buenos Aires; Dan- 
iel M. Braddock, First Secretary of Embassy and 
Consul, Madrid; Reginald Bragonier, Jr., Public 
Affairs (Officer and First Secretary of Embassy, 
Quito; Clare H. Timberlake, Consul General, 
Bombaj'; and Edward T. Wailes, member of the 
P^oreign Service Inspection Corps. 

The members of the boards are assisted in their 
deliberations by observers representing the De- 
partments of Agriculture, Commerce, and Labor. 

The selection boards, which have already begun 
their work, were welcomed by John E. Peurifoy, 
Deputy Under Secretary for Administration of 
the Dei)artment of State. He emphasized the im- 
portance :uid difficulty of the job undertaken and 
expressed the State Department's gratitude to 
American citizens willing to lay aside tlieir own 
l)roblems for such a considerable period of time in 
order to be of service to the (Jovernment. It is 
expected that the boards' deliberations will take 
() weeks. 

The Foreign Service is the field operating arm 
of the Department of State which represents the 



United States Government abroad. It consists of 
more than 11,000 employees at 300 consulates and 
diplomatic missions scattered through the world. 
Through these posts, the United States conducts 
its business with other nations. In addition to 
their well-known diplomatic functions, officials of 
the Foreign Service perform many other services 
for this Government and its citizens. These serv- 
ices include the issuance of passports and visas, 
economic and political reporting, reporting for the 
benefit of American business on possible markets 
for Lmited States products or possible supplies of 
raw materials, protecting American citizens 
abroad. At one time or another, officials of the 
Foreign Service may be charged with performing 
any or all of these functions in posts ranging from 
Capetown to Helsinki or from Buenos Aires to 
Rangoon. 



Edward A. Plitt Assumes Presidency 
of Control Committee in Tangier 

[Released to the press January 19] 

On January 1, 1950, Edwin A. Plitt, career Min- 
ister in the United States Foreign Service and 
American diplomatic agent and consul general at 
Tangier, Morocco, assumed his duties as President 
of the International Committee of Control, the 
governing body of the International Zone of Tan- 
gier. Mr. Plitt will serve as President of the 
Committee during the calendar year 1950. He is 
the first American ever to hold this position. 

The Tangier Statute of 1923, which established 
a formal international regime in Tangier, pro- 
vided that the Committee of Control, which has 
broad powers in the administration of the zone, 
should consist of the consuls of career of countries 
which signed the act of Algeciras, and that the 
Committee should be presided over by these con- 
suls for 1 year each, in rotation according to the 
alphabetical order of their respective countries. 
The United States was not a party to this statute 
and did not participate in the administration of 
the zone before 1945. 

Spain occupied the zone from 1940 to 1945 dur- 
ing World War II, and the International Admin- 
istration was inoperative during that period. In 
1945, after Spain had begun withdrawing her 
troops, a provisional temporary international 
regime was established under a provisional stat- 
ute signed in Paris on August 31, 1945. This 
statute provided for Ignited States collaboration 
in the provisional regime of the zone, and our 
diplomatic agent at Tangier has served as a mem- 
lier of the Connnittee of Control since that time. 
The outgoing President of the Connnittee is Jose 
Luiz Archei', Minister and consul general for Por- 
tugal at Tangier. 



180 



Department of State Bulletin 



Myron C. Taylor Resigns as Personal 
Representative to Pope Pius XII 

[Released to the press by the M'hite House January IS] 



The President today sent the following 
letter to Myron C. Taylor, accepting his resigna- 
tion iis the personal representative of the President 
to His Holiness the Pope : 

Dt:.\R jMr. Taylor : It is with deep regret that I 
liave read your letter today informing nie of your 
desire to be released now from service as Personal 
Representative of the President to Pope Pius XII. 
I respect j'our reasons, however, and though I ac- 
cede to your wish most reluctantly, I feel that I 
must accept your resignation. 

You have carried the great and far-reaching 
resjjonsibilities of j'our mission with a selfless de- 
votion which has commanded the admiration of 
all who know of your work. AVith a dependability 
that always could be trusted, with unbounded loy- 
alty to every precious value the people of our 
country hold dear, and with sure judgment and 
deep insight into men and events, you have ren- 
dered this Nation and the world distinguished and 
invaluable service. 

Your mission for President Roosevelt and for 
me has been conducted entirely in years of crisis, 
in which the most fundamental aspects of civiliza- 
tion have been under challenge. The benefits of 
your work far exceeded the bounds of ordinary ef- 
forts. To your humanitarian work on this mis- 
sion, the innumerable men, women, and children 
to whom bitter suffering was brought during the 
war and in its aftermath are indebted for min- 
istrations of kindness and help. During the dark 
days of the war your mission was a source of fruit- 
ful contribution to the unity of effort necessary to 
attain victory. Throughout the period of that 
tragic struggle and the difficult years that have 
followed, the influence exerted by your mission in 
behalf of the great cause of a better world securely 
at peace has been, indeed, profound. 

The achievement of common purpose among the 
peoples of the United Nations for the peace to 
follow the victory, and the maintenance of a com- 
mon effort among the free peoples in overcoming 
the regrettable obstacles so persistently placed in 
the path of peace afterward, are the result of many 
steps taken by the allied governments with the 
energetic support of the world's moral forces. 



Tlie exchanges of views and the association of en- 
deavors which your mission rendered possible have 
made a fundamental contribution to the unity of 
moral conviction that today sustains the world's 
peoples in their unflagging efforts for inter- 
national peace with freedom and justice and gen- 
uine opportunity for progress. 

I wish you Godspeed in your desire to devote 
yourself in the coming years to the strengthening 
of cooperation and unity among all the moral 
forces working for a better world. No service to 
our country and to the cause of humanity, free- 
dom, peace and progress for which it stands in the 
world is more needed than this : that unity of voice 
and concert of will and strength shall prevail 
among all^who seek the attainment of an enduring 
world order resting upon moral foundations. 

Though you now return to private life, I am 
confident that your advice and judgment will be 
available to me whenever needed in the future 
as in the past, and I shall feel free to call upon 
you to give such help. 

I understand that this is your seventy-sixth 
birthday. May Almighty God grant you many 
years of good health, personal happiness, and 
continued strength to serve your fellowmen ! 
Very sincerely yours, 

Harry S. Truman. 

Following is the text of Mr. Taylor's letter to 
the President: 

Dear Mr. President : When my service as Per- 
sonal Representative of the President to the Pope 
was undertaken at Christmas time in 1939, it was 
regarded by President Franklin D. Roosevelt and 
by myself as a temporary mission, to be terminated 
when circumstances permitted. At the end of hos- 
tilities, you asked me to continue this service and 
I was happy to do so, again on a temporary basis. 
To my great regret, personal considerations of a 
compelling nature make it necessarj' for me now 
to ask to be released from this service. Accord- 
ingly, I hereby tender my resignation as Personal 
Representative of the President of the United 
States of America to Pope Pius XII. 



January 30, 1950 



181 



The mission arose because of the war and of the 
vital interests of the United States in the reestab- 
lishment, when hostilities ended, of world peace 
on a surer foundation. Confronting unparalleled 
challenge to our national interests in peace and 
humanity, the President wrote, in largely identical 
letters, to the leaders of the Protestant, Catholic, 
and Jewish faiths to urge that all churches "throw 
the great weight of their influence into this great 
cause." 

In each of these letters he proposed exchanges 
of views and closer association of effort to allevi- 
ate the suffering being caused by the war and to 
encourage and strengthen all the forces seeking a 
better world order. His farther hope was that 
when reestablishment of peace became possible, 
common ideals would have united expression in 
the plans for peace. He also desired that united 
efforts would be made at the end of hostilities to 
help the millions of displaced people to return to 
their old homes or to find new ones. 

The letters to Dr. George A. Buttrick, President 
of the Federal Council of the Churches of Christ 
in America, and to Kabbi Cyrus Adler, President 
of the Jewish Theological Seminary, invited them 
to come to Washington from time to time "to dis- 
cuss the problems which all of us have on our 
minds. . . ." To permit similar exchanges of 
views directly with Pope Pius XII in Rome, the 
President in his letter to the Pope suggested 
sending a Personal Representative for discussions. 
With the acceptance of this suggestion by the 
Pope, my mission commenced. 

Earlier in the 30's, I had taken part on invi- 
tations from President Hoover and President 
Roosevelt in various efforts at home to restore 
the nation's economic health. In 1938 I had at- 
tended as the American representative the meet- 
ing at Evian, France, which on American initia- 
tive established the Intergovernmental Committee 
on Refugees to arrange for the exodus and assist- 
ance of Jewish people compelled to leave Ger- 
many and Austria. I served as American repre- 
sentative on that Committee and was its Vice 
Chairman until the spring of 1944. At the same 
time, I was privileged to participate actively, in 
the periods when not on my mission in Rome, 
as one of the advisers to Secretary of State Cordell 
Hull in the extraordinary postwar preparation 
undertaken by the President and the Department 
of State through the Advisory Committee on 
Postwar Foreign Policy, established by the Presi- 
dent under the chairmanship of Secretary Hull, 
and through its successor groups. This notable 
preparation created the United States plan for a 
world security organization to which in large 
measure the successful establishment of the 
United Nations is due. 

I visited Rome for President Roosevelt seven 
times in the years 1940-1945. The activities of my 
mission in this period were indicated in Wartime 
Correspondence Between President Roosevelt and 



Pope Pius XII, which was published in 1947 with 
your approval and that of His Holiness. 

At the start of the years therein described, the 
mission was active in the efforts that were made 
to prevent Southern European countries from 
being plumbed into the war. W^hen the allied 
military oflfensives were undertaken in North Af- 
rica, and then on the Continent of Europe, the 
mission served as a channel — at times the only 
channel — in Rome and other places en route to as- 
sure that misunderstandings would not arise to 
impede the Allies in achieving full victory and 
cooperation in the reconstruction after liberation. 
The work done for relief, particularly in Italy 
through the help given by American Relief for 
Italy here at home, and by the National Commit- 
tee for the Distribution of Relief in Italy in which 
the Pope, the Italian Government, the Italian Red 
Cross, and the Italian Confederation of Labor co- 
operated, in all of which the mission took an ini- 
tiatory and active part, are well known. 

Much attention was devoted in the exchanges 
of views to clarifying the stakes at issue in the 
war and the intentions of the United Nations fol- 
lowing victory. Information was obtained for 
the President bearing on the far-reaching decisions 
with which he was confronted in these years of 
crisis. Emphasis was placed throughout on the 
development of common views concerning the 
principles, especially the essential moral bases, on 
which international peace and security with free- 
dom and justice could be founded. As United 
States proposals in this respect were formed, the 
mission was the instrument for frequent discus- 
sions with the Pope, as likewise occurred when in- 
ternational proposals were developed for the 
world security organization. 

The continuance of the mission beyond the close 
of hostilities is a part of the history of the struggle 
for an enduring peaceful world order that the free 
nations have unflaggingly made in the presence of 
adverse and discouraging circumstances. Estab- 
lishment of the great organization of the United 
Nations for the maintenance in the world of in- 
ternational peace and security was fortunately 
achieved with the end of the war, on the basis of a 
Charter containing the essential minimum stand- 
ards of conduct for every nation if peace is to exist 
among all nations. 

It was foreseen that vast difficulties would en- 
sue from the upheavals and changes that marked 
the critical 30's. To these would be added the 
problems left by the most devastating war of 
all time. Thus, unsolved old problems as well 
as new ones would all have to be faced at once when 
the fighting ended. These difficulties were not so 
much the cause of the disappointments, however, 
as were the basic conflicts of princijile and policy 
between one of the great powers and the other na- 
tions that swiftly emerged. These deeply disturb- 
ing conflicts became manifest in almost all aspects 
of world affairs. International tension increased. 



182 



Department of State Bulletin 



acroinpaiiied by widespread and profound concern 
lest new agjjressions, direct and indirect, jeopard- 
ize the fundamental freedoms of mankind, the 
independence of free nations, and tlie peace of 
tlie world. In these circumstances, unparalleled 
efforts were instituted by the free nations directed 
toward the preservation of liberty and basic hu- 
man rights, economic recovery, social advance- 
ment, and the safeguarding of the vital moral foun- 
dations of civilization. 

As the measure of the circumstances to be faced 
on the road to recovery, to peace settlements, and 
to full security through the United Nations clari- 
fied, it was realized that every resource, spiritual 
and material, was necessary to bring to the 
troubled world the progress and enduring peace 
for wliich most of mankind was striving. It was^ 
in this light that you requested me to continue 
my mission. 

Si.x visits followed, the first in the spring of 1946, 
the last in November and December, 1949. These 
visits were concerned primarily with the continu- 
ing problems of attaining a peaceful and advanc- 
ing world in accordance with Christian principles, 
and with the new problems of sustaining the hopes 
of the enslaved victims of communist tyranny. 
The related humanitarian activities concerned 
with refugees and relief were in due course dimin- 
ished by the program of the International Refu- 
gees Organization and national programs, al- 
though the mission continued to render assistance 
in some respects, chiefly in Italy. 

It is a matter of particular regret to me that I 
find it necessary to withdraw from official service 
in this field at a time when the great objectives 
sought by you and your predecessor are as yet not 
fully attained. Achievement of peace and secu- 
rity with freedom and justice among nations fun- 
damentally remains incomplete. By the choice not 
of the many, but of a few nations, progress has 
been painfully slowed. The hope and expectation 
even of a formal peace have not been fulfilled. 
The free nations are actively working for such a 
peaceful world order; it is a time for sustained 
and even greater effort to the end that the moral 
forces of mankind may speak with a united voice 
in support of what free men all over the world 
are striving to achieve for the preservation of their 
heritage of liberty and justice. 

In returning to private life, I wish to express 



my profound appreciation of the opportunity 
given me over the last ten years to serve, under 
the wise leadership of two Presidents of the United 
States, in behalf of the cause of peace and human- 
ity for which the free world fought the war and 
which it upholds today. I am also deeply grati- 
fied to have had the illuminating and inspiring 
experience of working for that noble cause in close 
cooperative association with Pope Pius XII, who 
exercises in Europe today, as he does in the whole 
world, a singularly significant and desperately 
needed moral leadership. 

If I may be permitted, I would add a further 
reflection upon a need which I have tried in my 
work during the last several years to meet under 
your instructions and with your approval. Com- 
mencing especially in 1947, consultations have 
been held with the leaders of many faiths, in many 
lands. You desired the guidance and counsel of 
such leaders abroad as well as at home. These 
additional searches for counsel extended my visits 
to England, Germany, France, Switzerland, 
Greece, and Turkey. Consultations have also 
been held with groups of Protestant and Catholic 
leaders at home. This activity stemmed from 
your desire, expressed in your published letter to 
His Holiness of August 6, 1947, to do everything 
in your power "to support and to contribute to a 
concert of all the forces striving for a moral 
world." These forces, as you said, "are in the 
homes of peaceful and law-abiding citizens in every 
part of the world who are exemplifying in their 
own lives the principles of the good neighbor: the 
Golden Rule itself." 

The moral strength of men and women of good 
will is the final and irresistible power for progress 
in the world. There can be no ultimate jeopardy 
to the hopes and ideals of mankind for a better 
world, securely at peace, if the moral forces of 
mankind are united on the values for which they 
strive, and on action to attain them. Through 
these forces and their unity, truth and decency, 
and a just peace will inevitably prevail. 

So far as my abilities and my remaining years 
permit, I shall endeavor, as a private citizen, to 
devote myself to the task of helping to strengthen 
cooperation and unity among all the moral forces 
working for a better world. 

With high esteem [etc.] 
Faithfully yours, 

Mybon C. Taylor 



January 30, J 950 



183 




General Policy Page 

Return to Normal Exchange of Diplomatic 
Representation With Spain Urged — 
Amendment of U.N. Resolution Fav- 
ored 156 

Bulgaria Warned Actions Threaten Normal 

Relations With U.S 159 

Report of the First Regional Conference of 
U.S. Ambassadors in the Caribbean 
Area 160 

Importance of American Relations With the 

Near East and South Asia 170 

U.S. Representatives in Far East To Stop 
Sailings of Chineee Ships With Defaulted 
Payments 173 

The United Nations and 
Specialized Agencies 

Soviet Methods Cannot Delay Security 
Council. Statement by Ernest A. 
Gross 166 

Action on Political and Security Problems in 

the United Nations 167 

The United States in the United Nations . . 178 

Economic Affairs 

Tientsin Paper Publishes Notice for Regis- 
tering Property 174 

Austrian Decree Exempts U.S. Citizen From 

Taxes 174 

Treaty Information 

U.S., U.K., France Discuss Austrian Treaty 

Deadlock With U.S.S.R 162 



Treaty Information — Continued page 

The Place of the Genocide Convention in 
General Pattern of U.S. Foreign Rela- 
tions. Statement by Deputy Under 

Secretary Rusk 163 

Report by Secretary of State on U.S.-U.K. 

Consular Convention 175 

International Information and 
Cultural Affairs 

Problems in the Acquisition of Foreign Scien- 
tific Publications. By Reuben Peiss. . 151 

Engineering Professor Visits Brazil 166 

Stage Designer To Lecture in Latin America . 174 

International Organizations 
and Conferences 

U.S. Delegations: 

FAO Nutrition Committee and Interna- 
tional Rice Commission 177 

6th Session Trusteeship Council 177 

The Congress 

Legislation 165 

The Foreign Service 

American Foreign Service Personnel and 

Dependents in Communist China . . . 179 

Consular Offices 179 

Foreign Service Selection Board Meets ... 180 
Edward A. Plitt Assumes Presidency of Con- 
trol Committee in Tangier 180 

Myron C. Taylor Resigns as Personal Repre- 
sentative to Pope Pius XII 181 



my)v(mAtUm(A 



Reuben Peixn, nutlior of the article on acquisition of foreign 
scientitic publications, is Acting Special Assistant, Acquisition 
and Distribution Division, Department of State. 



U. S. COVfRNMCNT PRINTING OPriCC;ltlO 



'^v'-^i.- 



tJne^ ^e/ia^tjnenf^ /(w t/taie^ 




tH LAL DEFENSE ACRKEMEiNTS SIGNED: 
Statements by the President, Secretary Acheson, nn<l 

Ambassador Wilhelm Munthe de Morgenstierne 198 

Texts of Agreements with Belpiiim, IVnTnark, France. 

and Ital> 200 



PROGRESS REPORT ON GERM.\NY • By Joh, 

MrCI,.^ 



195 



lllL l.\ 1 i.iiNAl i*>,\Ai. i.»mm, \i«f luAilii. IN 

ARMS— ITS SLPERViSTON WD (0'STU0\.9 tm.ie 
by Leonard H. Pomeroy 



IliT 



For complete contents see back cover 





tJAe 



Qje/ia^^e^ ^ 9iale IDIUlGlin 



Vol. XXII, No. 553 • Pubucation 3743 



(jl.^ • S-T^^-V o~^ ^rTS.C*.-VVO.-^ 



February 6, 1950 



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Service. The BULLETIN includes 
press releases on foreign policy issued 
by the White House and the Depart- 
ment, and statements and addresses 
made by the President and by the 
Secretary of State and other officers 
of the Department, as well as special 
articles on various phases of inter- 
national affairs and the functions of 
the Department. Information is in- 
cluded concerning treaties and in- 
ternational agreements to which the 
United States is or nwiy become a 
party and treaties of general inter- 
national interest. 

Publications of the Department, as 
well as legislative material in the field 
of internatioruil relations, are listed 
currently. 



THE INTERNATIONAL TRADE AND TRAFFIC IN ARMS 



Its Supervision and Control 



hy Leonard H. Pomeroy 



This is the first of a series of three articles being 
published in the Department of State Bulletin 
on international trade and traffic in arms. Past 
and present measures to supervise and control the 
traffic in arms are outlined in this article. The 
participation of American citizens and American 
arms in the Far East clandestine arms traffic is 
considered with respect to its implications for 
United States arms policy and administrative 
action. 

