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VOLUME XXVII: Numbers 680-705
July 7- December 29, 1952
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Vol' 11
r^f'on Piibhc '-i.-rary
'.'upcrintendent of Documents
INDEX
Volume XXVII: Numbers 680-705, July 7-December 29, 1952
ABBREVIATIONS USED IN THIS INDEX
AHEPA. American Hellenic Ed-
ucational Progressive Associa-
tion
ANZDS Council. Council created
by treaty between Australia,
New Zealand, United States
CMC. Collective Measures Com-
mittee.
ECAFE. Economic Commission
for Asia and the Far East
ECE. Economic Commission for
Europe
ECOSOC. Economic and Social
Council
BPD. European Payments Union
FAO. Food and Agriculture Or-
ganization
GATT. General Agreement on
Tariffs and Trade
HICOG. United States High
Commissioner for Germany
lAU. International Astronomical
Union
IBRD. International Bank for
Reconstruction and Develop-
ment
ICAO. International Civil Avia-
tion Organization
ICCICA. Interim Coordinating
Committee for International
Commodity Arrangements
ICDV. Import certification-de-
livery verification
ICFTU. International Confed-
eration of Free Trade Unions
ICSU. International Council of
Scientific Unions
IFCTU. International Federation
of Christian Trade Unions
IIA. International Information
Administration
IJC. International Joint Com-
mission
ILO. International Labor Organ-
ization
IMC. International Materials
Conference
IMF. International Monetary
Fund
ITU. International Telecommu-
nication Union
MSA. Mutual Security Agency
NAC. North Atlantic Council
NAT. North Atlantic Treaty
NATO. North Atlantic Treaty
Organization
OAS. Organization of American
States
OEEC. Organization for Euro-
pean Economic Cooperation
PASO. Pan American Sanitary
Organization
PICMME. Provisional Intergov-
ernmental Committee for Move-
ment of Migrants from Europe
TCA. Technical Cooperation Ad-
ministration
U.K. United Kingdom
U.N. United Nations
UNESCO. United Nations Edu-
cational, Scientific and Cultural
Organization
UNICEF. United Nations Inter-
national Children's Emergency
Fund
UNRWA. United Nations ReUef
and Works Agency for Palestine
Refugees in the Near East
USIS. United States Information
Service
U.S.S.R. Union of Soviet Social-
ist Republics
VOA, Voice of America
WHO. World Health Organiza-
tion
WMO. World Meteorological Or-
ganization
Abdullah Faisal Saud, Prince of Saudi Arabia, visit to
U.S., 96
Acheson, Dean, Secretary of State:
Addresses and statements :
Ambassador Kennan, recall requested by U.S.S.R., 557
American Memorial Library at Berlin, 3
ANZUS Council, 1st meeting, 141, 219, 220, 243, 284
Atlantic community, deterrent to Soviet aggression,
847
Austrian state treaty negotiations, 283, 570
Bible, revised version, 555
Brazilian relations, 47, 87, 89
British Ambassador (Franks), departure, 603
Chinese Communist attitude toward Geneva conven-
tion, 172
Chinese Communist maltreatment of Americans, 440
Chinese-Soviet treaty (1950), supplementary agree-
ment, 476
Count Sforza, eulogy on, 405
Czeehoslovalc purge trial, 985
Egypt, relations with, 406
Index, July fo December J 952
Acheson, Dean, Secretary of State — Continued
Addresses and statements — Continued
European Coal and Steel Community ( 1951 ) , inaugu-
ration, 285
European unity, progress, 477
Field Reporter, 1st issue, released, 203
Free world, U.S. leadership in preservation, 423
Free-world progress, Soviet reaction to, 595
General Assembly, 7th session, 639
German compensation to Jewish victims of Nazi perse-
cution, 448
German elections, proposed commission on, 516
Hvasta, John, reported escape from Czechoslovak
prison, 285
Iranian oil dispute, 405
Korean situation, 60, 457, 570, 597, 600, 640, 679, 690,
744, 910
Mecca airlift, 406
North Atlantic Council, ministerial meeting, 985
Oatis, William, status of imprisonment in Czecho-
slovakia, 625
105T
Acheson, Dean, Secretary of State — Continued
Addresses and statements — Continued
Passport procedures, 40
Peiping "peace conference," passports not issued, 570
Point 4 Program, 449
Prisoners of war, 597, 600, 691, 744, 910
Senator McMahon, eulogy on, 220
United Nations, 529, 698
Visits to Brazil and Europe, 6, 132
ANZUS Council, U. S. delegate to , 110, 220
Correspondence :
Iranian I*rime Minister, clarifying U.S.-U.K. proposal
re oil dispute, 569
Israeli Prime Minister, message of condolence on
President's death, 824
Senator Knowland, proposed recall of Soviet Ambas-
sador, 603
U.S. Counnittee for German Corporate Dollar Bonds,
preliminary negotiations, 948
Tunisian and Moroccan problems in U.N., meeting with
French Foreign Minister for discussion of, 771
Aekerman, Ralph H., address on relations between U.S.
and Dominican Republic, 51
Adana Plain, World Bank loan to Turkey for development
of, 15
Administrative Unions, U.N. Committee on, proceedings,
505, 551
Aerodromes, aeronautical. See International Civil Avia-
tion Organization.
Afghanistan :
Export-Import Bank loan for irrigation progi-am, 62
Point 4 Program in, 62, 198, 951
U. S. Ambassador (Ward), confirmation, 43
Africa :
Export-Import Bank loans to, 339, 943
IBRD economic appraisal missions to, 722
Africa, South-West, U. N. Ad Hoc Committee on, proceed-
ings, 551
African Tourism, 4th International Congress, U. S. ob-
server, 466
Aggression, definition of, U.N. proceedings on, 882, 925,
966, 1001
Agricultural college, Iraqi, development under Point 4
mis-sion, 864
Agricultural credit, international conference on, 453
Agricultural development program in Chile, FAO and
IBRD mission report on, 1025
Agricultural production, U.S., role in world economy, ad-
dress (Andrews), 708
Agricultural training program in Afghanistan, technical
cooperation, 951
Aid to foreign countries. See Mutual Security, Technical
cooperation, and individual countries.