On the mornina: of June 13, 1948, three flying 
fortresses, cleared by Puerto Rican authorities for 
a routine survey flight to Portugal and return, set 
their course for a destination in Eastern Europe. 
Early reports of their diversion to the Middle 
East clandestine arms traffic were followed by re- 
ports that they were being operated as adjuncts 
to the air force of one of the hostile factions of 
the Middle East and were not only hauling arms 
from the Eastern Europe to Middle East destina- 
tions but were also being used on bombing opera- 
tions against cities in the Middle East. A fla- 
grant violation of United States laws had oc- 
curred. Furthermore, the violator's actions in 
this case had embarrassed the efforts of this Gov- 
ernment to meet its international commitments as 
a member of the United Xations and achieve its 
arms policy objectives. Through the energetic 
efforts of this Government, the arms trafficker, 
operating under a pseudonym, was unmasked, ap- 
prehended and convicted. 

Foreign dissident groups plotting revolutions 
and wars or peoples striving to establish indepen- 
dence create a constant demand for war materials, 



a demand which is frequently found to be in con- 
flict with the maintenance of international peace 
and security. The international arms smuggler 
steps into this situation to provide the channel 
through which revolutionary elements or seceding 
groups may obtain arms by unlawful means. He 
operates undercover to disguise his illicit transac- 
tions and avoid legal sanctions imposed by na- 
tional laws. When local tensions flare up into 
armed conflicts, the operations of the international 
arms trafficker serve to intensify the struggle and 
make its pacification more difficult. 



A BRIEF HISTORICAL REVIEW 

The contraband arms trade has been a trouble- 
some problem of long standing to the nations of 
the world, whether at war or at peace. Nearly 
1,000 years ago, the Byzantine Emperor protested 
to the Doge of Venice against the activities of the 
Venetian arms traders who furnished arms and 
ship timbers to the Saracens with whom he was 
at war. The Pope joined the Emperor in de- 
nouncing this traffic with the infidels as "unholy 
commerce," but the admonitions of all three, the 
Pope, the Doge, and the Emperor, had little effect 
in curbing the Venetian arms trader. Later, dur- 
ing the Crusades of the Middle Ages, the Papacy 
did succeed in enforcing to a considerable degree 
its prohibition on contraband trade with the 
Saracens. The chief weapon of the Papacy was, 
of course, moral suasion and its effectiveness was 
due almost entirely to the religious nature of the 
conflict between the Crusaders of the Christian 



February 6, 1950 



187 



nations of Europe and the Saracen infidels. The 
Papacy was not at all successful in curbing the 
arms traffic which flourished later during the wars 
between the Christian nations of Europe.^ 

The early writers on international law, particu- 
larly Hugo Grotius, regarded the contraband 
trade as somewhat immoral or at least reprehen- 
sible and thought that it ought to be prevented^ 
Only in recent times, however, have nations of 
the world taken definite steps to suppress this 
nefarious traffic by international conventions and 
by national measures of control and supervision. 
During the nineteenth century, the exploitation 
of the world markets by the more highly indus- 
trialized countries was thought to be entirely 
beyond the scope of legitimate international regu- 
lation and the doctrine of laissez faire was ap- 
plied to trade and industry generally and without 
exception. This point of view was definitely 
enunciated on behalf of the United States by 
Alexander Hamilton in his Treasury Circular of 
August 4, 1793 : 

The purchasing within, and exporting from the United 
States, by way of merchandise, articles commonly called 
contraband, being generally warlike instruments and 
military stores, is free to all the parties of war, and is 
not to be interfered with.' 

In defending this position with respect to re- 
quests from England and France that the neutral 
United States Government attempt to suppress 
trade in contraband, Secretary of State Jefferson 
stated: "It would be hard in principle and im- 
possible in practice." * 

Near the turn of the twentieth century, the ob- 
jectionable aspects of the illicit traffic in arms 
began to receive widespread public attention. Na- 
tional and international conferences were con- 
vened to begin a consideration of appropriate 
methods of dealing with the traffic in arms and am- 
munition. The Brussels act of 1890, which was 
ratified by the United States with reservations, 
proliibited the importation of arms and ammu- 
nition into the African possessions of European 
states.'* From 11)13 onwards, an insistent demand 
developed from certain quarters for the curbing 
of the munitions industry, accompanied by charges 
that the activities of munitions manufacturers 



' L. B. Evans, International Law Cases, p. 822. 

'J. B. Moore, Digisst VII, p. 955. 

• Rvans, ibid, p. 82.3. 

' Moore, op. cit. 

' 82 British and Foreign State Papers, p. 155. 



often produced situations specially conducive to 
war. 

Following World War I, the convention of St. 
Germain, which was signed on September 10, 1919, 
was adopted to deal with the problem of the sur- 
plus disposals of arms and munitions of war which 
had been accumulated during World War I and 
whose indiscriminate disposal would doubtless 
constitute a danger to peace and public order. The 
convention developed a code for the international 
supervision of the traffic in arms. By 1923, it 
became apparent that the St. Germain convention 
could not be generally ratified, and a new con- 
ference was called to devise an acceptable system 
of international control. 

The Geneva Convention Concerning the Super- 
vision of the International Trade in Arms and 
Ammunition and Implements of War which was 
signed on June 17, 1925, declared that the interna- 
tional trade in arms and ammunition and imple- 
ments of war should be subjected to a general and 
effective system of supervision and publicity and 
should receive early consideration by the different 
governments.® 

As the United States expanded its interests be- 
yond its own domestic frontiers to other nations on 
this continent and throughout the world, arms 
traffic control began to assume greater importance 
as an essential instrument to be emjDloyed in the 
conduct of its foreign relations. This Govern- 
ment, from the first, took an active interest in in- 
ternational conferences considering possible steps 
to supervise and control the traffic in arms. The 
first independent action by this Government to 
control the exportation of arms was taken in 1905 
when control was initiated on arms exports from 
the United States to the Dominican Republic. This 
action was followed in 1912 by extending control 
over arms shipments to Mexico, and between the 
years 1922 and 1934 to several Latin American 
countries such as Honduras, Cuba, Brazil, and 
Nicaragua, as well as to China, a country in which 
the United States exercised extraterritorial juris- 
diction. In 1935, following the Gran Chaco war, 
the United States established a licensing system 
and extended national controls over arms exports 
to any country in the world. The provisions in 
the law of 1935 pertaining to arms shipments were 
subsecpiently replaced by revisions thereof appear- 
ing in the Neutrality Acts of 193G, 1937, and 1939. 

' League of Nations Document A-16, 1925 IX ; M. D. Hud- 
son, International Legislation, p. 1634. 



188 



Deparfmenf of State Bulletin 



CURRENT LEGISLATION 

At the present time, the Department of State 
looks to section 12 of the Neutrality Act of No- 
vember 4, 1939, for one of the sources of authority 
which it wields over the exportation of arms. 
Tiiat law vested authority to administer the act 
in the Secretary of State and directed him to issue 
export licenses to registered exporters unless the 
particular exportation violates a law of the United 
States or a treaty to which the United States is a 
party. Section 12 of the Neutrality Act does not 
permit the exercise of controls for reasons of policy 
alone. The broader powers exercised by the De- 
partment of State since 1940 with regard to arms 
exports were derived from the Export Control 
Acts of 1940 and 1949. By order and regulation 
issued pursuant to these Export Control Acts, the 
Secretai-y of State has enlarged authority to deny 
licenses. Under this broader authority, licenses 
may be denied if a proposed shipment is con- 
sidered contrary to the foreign policy interests of 
the United States. The authority to deny licenses 
enables the Secretary of State through the instru- 
mentality of the Munitions Division of the De- 
partment of State to take positive action against 
arms traffickers supplying nations at war and co- 
operating with insurgent groups in fomenting 
revolutions and wars. 



CURRENT ARMS POLICIES OF THE 
UNITED STATES 

The United States has actively participated in 
the formulation of positive action to deal with this 
traffic in accordance with its broad national policy 
objectives. Briefly, the current arms policies of 
the United States are directed to the realization 
of the following broad objectives: 

1. To assist in meeting the commitments of the 
United States under the Charter ' of the United 
Nations through control and limitation of the ex- 
portation of arms, consistent with the Charter aim 
of establishing and maintaining "international 
peace and security with the least diversion for 
armaments of the world's human and economic 



' The Charter of the United Nations recognizes inter 
alia the right of members of the United Nations to provide 
for individual or collective self-defense and calls upon 
member nations to assist in measures to maintain interna- 
tional peace and security. See articles 51 and 26 of the 
Charter. 



resources." Among other things, this control 
would include the prevention of the export of arms 
to any state against which the United Nations is 
taking preventive or enforcement action. 

2. Based upon the principles of continuous and 
effective self-help and mutual aid, to furnish mili- 
tary assistance essential to enable the United States 
and other nations to participate effectively in ar- 
rangements for individual and collective self-de- 
fense. 

3. In accordance with the statement of the Presi- 
dent of the United States in his message to Con- 
gress March 12, 1947, to help free peoples maintain 
their free institutions and their national integrity 
against aggressive movements that seek to impose 
upon them totalitarian regimes. 

4. Consistent with the above objective, to pre- 
vent United States arms from strengthening the 
military establishments of governments whose 
policy it is to suppress free democratic institutions 
within their borders or resort to aggressive tactics 
against neig'hboring governments. 

5. To enable friendly nations to maintain in- 
ternal order in the reasonable and legitimate exer- ' 
cise of constituted authority. 

6. To encourage the habit of peaceful and consti- 
tutional political changes in friendly nations by 
preventing the export of arms destined for revo- 
lutionary factions or groups. 

7. To further, in general, the foreign policy in- 
terests of the United States not covered by the 
above policy objectives. 



ROLE OF MUNITIONS DIVISION 

The special characteristics of the trade and traf- 
fic in arms require the Munitions Division to take 
an active interest in foreign political developments 
and political problems of related Department of 
State activities and to assume a leading role in 
initiating and developing new arms export policy 
as well as in implementing the provisions of the 
export control laws governing arms shipments in 
accordance with existing established policy. The 
continuous centralization of arms export and im- 
port controls in a division of the Department has 
furthermore facilitated the development of a uni- 
form, long-range, arms policy pattern closely coor- 
dinated with the over-all objectives of United 
States foreign policy and has resulted in greater 
consistency in the administration of the law. 



February 6, 7950 



189 



In the interest of the national well-being and 
international peace, the arms traffic field warrants 
the exercise of effective administrative supervi- 
sion and control although, at the same time, the 
Government has no desire to impose unreasonable 
restraints on American business enterprises even 
in this field. Since arms, ammunition, and im- 
plements of war are inherently nonconmiercial, 
however, enterprises in this field must be ready to 
accept a greater degree of sui:)ervision and con- 
trol than is customary for enterprises which are 
completely commercial. 

In addition to the jwlicy coordination phase, 
llie Munitions Division, through three other 
important activities, insures an effective export 
control over arms shipments. 

First, the Division administers a licensing 
system established by statutoiy provisions and 
regulations issued pursuant thereto for authorizing 
or denying approval of jji-oposed sliipmcnts. This 
system is coupled with a legal requireuuMit that a 
license may be issued only to a person who is didy 
registered with the Department of Slate. 

Secondly, security screening and the main- 
Iciumce of a focal point witliin the Munitions 
Division for all information concerning cases of 
arms tiafRc violations, attempted violations, or 
clandestine activities occupy a central ])osition in 
the administrative procedure of the Division for 
processing applications. 

Thirdly, enforcement is given positive direction 
througii active participation with enforcement 
agencies in preventing violations and in i)rose- 
cuting offenders once violations have taken place. 

Policy Coordination 

The i)olicy coordination phase is administered 
as an integral part of the license-processing pro- 
cedure. Tlie Munitions Division consults with 
other offices of the Department and with tlie De- 
partment of Defense to cooi-dinate all infoi-nuilion 
beai-ingon a jjarticidar jjroblem. Specifically, tlie 
Division has the responsibility, juior to acting on 
export i-equests, to seek the views of the concerned 
offices of the Dei)artment of State and the I)e]>art- 
nient of Defense (o insure that all difference.s are 
reconciled and ])resenled for higiu-rdevel review. 
Many shi|)ments involve complex policy questions, 
others are of a distinctly routine nature. In the 
case of those shipments re(]uiring high-level ]>olicy 
determination, the Munitions Division, by its 
terms of reference, must initiate action to obtain 



higher-level review, presenting all pertinent facts 
and opinions. 

The principal criterion for determining the de- 
gree of control to be exercised over articles licensed 
for export by the Secretary of State is the war 
potential which is attributed to the articles to be 
exported. The exportation of articles having a 
remote or insignificant war potential is permitted 
with practically no delay, whereas the exporta- 
tion of articles possessed of a high military jjoten- 
tial. such as guns, tanks, military-type aircraft, 
and vessels of war, is permitted only on submission 
of acceptable proof that the proposed transaction 
is legitimate and that it is in conformity with the 
apjilicable provisions of our export policies. The 
great bulk of articles whose exportation is subject 
to careful scrutiny fall in between these two ex- 
tremes. Other considerations, such as, the desti- 
nation of the article, the past reputation of the 
shipper or the consignee, and the size of the ship- 
11 lent become of greater or less significance in direct 
juoportion to the degree of war potential attri- 
buted to the article being shipped. 

In many cases, however, an article may be sus- 
ceptible of both commercial and military use or 
it may be readily convertible from a commercial 
to a military-type article. When the article 'has 
ini]wrtant military potentialities, even when sus- 
cejitible of civilian end use. effective control to 
jirevent violations of export control laws requires 
external as well as internal action, particularly if 
the consignees and consignors are of unknown 
relialiility. to guard against the possibilities of 
traiisshi]iment, or resale, or indirect routing, or 
of misrejiresentation as to end use and ultimate 
destination. Despite careful review of informa- 
tion concerning a projiosed transaction and the 
parti(>s thei-eto, sometimes a fraudulent represen- 
tation is revealed by the action of the parties after 
the exportation has been completed. If the 
threatened violation is considered injurious to the 
interests of the T"'nited States, it may be decided, 
in dealing with the sjiecific jiroblem, to solicit the 
cooperation of the foreign government which has 
obtained jurisdiction over tlii> subject matter. 
.'>ome instances of cooper;itive action on the part 
of othei- governments in connection with arms ex- 
]>orts will be related in the following installment. 

Security Screening 

Security screening and llie evalution of arms 
exports from tlieseciii-ity jioint of view is being ac- 



190 



Deparfmenf of State Bulletin 



corded increased emphasis in the work of the 
Munitions Division. As here used, the term "se- 
curity screening'' usually refers to the process 
of identifying arms shipments whose expor- 
tation miglit result in embarrassment to this 
Government. 

As applied to property, "security screening" is 
designetl to prevent the shipment of any article or 
commodity whose exportation to certain countries 
might have important implications for United 
States security. 

As applied to persons, "security screening" 
identifies or discovers the connection of irrespon- 
sible individuals or persons and firms whose repu- 
tation casts serious doubts on the transaction. 

Security screening, therefore, is preventive in 
nature rather than remedial and is directed to the 
detection of misrepresentations and of the threat- 
ened diversion to a use which is unauthorized and 
contrary to the interests of the United States. 

As an adjunct to the security screening process, 
the services of United States missions abroad is 
frequently made use of prior to the issuance of 
export licenses to determine and establish assur- 
ances that proposed arms shipments are in fact 
ultimately destined for the country indicated by 
the shipper. The security check work further- 
more requires the maintenance of a close-working 
relationship with sources of intelligence and all 
available information on the arms traffic. 

Security information shedding light on indiv- 
idual exports comes from both foreign and do- 
mestic sources. Information from foreign sources 
reaches the Department in the form of foreign 
service messages, military intercepts or intelli- 
gence information channeled through the armed 
services and central intelligence. 

Information from domestic sources may orig- 
inate with the United States Customs, the Fed- 
eral Bureau of Investigation, or commercial firms 
and private individuals. On reaching the Muni- 
tions Division, it is correlated and indexed for 
ready reference in connection with pending ship- 
ments. 

During the Israel-Arab conflict, information 
received from the field was correlated with infor- 
mation received from the United States Customs 
Agency Service to establish beyond a reasonable 
doubt the intention of one group to export large 
transport aircraft for employment in the trans- 
portation of contraband from Czechoslovakia to 
Israel and the intention of another group to export 



a bomber and several fighters for transshipment to 
the Arab forces. The exportation of these air- 
craft was prevented through prompt action by 
the United States Customs authorities in seizing 
the airplanes for attempted violation of the export 
control laws. 

Although the United States is interested in 
clandestine arms traffic between foreign countries, 
the authorities of the country or countries where 
the violations take place, of necessity, have juris- 
diction in individual cases. However, though not 
subject to the operation of United States laws, the 
illicit arms traffic between foreign points may di- 
rectly affect the activities of our enforcement au- 
thorities, particularly if the materials are of 
United States origin and the participants are 
United States citizens. Any comprehensive 
understanding of the complexities involved in the 
effective enforcement of our laws, therefore, must 
include a consideration of the arms trade and 
traffic in areas at some distance from the United 
States, such as the areas of the Far East. 

The rest of this article will deal with the arms 
traffic in the Far East, an area in which a signifi- 
cant traffic in arms of United States origin has 
been reported. A second article will discuss prob- 
lems and examples of the illegal traffic in arms 
within and across the borders of the United 
States. 

CLANDESTINE ARMS TRAFFIC IN FAR EAST 

In the Far East, armed conflicts between native 
independence movements and former colonial au- 
thorities, coupled with the existence of abnormally 
large surpluses of munitions after the termina- 
tion of hostilities in World War II, afforded un- 
equalled opportunities for the unscrupulous gun 
runner to reap quick profits. The United States 
is concerned with the activities of arms smugglers 
trading in equipment of United States origin as 
well as with the activities of its citizens which are 
directly connected with the clandestine arms traf- 
fic in any area of the world since such activities 
can definitely affect the attainment of this coun- 
try's objectives in the areas concerned. 

A heterogeneous assortment of ruthless bandits, 
fortune hunters, and arms brokers as well as de- 
termined leaders of independence movements, are 
found engaging in the Far East arms traffic. Cer- 
tain American adventurers have joined hands with 
natives and like-minded individuals of other na- 



February 6, 7950 



191 



tionalities to take advantage of this lucrative 
smuggling trade. A flourishing arms smuggling 
trade reportedly has existed in Singapore and 
Bangkok where arms are purchased from Chinese 
and Siamese smugglers who are supplied from 
South China and the Philippines for the Indo- 
nesian Eepublic, Burma, and Viet Nam. Several 
smuggling rings reportedly also have operated out 
of the Philippines. 

The following are a few of a great many illus- 
trations which might be cited of the activities of 
Far East gun runners : 

A 28-year old pilot, allegedly desirous of estab- 
lishing a private airline in Republican Indonesia, 
became involved in carrying contraband air 
cargoes for the Indonesian Republic. The Dutch 
forced him down after he reportedly had com- 
pleted 64 successful runs from Manila to Java and 
Sumatra. He was never heard from again. 

A Welshman, named Carlton A. Hire, is re- 
ported to have kept a $300,000 stock of equipment 
of American origin made up of such items as 
Browning automatics, carbines, tommy guns, and 
bazookas in a cache on deserted Airraboe Island 
situated 200 miles northeast of Singapore. He 
had hauled all of this contraband from the Philip- 
pines in his flying boat. 

Three Americans, one a former United States 
Air Force officer, acquired an ex-aircraft bomber 
and an MTB high-speed vessel and joined hands 
in a plot to supply arms to Indonesia. They op- 
erated the bomber partly on a regular route be- 
tween Singapore and Calcutta and partly to carry 
arms and Red Cross supplies to the Indonesians, 
reportedly delivered to them by way of the bomb- 
bay doors while the aircraft was in flight. This 
syndicate cooperated with other persons in Burma 
who were interested in piircliasing arms smuggled 
from the Philippines or from other sources in 
Southeast Asia. The activities of this syndicate 
came to an abrupt end vvlien one of its members 
was jailed by the Rangoon authorities and the 
third American abandoned his smuggling ac- 
tivities. 

Sources of Supply for the Clandestine Arms Traffic 

The existence of armed conflict in a given area 
and the availability of a plentiful sui)ply of war 
materials readily procurable by legal or illegal 
means within easy reach of that area presents a 
fertile ground for the operations of arm traf- 
fickers. The disturbed political, social, and eco- 



nomic conditions in Southeast Asia in the period 
following the cessation of hostilities in World 
War II, conditions brought about by the disrup- 
tion of home and family ties as a result of the 
war, the impetus given freedom movements among 
colonial peoples of Southeast Asia by the failure 
of colonial powers to protect them from invasions, 
and the conflict between communism and democ- 
racy, coupled with the availability in enormous 
quantities of war surplus arms, ammunition, and 
implements of war, created an explosive situa- 
tion liighly conducive to armed strife and a social- 
legal situation in which the arms smuggler could 
be and was accorded a considerable degree of 
local respectability. 

Extensive leakages of war materials from arms 
depots established by the armed forces of the 
major powers created a black market in arms 
and resulted in the prevalence of banditry and the 
common carriage of arms by individuals as a 
means of personal px-otection. The newly created 
native governments as well as established colonial 
authorities were weakly organized for effective 
action to enforce the laws and cope with lawless 
elements within their domains. 

The arms depots of the major powers were 
spread out over a wide area, including Indochina, 
Burma, and the Philippines. A steady flow of 
war materials reportedly was smuggled down the 
Indochina coast to Malaya from the "Lost 93rd" 
Chinese Division stranded in Burma after the 
War.* In addition to those of the United States 
and Great Britain, Japanese munitions depots 
supplied a source of munitions for the under- 
ground ai-ms traffic in this area which, because 
their exact location in many cases were not known, 
furnished an altogether uncontrolled source of 
material for the black market operator. 

In Indochina, Burma, and Thailand, clandes- 
tine traffic in war materials are traceable to the 
following sources: abandoned Japanese muni- 
tions depots in Indochina and Thailand ; arms of 
United States and British origin furnish to Chi- 
nese, the Free Thai in Thailand, and the Karens 
in Burma; and pilfering of United States and 
Bi'itish arms depots. In the Philippines, leak- 
ages of war materials are traceable to the follow- 
ing sources: thefts from arms depots under the 
jurisdiction of the United States forces and the 
Philippine Government; and, Japanese arms and 
anununition depots which fell into the hands of 

" Ihid. 



192 



Department of State Bulletin 



native Filipinos after abandonment by the de- 
feated Japanese forces. 

Concern of the United States 

The United States is keenly aware of its stake 
in the pacific settlement of disputes in the Far 
East and is concerned with the manner in which 
munitions and implements of war of United States 
origin reach participants in foreign armed con- 
flicts, however local in nature. It is also con- 
cerned with activities of its citizens which are di- 
rectly connected with the illicit arms traffic in any 
area of the world. At the same time, although 
this nation can and does take effective action to 
prevent contraband materials under its territorial 
jurisdiction from being diverted to the illicit arms 
trade, it is obvious that the United States cannot 
control the movement of arms and ammunition 
which have entered black market channels within 
and between foreign countries, whether or not the 
material is of United States origin. 

Upon receiving reports of the appearance of 
arms and ammunition of United States origin in 
some of the disturbed areas of Southeast Asia, the 
Department of State took prompt steps to as- 
certain the source of the materiel. 

It was particularly interested in evidence that 
arms and ammunition had reached the areas of 
strife from armament stores under United States 
control or from the Philippine Commonwealth 
Republic's stores of war materials which had been 
transferred under an agreement entered into in 
accordance with the terms of the Military Assist- 
ance Program for the Philippine Commonwealth 
Republic and, if so, whether there was evidence of 
a violation of the contractual stipulation that sur- 
plus arms, ammunition, and implements of war 
obtained from the United States under this agree- 
ment may not be retransf erred without its consent. 
Wherever proof of leakages was obtained, it was 
requested that appropriate steps be taken to pre- 
vent, if possible, future leakages of arms and am- 
munition from the same source. In cases of di- 
versions from armament stores under United 
States control, it was found that dishonesty on the 
part of separated United States personnel and out- 
side thefts accounted for most of the reported 
losses of war materiels. A deeper cause was the 
diflBculty inherent in attempting to maintain 
supervision by a skeletal staff responsible for 
supervising the storage depots whose morale de- 
teriorated as a result of a feeling of uncertainty 



with respect to the ultimate disposition of the ma- 
teriels as well as the indefinite terminal date of 
their own Far East assignment. 

The recipient governing authorities who re- 
ceived by transfer large stocks of nondemilita- 
rized combat materiel in excess to the needs of the 
United States forces in that area, subject to spe- 
cific conditions that the materiels be demilitarized 
and not retransferred, were not equipped either 
with adequate storage facilities or with reliable 
and experienced technical personnel to provide 
those adequate safeguards which there is every 
reason to suppose they tried to provide. Conse- 
quently, the revelation that losses from those ar- 
mament stores were due to corruption and careless- 
ness as well as thefts must be regarded as a conse- 
quence which might have been anticipated. 

Relation of Surplus Disposal Problem 
to the Clandestine Arms Traffic 

The clandestine arms traffic in the Far East 
brings up the question of surplus disposal of mu- 
nitions in that area. As outlined above, although 
all transfers of munitions in the possession of 
the United States were made subject to safe- 
guards, which, in principle, seemed adequate to 
prevent their diversion to undesirable uses, the 
existence of such large quantities of war materiels, 
coupled with unstable political conditions in near 
by countries, made the strict enforcements of these 
safeguards extremely difficult. In consequence 
of the existence of these wartime surpluses, how- 
ever, arms and ammunition became very plentiful 
in the Philippines and in other parts of Southeast 
Asia in the late 1940's. Following the cessation 
of hostilities, the Department was confronted with 
a vexing disposal problem for United States sur- 
pluses of auxiliary vessels, aircraft, munitions of 
war, and other materiels which had been accumu- 
lated for the use of United States forces abroad. 

Various considerations governed the disposal of 
surplus properties, including the desire to obtain 
the greatest possible monetary return, thus reduc- 
ing the cost of the war to the American taxpayer. 
An effort was made to dispose of property as ex- 
peditiously as possible in order to minimize losses 
caused by depreciation and obsolescence; to re- 
duce the cost in money and manpower of care, 
custody, handling, and selling; and to place the 
articles in use at a time when they were most 
vitally needed to assist in the rehabilitation of 
war-devastated areas. 



February 6, 1950 



193 



A formal policy was drafted ^ and a special pro- 
cedure established by an ad hoc committee of the 
State-War-Navy Coordinating Committee for the 
disposition of nondemilitarized combat materiels 
and wartime equipment. The Munitions Division 
of the State Department acted as the Department's 
central clearing house and policy-relaying agent. 
It coordinated the views of the Department, the 
Armed Services, and other governmental agencies 
and therefore constituted an important procedural 
link in this process. In accordance with the es- 
tablished procedure, every transfer of munitions 
and implements of war has received close scru- 
tiny from the arms policy point of view. 

Transfers of surplus stocks of munitions and 
implements of war were authorized in accordance 
with the policy and procedures established for the 
disposition of nondemilitarized overseas combat 
materiel. Of necessity, the nature of the materiel 
and its physical location practically limited the 
number of choices available as to its disposition. 
The government of the country in which the ma- 
teriel was located in each case was the logical re- 
cipient and its requirements were logically en- 
titled to preferential consideration. This situa- 
tion was especially true in the Philippines after 
the passage of the Philippine Military Assistance 
Act of 1946." Nevertheless, every sale or trans- 
fer of nondemilitarized combat materiel was 
hedged about by conditions to guard against its 
falling into irresponsible hands. Quantities of 
munitions and aircraft equipment were authorized 
for transfer to the Chinese Nationalist Govern- 
ment for its Air Force. Under a bulk-sale agree- 

°The statement of policy as outlined in SWXCC docu- 
ment no. 2.S4 reads as follows: "As a matter of policy it 
is agreed mutually tliat the War and Navy Departments 
shall consult with the State Department on policy respect- 
ing declarations of nondemilitarized overseas combat ma- 
t<''riel which is essentially and exclusively for use in war 
or warlike exercises before authorizing theater or area 
commanders to declare such nondemilitarized mat^-riel as 
.surplus to the State Dejjartment as operating agency." 

"United States laws and policies with respect to export 
controls prevailed in tlie Philippines while the ishirids 
held the status of a territorial iiosscssion of the United 
States. During the years lorif; and \'M0. inclusive, the 
United States High Commission for the Philippines ac- 
cepted a delegation of authority from the Secretary of 
State to issue licenses authorizing the exjiortation and 
importation of arms, ammunition, and in)plements of war 
to and from Philippine territory. 

The .iurisdictlon of the United States over these and 
other activities within the Philippine Republic ceased 
when the islands were gr.'intcd Inclependence on .Inly 4. 
194G. The Philippine Milit;iry Assistance .Act of .7une 
26, 1040, provided for the transfer to the Philiiipine Ooin- 
monwealth of any arms, anwnunilion, jind implements of 
war consistent with the naval and military requirements 
of the United States and with our national interest. 



ment, the Philippine Government received about 
4,000 tons of nondemilitarized aviation, ammuni- 
tion and components, and 75,000 tons of United 
States Ground Forces ammunition. This sale 
was made subject to certain explicit conditions, 
including the requirement that the Government of 
the Philippine Commonwealth Republic agree to 
demilitarize the ammunition and not deliver it to 
anyone else in a nondemilitarized combat-materiel 
form. In addition, approximately 70 more com- 
bat-type landing craft, naval tenders, and service 
vessels, surplus to United States needs, were sold 
during the years 1946, 1947, and 1948 to the Phil- 
ippine Government and to private individuals in 
the Philippines of good reputation. 

With the passage of time, combat materiels 
obtained from World War II arms depots neces- 
sarily deteriorate or become exhausted. Conse- 
quently, the arms smuggler is ever on the alert for 
new sources of supplies. The United States might 
become a very important potential source for arms 
and ammunition for foreign revolutionary and 
warring groups were it not for the supervision 
which this Government exercises over arms 
exports. 



CONCLUSION 

The Far Eastern aspect of the clandestine traffic 
in arms has been considered in this article as an 
illustration of the relationship which may exist 
between arms smuggling activities outside the area 
of United States jurisdiction and the compliance 
work for which this Government has direct re- 
sponsibility. Although the United States can 
have only a marginal interest in the curtailment 
of illegal traffic in arms beyond its own borders, 
knowledge of the details of arms smuggling cases 
in such foreign areas may greatly increase the effi- 
ciency of this country's efforts to cope with the 
activities of arms smuggling rings operating inside 
the United States and across its borders. 

The special problems of domestic control and 
supervision of the illicit arms traffic in direct vio- 
lation of United States laws, which will be ex- 
tensively dealt with in a second article of this 
series and problems connected with the manufac- 
ture of arms to be considered in a third article, 
serve to emphasize the importance of close liaison 
between the operating organs of administrative 
control, intelligence and foreign service channels, 
and the agency formtilating foreign policy. 



194 



Department of State Bulletin 



PROGRESS REPORTfON GERMANY 



hy John J. McCloy, United States High Com/mis gioner for Germany ^ 



The people of the United States have a heavy 
stake in our policy in Germany, where, over the 
past 10 years, they have expended an enormous 
amount of human and material treasure. For 
that reason, it is important that they should be 
constantly and fully informed of the state of their 
investment in Germany and of the progress of 
their policy. 

As the United States High Commissioner in 
Germany, I have come home after 6 months to 
make a report to the President and to the people. 
I have also come home to get the feeling of Amer- 
ican public opinion. Tonight, in the short time 
at my disposal, I shall try to give you my best 
estimate of conditions and trends in a country 
which is a center point of most of the gi'eat world 
issues today. 

Current Developments 

In analyzing what is going on in Germany we 
must remember that current developments are 
only superficially the result of what has been 
happening in the last 6 months. They are the 
outgrowth of what has and has not been done 
in Germany since 1945. More importantly, they 
result from causes and conditions that are deep- 
rooted in the German character and in German 
and European history. 

With this in mind, consider for a moment what 
we have undertaken to accomplish since 1945 in 
Germany. It is not only to undo the 12-year 
rule of Hitler, a rule which probably represented 
tlie most profound indoctrination effort ever in- 
flicted on a country. We have been, and we are 

' An address delivered over the National Broadcasting 
Company network on Jan. 23, 1950, and released to the 
press on the same date. 



trying to encourage the Germans to do some things 
perhaps even more difficult — the removal, for ex- 
ample, of those instincts of the German people 
and their leaders toward authoritarianism and ag- 
gression which mark a much longer period of 
German history than Hitler's 12 years. 

Forces and Attitudes at Work 

Now, what are the good and bad in the German 
picture — how much progress have we made toward 
our goal? I shall start with the darker side of 
the picture : 

NATIONALISM 

1. There is nationalism in Germany. There 
is a nationalist fringe on the extreme right which 
is more active than it has been. There is a Com- 
munist fringe that plays the Soviet game, and 
there is the persistent tendency of both these 
fringes to work together. 

DENAZIFICATION 

2. There are persons in important, though 
not top, governmental jobs who held similar po- 
sitions under the Nazi regime. A number of 
undesirable persons have found their way back 
into leading positions in the business life of the 
country. In this connection I do not include 
thousands of former Nazis who were school teach- 
ers, mail carriers, tax officials, etc., under the Wei- 
mar Republic who became party members under 
Hitler and are now back at the old stand. These 
people have gone through a denazification proc- 
ess — which may well leave much to be desired — 
and they have been reinstated after paying their 
penalties or after having been acquitted. The de- 
nazification process predated my assumption of 



February 6, 1950 



195 



office in Germany, and I do not feel called upon 
to defend it. But I do feel that our denazification 
program was by far the most sweeping attempt 
made in Germany to deal with this difficult p)rob- 
lem. I believe the time has come to permit these 
so-called little Nazis to demonstrate their loyalty 
to the new Germany and judge them on that basis 
rather than on their past weaknesses and misdeeds. 
They cannot and should not be excluded forever 
from normal life in the community. Obviously 
this does not refer to major Nazi offenders who 
are still paying and should continue to pay for 
their unspeakable crimes. 

TRADITIONALISM 

3. Traditionalism still largely influences Ger- 
many thinking. There is a considerable resistance 
to reform, ranging from passive opposition in 
some cases to outright obstruction. There is, for 
example, in many quarters reluctance to adopt civil 
service reforms and resistance to major school 
reforms. 

INERTIA 

4. A majority of Germans are gripped by 
political and social inertia. Many Germans con- 
tinue to divorce themselves from the interest and 
responsibility necessary to the functioning of 
democratic government. There is an exasperating 
willingness to leave responsibility and direction to 
others. German political leaders are prone to take 
advantage of this apathy. 

Positive Forces 

Such are the various nationalist and traditional- 
ist forces and attitudes in Germany. I have de- 
liberately placed the negative forces first in my 
account. I firmly believe, however, that positive 
forces are at work which are stronger than the 
negative. Here are my reasons: 

FREE-ELECTEO GOVERNMENT 

1. In Western Germany, there is today a free- 
elected Government and parliament. This gov- 
ernment is new ; it has much to learn — how could 
it be otherwise after the Hitler years? But, 
whether its trend is a little left of center or a little 
right of center, it is headed in a democratic di- 
rection. 

REPRESENTATION 

2. This German parliament is made up, in large 
part, of representatives who resisted Hitler, men 



who were in concentration camps, men associated 
with the "Weimar Republic which Hitler liqui- 
dated, labor representatives, and other liberal- 
minded citizens. 

PRO-DEMOCRATIC LEADERS 

3. In the Laender, which correspond roughly 
to our states, the officials, for the most part, were 
originally selected by American ^Military Govern- 
ment for positions of authority because of their 
anti-Nazi and pro-democratic records. These 
leaders have since been confirmed in free elections 
by the German people. 

VIGOR OF PRESS 

4. Another cause for considerable satisfaction 
is the growing vigor of the German press. Though 
there are weaknesses in it, the press which we 
helped start after Hitler's collapse has demon- 
strated an instinct to catch political abuses, to ex- 
pose them, and to help develop public opinion. It 
has demonstrated a growing sense of public 
responsibility. 

LIBERAL LEGISLATION 

5. The Laender Parliaments have passed an im- 
pressive total of liberal and progressive pieces of 
legislation that show a strong and voluntary tend- 
ency to draw away from Hitlerian concepts. 

There are other factors. Despite their apathy, 
the German people prefer representative govei-n- 
ment as opposed to dictatorship of either the Nazi 
or Communist type. A vast majority of Germans 
are deeply opposed to militarism and war. The 
German people want no more military adventures. 
Moreover, in economic mattei's, the Germans in- 
dicate that they prefer a liberalized economy over 
a planned system. 

The Germans in general are receptive to plans 
for consolidating Europe, and they are willing to 
give up elements of real sovereigntj' to achieve this 
end. Today, the idea of Western European con- 
solidation represents to the average German, and 
particularly to the youth, the best hope for the 
future. 

There are in Germany many individuals and 
many small groups of people who are working 
faithfully and intelligently to break authoritarian 
habits. They include editors and teachers, poli- 
ticians and trade union leaders, students and youth 



196 



Department of State BuUetin 



leaders. They liave the idealism and energy, the 
goal and the hope. 

Inflammatory Elements 

Let nie now strike a balance. There are evil 
and nationalist embers in Germany, and embers 
are always dangerons. They are particularly dan- 
gerous when inflammatory material is nearby. 
Such material exists, if nowhere else, in the vast 
number of German refugees from the East, in the 
unemployed, and in the homeless youth. There 
have been nationalist incidents, and there will be 
new incidents and situations that will be both de- 
plorable and alarming. But no one could con- 
tend, as the Socialist Mayor Keuter put it to me 
the other day in Berlin, that all the evils of Hitler's 
12-year rule can be removed in 5. 

In other words, there is danger, but if there were 
no danger in Germany we would not be there. 
Germany constitutes a danger within itself and 
even more fearful danger if allied with, or sub- 
ordinated to, the interests of the Soviet Union. 
And, as I have said, the Communist and Rightist 
extremists in Germany seem prepared to get to- 
gether with the totalitarianism of the Soviet, 
should a good opportunity present itself. 

German Agressiveness 

In this connection let me state the following: 

There has been talk that we have given up power 
too soon and that we do not have the means to 
cope with a serious revival of German aggressive 
attitudes. I understand this apprehension. Na- 
turally, we are not without information about 
extremist trends. Furthermore, we have ample 
powers to deal with any dangerous nationalist 
revival. Our powers are both positive and nega- 
tive; positive in the specific authority to intervene 
if a serious threat to our objectives develops; and 
negative in our right to deny concessions from the 
existing status if liberal tendencies do not develop. 
If necessary, I would not hesitate to apply these 
remedies, swiftly and firmly. 

But I contend that some of the alarming inci- 
dents you may read about are not representative 
of present German conditions or of German atti- 
tudes as a whole. Every day, there are many 
unreported evidences of courage, of determina- 
tion, of the will to prevail over the past. In them, 
there is great potential for good, and I feel that 
these elements and forces will prevail, if they 
continue to have our encouragement and support. 