Air, aircraft, airlift. See Aviation ; International Civil
Aviation Organization.
Alaska forest products, utilization, Japanese mission to
U.S. for consideration of, 658
Alden, Jane M., article on Japanese educational system,
654
Alexander of Tunis, Lord, British Minister of Defense,
visit to U.S., 6
Algeciras, Act of (1906), U.S. treaty rights in Morocco
under, 620
Allison, John M., Assistant Secretary for Far Eastern
Affairs, addresses and statements :
Japan: anniversary of peace treaty (1951), 448; posi-
tion in Asia, 857
U.S. policy in Asia, 97, 471
AUnonils, import fees imposed on, text of proclamation,
569
American Hellenic Educational Progressive Association
(AHEPA), conference of. State Department denial of
charges of influence in, 362
American International Institute for Protection of Child-
hood, 3d regional meeting of technical delegates, 838
American Memorial Library, Berlin, addresses and state-
ments (Acheson, McCloy, Schrieber), 3, 5
American Republics:
Balance-of-payments developments, 394, 395
Export-Import Bank loans to, 339
Foreign Ministers, 3d and 4th Meetings of Consultation,
49,50
Inter-American cooperation, addresses :
Acheson, 47, 87, 89
Bennett, 207
Miller, 702
Rubottom, 901
Latin American manpower conference (ILO), U.S.
representative, 962
Mutual security arrangements with, background, ar-
ticle (C. B. Marshall), 809
Point 4 Program in, survey of, 366
American Studies, Conference at Cambridge University,
196
Ameriku, suspension of publication, texts of U.S. note
and Soviet note, statement (Compton), 127, 263
Anderson, Eugenie, U.S. Ambassador to Denmark :
Designation as U.S. representative to 3d session of
Prisoners of War Commission, statements, 414, 415
U.S. economic policy in Europe, address, 614
Anderson, Fred L., U.S. special representative in Europe,
address on free world unity vs. Communist threat,
813
Andrade, Victor, Bolivian Ambassador to U.S., creden-
tials, 285
Andrews, Stanley, TCA Administrator :
Address, role of U.S. farmer in world economy, 708
Survey of Point 4 program in Latin America, 366
Visit to Burma and Indonesia, 61
Anglo-American Council on Productivity, final report re-
leased, 285
Anglo-Egyptian controversy, U.S. position, article (How-
ard) and address (Byroade), 895, 933
Anglo-Egyptian Sudan, U.S. liaison oflBce at Khartoum,
establishment, 967
Anglo-Iranian Oil Company, U.S. views on purchase
rights, statement (Acheson), 405
Antarctica, curtailment of ship movements to, 900
Anthropological and Ethnological Sciences, 4th Interna-
tional Congress, U.S. representative, 301
ANZUS Council established by security treaty with
Australia and New Zealand :
Addresses (Acheson), 141, 219, 243, 284; statement
(Allison), 471
U.S. delegation to 1st meeting, communique, 110, 220,
244
1052
Department of State Bulletin
Arab States and Israel:
Negotiations between, General Assembly draft resolu-
tion and proceedings, 998, 1044
Repatriation of Arab refugees from Palestine, TJ.N.
proceedings on, review (Howard), 895
U.S. position on Arab-Israeli issue, address (Byroade),
932
Architects, 8th Pan American Congress of, U.S. delega-
tion, 763
Argentina, draft resolution on financing of economic de-
velopment, U.N. proceedings, 925, 964
Arms and armed forces:
Disarmament Commission. See Disarmament Com-
mission.
Occupation of Germany, termination commemorated by
American Memorial Library, 3, 5
U.S. support of troops in South Korea, 693
Arnold, Richard T., designation as science adviser to
HICOG, 302
Artists, International Conference of, U.S. delegation, 457
Asia. See Consultative Committee on Economic Develop-
ment in South and Southeast Asia ; Economic Com-
mission for Asia and the Far East ; Near East, South
Asia, and Africa.
Astronomical Union, International (lAU), 8th general
assembly, U.S. delegation, 462
Austin, Warren R. :
Addresses, statements, etc. :
Collective security system (U.N.), U.S. support, 411
U.N. Headquarters, opening of General Assembly ses-
sion at, 640
U.N. membership, admission to, 412, 502, 504, 526, 527
Letter to Secretary-General re Mexican proposal for
settlement of prisoner of war issue, 696
Australia :
ANZUS Council, 110, 141, 219, 220, 243, 244, 284, 471
IBRD loan, equipment for development program, 140
International Monetary Fund, exchange transactions
with, 368
Trade, inflationary developments, 396
Austria :
Export-Import Bank loan for shipment of U.S. cotton,
900
Nazi amnesty legislation, U.S. views on, 223
State treaty negotiations. See Austrian state treaty
negotiations.
U.S. Ambassador and U.S. High Commissioner (Thomp-
son), appointment, 178
U.S. Secretary of State (Acheson), visit to, 6, 132
Vienna "Peace Congress," Communist propaganda
maneuver, 818
Austrian state treaty negotiations :
Additional articles to draft treaty, text, 405
Austrian memorandum requesting U.N. support, text,
and background summary, 221, 222
Soviet noncooperation, address (Jessup), statement,
(Acheson), 512, 570
Soviet note rejecting draft treaty, text, 284, 322
U.S. notes and similar British and French notes to
U.S.S.R., 284, 404; statement (Acheson), 283; De-
partment critique, 321
In iex, July fo December 1952
\
Aviation :
Air Force, South African, contribution to U.N. action in
Korea, 105
Air transport agreements, Panama (1949), Philippines
(1946), 13,1024
Aircraft, U.S., Soviet firing on near Yuri Island, ex-
change of notes (U.S.S.R. and U.S.), 649, 650
Airlift, Mecca, statement (Acheson), 406
ICAO. See International Civil Aviation Organization.