Chief Objectives of Our German Policy 

In conclusion, here is what I view as the things 
of chief importance in connection with our German 
policy : 

It is our Government's policy to seek a unifica- 
tion of all occupation zones of Germany on a 
democratic and federal basis, and we shall assist 
all efforts of the Federal Republic of Germany 
toward that end. We will, likewise, do everything 
in our power to prevent a unification of Germany 
under Soviet or Communist domination. 

We must continue to be alert and uncompro- 
mising on true security issues. 

We must continue to insist on the equitable 
treatment of Hitler's victims and their heirs. 

We must help the Germans solve as rapidly as 
possible the critical social and economic problems 
of Germany — serious problems which the rise in 
production figures tends to conceal. We must 
encourage the establishment of a free economy. 
At the same time, we must take measures to pro- 
hibit Germany from joining any international 
cartel. 

We should maintain, as far as lies within our 
power, a unified policy with respect to Germany 
among the three occupying powers of the West — 
Britain, France, and the United States. 

We should bend every effort to encourage Ger- 
many to take, if need be, the first steps to bring 
about a true partnership of Western Europe and 
induce the other Western European powers to ac- 
cept this principle for themselves and for Ger- 
many. I feel convinced that this concept of West- 
ern European unity and partnership is the desire 
and will of the common people of Europe, and it 
should not be denied them. 

We should continue to press and encourage the 
German governments and people to adopt liberal, 
progressive measures throughout Germany, 
whether or not these measures are within our 
powers to dictate. 

We must encourage and stimulate every effort 
to give the youth of Germany justified hope in 
the future. Here, I think, is our greatest chal- 
lenge and hope. We Americans are peculiarly 
fitted to help the Germans toward the goal of 
democratization. It is my intention and that of 
my staff in Germany to reinvigorate our whole 
program in this field. We shall use all our power 
and resources — and they are large — to help the 
schools and universities, the trade unions and 
(Continued on page £17) 



February 6, 1950 



197 



Mutual Defense Assistance Agreements Signed 



iy Belgium, Denmark, France, Italy, Luxembourg, the Netherlands 
Norway, and the United Kingdom, With the United States 



STATEMENT BY THE PRESIDENT 

During the past 2 years the free nations of Eu- 
rope, with the help of the United States, have made 
great strides toward recovery. An essential ele- 
ment in this program has been the establishment 
of conditions in Western Europe adequate to give 
confidence to the people and to insure a reasonable 
prospect that the fruits of their labor would not be 
immediately lost in the event of aggression. 

It was realized that an adequate security ar- 
rangement could be organized only if the free 
nations of Western Europe joined together and 
strengthened their individual and collective de- 
fense through self-help and mutual aid and if the 
United States joined in the collective enterprise. 
In recognition of this fact, the North Atlantic 
Ti'eaty was signed on April 4, 1949. Further, in 
recognition of the concept of self-help and mutual 
aid embodied in article 3 of the Treaty, I asked 
the Congress to authorize the furnishing of mili- 
tary assistance to certain of its signatories. At the 
same time, I requested authorization to furnish 
military assistance to certain other free nations. 

In response to my request, the Congress passed 
the Mutual Defense Assistance Act of 1949 on Oc- 
tober 6, 1949. Under its provision, I am authorized 
to furnish military assistance to certain foreign 
countries which meet the specific conditions pre- 
scribed in the law. In the case of parties to the 
North Atlantic Treaty, three such conditions are 
imposed. In the first place, to be eligible for assist- 
ance, the country must have requested such assist- 
ance prior to the effective date of the law. Sec- 
ondly, 900 million dollars of the 1 billion dollars in 
funds and contract authority made available for 
assistance in the North Atlantic area can only be 
utilized after I approve recommendations for an 
integrated defense of the North Atlantic area made 
by the Council and the Defense Committee estab- 
lished under the North Atlantic Treaty. Finally, 
as a condition precedent to the furnishing of assist- 
ance to any country, the recipient must have en- 



tered into an agreement with the United States 
embodying certain commitments concerning its 
use. 

Prior to the effective date of the law, the Depart- 
ment of State received requests for military assist- 
ance from the following North Atlantic Treaty 
countries : Belgium, Denmark, France, Italy, Lux- 
embourg, the Netherlands, Norway, and the United 
Kingdom. 

The North Atlantic Defense Committee, at its 
meeting in Paris on December 1, 1949, agreed unan- 
imously on recommendations made by the Military 
Committee for the integrated defense of the North 
Atlantic area, and the North Atlantic Council 
unanimously approved these recommendations on 
January 6, 1950. Subsequently, the Secretary of 
State and the Secretary of Defense recommended 
that I approve them. 

I have today approved these recommendations 
as satisfying the pertinent provisions of the Mu- 
tual Defense Assistance Act of 1949. 

I have approved them because I am satisfied that 
they provide for the accomplishment of an inte- 
grated defense of the North Atlantic area. They 
do this by providing for a common defense based 
on the cooperative use of national military re- 
sources and on individual national specialization. 
They contain agreement that these resources, in- 
cluding United States military assistance, will be 
used with maximum efficiency and will not be used 
to develop separate and unrelated defenses. 

The North Atlantic Treaty is in itself a deter- 
rent to aggression. I believe that these recom- 
mendations which have been agreed to by the 
governments of the North Atlantic Treaty nations 
constitute a major achievement under the Treaty. 
They provide further convincing evidence of the 
determination of these nations to resist aggression 
against any of them and are a definite indication 
of the genuine spirit of cooperation among the 
Treaty members. 

The Mutual Defense Assistance Act of 1949 also 
provided that the United States should conclude 



198 



Department of State BuHet'm 



agreements with the countries which request and 
are to receive military assistance. Such agree- 
ments are being signed today by the Secretary of 
State and representatives of Belgium, Denmark, 
Franco. Italy, Lnxcmliourg, the Netlu'rhuuls, Nor- 
way, and the United Kingdom. Their texts will 
be made public, and they will be registered with 
the United Nations. 

In view of these significant developments, I have 
today also made formal provision for the admin- 
istration of the Mutual Defense Assistance Act 
by issuing an Executive order authorizing the Sec- 
retary of State to proceed with the program in 
consultation with the Secretary of Defense and 
the Administrator for Economic Cooperation. 

These developments are the result of close coop- 
eration among free nations which intend to remain 
free. They are, of course, first steps. The success- 
ful imi)lementation of the North Atlantic Treaty 
will require constant and continuing eilort and 
cooperation bj' all its members. Planning for 
defense cannot be static. It must be constantly 
reviewed and revised in the light of changing 
circumstances, and it must be flexible to allow for 
ma.ximum coordination of effort at all times. 



STATEMENT BY SECRETARY ACHESON i 

The peoples of the North Atlantic Community 
value peace and freedom above all other things, 
and they are determined to take whatever meas- 
ures may be required to preserve them. In the 
world today, this depends upon their being strong 
and joining their collective sti'ength in support of 
the cause of peace and fi'eedom. 

The signing of the North Atlantic Treaty was a 
recognition of this need and a reflection of the will 
of the free nations of the North Atlantic Com- 
munity to achieve the primary purpose of the 
United Nations — the maintenance of international 
peace and security. 

The North Atlantic Treaty is predicated upon 
the principle of self-help and mutual aid. If its 
purposes are to be attained, each member must do 
its utmost to strengthen itself and provide its fair 
share in helping to strengthen the others. The 
agreements which have been concluded todaj' rep- 
resent a major concrete step in furtherance of this 
principle. They are designed to build the collec- 
tive strength of all the signatories and by doing so, 
to make certain that their democratic and free 
institutions may continue to thrive and prosper. 

These agreements set into motion the Mutual 
Defense Assistance Program, a program jointly 
developed by the nations which have entered into 
these agreements. Under this program, military 
assistance provided by the United States will be 
iitilizpd to further plans for the integrated defense 

' Made im the occasion of the signing ceremony on .Tan. 
27, 10.")0, anfl released to the press on the same date. 

February 6, J 950 



of the North Atlantic area which have been and 
will continue to be developed by the North Atlantic 
Treaty Organization. 

Free nations must be strong to remain free, and 
the Mutual Defense Assistance Program will con- 
tribute to the growth of strength and security in 
all of these nations. 



STATEMENT BY AMBASSADOR 

WILHELM MUNTHE DE MORGENSTIERNE ^ 

On behalf of my colleagues and myself I want to 
thank you, Mr. Secretary, for what you have just 
said. I believe that your words express what is 
in the minds of all of us. 

We all feel, I'm sure, that since the signing less 
than a year ago of the North Atlantic Treaty re- 
sults of major importance have been accomplished. 

We all derive deep satisfaction from the convic- 
tion that the North Atlantic Treaty means that in 
this instance at least we have profited by the lessons 
of history. We have refused to make all over again 
the fatal mistake of letting an aggressor pick some 
of us one by one. In accordance with the letter and 
spirit of the Charter of the United Nations we 
have decided to exercise our inherent right of in- 
dividual and collective self defense if, God for- 
bid, an armed attack should occur against any one 
of us. 

We want to take this occasion to emphasize once 
more the utterly defensive character of the North 
Atlantic Treaty Organization. Our deepest wish 
is to live in peace and brotherhood with all na- 
tions in this world, but we cannot deviate from 
our solemn determination that it must be peace 
with freedom. 

The Mutual Defense Assistance Program repre- 
sents what to us has seemed the surest way to 
uphold both. It represents our common inflexible 
will to assure the maximum collective strength of 
the North Atlantic Treaty countries to safeguard 
their own as well as international peace and 
security. 

We who have today signed these agreements are 
fully aware that they are predicated on self-help 
and nnitual aid and that it devolves upon each and 
all of us to contribute our share as far as possible 
under present circumstances. 

At the same time, we cannot but recognize the 
preponderant part which the United States are 
taking in this great venture, and we cannot fail 
on this momentous occasion to pay a warm tribute 
to initiative, the vision, and the constructive states- 
manship of America ever since the inception of the 
idea of an integrated defense of the North At- 
lantic Area. 



'Made in reply to Secretary Acheson's statement on 
.Ian. 27, I'J.jO, and released to the press on the same date. 
Ambassador Morgenstierne is Dean of the Diplomatic 
Corps as well as Ambassador of Norway. 

199 



Mutual Defense Assistance Agreement With BeSgium 



[Released to the press Janiiaiy 37] 



The Gdverninpiits of tlic Uuitcil States of Anioi-ica and 
Belgitiin : 

Being parties to the North Atlantic Treaty signeil at 
Wasliington on April 4, 1949; 

Conscious of their reciprocal pledges under Article 'A 
separately and jointly with the other parties, by means of 
continuous and effective self-help and mutual aid, to main- 
tain and increase their individual and collective ability 
to resist armed attack ; 

Desiring to foster international peace and security, 
within the framework of the Charter of the United Natinns 
tlirough measures which will furtlier the aljility of nations 
dedicated to tlie purposes and principles of the Charter to 
participate effectively in arrangements for individual and 
collective self-defense in support of those iiurposes and 
jirinciples ; 

Reaffirming their determination to give tlieir full coop- 
eration to the efforts to provide the Uniteil Nations with 
armed forces as contemplated by the Charter and to obtain 
agreement on universal regulation and reduction of arma- 
ments under adequate guarantee against violation; 

rtecognizing that the increased confidence of free peoples 
in their own al)ility to resist aggression will advance 
economic recovery; 

Taking into consideration the support tliat the Govern- 
ment of the United Slates of America has brought to these 
principles by enacting the Mutual Defense Assistance Act 
of 1919 wliich i)rovides for the fm-nishing of military assist- 
ance to nations which have joined with it in eolleclivo 
security arrangements ; 

Desiring to set forth the conditions which will govern 
the furnishing of military assistance by one contracting 
government to the other under this Agreement ; 

Uave agreed as follows: 

Aiiiele I 

1. ICach Government, consistently with tlie princip1(> 
that economic recovery is essential to international peace 
and security and must be given dear jiriorily, will make 
or contimie to make available to the other and to such 
additional governments as the jiarties hereto may in each 
case agree upon, such equipment, materials, services or 
other military assistance as the government furnishing 
such assistance may authorize and in accordance with 
such terms and conditions as may be agreed. Tlie furnish- 
ing of any such assistance as may be authorized by either 
I)arty hereto shall be consistent with the Charter of the 



United Nations and with the obligations under Article 3 
of the North Atlantic Treaty. Sucli assistance shall be so 
designed as to promote an integrated defense of the North 
Atlantic area and to facilitate the development of, or be 
in accordance with, defense plans under Article 9 of the 
North Atlantic Treaty ap[iroved by each Government. 
Such assistance as may be made available by the United 
States of America pursuant to this Agreement will be fur- 
nished under the provisions, and subject to all of the terms, 
conditions, and terminati(m provisions, of the Mutual De- 
fense Assistance Act of 1949, acts amendatory and supple- 
mentary thereto and appropriation acts thereunder. The 
two Governments will, from time to time, negotiate de- 
tailed arrangements necessary to carry out the provisions 
of this paragraph. 

2. Each Government undertakes to make eflfectlve use of 
assistance received pursuant to paragraph 1 of this Article 

(a) for the purpose of promoting an integrated defense 
Id" the North Atlantic Area, and for facilitating the devel- 
opment of defense plans under Article 9 of the North 
Atlantic Treaty, and 

(b) in accordance with defense plans formulated by the 
North .\tlantic Treaty Organization recommended by the 
N<irth Atlantic Treaty Defense Committee and Council, 
and agreed to by the two Governments. 

.'i. Neitlier Goverinnent, without the prior consent of the 
other, will devote assistance furnished to it by the other 
(ioverinnent to jiurpcisos otlu'r than those for which it was 
furnished. 

4. In the common security interest of both (iovernments, 
each Goverinnent undertakes not to transfer to any person 
not an otiirer or agent of such (Jovernmcnt or to any other 
nation title to or possession of any equipment, materials, 
or services received on a grant b:isis pursuant to paragraph 
], without the pri.)r consent of the other Government. 

ArtU-le II 

In conformity with the principle of mutual aid, the 
(iovernment ot Uelgium agrees to facilitate the production 
and transfer to the CJovernment of the ITnited States of 
.America, for such period of time, in such quantities and 
upon such terms and conditions as may be agreed upon, 
of raw and semi -processed materials required by the 
United States as a result of deficiencies or potential defi- 
ciencies in its own resources, and which may be available 
in Uelgium or territories under its sovereignty. Arrange- 
ments for such transfers shall give due reg:ird to reasonable 



200 



Department of State Bulletin 



requirements for domestic use and commercial export of 
Belgium. 

Article III 

1. Each tiovernmeiit will take appropriate measures con- 
sistent with security to keep the public informed of opera- 
tions under this Agreement. 

2. Each Government will take such security measures 
as may he agreed in each case between the two Govern- 
ments in order to prevent the disclosure or compromise 
of classified military articles, services or information 
furnished by the other Government pursuant to this 
Agreement. 

Article IV 

The two Governments will, upon request of either of 
them, negotiate appropriate arrangements between them 
respecting responsibility for patent or similar claims based 
on the use of devices, processes, technological information 
or other forms of property protected by law in connection 
with equipment, materials or services furnished pursuant 
to this Agreement or furnished in the interest of produc- 
tion undertaken by agreement of the two Governments in 
implementation of pledges of self-help and mutual aid 
contained in the North Atlantic Treaty. In such negotia- 
tions, consideration shall be given to the inclusion of an 
undertaking whereby each Government will assume the 
responsibility for all such claims of its nationals and 
Buch claims arising in its jurisdiction of nationals of any 
country not a party to this Agreement. 

Article V 

1. The Government of IJelgium, in conjunction with the 
Government of Luxembourg, undertakes to make available 
to the Government of the United States of America Belgium 
and Luxembourg francs for the use of the latter Govern- 
ment for its administrative expenditures within Belgium 
and Luxembourg in connection with carrying out this 
Agreement. The two Governments will forthwith initiate 
discussions with a view to determining the amount of 
such Belgian and Luxembourg francs and to agreeing upon 
arrangements for the furnishing of such Belgian and 
Luxembourg francs. 

2. The Government of Belgium will, except as otherwise 
agreed to, grant duty-free treatment and exemption from 
internal taxation upon importation or exportation to prod- 
ucts, property, materials or equipment imported into its 
territory in connection with this Agreement or any simi- 
lar agreement between the United States of America and 
any other country receiving military assistance. 

Article VI 

Each Government agrees to receive personnel of the 
other Government who will discharge in its territory the 
responsibilities of the other Government under this Agree- 
ment and who will be accorded facilities to observe the 
progress of assistance furnished pursuant to this Agree- 
ment. Such personnel who are nationals of that other 
country, including personnel temporarily assigned, will, in 
their relations with the Government of the country to 
which they are assi:.'ned, operate as a part of the Em- 
bassy under the direction and control of the Chief of the 
Diplomatic Mission of the Government of such country. 

February 6, 1950 

872098—50 3 



Article VII 

1. The two Governments will, upon the request of either 
of them, consult regarding any matter relating to the ap- 
plication of this Agreement or to operations or arrange- 
ments carried out pursuant to this .\greenient. 

2. The terms of this Agreement .shall at any time be 
reviewed at the request of either contracting (ioverinnent. 
Such review shall take into account, where appropriate, 
agreements concluded by either contracting Government in 
connection with the carrying out of Article 9 of the North 
Atlantic Treaty. 

3. This Agreement may be amended at any time by agree- 
ment between the two contracting Guvernmeuts. 

Article YIJI 

1. This Agreement shall come into force when the Gov- 
ernment of Belgium lias notified the Government of the 
United States of America of ratification by Belgium. 
This Agreement will terminate one year after the receipt 
of notification by either Party of the intention of the 
other to terminate it. 

2. The Annexes to this Agreement form an integral 
part thereof. 

3. This Agreement shall be registered with the Secre- 
tary General of the United Nations. 

In witness whereof the representatives of the two Gov- 
ernments, duly authorized for the purpose, have signed 
this Agreement. 

Done at Washington, in duplicate, in the English and 
French languages, both texts authentic, this 27th day of 
January, 1950. 

ANNEX A 

In the course of discus.sions on the Mutual Defense As- 
sistance Agreement the following understandings were 
reached by the representatives of the Governments of the 
United States of America and Belcium : 

1. For the purposes of Article I, paragraphs 2 and 3, 
fungible materials and minor items of eciuipment which, 
for all practical purposes, are fungible, shall he treated 
as such. Accordingly, in the case of such fungible mate- 
rials or equipment, the requirements of Article I, para- 
graphs 2 and 3, will be satisfied if each Government 
devotes to the purposes of this Article either the particular 
items furnished or an equivalent quantity of similar and 
substitutable items. 

2. Similarly, in the case of finished products manufac- 
tured by either Government with assistance furuislied 
under this Agreement, the requirements of Article I, para- 
graphs 2 and 3, will be satisfied if the recipient Government 
devotes to the purposes of Article I, paragraphs 2 and 3, 
either such finished products or an equivalent quantity of 
similar and substitutable finished products. 

3. Further, in the light of paragraphs 1 and 2 above, 
neither Government will refuse its consent under Article 
I, paragraph 4, to the transfer of a major item of in- 
digenous equipment merely because there may have been 
Incorporated into it as an identifiable component part a 
relatively small and unimportant item of assistance fur- 
nished under this Agreement by the other Government. 
The two Governments will forthwith discuss detailed ar- 
rangements for a practical i)rocedure for granting consent 

201 



in respect of tbe types of transfer referred to in this 
paragrapli. 

4. Each Government will nevertlieless make all prac- 
ticable efforts to use items of assistance for the purposes 
for which they may have been furnished l)y the other. 

SiLVERCRUYS 

[Belriian AmJiaxxudor to United ^tuti:»] 

r)EAN ACHESON 
ANNEX B 

In implementation of Paragraph 1 of Article IV of the 
Mutual Defense Assistance Agreement the Government of 
Belgium In conjunction with the Government of Luxem- 
bourg will di'posit Belgian and Luxembourg francs at 
such times as requested in an accomit designated by the 
Iiiited folates Embassy at I'.russels and tlie United States 
Legation at Luxembourg, not to exceed in total 10,750,0(J(I 
Belgian and Luxi'mbcjurg francs for their use on behalf of 
the Government of the United States for administrative 
expenditures within Belgium and Luxeniliuurg in con- 
ni-ction with carrying out that Agreement for the period 
ending June 30, l!t.50. 

ANNEX C 

Provision is made in Article V, paragraph 1, of the 
Mutual I)efense Assistance Agreement as follows: 

"The Government of Belgium, in conjunction with the 
Government of Luxembourg undertakes to make avail- 
able to the Government of the United States of America 
Belgian and Luxembourg francs for the use of the latter 
Government for Us administrative expenditures with 
Belgium and Luxenjbourg in connection with carrying 
out this agreement. The two Governments will forth- 
with initiate discussions with a view to determining the 
amount of such Belgian and Luxembourg francs and to 
agreeing upon arrangements for the furnishing of such 
Belgian and Luxembourg fram-s". 

in the course of disriissions on the Agreement, repre- 
sentatives of the Government of the United States of 
Ameiica staled that in llie rNcnt that the Government of 
r.olgium shall in the future furnish grant assistance to 
Ibe ( oivi'riniicnt of ilic Iniicd States of America involving 
the delivery of materials and equi]>ment to the United 
Slates, the (iovernmcnl of the United Slali-s of America, 
it so requested by tbi' (i<ivcinnienl of Belgium, and subject 
to legislative ant boi-izal ion, shall i)rovidM dollars for the 
use of the Government of Belgium feu- its ailministrative 
expendil arcs within Ibe United Slates in (-(inncction with 
Hie furnishing of such assislance. The representatives of 
lb" (!ovci-iiiucnl of llii' rnileil Stales of .\mcrica advised 
the rcprescnl.il i\ OS of Ihc Goveiaimenl of I'.clgium tli.'il 
ilollar expendilUT'es in the United Slates which nniv be 
incurred as a res\dl of I be t raining of Belgian personnel in 
llie I'nilcd Slates under this Agreemi'iil can be met out 
of funds m:ole available under the UniU'il Slates Mutual 
llefense Assislani-e .\c| of I'.ll'.l. 

ANNEX D 

Provision is made in .\rtii'le V, param-apli L', of the 
Mutual Dcfen.se Assislance .\grccmcnl. as follows: 



"The Government of Belgium will ,except as otherwise 
agreed to, grant duty-free treatment iind exemption 
from internal taxation upon importation or exportation 
to i)roducts, property, materials or equipment imported 
int<i its territory in connection with this Agreement or 
any similar agreement between the United States of 
America and any other counlry receiving military 
assistance." 

In the course of discussions on the Agreement, represent- 
atives of the Government of the United States of America 
stated that in the event that the Government of Belgium 
shall in the future furnish grant a.ssistauce to the Govern- 
ment of the United States of America, involving the deliv- 
ery of materials and equipment to the United States, the 
Government of the United States of America, if so re- 
quested by the Government of Belgium, and subject to 
legislative authorization, will, except as otherwise agreed 
to, grant duty-free treatment and exemption from internal 
taxation upon importation or exportation to such materials 
and equipment Imported into its territory In connection 
with this Agreement. 

ANNEX E 

In recognition of the fact that iiersonnel who are na- 
tionals of one country, including personnel temporarily 
assigni'd, will in their relations with tlie Government of 
the country to which they are assigned, operate as a part 
of the Embas.sy under the direction and control of the Chief 
of the Diplomatic Mission of the Government of such 
country, it is understood, in connection with Article VI 
of the Mutual Defense Assistance Agreement that the 
status of such personnel, considered as part of the Diplo- 
matic Mission of such other Government, will be the same 
as the status of personnel of corresponding rank of that 
Diplomatic Mission who are nationals of that other 
country. 

The personnel will be divided by tlie Government assign- 
ing such personnel into three categories: 

I .a ) Upiai appropriate notification of the other, full 
diplomatic status will be granted to the senicu' military 
member and the senior Army, Navy and Air Force 
otlicer assigned therto, and to their respective immediate 
deputies. 

(b) The second categcu-y of personnel will enjoy privi- 
leges and iunnunilics conferred by inlcrnatioinil custom. 
as rccogni/.cd by each government, to certain categories 
of i)ers(Uincl of the Emba.ssy of the oIIut, such as the 
innunnity fi-om civil and crinnnal jiu'isdicti(ui of the host 
country, innuiuHty of ollicial pa]iers from search and seiz- 
ure, right of free egress, exemption from customs duties or 
simil.-ir taxes or restrictions in respec't of jicrsonally owned 
pr(i|ici'ly iiiLpiutcd into Ihc host country by such personnel 
for tbcii- personal use and consumption, without prejudice 
lo Ibe existing regulations on foreign exclumge. exemption 
from iulernal taxation by the host country upon salaries 
of siicli jicrsonnel. Privileges and courtesies incident to 
diplomatic sl.'itus, such as diiilomatic automobile license 
l)lales, inclusion on Ihc "Diplonialic List", and social c(UU'- 
tesies ma.\ lie w.ii\c(l by both govern men Is for this category 
of iiersonncl. 

I c I The tliird calci;ory of personni'I will receive the same 
slaliis as the cleric.il personnel of Ihe Diploiuntic .Mission. 



202 



Department of State Bulletin 



It is understood between the two governments that tlio 
number of persoiiiuM in the lliiee categories above will bo 
kept as low as possible. 

The status as described above will be substituted by such 
status for appropriate otficials and agents of the countries 
parties to the North Atlantic Treaty as may be agreed by 
those countries. 

ANNEX F 

The following provision has been included in the Mntniil 
Defense Assistance Agreement : 

"Each Government agrees to receive personnel of the 
other Government who will discharge in its territory the 
responsibilities of the other Government under this agree- 
ment and who will be accorded facilities to observe the 
progress of assistance furnished pursuant to this agree- 
ment." 

In the course of discussions on the Agreement, represent- 



atives of the two (Joveriimciits have slated on behalf of 
their respective (Joverninciits that the facllilies to be so 
accorded shall he reasonaltle and not unduly burdensome 
upon the Government according siuh facilities. 

ANNEX G 

Whereas this Agreement, having been negotiated and 
concluded on the basis that the Government of the United 
States of America will extend to the other i)arty thereto 
the benefits of any provision in a similar agreement con- 
cluded by the Government of the United States of America 
with any other country party to the North Atlantic Treaty, 
it is understood that the Government of the United States 
of America will interpose no objection to amending this 
agreement in order that it may conform, in whole or in 
part, to any other similar agreement, or agreements amend- 
atory or supplementary thereto, concluded with a party to 
the North Atlantic Treaty. 



Mutual Defense Assistance Agreement With Denmarit 

[Released to the press January 27] 



The Governments of the United States of America and 
Denmark, 

Being parties to the North Atlantic Treaty signed at 
Washington on April 4, 19-19 ; 

Conscious of their reciprocal pledges under Article 3 
separately and jointly with the other parties, by means 
of continuous and effective self-help and mutual aid, to 
maintain and increase their individual and collective abil- 
ity to resist armed attack ; 

Desiring to foster international peace and security, 
within the framework of the Charter of the United Nations 
through measures which will further the ability of nations 
dedicated to the purposes and principles of the Charter to 
participate effectively in arrangements for individual and 
collective self-defense in support of those purposes and 
principles ; 

Reaffirming their determination to give their full coop- 
eration to the efforts to provide the United Nations with 
armed forces as contemplated by the Charter and to obtain 
agreement on universal regulation and reduction of arma- 
ments under adequate guarantee against violation ; 

Recognizing that the increased confidence of free peoples 
in their own ability to resist aggression will advance 
economic recovery ; 

Taking into consideration the support that the Gov- 
ernment of the United States of America has brought to 
these principles by enacting the JIutual Defense Assistance 
Act of 1949 which provides for the furnishing of military 
assistance to nations which have joined with it in collec- 
tive security arrangements; 

Desiring to set forth the understandings which will 
govern the transfer of such assistance ; 

Have agreed as follows : 



Article I 

1. Each government, consistently with the princiiile that 
economic recovery is essential to international peace and 
security and must be given clear priority, will make or 
continue to make available to the other, and to other gov- 
ernments, such equipment, materials, services, or other 
military assistance as the government furnishing such 
assistance may authorize and in accordance with such 
terms and conditions as may be agreed. The furnishing 
of any such assistance as may be authorized by either 
party hereto shall be consistent with the Charter of the 
United Nations and with the obligations under Article 3 
of the North Atlantic Treaty. Such assistance shall be so 
designed as to promote an integrated defense of the North 
Atlantic area and to facilitate the development of, or be in 
accordance with, defense plans under Article 9 of the North 
Atlantic Treaty approved by each Government. Such 
assistance as may be made available by the United States 
of America pursuant to this Agreement will be furnished 
under the provisions, and subject to all of the terms, condi- 
tions and termination provisions, of the Mutual Defense 
Assistance Act of 1949, acts amendatory and supplementary 
thereto and appropriation acts thereunder. Tlie two Gov- 
ernments will, from time to time, negotiate detailed 
arrangements necessary to carry out the provisions of this 
paragraph. 

2. Each Government undertakes to make effective use of 
assistance received pursuant to paragraph 1 of this Article. 

(a) for the purpose of promoting an integrated defense 
of the North Atlantic Area, and for facilitating the de- 
veloiiment of defense plans under Article 9 of the North 
Atlantic Treaty, and 



February 6, 1950 



203 



(b) in accordance with defense plans formulated by the 
North Atlantic Treaty Organization recommended by the 
North Atlantic Treaty Defense Committee and Council, 
and agreed to by the two Governments. 

3. Neither Government, without the prior consent of 
the other, will devote assistance furnished to it by the 
other Government to purposes other than those for which 
It was furnished. 

4. In the common security interest of both Govern- 
ments, each Government undertakes not to transfer to 
any person not an officer or agent of such Government or 
to any other nation title to or possession of any equip- 
ment, materials, or services, received on a grant basis 
pursuant to paragraph 1, without the prior consent of the 
other Government. 

Article II 
In conformity with the principle of Mutual Aid, the 
Government of Denmark agrees to facilitate the produc- 
tion and transfer to the Government of the United States, 
for such period of time, in such quantities and upon such 
terms and conditions as may be agreed upon, of raw and 
semi-processed materials required by the United States as 
a result of deficiencies or potential deficiencies in its 
own resources, and which may be available in Denmark 
or dependent territories under its administration. Ar- 
rangements for such transfers shall give due regard to 
reasonable requirements for domestic use and commercial 
export of Denmark. 

Article III 

1. Each Government will take appropriate measures 
consistent with security to keep the public informed of 
operations under this agreement. 

2. Each Government will take such security measures 
as may be agreed in each case between the two Govern- 
ments in order to prevent the disclosure or compromise 
of classified military articles, services or information fur- 
nished by the other Government pursuant to this 
agreement. 

Article IV 
The two Governments will, upon request of either of 
them, negotiate appropriate arrangements between them 
respecting responsibility for patent or similar claims 
based on the use of devices, processes, technological in- 
formation or other forms of property protected by law 
in connection with equipment, materials or services fur- 
nished pursuant to this Agreement or furnished in the 
interest of production undertaken by agreement of the 
two Governments in implementation of pledges of self- 
help and mutual aid contained in the North Atlantic 
Treaty. In such negotiations consideration shall be given 
to the inclusion of an undertaking whereby each govern- 
ment will assume the responsibility for all such claims 
of its nationals and such claims arising in its jurisdiction 
of nationals of any country not a party to this Agreement. 

Article V 

1. The Government of Denmark undertakes to make 
available to the United States Embassy at Copenhagen 
Dani.-ih Kroner for its administrative expendit\irps within 
Denmark in connection with carrying out this agreement. 
The two Governments will forthwith initiate discussions 
with a view to determining the amount of such Kroner 



204 



and to agreeing upon arrangements for the furnishing of 
such Kroner. 

2. The Government of Denmark will, except as otherwise 
agreed to, grant duty-free treatment and exemption from 
internal taxation upon imiwrtation or exportation to prod- 
ucts, property, materials or equipment imported into its 
territory in connection with this Agreement or any similar 
agreement between the United States of America and any 
other country receiving military assistance. 

Article VI 

1. The two Governments will, upon the request of either 
of them consult regarding any matter relating to the appli- 
cation of this Agreement or to operations or arrangements 
carried out pursuant to this Agreement. 

2. Each Government agrees to receive personnel of the 
other Government who will discharge in its territory the 
responsibilities of the other Government under this Agree- 
ment and who will be accorded facilities to observe the 
progress of assistance furnished pursuant to this Agree- 
ment. Such personnel who are nationals of that other 
country, including personnel temporarily assigned, will, in 
their relations with the Government of the country to 
which they are assigned, operate as a part of the Embassy 
under the direction and control of the Chief of the Diplo- 
matic Mission of the Government of such country. 

Article VII 

1. This Agreement shall come into force on the date of 
signature. This agreement will terminate one year after 
the receipt of notification by either party of the intention 
of the other to terminate it. 

2. This Agreement may be amended at any time by 
agreement between the two Governments. The terms of 
this Agreement shall be sub,iect to such modification, in 
the light of agreements concluded in connection with 
carrying out Article 9 of the North Atlantic Treaty, as may 
be agreed upon between the two Governments. 

3. The Annexes to this Agreement form an integral 
part thereof. 

4. This Agreement shall be registered with the Secretary 
General of the United Nations. 

In witness whereof the respective representatives, duly 
authorized for the purpose, have signed this Agreement. 
Done at Washington, in duplicate, in the English and 
Danish languages, both texts authentic, this twenty-sev- 
enth day of January lO.'iO. 

Henrik Kauffmann 
[Danish Amhassador to United States] 
Dean Acheson 

ANNEX A 

In implementation of Paragraph 1 of Article V of the 
Mutual Defen.se Assistance Agreement the Government of 
Denmark will deposit Danish Kroner at such times as 
requested in an account designated by the United States 
Embassy at Copenhagen, not to exceed in total 1,897,500 
kroner or its use on behalf of the Government of the United 
States for administrative expenditures within Denmark 
in connection with carrying out that Agreement for the 
period ending June 30, 1950. 

Department of State Bulletin 



ANNEX B 

In recognition of tlio fiiot tlmt personnel wtio nre na- 
tionals of one country, including personnel temporarily 
assigned, will in their relations with the Government of 
the country to which they are assigned, oiK>rate as a part 
of the Embassy under the direction and control of the Chief 
of the Diplomatic Mission of the (iovernment of such coun- 
try, it is understood, in connection with Article VI, para- 
graph 2. of the Mutual Ih'fense Assistance Agreement, that 
the status of such personnel, considered as part of the 
Diplomatic Mission of such other Government, will be the 
same as the status of personnel of corresponding rank of 
that Diplomatic Mission who are nationals of that other 
country. 

The personnel will be divided by the Government assign- 
ing such i)ersonnel into 3 categories : 

(a) Upon appropriate notification of the other, full 
diplomatic status will be granted to the senior military 
member and the senior Army, Navy and Air Force officer 
assigned thereto, and to their respective immediate 
deputies. 

(b) The second category of personnel will enjoy privi- 
leges and immunities conferred by international custom, as 
recognized by each Government, to certain categories of 
personnel of the Embassy of the other, such as the im- 
munity from civil and criminal jurisdiction of the host 
country, immunity of official papers from search and sei- 
zure, right of free egress, exemption from custom duties 
or similar taxes or restrictions in respect of personally 
owned property imported into the host country by such 
personnel for their personal use and consumption, without 



prejudice to the existing regulations on foreign exchange, 
exemption from internal taxation by the host country 
upon salaries of such personnel. I'rivileges and courtesies 
incident to iliploniatic status such as diplomatic automobile 
licen.se plates, inclusion on tlie "Diplomatic List", and 
social courtesies may be waived by both governments for 
this category of personnel. 

(c) The third category of jmrsonnel will receive the 
same status as the clerical personnel of the Diplomatic 
Mission. 

It Is understood between the two Governments that 
the number of personnel in the 3 categories above will 
be kept as low as possible. 

The status as described above will be substituted by 
such status for appropriate officials and agents of the 
countries parties to the North Atlantic Treaty as may 
Ik" agreed by those countries. 

ANNEX C 

Whereas this Agreement, having been negotiated and 
concluded on the basis that the Government of the United 
State of America will extend to the other party thereto 
the benefits of any provision in a similar agreement 
concluded by the Government of the United States of 
America with any other country party to the North At- 
lantic Treaty, it is understood that the Government of 
the United States of America will interpose no objection 
to amending this agreement in order that it may con- 
form, in whole or in part, to any other similar agree- 
ment, or agreements amendatory or supplementary thereto, 
concluded with a party to the North Atlantic Treaty. 



Mutual Defense Assistance Agreement With France 

[Released to the press January 27] 



The Governments of the United States of America and 
the Republic of France ; 

Being parties to the North Atlantic Treaty signed at 
Washington on April 4, 1949; 

Conscious of their reciprocal pledges under Article 3 
separately and jointly with the other parties, by means 
of continuous and effective self-help and mutual aid, to 
maintain and increase their individual and collective 
ability to resist armed attack ; 

Desiring to foster international peace and security, 
within the framework of the Charter of the United Nations 
through measures which will further the ability of nations 
dedicated to the purposes and principles of the Charter to 
participate effectively in arrangements for individual and 
collective self-defense in support of those purposes and 
principles ; 

Reaffirming their determination to give their full coop- 
eration to the efforts to provide the United Nations with 
armed forces as contemplated by the Charter and to obtain 
agreement on universal regulation and reduction of arma- 
ments under adequate guarantee against violation ; 

febtuatY 6, 1950 



Recognizing that the increased confidence of free peoples 
in their own ability to resist aggression will advance eco- 
nomic recovery ; 

Taking into consideration the support that the Govern- 
ment of the United States of America has brought to these 
principles by enacting the Mutual Defense Assistance Act 
of 1949 which provides for the furnishing of military 
assistance to nations which have joined with it in collective 
security arrangements ; 

Desiring to set forth the understandings which will 
govern the transfer of such assistance; 

Have agreed as follows: 

Article I 

1. Each government, consistently with the principle that 
economic recovery is essential to international peace and 
security and must be given clear priority, will make 
or continue to make available to the other, and to such 
other governments as the parties hereto may in each case 
agree upon, such equipment, materials, services, or other 

205 



military assistance as tlie government furnishing such as- 
sistance may authorize and in accordance with such terms 
and conditions as may be agreed. The furnishing of any 
such assistance as may be authorized by either party 
hereto shall be consistent with the Charter of the United 
Nations and with the obligations under Article 3 of the 
North Atlantic Treaty. Such assistance shall be so de- 
signed as to promote an integrated defense of the North 
Atlantic area and to facilitate the development of, or be 
in accordance with, defense plans under Article 9 of the 
North Atlantic Treaty approved by each Government. 
Such assistance as may be made available by the United 
States of America pursuant to tliis Agreement will be 
furnished under the provisions, and subject to all of 
the terms, conditions and termination provisions, of the 
Mutual Defense Assistance Act of 1949, and such other 
applicable laws as may hereafter come into effect. The 
two Governments will, from time to time, negotiate de- 
tailed arrangements necessary to carry out the provisions 
of this paragraph. 