Azores, U.S.-Portuguese agreement (1951), military
facilities In, text, 14
Bacteriological methods of warfare. See "Germ war-
fare."
Balance-of-payments developments :
Address (Draper), 438
Annual report (1952), International Monetary Fund,
390
Western Europe, report (Drai)er), 358
Bancroft, Harding, address on activities of Collective
Measures Committee, 583
Battle Act. See Mutual Defense Assistance Control Act
(1951).
Belgium :
Balance-of-payments developments, 357, 394, 395
Double taxation, supplementary convention with U.S.,
signed, 427
European Coal and Steel Community (1951), inaugura-
tion, statement (Acheson), 285
Belton, William, designation in State Department, 275
Bennett, W. Tapley, Jr., address on U.S. relations with
American Republics in last decade, 207
Berlin :
Access to Western zones, restriction by U.S.S.R., text
of U.S. letters. 312. 313, S18
American Memorial Library, addresses and statements
(Acheson, McCloy, Schrieber), 3, 5
Interzonal communications, Soviet restriction on, 319
Resident of American sector abducted into Soviet zone,
text of U.S. letter to U.S.S.R., 320; statement, 823
Soviet charges against West Berlin organizations and
rejection by U.S., U.K., and France, e.xchange of let-
ters (Chuikov, Donnelly), 861
Berlin-Marienborn Autobahn, Soviet interference with
Allied patrol of, exchange of letters (U.S. and
U.S.S.R.), 312, 313, 314, 318, 320
Bermuda telecommunications agreement (1945), London
revision (1949), U.S., U.K., and Commonwealth coun-
tries discuss modifications, 120, 236
Berry, Burton Y., U.S. Ambassador to Iraq, confirmation,
43
Bible, inauguration of revised version, address (Acheson),
555
Bingham, Jonathan R., Deputy Administrator, TCA, ad-
dress on Point 4 Program, 1016
Black, Eugene R., President of IBRD, review of 1952 ac-
tivities, 385
Boban, Merwin L., appointment on U.S.-Brazil Joint Com-
mission for Economic Development, .368
Bohlen, Charles E., Counselor of State Department, ad-
dress on U.S. foreign policy, 167
1053
Bolivia :
Ambassador to U.S. (Andrade), credentials, 285
United Nations proceedings on nationalization of re-
sources, joint Uruguayan-Bolivian draft resolution,
U.S. attitude (Lubin), 1000
Bonds, German corporate dollar, U.S. committee pre-
liminary negotiations for settlement, text of state-
ment and correspondence with Secretary Acheson,
947, 948
Bonds, German dollar, validation of, article (Moores),
and schedule of law, 608, 610
Boundary waters treaty with U.K. (1909) :
Lake Ontario, measures for relief of high water level,
referral to International Joint Commission pursuant
to provisions of treaty, 67
St. Lawrence River, proposed power works development
of waters within meaning of treaty provisions, 66, 1019
Bradley, Gen. Omar, statement re Greek and Turkish entry
into NATO, excerpt, 936
Brazil :
Export-Import Bank loans to, 141, 338, 339
International Monetai-y Fund, exchange transactions
with, 368
Point 4 agreement with, signed, 950
U.S.-Brazil Joint Commission for Economic Develop-
ment: progress, 48, 210, 705; appointment of U.S.
member (Bohan),368
Visit of U. S. Secretary of State, statements (Acheson),
6, 132
Brazil-U.S. relations, addresses, statements, etc. :
Acheson, 47, 87, 89 ; Miller, review, 705
Briggs, Ellis O., appointment as U.S. Ambassador to Korea,
379
British Guiana, closing of U.S. consulate at Georgetown,
and transfer of consular district to Port-of-Spain, 967
Brown, Richard R., appointment to escapee program, 909
Bruce, David K. E., Under Secretary of State and Acting
Secretary :
Statements :
Bombing of power plants in North Korea, 60
German contractual agreements and NAT protocol,
approval by Senate, 67
U.S. deputy to ANZUS Council, designation as, 284
U.S. note to Soviet Ambassador re lend-lease settlement,
819
Brussels agreement on conflicting claims to German
assets (1947) : deadline, type of claim, U.S. member-
ship on panel of conciliators, 365
Bulgaria :
Mistreatment of U.S. diplomats in, address (Green), 787
Mock trial of Catholic clergy in, 728
Burma :
Agreement for continuation of economic assistance to,
864
Point 4 Program, appointment, 660
TCA Administrator (Andrews), visit to, 61
Byelorussian Soviet Socialist Republic, Charges in U.N.
against U.S. territorial policies, statement of denial
(Mrs. Roosevelt), 1032
Byroade, Henry A., As.sistant Secretary for Near Eastern,
South Asian and African Affairs, addresses on U.S.
policy in Middle East, 729, 931
Cabot, John M., appointment as Ambassador to Pakistan,
507
Cairo Conference (1943), pledge re Korean independence,
680
Calcai, Panait, Rumanian escapee, VOA broadcast expos-
ing Communist propaganda, 563
Calendar of international meetings, 16, 183, 332, 544, 714,
867
Cambodia :
Ambassador to U.S. (Nong Kimny), credentials, 53
U.N. membership application, U.S. attitude, 504
U.S. Ambassador (Heath), confirmation, 43
Canada :
Balance-of-payments developments, 394, 395
High water level of Lake Ontario, problem referred to
IJC by U.S. and Canada, 67
Nickel mines, Export-Import Bank loan for expansion
of, 865
Relations with, address (Acheson), 847
St. Lawrence River, power works development, approval
by IJC : U.S.-Canadian application for, order of ap-
proval, Commissioner's dissenting opinion, Commis-
sion's majority opinion, 65, 1019
Teacher-exchange program, address (Phillips), 324
Treaties and agreements:
Extradition convention with U.S., supplementary
(1951), approval by Canadian Parliament, 67
Great Lakes, safety promotion by radio on, with U.S.,
exchange of instruments of ratification, 952
TV channels, allocation of, exchange of notes with
U.S., 180
Canal Zone, problems in occupation of, address (Miller),
703
Capital, international fiow of, statement (Lubin), 190
Capital, private, investment abroad, 208, 210, 230, 287,
288, 359, 387, 447, 538, 565, 566, 567, 711, 779, 782, 815,
841, 872, 880, 903
Capital accounts in Netherlands, transfer authorized, 711
Cargo, William I., appointment as Deputy Director of
Bureau of U.N. Affairs, 42
Caribbean Commission:
15th meeting, U.S. delegation, 962
Home economics and education in nutrition, 1st confer-
ence on, report (Roberts), 576
West Indian Conference, 5th session, 961
Carl Schurz Award, German winner announced, 104
Carnahan, George, appointment as Special Assistant to
Assistant Secretary for Inter-American Affairs, 723
Cartography, 6th Pan American Consultation on, U.S.