2. Each Government undertakes to make effective use 
of assistance received pursuant to paragraph 1 of this 
Article 

(a) for the purpose of promoting an integrated defense 
of the North Atlantic Area, and for facilitating the de- 
velopment of defense plans under Article 9 of the North 
Atlantic Treaty, and 

(b) in accordance with defense plans formulated by 
the North Atlantic Treaty Organization recommended by 
the North Atlantic Treaty Defense Committee and Coun- 
cil, and agreed to by the two Governments. 

3. Neither Government, without the prior consent of 
the other, will devote assistance furnished to it by the 
other Government to purposes other than those for which 
it was furni.shed. 

4. In the common security interest of both Governments, 
each Government undertakes not to transfer to any person 
not an officer or agent of such Government or to any 
other nation title to or possession of any equipment, mate- 
rials, or services, received on a grant basis ijursuant to 
paragraph 1, without the prior consent of the other 
Government. 

Article II 

In conformity with the principle of mutual aid, the 
Government of the Republic of France agrees to facilitate 
the production and transfer to the Government of the 
United States of America, for such period of time, in such 
quantities and upon such terms and conditions as may be 
agreed upon, of raw and .semi-processed materials required 
by the United States as a result of deficiencies or poten- 
tial deficiencies in its own resources, and which may be 
available in France or dependent territories under its 
administration. Arrangements for such transfers shall 
give due regard to requirements for domestic use aiul 
commercial export of France. 

Article III 

1. Each Government will take such security measures 
as may be agi'eed in each case between the two Govern- 
ments in order to prevent the disclosure or compromise 
of classified military articles, services or information fur- 



nished by the other Government pursuant to this 
Agreement. 

2. Each Government will take appropriate measures 
consistent with security to keep the public informed of 
operations under this Agreement. 

Article IV 

The two Governments will, upon request of either of 
them, negotiate appropriate arrangements between them 
respecting responsibility for patent or similar claims based 
on the use of devices, processes, technological information 
Or other forms of property protected by law in connection 
with equipment, materials or services furnished pursuant 
to this Agreement or furnished in the interest of produc- 
tion undertaken by agreement of tlie two Governments in 
implementation of pledges of self-help and mutual aid 
contained in the North Atlantic Treaty. In such negotia- 
tions consideration shall be given to the inclusion of an 
undertaking whereby each Government will assume the 
responsibility for all such claims of its nationals and 
such claims ari.sing in its jurisdiction of nationals of any 
country not a party to this Agreement. 

Article V 

Subject to the provision of the necessary appropriations, 
the Government of the Republic of France undertakes to 
make available to tlie Government of the United States of 
America francs for the use of the latter Government for 
its administrative expenditures within France in connec- 
tion with carrying out this Agreement. The two Govern- 
ments will forthwith initiate discussions with a view to 
determining the amount of such francs and to agreeing 
upon arrangements for the furnishing of such francs. 

Article VI 

1. The two Governments will, upon the request of either 
of them, consult regarding any matter relating to the 
application of this Agreement or to operations or arrange- 
ments carried out pursuant to this Agreement. 

2. Each Government agrees to receive personnel of the 
other Government who will discharge in its territory the 
responsibilities of the other Government under this Agree- 
ment and who will be accorded facilities to observe the 
lirogress of assistance furnished pursuant to this Agree- 
ment. Such personnel who are nationals of that other 
country, including personnel temporarily assigned, will, 
in their relations witli the Government of the country to 
which they are assigned, operate as a part of the Embassy 
under the direction and control of the Chief of the Diplo- 
matic Mission of the Government of such country. 

Article VII 

1. The present Agreement shall enter into force on the 
date of signature ; and will continue in force until one year 
after the receipt by eitlier party of written notice of the 
intention of the other party to terminate it, provided that, 
if notification of ratification of this Agreement by the 
Government of the Republic of France is not received by 
the Government of the United States of America within 
forty-five days after the signature of this Agreement, the 
Agreement will terminate immediately upon the receipt by 
the Government of the Republic of France of a notice in 



206 



Deparfmenf of Stafe Bulletin 



writing tluit the (inveniiiiont of the United States of 
America no longer consiflers itself bouuil by the Agreement. 

2. This Agreement may be amended at any time by 
agreement between the two Governments. Tlie terms of 
tliis Agreement shall be subject to such modification, in 
the light of agreements concluded in connection with 
carrying out Article !) of the North Atlantic Treaty, as 
may be agreed upon between the two (Jovernmeuts. 

3. The Annexes to this Agreement form an integral 
part thereof. 

4. This Agreement shall be registered with the Secre- 
tary General of the United Nations. 

In witness whereof the representatives of the two Gov- 
ernments, duly authorized for the purpose, have signed 
this Agreement. 

Done at Washington, in duplicate, in the I'^uglish and 
French languages, both texts authentic, this twenty-sev- 
enth day of January, 1950. 

H. Bonnet 
[French Ambassador to the United States] 
Dean Acheson 

ANNEX A 

In the course of discussions of the Mutual Defense As- 
sistance Agreement, the following understandings were 
reached by the representatives of the Governments of the 
United States of America and the Republic of France. 

1. For the purposes of Article I, paragraphs 2 and 3, 
fungible materials and minor items of equipment which, 
for all practical purposes, are fungible, shall be treated 
as such. Accordingly, in the case of such fungible mate- 
rials or equipment, the requirements of Article I, para- 
graphs 2 and 3, will be satisfied if each Government 
devotes to the purposes of this Article either the par- 
ticular items furnished or an equivalent quantity of 
similar and substitutable items. 

2. Similarly, in the case of finished products manu- 
factured by either Government with assistance furnished 
under this Agreement, the requirements of Article I, 
paragraphs 2 and 3, will be satisfied if the recipient Gov- 
ernment devotes to the purposes of Article I, paragraphs 
2 and 3, either such finished products or an equivalent 
quantity of similar and substitutable finished products. 

3. Further, in the light of paragraphs 1 and 2 above, 
neither Government will refuse its consent under Article 
I, paragraph 4, to the transfer of a major item of in- 
digenous equipment merely because there may have been 
incorporated into it as an identifiable component part 
a relatively small and unimportant item of assistance 
furnished under this Agreement by the other Government. 
The two Governments will forthwith discuss detailed 
arrangements for a practical procedure for granting con- 
sent in respect of the types of transfer referred to in 
this paragraph. 

4. Each Government will nevertheless make all iirac- 
tieable efforts to use items of assistance for the purposes 
for which they may have been furnished by the other. 

ANNEX B 

In implementation of paragraph 1 of Article V of the 
Mutual Defense Assistance Agreement, the Government 
of the Republic of France will deposit francs at such 
times as requested in an account designated by the United 



States Embassy at Paris, not to exceed in total 18.'),000,000 
francs for its use on behalf of the Government of the 
United States of America for administrative expenditures 
within France in connection with carrying out that Agree- 
ment for the period ending June 30, 1950. 

ANNEX C 

The representatives of the Government of the Republic 
of France have advi.sed the representatives of the Gov- 
ernment of the United States of America that the Govern- 
ment of France has decided to authorize in the application 
of Article 1.S9 of the Customs Code of the Republic of 
France the importation free of duty and taxes of equipment 
and materials which may in the future be imported into 
France under the Mutual Defense Assistance Agreement. 
This exemption from customs duties and internal taxa- 
tion upon the importation of such equipment and mate- 
rials shall relate only to deliveries effected to the Govern- 
ment of France by the Government of the United States 
of America, of grant aid furnished under the above- 
mentioned Agreement. 

In order to receive the benefits of the above-mentioned 
exemption such equipment and materials, when delivered, 
should be accompanied by a special shipping document in 
a form to be determined by consultation between the ap- 
propriate oflicials of the two parties to the above-men- 
tioned Agreement. This shipping document is to be 
annexed to the customs declaration and deposited in the 
Bureau of Importation of the Government of France. 

The Government of France will not impose any duties 
or other internal taxation upon exportation in connection 
with the above Agreement, of products, property, mate- 
rials or equipment from France to any other country in 
the original state or after conversion. 

The representatives of the Government of the United 
States of America have taken note of these statements. 

ANNEX D 

In recognition of the fact that personnel who are na- 
tionals of one country, including personnel temporarily 
assigned, will in their relations with the Government of 
the country to which they are assigned, operate as a part 
of the Embassy under the direction and control of the 
Chief of the Diplomatic Mission of the Government of 
such country, it is understood, in connection with Article 
VI, paragraph 2, of the Mutual Defense Assistance Agree- 
ment, that the status of such personnel, considered as part 
of the Diplomatic Mission of such other Government, will 
be the same as the status of personnel of corresponding 
rank of that Diplomatic Mission who are nationals of that 
other country. 

The personnel will be divided into 3 categories: 

a) Upon appropriate notification of the other, full dip- 
lomatic status will be granted to the .senior military 
member and the senior Army, Navy and Air Force officer 
assigned thereto, and to their respective immediate 
deputies. 

b) The second category of personnel will enjoy privi- 
leges and immunities conferred by international custom, as 
recognized by each Government, to certain categories of 
personnel of the Embassy of the other, such as the immu- 



February 6, 1950 



207 



nity from civil and criminal jurisdiction of the host coun- 
try, immunity of official papers from search and seizure, 
riglit of free egress, exemption from customs duties or 
similar taxes or restrictions in respect of personally owned 
property imported into the host country by such personnel 
for their personal use and consumption, without prejudice 
to the existing regulations on foreign exchange, exemption 
from internal taxation by the host country upon salaries 
of such personnel. Privileges and courtesies incident to 
diplomatic status such as diplomatic automobile license 
plates, inclusion on the "Diplomatic List", and social 
courtesies may be waived by both Governments for this 
category of personnel. 

c) The third category of personnel will receive the 
same status as the clerical personnel of the Diplomatic 
Mission. 

It is understood between the two governments that the 
number of personnel in the 3 categories above will be kept 
as low as possible. 



The status as described above will be substituted by such 
status for appropriate officials and agents of the countries 
parties to the North Atlantic Treaty as may be agreed by 
these countries. 



ANNEX E 

Whereas this Agreement, having been negotiated and 
concluded on the basis that the Government of the United 
States of America will extend to the other party thereto 
the benefits of any provision in a similar agreement con- 
cluded by the Government of the United States of America 
with any other country party to the North Atlantic Treaty, 
it is understood that the Government of the United States 
of America will interpose no objection to amending this 
Agreement in order that it may conform, in whole or in 
part, to any other similar agreement, or agreements amend- 
atory to supplementary thereto, concluded with a party to 
the North Atlantic Treaty. 



Mutual Defense Assistance Agreement With Italy ^ 

[Released to the press January 27] 



His Excellency 

SiGNOR Alberto Tarchiani, 
Ambassador of Italy. 

Excellency : I have the honor to refer to conversations 
whicli have recently taken place between representatives 
of our two Governmtnts concerning the furnishing of 
military assistance by the Government of the United 
States of America to the Government of Italy ijursuant 
to the United States Mutual Defense Assistance Act of 
1949, and the receipt of such assistance by the Government 
of Italy, and to confirm the understandings reached as a 
result of those conversations as follows : 

The Governments of the United States of America and 
Italy ; 

Being parties to the North Atlantic Treaty signed at 
Washington on April 4, 1949; 

Conscious of their reciprocal pledges under Article 3 
separately and jointly with the other parties, by means 
of continuous and effective self-help and mutual aid, to 
maintain and increase their individual and collective 
ability to resist armed attack ; 

Desiring to foster international peace and security, 
within the framework of the Charter of the United 
Nations through measures which will further ability of 
nations dedicated to the purposes and principles of the 
Charter to participate effectively in arrangements for 
Individual and collective self-defense in support of those 
purposes and principles ; 

Keaffiimiug their determination to give their full co- 
operation to tlio effoi ts to provide the United Nations 
with armed forces as contemphited by the Charter and 
to obtain agreement on universal regulation and reduction 



' Effected by an exchange of notes. 
208 



of armaments under adequate guarantee against violation ; 

Recognizing tliat the increased confidence of free peo- 
ples in their own ability to resist aggression will advance 
economic recovery; 

Taking into consideration the support that the Govern- 
ment of the United States of America has brought to 
these principles by enacting the Mutual Defense As- 
sistance Act of 1949 which provides for the furnishing 
of military assistance to nations which have joined with 
it In collective security arrangements ; 

Desiring to set forth the understandings which will 
govern the transfer of such assistance ; 

Have agreed as follows : 

Article I 

1. Each government, consistently with the principle that 
ec-onomic recovery is essential to international peace and 
security and must be given clear priority, will make or 
continue to make available to the other, and to other 
governments such equipment, materials, services, or other 
military assistance as the government furnishing such 
assistance may authorize in accordance with such terms 
and conditions as may be agreed. The furnishing of any 
such assistance as may be authorized by either party 
hereto shall be consistent with the Charter of the United 
Nations and with the obligations under Article 3 of the 
North Atlantic Treaty. Such assistance shall be so de- 
signed as to promote an integrated defense of the North 
Atlantic area and to fMcilit;ite the development of, or be 
in accordance with, defense i lans under Article 9 of the 
North Atlantic Treaty approved by each goverinuent. 
Such assistance as may be made available by the United 
States of America pursuant to this Agreement will be 
furnislied under the provisions, and subject to all of the 

Department of State Bulletin 



terms, conditions and termination provisions, of tlie Mutual 
Defense Assistance Act of 1949, acts amendatory and 
supplementary tliereto and appropriation acts thereunder. 
Tbe two Governments will, from time to time, negotiate 
detailed arrangements necessary to carry out tlie provi- 
sions of tills paragraph. 

2. Each Government undertalces to malce effective use 
of assistance received pursuant to paragraph 1 of this 
Article 

(a) for the purpose of promoting an integrated defense 
of the North Atlantic Area, and for facilitating the devel- 
opment of defense plans under Article 9 of the North 
Atlantic Treaty, and 

(b) in accordance with defense plans formulated by 
the North Atlantic Treaty Organization recommended by 
the Defense Committee and the North Atlantic Treaty 
Council, and agreed to by the two Governments. 

3. Neither Government, without the prior consent of 
the other, will devote assistance furnished to it by the 
other Government to purposes other tlian those for which 
it was furnished. 

4. In the common security interest of both Governments, 
each Government undertakes not to transfer to any person 
not an officer or agent of such Government or to any other 
nation title to or possession of any equipment, materials, 
or services, received on a grant basis pursuant to para- 
graph 1, without the prior consent of the other Government. 

Article II 

1. Each Government will take appropriate measures con- 
sistent with security to keep the public informed of opera- 
tions under this agreement. 

2. Each Government will take such security measures 
as may be agreed in each case between the two Govern- 
ments in order to prevent the disclosure or compromise of 
classified military articles, services or information fur- 
nished by the other Government pursuant to this agree- 
ment. 

Article III 

The two Governments will, upon request of either of 
them, negotiate appropriate arrangements between them 
respecting responsibility for patent or similar claims based 
on the use of devices, processes, technological information 
or other forms of property protected by law in connection 
with equipment, materials or services furnished pursuant 
to this Agreement or furni.shed in the interest of produc- 
tion undertaken by agreement between the two Govern- 
ments in implementation of pledges of self-help and mutual 
aid contained in the North Atlantic Treaty. 

Article IV 

1. Subject to the provision of the necessary appropria- 
tions the Government of Italy undertakes to make availa- 
ble to the Government of the United States of America 
lire for the use of the latter Government for its adminis- 
trative expenditures within Italy in connection with assist- 
ance furnished by the Government of the United States of 
America to the Government of Italy under this Agreement. 
The two Governments will forthwith initiate discussions 
With a view to determining the amount of such lire and to 
agreeing upon arrangements for the furnishing of such lire. 



2. The Government of Italy will, except as otherwi.se 
agreed to, grant duty-free treatment and exemption from 
internal taxation upon importation or exportation to i)rod- 
Ucts, property, materials or eqtiipment imported into its 
territory in connection with this Agreement or any similar 
agreement between the United States of America and any 
other country receiving military assistance. 

Article V 

Each Government agrees to receive personnel of the 
other Government who will discharge in its territory the 
responsibilities of the other Government under this agree- 
ment and who will be accorded facilities to observe the 
progress of assistance furnished pursuant to this agree- 
ment. Such personnel who are nationals of that other 
country, including personnel temporarily assigned, will, 
in their relations with the Government of the country to 
which they are assigned, operate as a part of the Embassy 
under the direction and control of the Chief of the Diplo- 
matic Mission of the Government of such country. 

Article VI 

1. This Agreement shall become effective on January 
27th, lOryO. This Agreement will terminate one year after 
the receipt of notifieation by either Government of the 
intention of the other to terminate it. 

2. The two Governments will, upon the request of either 
of them, consult regarding any matter relating to the 
application of this Agreement or to operations or arrange- 
ments carried out pursuant to this Agreement. 

The terms of this Agreement shall at any time be re- 
viewed at the request of either Government. Such review 
shall take into account, where appropriate, agreements 
concluded by either Government in connection with the 
carrying out of Article 9 of the North Atlantic Treaty. 

This Agreement may be amended at any time by agree- 
ment between the two Governments. 

3. The Annexes to this Agreement form an integral part 
thereof. 

4. This Agreement shall be registered with the Secretary 
General of the United Nations. 



ANNEX A 

In the course of discussions on the exchange of notes 
under the United States Mutual Defense Assistance Act 
of 1949, the following understandings were reached by the 
representatives of the Governments of Italy and the United 
States of America ; 

1. For the purposes of Article I, paragraphs 2 and 3, 
fungible materials and minor items of equipment which 
are, for all practical purposes fungible, shall be treated 
as such. Accordingly, in the case of such fungible mate- 
rials or equipment, the requirements of Article I, para- 
graps 2 and 3, will be satisfied if each Government devotes 
to the purposes of this Article either the particular items 
furnished or an equivalent quantity of similar and substi- 
tutable items. 

2. Similarly, in the case of finished products manufac- 
tured by either Government with assistance furnished 
under this Agreement, the requirements of Article I, para- 



February 6, 1950 



209 



graphs 2 and 3, will be satisfied if the recipient Government 
devotes to the purposes of Article 1, paragraphs 2 and 3, 
either such finished products or an equivalent quantity 
of similar and substitutable finished products. 

3. Further, in the light of paragraphs 1 and 2 above, 
neither Government will refuse its consent under Article I, 
paragraph 4, to the transfer of a major item of indigenous 
equipment merely because there may have been incor- 
porated into it as an identifiable component part a rela- 
tively small and unimportant item of assistance furnished 
under this Agreement by the other Government. The two 
Governments will forthwith discuss detailed arrangements 
for a practical procedure for granting consent in respect 
of the types of transfer referred to in this paragraph. 

4. Each Government will nevertheless make all prac- 
ticable efforts to use items of assistance for the purpoises 
for which they may have been furnished by the other. 

ANNEX B 

In connection with the Exchange of Notes under the 
United States JIutual Defense Assistance Act of 1949 
between the Government of Italy and the Government of 
the United States of America and based upon the principle 
of mutual aid enunciated in said notes under the United 
States llutual Defen-se Assistance Act, the two Govern- 
ments agree as follows : 

In the event of the cessation of the effectiveness of Arti- 
cle V of the Economic Cooperation Agreement between the 
Government of Italy and the Government of the United 
States of America signed on June 28th, 1948 at Rome, prior 
to the cessation of the agreement between the two Govern- 
ments under the United States Mutual Defense Assistance 
Act, the Government of Italy will, for so long as the agree- 
ment between the two Governments under the Mutual 
Defense Assistance Act remains in effect, facilitate the 
production and transfer to the Government of the United 
States of America, for such period of time, in such quanti- 
ties and upon such terms and conditions as may be agreed 
upon, of raw and semi-processed materials required by 
the United States as a result of deficiencies or potential 
deficiencies in its own resources, and which may be avail- 
able in Italy or dependent territories under its adminis- 
tration. Arrangements for such transfers shall give due 
regard to reasonable requirements for domestic use and 
commercial export of Italy. All applicable annexes to 
Article V of the Economic Cooperation Agreement shall 
apply to this agi-eement. 

ANNEX C 

In the course of discussions on exchange of notes under 
the United States Mutual Defense Assistance Act of 1949, 
the representatives of the two Governments have reached 
the understanding that the following points will be consid- 
ered in the negotiations provided for in Article III : 

1. The inclusion of an undertaking whereby each Gov- 
ernment would assume the responsibility for all the patent 
or similar claims of its nationals referred to in Article III 
of the said Exchange of Notes and for .such claims arising 
in its jurisdiction of nationals of any country not a party 
to this Agreement. 

2. The terms on which inventions would be communi- 



cated to contractors with a view to protecting the com- 
mercial rights of inventors ; 

3. Eights in improvements or other modifications of 
patented inventions; 

4. Arrangements for the protection of secret processes 
and seci'et technological information, as distinct from 
patented and patentable inventions. 

5. The system for disclosing the users and the extent of 
the use of the patents, trade-marks and copyrights referred 
to in Article III. 

ANNEX D 

In implementation of paragraph 1 of Article IV of the 
Agreement between the Governments of the United States 
of America and Italy signed at Washington, the Govern- 
ment of Italy will deposit lire at such times as requested 
in an account designated by the United States Embassy at 
Rome, not to exceed in total 249,600,000 lire for its use on 
behalf of the Government of the United States of America 
for administrative expenditures within Italy in connec- 
tion with carrying out that Agreement for the period 
ending June 30, 1950. 

ANNEX E 

Provision is made in Article IV, paragraph 1, of the 
exchange of notes under the United States Mutual Defense 
Assistance Act of 1949, as follows : 

"Subject to the provision of the necessary appropria- 
tions, the Government of Italy undertakes to make avail- 
able to the Government of the United States of America 
lire for the use of the latter Government for its administra- 
tive expenditures within Italy in connection with assist- 
ance furnished by the Government of the United States 
of America to the Government of Italy under this 
Agreement." 

In the course of discussions on the exchange of notes, 
representatives of the Government of the United States 
of America stated that in the event that the Government 
of Italy shall in the future furnish grant assistance to the 
Government of the United States of America, involving the 
delivery of materials and equipment to the United States, 
the Government of the United States of America, if so 
requested by the Government of Italy, and subject to 
legislative authorization, shall provide dollars for the use 
of the Government of Italy for its administrative expendi- 
tures within the United States in connection with the fur- 
nishing of such assistance. The representatives of the 
Government of the United States of America advised 
the representatives of the Government of Italy that dollar 
expenditures in the United States which may be incurred 
as a result of the training of Italian personnel in the 
United States under this Agreement can be met out of 
funds made available under the United States Mutual 
Defense Assistance Act of 1949. 

ANNEX F 

Provision is made in Article IV, paragraph 2, of the 
exchange of notes under the United States Mutual Defense 
Assistance Act of 1949, as follows : 



210 



Department of State Bulletin 



"The Government of Italy will, except as otlierwlse 
agretHl to, grant duty-free treatment and exemption from 
internal taxation upon importation or exportation to prod- 
ucts, property, materials, or equipment imported into 
its territory in connection with tliis Agreement or any 
similar agreement between the United States of America 
and any other country receiving military assistance." 

In the course of discussions on the exchange of notes, 
representatives of the Government of the United States 
of America stated that in the event that the Government 
of Italy shall in the future furnish grant assistance to 
the Government of the United States of America, involv- 
ing the delivery of materials and equipment to the United 
States, the Government of the United States of America, 
if so requested by the Government of Italy, and subject to 
legislative authorization, will, except as otherwise agreed 
to, grant duty-free treatment and exemption from internal 
taxation upon importation or exportation to such mate- 
rials and equipment imported into its territory in connec- 
tion with this Agreement. 



ANNEX G 

In recognition of the fact that personnel who are na- 
tionals of one country, including personnel temporarily 
assigned, will in their relations with the Government of 
the country to which they are assigned, operate as a 
part of the Embassy under the direction and control of 
the Chief of the Diplomatic Mission of the Government 
of such country, it is understood, in connection with 
Article V, paragraph 2 of the exchange of notes under 
the United States Mutual Defense Assistance Act of 1949, 
that the status of such personnel, considered as part of 
the Diplomatic Mission of such other Government, will 
be the same as the status of personnel of corresponding 
rank of that Diplomatic Mission who are nationals of 
that other country. 

The personnel will be divided by the Government of 
the country assigning such personnel, into three categories : 

1. Upon appropriate notification of the otlier, full, diplo- 
matic status will be granted to the senior military mem- 
ber and the senior Army, Navy and Air Force officer 
assigned thereto, and to their respective immediate 
deputies. 

2. The second category of personnel will enjoy privi- 
leges and immunities conferred by international custom, 
as recognized by each Government, to certain categories 
of personnel of the Embassy of the other, such as the 
immunity from civil and criminal jurisdiction of the host 
country, immunity of official papers from search and 
seizure, right of free egress, exemption from custom duties 
or similar taxes or restrictions in respect of personally 
owned property imported into the host country by such 
personnel for their i)ersonal use and consumption, without 
prejudice to the existing regulations on foreign exchange, 
exemption from internal taxation by the host country 
upon salaries of such personnel. Privileges and courtesies 
incident to diplomatic status such as diplomatic automobile 
license plates, inclusion on the "Diplomatic List", and 
social courtesies may be waived by both Governments for 
this category of personnel. 

3. The third category of personnel will receive the same 
status as the clerical personnel of the Diplomatic Mission. 



It is understood between the two Governments that the 
number of personnel in the three categories above will be 
kept as low as possible. 

The status as described above will be substituted by such 
status for appropriate officials and agents of the countries 
parties to the North Atlantic Treaty as may be agreed by 
those countries. 

ANNEX H 

I'rovision is made in Article V, of the exchange of notes 
under the United States Mutual Defense Assistance Act 
of 1949, as follows : 

"Each Government agrees to receive personnel of the 
other Government who will discharge in its territory the 
responsibilities of the other Government under this Agree- 
ment and who will be accorded facilities to observe the 
progress of assistance furnished pursuant to this Agree- 
ment. Such personnel who are nationals of that other 
country, including personnel temporarily assigned, will, 
in their relations with the Government of the country to 
which they are assigned, operate as a part of the Emliassy 
under the direction and control of the Chief of the 
Diplomatic Mission of the Government of such country." 

In the course of discussions on said article, represent- 
atives of the two Governments, have stated on behalf 
of their respective Governments that the facilities to be 
accorded shall be reasonable and not unduly burdensome 
upon the Government according such facilities. 

ANNEX I 

Whereas this Agreement having been negotiated and 
concluded on the basis that the Government of the 
United States of America will extend to the other party 
thereto the benefits of any provision in a similar agree- 
ment concluded by the Government of the United States 
of America with any other country party to the North 
Atlantic Treaty, it is understood that the Government of 
the United States of America will interpose no objection 
to amending this Agreement in order that it may conform, 
in vchole or in part, to any other similar agreement, or 
agreements amendatory or supplementary thereto, con- 
cluded with a party to the North Atlantic Treaty. 

I have the honor to propose that, if these understandings 
meet with the approval of the Government of Italy, the 
present note and your note concurring therein will be 
considered as confirming those understandings, effective 
on the date of your note and thereafter until one year 
after the receipt by either Government of a notification 
in writing of the intention of the other Government to 
terminate those understandings. 

Accept [etc.] 

Dean Acheson 
Secretary of State of the 
United States of America. 



EraroR's note: Ambassador Alberto Tarchiani acknowl- 
edged the above note and concurred in the proposal nuide 
at meeting with the approval of the Government of Italy. 
The texts of agreements with Belgium, Denmark, France, 
and Italy appear in this issue of the Buluctin ; the other 
will be printed in the following issue. 



February 6, 1950 



211 



Korean Mutual Assistance 
Agreement Announced 

On January 2G, Michael J. McDermott, Chief 
Press Officer, made the following announcement : 

The Department has been advised by the Ameri- 
can Ambassador in Seoul that two agreements 
have been signed between the Republic of Korea 
and the United States. One relates to the United 
States military advisory group which has been 
stationed in Korea since July 1, 19-19 at the request 
of the Korean Government. The other agreement 
relates to the provision by the United States of 
military assistance to the Republic of Korea under 
the terms of the Mutual Defense Assistance Act 
of October 6, 1949. 

When the Department receives the texts of both 
agreements as signed, they will be made public. 

The agreement relating to the United States 
military advisory group outlines the terms of ref- 
erence of that group and the obligations assumed 
to it by the Korean Government. The terms of 
the agreement state that the purpose of this group 
is to assist in the training of Korean security forces 
and instructing these forces in the use of military 
equipment made available under the bilateral 
agreement of the assistance program. 



Regret Expressed Over House Action 
on Aid to Korea 

[Releaged to the pix'ss by the White House .January 21] 

STATEMENT BY THE PRESIDENT 

I am releasing herewith a letter which I have 
received from the Secretary of State about the 
action of the House of Representatives in rejecting 
the Korean Aid Bill on Thursday by a vote of 
193-191. I entirely concur in the Secretary's 
views as to the seriousness of this action and tlie 
necessity for its speedy rectification. I shall take 
up this matter with Congressional leaders and 
urge upon them the need for innncdiate action, 
in order that important foreign-policy interests 
of this country may be properly safeguarded. 



LETTER FROM SECRETARY ACHESON 

Janitary 20, 1950 

Dear Mr. President : The Department of State 
received with concern and dismay the report that 
the House of Representatives had rejected the 
Korea Aid Bill of 1919 by a vote of 19;] to 191. 
This action, if not quickly repaired, will have the 



most far-reaching adverse effects upon our foreign 
policy, not only in Korea but in many other areas 
of the world. It has been fundamental to our 
policy that in those areas where a reasonable 
amount of American aid can make the difference 
between the maintenance of national independence 
and its collapse under totalitarian pressure, we 
should extend such aid within a prudent assess- 
ment of our capabilities. The American people 
understand this policy and have supported our 
extending aid in such circumstances; the success 
of such aid is a matter of public record. 

The Republic of Korea owes its existence in 
large measure to the United States, which freed 
the country from Japanese control. The peoples 
of the Republic of Korea, the other peoples of 
Asia, and the members of the United Nations un- 
der whose observation a government of the Repub- 
lic was freely elected, alike look to our conduct in 
Korea as a measure of the seriousness of our con- 
cern with the freedom and welfare of peoples 
maintaining their independence in the face of 
great obstacles. We have not only given the Re- 
public of Korea independence ; since then we have 
provided the economic, military, technical, and 
other assistance necessar}^ to its continued exist- 
ence. Of the current program of economic as- 
sistance we are extending to Korea, half was 
provided by the Congress during the previous 
session. The withholding of the remainder would 
bring our efforts to an end in mid-course. It is 
our considered judgment that if our limited as- 
sistance is continued the Republic will have a 
good chance of survival as a free nation. Should 
such further aid be denied, that chance may well 
be lost and all our previous efforts perhaps prove 
to have been vain. 

We are concerned not only about the conse- 
quences of this abrupt about-face in Korea, whose 
government and people have made valiant efforts 
to win their independence and establish free insti- 
tutions under the most difficult circumstances, but 
we are also deeply concerned by the effect which 
would be created in other parts of the world where 
our encouragement is a major element in the strug- 
gle for freedom. 

It is difficult for us to believe that the members 
of the House of Representatives who voted against 
this measure took sufficiently into account the seri- 
ous implications of this action upon the position 
of the United States in the Far East. These impli- 
cations were set forth in considerable detail in 
hearings before the committees of Congress by tho 
Department of State, Department of Defense, and 
the Economic Cooperation Administration. 

In our judgment it would be disastrous for the 
foreign policy of the United States for us to con- 
sider this action by the House of Representatives 
as its last word on the matter. 
Faithfully yours, 

Dean Aciieson 



212 



HepaUment of State Bulletin 



Economic Advances Promote World Trade 



We in Washington have a very clear mandate 
from the American people which it is our duty, as 
public servants, to carry out with all the means at 
our disposal. And that mandate is to work for 
peace. 

The President stated this very clearly and sim- 
ply in his recent State of the Union message to the 
Congress. He said : ''Our objective in the world 
is peace .... Both of our great political parties 
are committed to working together — and I am sure 
they will continue to work together — to achieve 
this end. We are prepared to devote our energy 
and our resources to this task, because we know 
that our own securit}' and the future of man- 
kind are at stake." 

Now, how do we seek this supreme objective 
of peace? How do we as a nation go about the 
job of working for peace? 

It took two terrible and destructive world wars 
to teach us the most important fact about peace — 
the fact that no nation can hope to keep the peace 
or to stay at peace by its own efforts. No nation 
that really wants peace can be a lone operator. 
Cooperation is the hardest, most time-consuming 
and most exasperating job of all. But first we 
learned that we must cooperate as a matter of ab- 
solute necessity and now we are learning to like it. 

Our task o'f working with other nations involves 
matters covering the whole range of human prob- 
lems. Of particular importance is economic coop- 
eration — trade and commerce among nations. 

Imports Vital to U.S. 

If it were not for international trade, none of 
us in the United States would live as well as we do 
today. Neither would our nation be so strong and 
secure as it is today. 

The outstanding examples of imported com- 
modities are coffee, tea, and rubber. The Army- 
Navy Munitions Board, however, have recently 
set up a list of 50 strategic commodities which are 
essential to our national security. In the case of 
36 of these oO vitally important commodities, we 



' An excerpted version of an address given by Under 
Secretary Webb before the Soutliern Conference at 
Raleigh, N. C. on Jan. 28, 1950, and released to the press 
on the same date. 



depend on other parts of the world for 80 percent 
or more of our supply. We secure a major part of 
our supply of these commodities from Asia, from 
Latin America, from Africa, and from Europe. 
Without a healthy world trade which brings us 
these strategic materials in a steady flow, our 
national defense and our standard of living would 
be seriously impaired. 

Exports and U.S. Economy 

Last year the United States exported goods and 
services valued at nearly 16 billion dollars. What 
does that mean to the people of this country? If 
some of these exports were cut off suddenly, our 
tobacco markets, for example, would close down 
completely, and foreign buyers would have to with- 
draw from the market. 

This interest in maintaining export markets is 
not confined to any narrow class or group of 
Americans. In the agricultural field, many of our 
products such as wheat, dried fruits, rice, cotton, 
and lard — as well as tobacco — depend upon for- 
eign markets to take more than 20 percent of their 
annual production. In addition, outside the agri- 
cultural field, there are over 2 million Americans 
whose jobs depend upon our export trade. These 
Americans are employed in trade and tiansporta- 
tion, in producing textiles and motor vehicles, 
machinery and metals, lumber and paper — in fact, 
some of them are employed in every significant 
segment of our national economy. 

Trade Agreements and the ITO 

But world trade is something much more than 
a support of our domestic prosperity. It is also 
one of the principal avenues to world peace. 

During the past year, the Congress has again 
reaflirmed our traditional policy of working to 
reduce tariff barriers through negotiations under 
the Reciprocal Trade Agreements Act. Our ne- 
gotiations at Geneva and Annecy resulted in 
liberalizing tariff barriers on about two-thirds of 
the total import trade of the 33 participating 
countries, which amounts to about 30 billion dol- 
lars — or one-half of the total world import trade. 
The participating countries, thereby, reached 
agreement on almost 50,000 different tariff rates. 



Fefaroory 6, J 950 



213 



Furthermore, we liave sought to develop a com- 
prehensive code of trade principles for the conduct 
of \v()i-ld trade. The cliarter for an International 
Trade Oriranization was agreed to by represent- 
atives of 54 nations assembled at Hahaiui under 
the auspices of tlie United Nations and is shortly 
to be considered by tlie Congress. 

Under the principles of the Reciprocal Trade 
Agreements Act and the charter of the Interna- 
tional Trade Organization, we can continue to 
remove obstacles to the flow of trade. But simply 
removing obstacles is not enough to assure a pros- 
perous woild economy. 

Effect of European Recovery 

If our own trade is (o increase, other countries 
must be economically heahhy. They must be good 
customers and good sn])pliers. It is to our own 
interest, as well as the interest of world peace aitd 
prosperity, to do what we can to encourage eco- 
nomic recovery and economic development in other 
nations. 

This is one of the great objectives of our eco- 
nomic foreign jiolicy. The first great dilliculty 
that confi'onted us in this field was the wr(>ckage 
of the war. Five years ago normal world trade had 
all but disa])i)eared. 'l"he economic system of half 
the civilized world was in ruins. Millions of people 
were without food, shelter, or the means of earn- 
ing a living. Tlieir factories had been boml)(><l. 
their crops destroyed. 

We Americans were the only people with the 
energy and the means to helj) our allies rebuild 
their shattered lives. 

Particularly in the case of Western Enroi)e, we 
have been nuiking an unprecedented effort to aid 
in repairing the economic ruins of the war. Today, 
Western Europe has food aiul jobs and hope. The 



threat of communism there has receded. Produc- 
tion is above prewar levels. The exports of their 
countries and their trade with one another has 
increased. They are on their way to becoming, 
once more, healthy and vigorous partners in the 
I'conomy of the world. 

The Concept of Point 4 

In some regions, millions live under conditions 
of abject jioverty, disease, and ignorance. Yet 
from nuiny of these countries come some of our " 
most vital raw materials, and their citizens could 
be among our best customers. These people need 
technical assistance, plans for their own economic 
development, and capital for the development of 
their natural and human resources. 

'I'liey can strengthen their belief in the values 
of a democratic society and of a democratic form 
of government. Knowing, from actual experience, 
the benefits of the democratic way of life, they will 
be better able to resist the false promises and the 
secret cons])iracies of communism. 

The Point 1 prograiu, as it is called, is a guiding 
conce]>t for many aspects of our foreign policy. 
It has been a focal point of our efforts in the United 
Nations in the last yeai-, and it is a part of our 
policy in the Near East, Latin America, and the 
Far East. It is a program, primarily, of aiding 
aiul assisting these regions to take the steps neces- 
sary to their own economic development. It is no 
part of our jiolicy to take over and develop these 
countries. ()ur ]iart issim])ly to help provide them 
with technical assistance and to facilitate the flow 
of capital to them for economics development. 

The task of economic cooperation is not an easy 
one or a short one. But we must accept the fact 
that the work of peace demands otir snjireme efforts 
and we cannot afford to lay it down. 



The Point 4 Program Catalyst of the Future 



Exactly what is proposed under the Point 1 
program? \\'liat are tiie purjioses underlying this 
pi-ogiani, and how does it tie in with our other 
foreign polici(>s aiul programs? 

Samuel 1'. Hayes. .Ir., Special Assistant to the 
Assistant Secretary for Economic Affairs consid- 
ered those two central questions when he s])oke to 
the League of Women Voters of Massachusetts at 
Cambridge on January 2(i. 

In discussing tlic first (lueslion, Mi-. IImncs h:ul 



' All cxccriilcd version of an .'uldrcss li.v .Kmiinol P. Ilnycs. 
.Tr. I'"or (•iiiiiplolo loxl, sec Di'iiiirlmciil of Sliilc jiross 
rc!<'!ise (;s of .jjin. li.'">. 



the following to say in explaining the specific 
aullKuities proposed to cari-y out the iirogram and 
in outlining the main elements of Point 4, the 
conditions which make such a ]n-ogram desirable 
at the ])resent time, the philosophy of the program, 
and a few details of its practical "workings: 

Conditions Inspiring Point 4 

"First, wliat arc the underdeveloped areas, and 
wbat conditions exist there? 