delegation, 720
Catholic clergy. Communist mock trial in Bulgaria, 728
Ceylon :
Colombo Plan, participation in, 443, 444, 447
IBRD visit re establishment of technical-research In-
stitute, 722
Technical development in, 781, 783
Chemical Industries Committee of ILO, 3d session, U.S.
delegation, 460, 619
Child welfare :
American International Institute for Protection of
Childhood, 3d regional meeting of technical delegates,
838
1054
Department of State Bulletin
Child welfare — Continued
Cliildren's Emergency Fund. See United Nations In-
ternational Children's Emergency Fund.
International study conference, 835
Repatriation of Greek children, U.N. proceedings', 924,
1044
Chile :
Agricultural development, FAO and IBRD mission re-
port on, 1025
Copper exports, U.S. trade policy re, 705
Technical cooperation, 209
China :
Seating of representative as president of Security
Council, challenge by U.S.S.R., 800
Treaty with U.S.S.R. (1950), supplementary agreement,
remarks (Acheson), 476
China, Communist:
Correspondence re Korean armistice negotiations (Com-
munist commanders and U.N. Command ofl3cers), 751,
752
Embargo on shipments to, 100
Geneva conventions (1925, 1949), attitude, statement
(Acheson), 172
Maltreatment of Americans in, statement (Acheson),
440
Peiping "peace conference," U.S. passports not issued,
statement (Acheson), 570
Churchill, Winston S., joint message with Pres. Truman
proposing submission of Iranian oil problem to In-
ternational Court of Justice, 360
Citizenship, U.S., significance, address (Sargeant), 11
Civil Aviation Organization, International. See Inter-
national Civil Aviation Organization.
Civil-military relations in U.S., article (C.B. Marshall),
348
Claims :
Applications, deadlines for filing:
Return of Allied property in Japan, 13 ; conversion
of pre-occiapatlon bank deposits in East Germany,
364 ; unsettled claims against Cuban Government,
454
Brussels agreement on conflicting claims to German
assets (1947) ; deadline, type of claim, U.S. member-
ship on panel of conciliators, 365
Convention with Mexico (1941), payment of installment
under, 950
German dollar bonds: validation of, article (Moores),
608; schedule of law, 610; U.S. committee on, nego-
tiations for settlement, 947
U.S. postwar aid to Germany, statistics used in settle-
ment of, 491, 619
Clark, Gen. Mark, U.N. Commander in Korea :
Correspondence with Communist commanders on re-
patriation of war prisoners, 754
Statement on suspension of Korean armistice negotia-
tions, 600
Cobalt, International Materials Conference allocation of,
119, 580; discontinuance, 957
Cohen, Benjamin V., deputy U.S. representative to Dis-
armament Commission, statements:
Bacteriological methods of warfare, U.S. views on elim-
ination of, 33, 36, 294
Cohen, Benjamin V., deputy U.S. representative to Dis-
armament Commission, statements — Continued
U.S., U.K., and French proposal for ceilings on armed
forces, supplement, 290
Colbert, James L., article on continuation of economic
aid to Yugoslavia, 825
Collective Measures Committee (CMC) :
Activities, statement (Bancroft), 583
Report, 2d, article (Sisco), 717
U.S. support of U.N. collective security system, state-
ment (Austin), and U.S. memorandum to Commit-
tee, 411, 412
Collective security :
Addresses, statements, etc. :
Acheson, 639, 849
Allison, 861
Anderson, Fred L., 813
Austin, 411, 412
Hickerson, 692
Mar,shall, C. B., 807
Meyers, 1013
Miller, 702
Rubottom, 901
Sisco, 717
Foreign Relations Committee report on activities of
82d Congress, excerpts, 584
Collins, Frank D., article on Kashmir dispute, 663
Colombia, technical development activities in, 211, 366,
781
Colombo Plan. See Consultative Committee on Economic
Development in South and Southeast Asia.
Commercial treaties, bilateral. Senate action in 82d Con-
gress, 588
Commonwealth Program for Cooperative Economic De-
velopment in South and Southeast Asia. See Con-
sultative Committee on Economic Development in
South and Southeast Asia.
Communism :
Conflict with democracy, address (Russell), 7
Decline in influence, addresses (Acheson, Sargeant),
596, 739
Free world unity against, addresses :
Acheson, 425, 595, 848
Anderson (Eugenie), 614
Anderson (Fred L.), 813
Harriman, 362
Mesta, 741
Sargeant, 558
"Germ warfare." See "Germ warfare."
Policy in American Republics, 211, 706; Far East, 97,
440, 473, 6S5, 811, 858; Near East, 935; West Ger-
many, 906
Prisoners of war, Korean. See Prisoners of war.
Refugees from. ,See Escapee program for refugees from
Soviet-dominated areas.
Communist propaganda :
"Big lie," etTectiveness decreased by International In-
formation Program, addresses (Compton, Sargeant),
605, 739
Criticism of Point 4 program, 449, 450 ; Red Cross, 154,
224
Exposition by free world, 503, 570, 728, 741, 818
Index, July fo December 1952
1055
Communist propaganda — Continued
Methods used by Communists, statements:
Aclieson, 570, 849
Anderson, Fred L., 813
Compton, 344
Kotschnig, 109, 149
McCIoy, 312
Compton, Wilson, IIA Administrator, addresses, etc. :
Amerika, suspension of publication, 263
Crusade of ideas, significance, 343
International information program, 604
Conciliators, Panel of, set up by Brussels intercustodial
agreement (1947), U.S. membership, 365
Congress :
Battle Act (1951), 1st semiannual report under (Harri-
man), released, 652
Bilateral conventions (double-taxation, consular, com-
mercial). Senate action in 82d Congress, 586, 587, 588
Export-Import Bank, semiannual report, 338
Foreign policy legislation. Foreign Relations Com-
mittee's Legislative History, excerpts, 584
Immigration and Nationality Act, veto by President, and
repassage overriding veto, 78, 78n
Legit;'ation listed, 12, 200, 268, 339, 410, 448, 507, 563, 723
Messages, letters, reports from President :
Aid to Denmark, continuance, identic letters to con-
gressional committees, 198
Aid to Italy, continuance, identic letters to congres-
sional committees transmitting report of MSA
director (Harriman), 75, 76
Economic report, excerpts, 225
Immigration and Nationality Act, vetoed, 78
International Materials Policy Commission report,
letters to President of Senate (Barkley) and
Speaker of House (Rayburn), 55
Mutual Security Program, transmittal of Second Re-
port on, 900
Tariff Commission recommendations, rejection, identic
letters to congressional committees, 303, 305
Trade agreement with Venezuela, supplementary, 401
U.S. participation in U.N., letter of transmittal of
annual report, 121
Philippine highvs'ay rehabilitation, allocation for, 61
Puerto Rican Constitution approved, statement (Tru-
man), 91
Senator McMahon, eulogy on (Acheson), 220
Connelly, Marc, member of National Commission for
UNESCO, analysis of totalitarian theater, 542
Consular convention with U.K. (1951), entry into force,
489
Consular conventions, bilateral. Senate action in 82d Con-
gress, 587
Consulates, Consular districts. See Foreign Service.
Consultative Committee on Economic Development in
South and Southeast Asia (Colombo Plan) :
Development programs, review (Malenbaum), 441
Statement (Kemohan), 375
Containment policy, addresses on :
Acheson, 426
Bohlen, 169
Sargeant, 560
Contractual agreements between Three Powers and Ger-
many:
German parliamentary action on agreements, state-
ment (Truman), 984
U.S. action on agreements :
Approval by Senate, 67
Ratification of convention on relations between Three
Powers and Germany, 220
Copper :
Allocation by International Materials Conference, 118,
579
U.S. trade policy re Chilean exports, 705
Copyright :
Conference on Universal Copyright Convention
(UNESCO), U.S. delegation, 293
Monaco, U.S. proclamation granting benefits to na-
tionals of, 712
Cotton :
Advisory CJommittee, International, 11th meeting,
article- (Wall) and U.S. delegation, 185
Cotton-Cotton Linters Committee of IMC, termination,
117
Shipment to Austria, Export-Import Bank loan for, 900
Council of Economic Advisers, excerpts of midyear eco-
nomic review, 227
Courier, Voice of America floating transmitter :
Inauguration of broadcast relay, 466
Voyage to Island of Rhodes, 182
Criminal court, international, establishment, U.N. pro-
ceedings on, 882
Cuba, claims of American nationals, time limit set for
filing, 454
Currency :
Guaranty agreement with Yugoslavia, exchange of
notes, 287
Korean won advanced to U.S. forces, dollar payment by
U.S. for, 330
Customs valuation of U.S. imports in Morocco, Interna-
tional Court of Justice ruling on, 622
Czechoslovakia :
Ambassador to U.S. (Petrzelka), credentials, 733
Economic situation in, address (Lubin), 875
Hvasta, John (U.S.), reported escape from Czecho-
slovak prison, and statement (Acheson), 262, 285
Independence Day, commemoration of, letter from Presi-
dent Truman to Council of Free Czechoslovakia, 732
Mutual Security Act, charges against, exchange of notes
with U.S., 850
Oatis, William, trial and status of imprisonment, state-
ments (Acheson, Green), 625, 787
Purge trial, statement (Ache.son), 985
Standard of living, decline under Soviet domination,
statement (Kotschnig), 152
U.S. Ambassador (Wadsworth), appointment, 635
Davis, John W., designation in TCA, 743
Defense Production Act (1951), section 104, effect on U.S.
foreign policy, 618
Defense-sites negotiations with Panama, article (Wright),
212
DeLong, Vaughn R., article on progress of German
education under U.S. Occupation, 246
1056
Deparlment of State Bulletin
Democratic philosophy, principles of, addresses (Russell),
7, 279
Denmark :
Gift to U.S. for Virgin Islands, 268
U.S. aid, text of President's identic letters to congres-
sional committees recommending continuation, 198
U.S. cheese-import restriction, significance, address
(Anderson), 618
Dependent peoples. See Self-determination of peoples.
Dependent territories, racial discrimination in, U.N. pro-
ceedings on, 803
Diplomatic representatives in U.S., presentation of cre-
dentials: Bolivia (Andrade), 285; Cambodia (Nong
Kimny), 5.3; Czechoslovakia (Petrzelka), 73.3; Guate-
mala (Toriello),, 575; India (Mehta), 723; Iran
(Saleh), 575; U.S.S.R. (Zarubin), 515; Vietnam
(Tran Van Kha), 53
Disarmament Commission, proceedings :
Addresses and statements :
Acheson, 641
Cohen, 290, 296
Gross, 35 '
Hickerson, 647
Jessup, 512
Sandifer, 478
Sargeant, 699
Bacteriological warfare, 35, 38, 296, 671
Tripartite proposal (U.S., U.K., France) for limitation
of armed forces, 290, 292, 478, 550, 699
U.S. proposals presented to Commission, summary, 648
Displaced Persons Commission :
Final report recommending program for refugees from
communism, 328
Liquidation, text of Executive order, 329
Distribution centers for State Department publications,
418
Dodge, Joseph M., appointment as Consultant to Secretary
of State, 339
Domestic and foreign policies, relationship, address (Har-
riman), 361
Dominican Republic:
Slilitary-assistance agreement with U.S., negotiations,
537
U.S. Ambassador (Phelps), Confirmation, 43
U.S.-Dominican relations, address (Ackerman), 51
Donnelly, Walter J. :
Appointment as U.S. High Commissioner for Germany,
178
I Correspondence with General Chuikov :
Soviet charges against West Berlin, rejection, 861
Soviet detention of U.S. Army officer, protest against,
908
Resignation as U.S. High Commissioner for Germany,
967
Double taxation. See Taxation, double.