''We consider as ccoTiomically mulerdcveloped 
most of Latin .\merica, Africa, and .Vsia. About 
t\\(i lliii^b: iif the world's pecutlcs live in these 



214 



Department of State Bulletin 



ureas. Tlu\v are 05 j)orcent illiterate. Their an- 
nual average per capita income is equivalent to 
less than 100 dollai-s, as conijiared with 1,400 dol- 
lars in the United States. They have virtually 
none of the nunlern amenities of life and a few of 
the necessities. 

'•Wiiat meaning do these tonditions have for the 
more fortunate third of the world's peoples? 

"It should be clear, for one thing, that they 
represent a heavy drag on the world economy. 
Greater production and consumption in under- 
developed countries would greatly ease the solu- 
tion of the economic problems of the more ad- 
vanced nations. 

''More specifically, expanding Communist im- 
perialism is working day and night to bring these 
peoples into the Communist fold. We know it is 
not in our interest, and we know it is not in their 
interest, that these peoples be ruled and exploited 
by totalitarian governments. 

"Basically, the idea of Point 4 is to quicken the 
tempo of natural economic growth. Economic 
growth must come from within. It cannot be im- 
posed by, it cannot even be voluntarily turned 
oTer to, an outside agent. Point 4, then, is essen- 
tiall}- a program of providing certain catalj^sts to 
economic development. 

Basic Factors of Economic Development 

"Economic development involves two basic fac- 
tors. It involves developing and diffusing 
knowledge of improved methods of production. It 
involves the expansion of capital investment to 
put these new methods to work. 

"There are at present before the Congress two 
pieces of legislation proposed by the Administra- 
tion to enable us to carry out the President's Point 
4 proposal. The basic act, in which are expressed 
the general philosophy and over-all policies of the 
program, is called "The International Economic 
Development Act of 1950," sponsored both by Rep- 
resentative John Kee, Chairman of the House 
Foreign Affairs Committee and by Representative 
Christian Herter, of Massachusetts. The present 
bill is a modification of, and we believe an improve- 
ment over, the original "International Technical 
Cooperation Act of 1949," introduced last July. 
As evidenced by the change in title, the new bill 
brings together findings and policies of Congress 
that apply both to the technical cooperation aspect 
and to the capital investment aspect of our aid to 
economic development abroad. The present bill 
has wide bipartisan support, and we hope for early 
and favorable action by the Congress. 

"This act provides authority to finance, carry 
out. and coordinate a wide variety of international 
technical cooperation activities. Among these are 
the sending of technical experts to advise foreign 
government agencies or business enterprises and 
to take part in operating many kinds of activi- 
ties — for example, research and experiment sta- 
tions, public health or education services, rural 

February 6, 1950 



extension .services, projects for irrigation, recla- 
mation, and reforestation. 

"The second bill proposed to cany out Point 4 
authorizes an experimental program of invest- 
ment guaranties intended to encourage the (low 
of jirivate investment capital to underdeveloped 
areas. Private savings constitute the major source 
of year-in. year-out investment in this country, now 
running at an annual rate of about 40 billion dol- 
lars. Private equity capital is particularly effec- 
tive in bringing about economic development 
abroad because it is active, not passive, capital ; it 
carries along with it the technical, managerial, and 
organizational talents needed to put the funds 
invested to most effective use. 

"The guaranties contemplated would protect the 
investor (for a fee) against such nonbusiness risks 
as confiscation of his property without fair com- 
pensation, and inability to convert into dollars 
a specified amount of foreign currencies derived 
in the form of earnings and capital liquidation. 

"So much for the specific authorities proposed 
to carry out the Point 4 program. It is important 
to consider briefly certain of the program's char- 
acteristics, which grow out of the problems pre- 
sented by the underdeveloped areas. 

Characteristics of tlie Program 

"First, Point 4 involves the application of two 
vital forces — modern technology and capital— to 
the existing manpower and natural resources of 
the have-not areas. 

"Second, the program is mainly one of self-help 
by the people themselves of the underdeveloped 
areas. They must plan, organize, and finance most 
of their own development. Point 4 will expedite 
this process, but no development can succeed that 
does not draw its main impetus from within an 
economy. Foreign assistance can help, but can 
never take the responsibility for, economic growth. 

"Third, this program must by its nature be inter- 
national in scope. No one country could possibly 
carry single-handed the effort necessary to speed 
up the development of two-thirds of the world's 
people. 

"In November, the General Assembly unani- 
mously approved a greatly expanded supplemen- 
tary program, to be financed by voluntary contri- 
butions from member states. It is our intention, 
if Congress approves, to make a generous contri- 
bution to as large a program as the United Nations 
believes it can undertake. Nineteen other nations 
have already announced their intention of contrib- 
uting also. 

"Fourth, this is not solely or even predominantly 
a governmental program. True, governments will 
provide funds for a great expansion in interna- 
tional technical cooperation. But much of those 
funds will be spent through private agencies, under 
special contracts. Private agencies will be assisted 
in carrying out their own activities, and their ad- 
vice will be sought on government plans. On the 

215 



capital investment side, also, a great emphasis will 
be placed on private enter^jrise, with government 
as facilitator and cooperator. 

"Fifth, this is a long-range program. It prom- 
ises no sudden miracles. The reasons for this are 
not always understood, and we have, in fact, been 
criticized witliout our own country for proposing 
too small a program, and too slow a timetable. Un- 
favorable comparisons are made with the billions 
appropriated for ERP and with the large percent- 
age gains in production planned — and achieved — 
in Western Europe. 

"The situation is, of course, very different in 
underdeveloped areas from what it is in Europe. 
In Euroi)e, the preconditions of economic recovery 
were, in 1947, already present. The people were 
healthy, enterprising, literate, and skilled. Gov- 
ernment civil sei-vices were well-established and 
well-staffed. Public services were highly devel- 
oped, though disrupted by war. The missing com- 
ponents — food, raw materials, replacement ma- 
chinery — could easily be brought in from abroad. 
This was a kind of blood transfusion from one 
developed body to another developed but wounded 
body. 

"Before capital and modem technology can be 
fully utilized in an underdeveloped area, there is 
usually a lot of groundwork to be done. The 
people in that area must be ready to receive tech- 
nical knowledge and to make efficient use of capi- 
tal, and the early stages of economic development 
in many areas must, therefore, be concerned with 
improvements in basic education, health and sani- 
tation, and food supply. 

"Consistent with the long-range, gradual char- 
acter of the program is its sixth and final major 
aspect. So far as United States Government as- 
sistance is concerned, this is to be a relatively low- 
cost program. On the technical cooperation side, 
it is estimated that not more than 85 million dol- 
lars (in all currencies) could be effectively spent 
during the first j'ear, counting the contributions of 
all participating nations and the related expendi- 
tures of receiving countries. The President has 
asked Congress for authority for the United States 
Government to expend up to 45 million dollars dur- 
ing the first year of the program." 

"On the capital investment side, the figures are 
much larger. Private foreign investment by 
United States investors is already going on at the 
rate of lialf a billion dollars or more a year, and 
it is hoped that tlie proposed investment guar- 
anties and the negotiation of additional commer- 
cial treaties will raise this rate. Governmental 
investment in development projects abroad, 
through the Export-Import Bank and the Inter- 
national Bank for Reconstruction and Develop- 
ment, is also going on at a rate of 400 millions a 
year. These two institutions together now have 
more than a billion dollars available in loanable 
funds. For this reason, there is no current official 



proposal of additional funds for development 
loans under Point 4. 

"Although the dollar requirements of this pro- 
gram appear small in comparison with much big- 
ger governmental programs, the thing that makes 
this program so exciting in its possibilities is the 
cumulative effect of both technical advancement 
and capital investment. As the program develops, 
increasing numbers of trained personnel will be- 
come available throughout the world, and ways 
of disseminating knowledge will be improved, so 
that technical competence will expand on a geo- 
metric scale. Investment should grow progres- 
sively as technical assistance paves the way. 
Investment itself will produce additional capital, 
both foreign and local, which can be ploughed 
back into new investments, and profits will act as 
incentive for the new capital. 

"It is this cumulative force which will make 
it possible for the Point 4 idea to bring about, 
gradually at first, and then with snowballing mo- 
mentum,' a revolutionary improvement in the 
material and social well-being of the world's 
peoples." 

Relation to U.S. Policies 

In examining the relation of Point 4 to the 
whole of United States policy in the light of our 
broad national policies, Mr. Hayes said that, tradi- 
tionally, "the national objectives of the United 
States have been personal freedom, peace, and 
jDrospcrity. Our foreign policies further, in a 
practical way, those objectives." 

In order to strengthen at home those condi- 
tions, Mr. Hayes continued, "we must do what 
we can to strengthen those conditions everywhere. 
We can no longer afford a merely passive interest. 
We are a major nation in the full stream of world 
affairs." 

"The expansionist drive of Communist imperial- 
ism and the potential destructiveness that would 
characterize another war, however, force us to 
seek, not a balance, but more properly a prepon- 
derance of power as between what we tliink of as 
tlie free world and the captive Soviet world. 

"We all know," he said, "that peace based on 
power alone is a precarious peace. Over the years, 
one nation gains and another loses in strength and 
vitality, llevolutions and mass movements tip 
the scale in one direction or another. Progress in 
science and technology shake the balance. A tiny 
nation possessed of the increasingly terrible weap- 
ons of mass destruction becomes a potential threat 
to mightier nations. 

"Therefore, we can not, except for the short run, 
entrust our security even to a possil)le i)reponder- 
ance of power. We can not confine ourselves to 
dealing with symptoms. AVe must go much deeper 
and try to root out the germ causes of mankind's 
chronic ailments. We must seek a more perma- 



216 



Department of State Bulletin 



nent kind of peace bv removinjr the bases of con- 
flict among men. Wo must lieli) build a world 
society in which every man has a real personal 
stake in peace. Then, if tyrants and fjoverninents 
try to disturb the peace, they will stall a-jainst the 
abrasive antagonism of the great mass of peoples." 

Problems of Security 

We have, Mr. Hayes said, the policies and pro- 
gram designed to build a stable and jirosperous 
world on a practical, realistic, and realizable basis. 

Mr. Hayes described the tliree main lines of ap- 
proach to the problems of immediate security and 
lasting peace as follows : 

"On the security fi'ont, we have our defense pro- 
grams and our association with collective security 
arrangements, such as the North Atlantic pact and 
the Rio pact, to ward off any potential aggressor. 

"On the political front, we are trying to en- 
courage, through the United Nations, the growth 
of understanding among peoples, respect for fund- 
amental human rights and freedoms, and the es- 
tablishment of international cooperation as an 
habitual way of solving world problems. 

"On the economic front, we are trying to achieve 
economic recovery and to expand investment pro- 
duction and trade throughout the free world. 
To this end, we have extended massive financial 
assistance to war-torn countries, through Unrilv, 
special governmental loans, the European Recov- 
ery Program, and economic aid programs in China, 
Korea, and the Philippines. We have made de- 
velopment loans ourselves and supported Inter- 
national Bank loans for development in Latin 
America and the Middle East. We have negotiated 
commercial treaties, reciprocal trade treaties, dou- 
ble taxation treaties. We have participated in 
drawing up the General Agreement on Tariffs 
and Trade and the charter of the International 
Trade Organization now awaiting ratification by 
the Congress. And, now, we have in prospect a 
Point 4 program to couple with the others in a 
broad effort to build peace on the sound basis 
of better material conditions throughout the world. 
All of these policies and programs are interlocking. 
They support each other. They further the causes 
both of short-range security and lasting peace. 
For example, economic helt:) to some countries may 
ward off collapse and Commimist domination. 
Again, our association with and military aid to 
countries living in fear of aggression make it 
much easier for those countries to concentrate 
on economic recovery efforts, and so on. 

"Point 4's economic impact will not be great in 
the immediate future," Mr. Hayes said in conclu- 



sion. "Its contribution to our national goal of 
international peace may bo more immediate, how- 
ever, as the prospect of constructive action to solve 
economic problems kindles hope throughout the 
world. Here at last is a chance to realize hopes in 
a democratic and peaceful setting. So long as these 
hopes are strong, the peoples of the world may 
well be skeptical of totalitarian proi)hesies and 
promises. 

"If Point 4 raises hopes that are realizable and 
if, over the longer run, it brings practical accom- 
plishments in terms of economic and social prog- 
ress, it will contribute to the achievement of all 
three major goals of United States national pol- 
icy — to an cnauring peace, to increasing economic 
well-being, and to the (lowering of personal free- 
dom in an increasingly democratic framework. It 
is, therefore, one of those programs that the United 
States should be supporting, whether or not there 
were an expansionist political system opposing our 
interests. Although announced in an address that 
was colored throughout with the menace of aggres- 
sive world communism, Point 4 is not anti-Russian. 
True, it would weaken the Communist appeal to 
mens minds; but it is basically constructive and 
basically in the true interests of all peoples includ- 
ing Russians. Peaceful economic development 
poses no threat to anyone. It is one area in which 
the individual interests of all nations merge in the 
common interest of the whole world." 



Progress in Germany — Continued from page 197 

churches, the press and radio ; in other words, all 
those institutions which are the bulwarks of free- 
dom. Here, we Americans in Germany are tak- 
ing, as Ave should, the lead. And in the year 
ahead, it is my hope that we shall make real prog- 
ress in this field. 

I know there will be setbacks, and you must be 
prepared for them. But I have tried to give you 
tonight the reasons why I have hope that the Ger- 
many of tomorrow will not be the Germany of 
yesterday. 

We face a hard task in Germany. But if we 
remain firm and united against any backsliding, if 
w-e continue at the same time to encourage the 
best Germans, we have good reason for hope. 
Within Germany itself, I firmly believe, there 
exist spiritual resources from wdiich can emerge 
a peaceful, democratic state, prepared to take its 
place as a true member of the Western world. 



Februory 6, 7950 



217 



Soviet Penetration in Northern Areas of China 



The following background material., based on 
the large accumulation of reports and data avail- 
able to this Government^ is illustrative of the 
development in the northern areas of China to 
vhich the Secretary referred in his address to the 
National Press Club of January 12, 1950} 

Chinese aiitliority ims been eoin])letely exelnded 
from Outer Mongolia, and despite the fiction of 
tlie independent Mongolian People's Eepublic 
(MPR)r Soviet penetration in Outer Mongolia is 
complete. Eecognition of the Communist regime 
estaljlished there earlier by the Soviet military 
occupational authorities resulted from a so-called 
"plebiscite" held on October 20, 1945. The plebi- 
scite was provided for by the Sino-Soviet treaty of 
1945, and the recognition was subsequently' ex- 
tended by the Chinese National Government on 
January G. 194G. However, the MPPt exchanges 
diplomatic representatives only with the U.S.S.R., 
and in addition to China, even within the Soviet 
orbit, only North Korea and Albania have seen 
fit to recognize Mongolian "independence." The 
U.S.S.R. was rpiick to conclude a treaty with the 
new "independent republic." Tliis treaty author- 
izes the maintenance of Soviet troops in the "incle- 
pendent republic." The trade of Outer Mongolia 
is oriented toward and coniplelely monopolized 
by the U.S.S.R. 

Manchuria is curi'ently ruled by a Sino-Soviet 
l)artnership, with the sti'onger partner in the domi- 
nant position. The U.S.S.R. is utilizing the 1945 
Sino-Soviet treaty to penetrate and extend its 
economic and .sfrafegic domination. Soviet ti'oops 
occupy Dairen and (he Port Arthur naval base 
ai-ea. Soviet control of the railroads there has 
ie]K)rte.dly gone much further than was contem- 
plated in the 1945 treaty, both as regards the rail- 
I'oads (iieinselves and (he collateral interests. 
So\ id iiilhience in the native military forces in 
Manciuii'ia is geneially recognized; Chinese Com- 
Uiunists have openly admitted (his Soviet i)ar(ici- 
Jjation. Soviet participa( ion in (he Manchurian 
secret police has also been repor(ed. The U.S.S.R. 
has oi)(ained special mivigation and fishing rights 
in Manchuria, operates the oidy civil air service 
in Manchuria, controls and o])era(('s industi'ial 



' IliMJiiN- of .Tan. 2;{, 1!)."(), p. 111. 

' V.S. Ititiitiims With Cliiiiii { Di'iKirliiiciil (if Stale jnibli- 
caliiiii :;r(7.'!). Iip. IK'- miuI 117 for Valla iiili'ri)i-eliilioii. 



facilities in Dairen, Harbin, and Chia-mussu, con- 
trols the power transmission from the Yalu hydro- 
electric plant, controls and operates several coal 
and gold mines. The Sha Ho Kon Vehicle Manu- 
facturing AVorks, the Dairen Shipbuilding Yard, 
and the Dairen Sugar Works are all under Soviet 
military control. iVIunitions factories in the area 
are also reportedly being operated by the U.S.S.R. 
The Soviet Union has placed the riclaest industrial 
area of China firmly behind the Far Eastern seg- 
ment of the Iron Curtain. A special trade agree- 
ment was concluded in July 1949 between Soviet 
and local authorities in Manchuria — not with the 
Chinese Comnuuiist authorities in Peiping. Under 
the terms of this pact agricultural products, re- 
portedly 60 percent of a farmer's produce, are 
being exported to the Soviet Union, quantities that 
are causing severe shortages, while other areas of 
China are experiencing famine conditions. In re- 
turn, Manchuria is apparently receiving for the 
most part industrial equipment and machinery 
which the Russians had stripped from Manchuria 
after VJ-Day. 

In addition to this trade agreement, there are 
reported to be two secret agreements sicned by the 
Chinese Cominunis(s with the U.S.S.R.. known as 
tile Moscow agi'i'cment and the Harbin agreement. 
These i)uiportedly grant further special rights to 
the U.S.S.R. 

Even after the announced establishment of a 
central Chinese Connnunist regime at Peiping, 
various operations and activities in Manchuria 
hav(> been continuetl on a separate basis. There is 
a se])arate currency, a se]iarate system of economic 
coiUrols, a separa(e railway administration only 
indirectly responsible to Peiping. and a separate 
( lade agreement with the U.S.S.U. 

Thus U.S.S.R. penetration in Manchui-ia is wide- 
spread, and economic and strategic domination is 
well -advanced. 

In Inner Mongolia and in Sinkiang, (lie process 
of economic and polidcal ])ene(ra(i<in is less- 
advanced bu( scat(ere(.l indications of toda}' are 
strongly reminiscent of earlier steps in (he other 
two of the four northern areas. As in I\Iancluiria, 
permission is being sought and by now may have 
been granted (o s(a(iou Soviet (rooi)s in Sinkiang. 
In June 1949, the U.S.S.R. obtained from the Na- 
tional Government a 5-3'ear extension of the 19;^9 
;iiragreemen( gi'an(ing(he Sovie(s exclusive rights 



218 



Deparfment of Stafe Bulletin 



to the Alma Ata-Hiiini air route. A simultaneous 
attempt was made to obtain new privile<ies of trade 
and investment in the area from the National Gov- 
ernment when it was in full retreat and had al- 
ready withdrawn to south of the Yangtze. In Hi 
in northwestern Sinkiang, there was until recently 
a Soviet-oriented autonomous government from 
which the Soviets obtained extensive operating 
rights to oil wells, gold mines, and tungsten mines. 
There is no indication that the discontinuance of 
the special regime with the creation of the Peking 
government has meant the discontinuance of these 
special Soviet rights. 

In the Mongol districts of Northwest Man- 
churia, generally regarded as part of Inner Mon- 
golia, a Soviet-oriented, semiautonomous Mongol 
regime only loosely affiliated with the Chinese 
Communist authorities in Manchuria holds the 
reins of power. 

IIow long this process of penetration and detach- 
ment will take will depend on the Soviet tune- 
table — and of course on any resistance which may 
arise in Chinese quarters. The strategic points 
sucli as comnnmications and industry appear 
already well under U.S.S.R. control. Soviet stra- 
tegic detachment from Chinese control is in prog- 
ress in China's northern provinces as it is in