Draper, William H., Jr., U.S. Special Representative In
Europe :
Address on European and Atlantic unity, 650
Address on NATO, 436
Report to I'resident, text and White House announce-
ment, 353, 354
Index, July fo December 1952
Duke, Angier Biddle, Ambassador to El Salvador, address
on Point 4 program in El Salvador, 776
Dulles, John Foster :
Statement on transition problems of incoming admin-
istration, 949
Testimony on security treaties, Pacific area, 103, 472
Eakens, Robert H. S., address on oil imports and U.S.
economy, 733
E?conomic Advisers, Council of, excerpts of midyear eco-
nomic review, 227
Economic and Social CouncU (ECOSOC) :
Election of members, 761
Famine relief, U.S.-Iranian-Uruguayan draft resolution,
text and statement (Lubln), 111, 113
Financing of economic development, proceedings on,
39,73
14th session, proceedings, and article (Lubin), 39, 160,
237, 288
International economic stability, experts' report on
measures for, statement (Lubln), 187
Land reform, action on, statements (Lubin), 964, 991
Minorities, Subcommission on Prevention of Discrimina-
tion and Protection of, proceedings, 505, 583
Restrictive Business Practices, Ad Hoc Committee on,
3d session, U.S. delegation, 458
Self-determination of peoples, U.S. reservations to reso-
lutions on, statement (Lubin), 269
Social Commission, 8th session, 372
World social situation, report of U.N. Secretary-Gen-
eral, review (Kotscbnig), 142, 161; (Lubin), 482
Economic barriers, threat to effective U.S. foreign policy,
address (Thorp), 173, 176
Economic Commission for Asia and the Far East
(ECAFE) :
Colombo Plan, participation in, 442
Statisticians, 2d Regional Conference of, U.S. delega-
tion, 463
Subcommittee on Electric Power, 2d meeting, U.S. dele-
gation, 547
Working Party of Experts on Mobilization of Domestic
Capital, 2d meeting, U.S. delegation, 582
Economic Commission for Europe (ECE), report on
Soviet economy, excerpt, 876
Economic coordination agreement with Korea:
Dollar payment (second) pursuant to provisions of,
330
Text, in report of U.N. Command operations, 499
Economic development, financing of, 39, 73, 387, 779, 803,
871, 880, 925, 964
Economic Development, U.S.-Brazil Joint Commission for.
See United States-Brazil Joint Commission for Eco-
nomic Development.
Economic Development in South and Southeast Asia,
Consultative Committee on. See Consultative Com-
mittee on Economic Development in South and
Southeast Asia.
Economic Report of the President to Congress, excerpts,
225
Economic Review by President's Council of Economic
Advisers, excerpts, 227
1057
Economic stability, domestic and foreign, statement
(Lubin), 187, address (Harriman), 361
ECOSOC. See Economic and Social Council.
Ecuador :
Development projects, U.S. cooperation in, 210
Export-Import Bank loan for Improvement of water
and sewer systems, 210, 267
Eden, Anthony, British Foreign Secretary, statement on
repatriation of prisoners of war, 840
Edinburgh Film Festival, 6th International, U.S. delega-
tion, 234
Education :
American educators, responsibility in free world, ad-
dresses (Sargeant, Mesta, Harris, Phillips), 736, 741,
971
German system, progress under U.S. occupation, article
(DeLong), 246
Iranian students, extension of assistance project, 453
Japanese system, article (Alden), 654
Museums, contribution to, address (Sargeant), 455
UNESCO. See United Nations Educational, Scientific
and Cultural Organization.
Universities in exile, free world, for refugees from com-
munism, recommended by Displaced Persons Com-
mission, 328
Educational exchange:
Achievements of programs, addresses (Sargeant,
Harris), 739, 976
Agreements signed with Finland, Germany, Sweden, 53,
179, 909
Conference on American studies, sponsored by U.S. Edu-
cational Commission in U.K., 196
Teacher exchange program, address (Phillips), 324
Egypt:
Anglo-Egyptian controversy :
Developments in 1952, article (Howard), 895
U.S. position, address (Byroade), 933
Anglo-Egyptian Sudan, U.S. liaison office at Khartoum,
establishment, 967
Land reform :
Draft resolution with India and Indonesia, proceed-
ings on, 964, 991, 993, 1000
Influence of Point 4, remarks (Seager), 451
Point 4 appointment, 42
Relations with U.S., statement (Acheson), 406
Eisenhower, Dwight D. :
Invitation from President Truman to meet at White
House, 771
Joint statement with President Truman on international
relations, 850
Visit to Korea, text of U.N. Command communique,
948
El Salvador, Point 4 program in, address (Duke), 776
Elections in Germany. See under Germany.
Eliot, Martha M. :
Appointment as U.S. representative, Executive Board,
UNICEF, 619
Attendance at 3d regional meeting of technical delegates
on Directing Council, American International Insti-
tute for Protection of Childhood, 8:^8
Embargo on shipments to Communist China and North
Korea, 100
Embassies. See Foreign Service.
Englund, Eric, U.S. delegate, 5th meeting of International
Wool Study Group, 838
Eritrea, federation with Ethiopia :
Completion of U.N. action, proposed General Assembly
resolution, statement ( Sprague) , 999
Consular districts redefined, 1047
Escapee program for refugees from Soviet-dominated
areas :
Appointment to staff, 909
Background and activities, article (Warren), 261
Czechoslovak charges against, exchange of notes, 850,
851
Displaced Persons Commission final report recommend-
ing program, 328
Exempted laws (Ex. Or. 10410), 909
Resettlement of refugees, U.S. contribution, 711
Ethiopia, federation of Eritrea with, 999, 1047
Ethnological and Anthropological Sciences, 4th Inter-
national Congress, U.S. representative, 301
Europe :
Economic Commlsison for, report on Soviet economy,
excerpt, 876
Economic rehabilitation, address (Eugenie Anderson),
614
Migration. See Provisional Intergovernmental Com-
mittee for Movement of Migrants.
Public attitude toward U.S., address (Sargeant), 738
Refugees. See Escapee program for refugees from
Soviet-dominated areas.
Unification, addresses, statements, etc. : Acheson, 477,
849 ; Anderson, Fred L., 816 ; Draper, 650 ; Mesta, 64
U.S. Special Representative in (Draper), report to
President, 353, 354
European Coal and Steel Community :
Assembly, 1st meeting, significance, 477
Inauguration: statement (Acheson), 285; report
(Draper), 353
European Defense Community:
Functions, 905
Treaty, German parliamentary action on, statement
(Truman), 984
European-Mediterranean Region, Rules of the Air and Air
Traffic Services Committee for, ICAO, 4th special
meeting, U.S. delegation to, 120
European Payments Union (EPU) :
Balance-of-payments developments, 393
Belgian creditor position, effect on, 357
Mutual Security Agency allotment to United Kingdom
under, 486
European Political Authority, proposed, 477
European Recovery Program, comments on (Eugenie
Anderson, Bohlen, Thorp), 616, 170, 174
Ewe and Togoland, unification problem :
General Assembly proceedings on, 1046
Trusteeship Council, 11th session, proceedings, report,
882, 966
Visiting mission, report to Trusteeship Council, review,
026
Ewing, Capt. Charles G., U.N. Forces in Korea, exchange
of letters with President on repatriation of prisoners,
327, 328
1058
Department of Sfafe Bulletin
Exchange of persons program. See Educational ex-
change.
Executive orders :
Displaced Persons Commission, liquidation of (Ex. Or.
10382), text, 329
Immigration and Naturalization Commission, estab-
lishment (Ex. Or. 10392), text, 408
Mutual Security Act (1951), escapee program under,
exempted laws (Ex. Or. 10410), text, 900
Safety of life at sea, international convention (1948),
enforcement (Ex. Or. 10402), text. 865
Trade-agreement concessions, procedures for periodic
review (Ex. Or. 10401), text, 712
War Criminals, Board of Clemency and Parole for,
establishment (Ex. Or. 10393), text, 409
Export-Import Bank :
Obregon Dam, Mexico, representation at dedication, 713
Semiannual report transmitted to Congress, 338
Export-Import Bank, loans :
Afghanistan, irrigation program, 62
Africa, uranium production, 339
American Republics, tungsten and sulfur production,
339
Au.stria, shipment of U.S. cotton, 900
Brazil: railroads and electric power company, 338, 339;
U.S. agricultural equipment, 141, 210
Canada, expansion of nickel mines, 865
Chile, industrial plants, agricultural machinery, 209
Ecuador, improvement of water and sewer systems, 210,
267
France, Mutual Security Program contracts, 105
Mexico : modernization of steel operations, 950 ; sulfur
plant, 830
Near East, South Asia, and Africa (1945-52), table, 943
Pakistan, purchase of U.S. wheat, 490
Philippines : development projects, 1025 ; hydroelectric
power plant, 338
South Africa, Union of. Electricity Supply Commission,
105
Yugoslavia, food needs, 826
Exports and imports. See Trade.
Extradition convention, supplementary, U.S. and Canada
(1951), approved by Canadian Parliament, 67
Extraterritorial jurisdiction, International Court of
Justice ruling on U.S. rights in Morocco, 621
Faisal II, King of Iraq, U.S. visitor and recipient of Legion
of Merit award, 12, 265, 330
Famine relief :
ECOSOC draft resolution, text, statement (Lubin),
111, 113
FAO working party, U. S. expert (Farrington) to serve,
378
Far East :
Campaign of Truth, progress in, address (Compton),
607
Colombo Plan. See Consultative Committee on EJco-
noniic Development in South and Southeast Asia.
Communist policy in, 97, 440, 473, 685, 811, 858
Economic Commission for Asia and the Far East. See
Economic Commission for Asia and the Far East.
Mutual security program in, 1953 allotments, 898
U.S. policy In, address (Allison), 97, 471
Farrington, Carl C, U.S. nominee to serve on PAO work-
ing party to study famine conditions, 378
Field Reporter, new State Department publication, state-
ments (Aeheson, Sargeant), 203
Figs, dried, import duty increased on, text of proclamation
and statement (Truman), 337
Filberts, rejection of Tariff Commission quota limitation
on imports', statement (Truman), 743
Film exhibitions, international, U.S. representation, 234
Films. See International Motion Picture Service.
Finland:
Educational exchange agreement, signed, 53
Friendship, commerce, and consular rights, treaty of,
with U.S. (1934), protocol, signature and text, 949
IBRD loan for expansion of wood-products industry, 866
U.S. Minister (McPall), appointment, 507
Fisheries, international conferences, U.S. delegations:
Indo-Paclfic Council, 4th meeting, 721
Northwest Atlantic, commis'sion for, 2d annual meeting,
74
Food and Agriculture Organization (FAO) :
Chilean agricultural development, FAO and IBRD mis-
sion report on, 1025
Council, 16th session, U.S. delegation, 879
Emergency food reserve, study of, 111, 378
Forestry commissions:
Latin American, report on (Wadsworth), 492
U. S. delegations : Asian and Pacific, 926 ; European,
720 ; Latin American, 74
Home economics and education in nutrition, 1st con-
ference on, report (Roberts), 576
Land reform, action on, statement (Lubin), 991
Programs in Afghanistan, Austria, Costa Bica, and
Thailand, 774
Food production, global problem :
Relief of famine emergencies, FAO study of, 111, 378
Role of U.S. farmer, address (Andrews), 708
Forced labor in U.S.S.R. :
U.S. presentation of evidence to U.N., 70, 821
USIS report on, excerpts, and statement (Truman),
428, 477
Ford, John W., designation in State Department, 507
Foreign Aid, Voluntary, Advisory Committee on, dona-
tions to India from U.S. private sources, report, 182
Foreign Bondholders Protective Council, representation
at conference on German external debts withdrawn,
13
Foreign Ministers, Council of, meeting of Deputies, text
of U.S. note inviting Soviet participation in, 404
Foreign ministers of American states, meetings, 49, 50
Foreign ministers of U.S., U.K., and U.S.S.R., Moscow
meeting (1945), agreements re Korea, 681
Foreign policy legislation in 82d Congress, excerpts of
Foreign Relations Committee report on, 584
Foreign Relations of the United States:
History of publication, article (Perkins), 1002
Release of volumes II (1935) and V (1934), 162, 1006
Foreign Service:
Ambassador to Israel, residence at Tel Aviv main-
tained, text of axde-m6moire, 181
Ambassador to Korea (Muccio), return to Washington,
301
Index, July to December 1952
1059
Foreign Service — Continued
Ambassador to Mexico (O'Dwyer), resignation, 1047
Ambassador to U.S.S.R. (Kennan), Soviet note request-
ing recall, Secretary's statement, U. S. note, and corre-
spondence with Senator Knovrland, texts, 557, 603
Ambassadors, appointment: Afghanistan (Ward), 43;
Austria (Thompson), 178; Czechoslovakia (Wads-
worth), 035; Dominican Republic (Phelps), 43; Iraq
(Berry), 43; Korea (Briggs), 379; Pakistan (Cabot),
507; Vietnam and Cambodia (Heath), 43
Consular districts :
Addis Ababa, Ethiopia, redefined, 1047
Asmara, Eritrea, redefined, 1047
Georgetown. British Guiana, transfer to Port-of-
Spain, Trinidad, 967
Consulate o Georgetown, British Guiana, closing, 967
Legations in .Jordan, Lebanon, and Syria raised to rank
of embassy, 379
Liaison office at Khartoum. Anglo-Eg.vptian Sudan,
establishment, 967
Ministers, appointment: Finland (McFall), 507; Ru-
mania (Shantz), 6.35; Syria (Moose), 43
Nonpartisan nature of, statement (Dulles), 949
Science attach^ to Swedish Embassy (Nielsen), and
science advisers to HICOG, appointments, 302
U.S. Hifrh Commissioner for Germany, resignation
(MeCloy), and appointment (Donnelly), 178
Forestry :
Alaskan products utilization, consideration of, Jap-
anese mission to U.S., 658
FAO commissions :
Latin American, report on (Wadsworth), 492
U.S. delegations: Asian and Pacific, 926; European,
720; Latin American, 74
Formosa. U.S. policy regarding, address (Allison), 100,
101, 102
4-H Clubs' role in International Farm Youth Eixchange,
addresses (Russell, Sargeant), 7, 11
France :
Balance-of-payments developments, 394, 395
Disarmament, supplement to tripartite proposal for
ceilings on armed forces, text, 292
European Coal and Steel Community (1951), inaugura-
tion, statement (Acheson), 285
Export-Import Bank loan. Mutual security program
contracts, 105
General Assembly resolution on citation for honored
dead, statement (Sampson), 997
German free elections, proposals re commission to In-
vestigate conditions: identic notes (U.S., U.K.,
Prance), Soviet notes, and statement (Acheson), 92,
93, 516, 517, 518
International information program in. Communist re-
action to, 606
Memorial ceremony, at Paris, U.S. representative, 329
Moroccan decree (1948) in violation of rights of U.S.
nationals, International Court of Justice ruling on,
article (Sweeney), text of French note, 620, 623
Moroccan problem in U.N., 771, 839, 897, 1044
Prisoners of war, voluntary repatriation, French atti-
tude re Soviet position on, statement (Hoppenot),
762
France — Continued
Soviet interference with communications between East
and West Germany, text of identic notes (U.S., U.K.,
and France) to U.S.S.R., 318, 319
Teacher-exchange program, address (Phillips), 324
Soviet charges against West Berlin organizations and
rejection by U.S., and U.K., and Prance, exchange of
letters' (Chuikov, Donnelly), 861
Soviet firing on French aircraft, text of tripartite letters
to U.S.S.R., 311, 312, 313, 318
Treaties and agreements:
Austrian state treaty draft, Soviet rejection : state-
ment (Acheson) ; tripartite notes (U.S., U.K.,
France) to U.S.S.R.; and additional articles (text),
283, 284, 404, 405
Relations between Three Powers and Germany, rati-
fication, statement (Truman), 220
Swiss-Allied agreement re German property in Switz-
erland, text and summary, 363, 364
Yugoslavia, continuation of economic aid to, tripartite
agreement (Prance, U.S., U.K.) with Yugoslavia,
825
Tunisian question in U.N., 771, 839, 897, 964, 986, 1000,
1044, 1045
Franks, Sir Oliver, British Ambassador to U.S., departure,
statement (Acheson), 603
Free world, creation of economic strength in, remarks
(Linder), 383
Free world unity against Soviet threat, addresses:
Acheson, 425, 595, 848 ; Anderson, 614 ; Harriman, 362 ;
Mesta, 741 ; Sargeant, 558
Free world universities in exUe, for refugees from com-
mimism, recommended by Displaced Persons Commis-
sion, 328
Freedom of information. See Information, freedom of.
Frequency Planning for European-Mediterranean Region,
Special Meeting (ICAO), U.S. delegation, 837
Friedkin, Joseph P., appointment to International
Boundary and Water Commission (U.S.-Mexico), 830
Friendship, commerce, and consular rights, treaty w^ith
Finland (1934), protocol, signature and text, 949
Fulbright act. See Educational exchange.
Fund, international, proposed in U.N., U.S. attitude, state-
ment (Lubin), 73
Garlic, Tariff Commission recommendations rejected,
identic letters from President to congressional com-
mittees, 303
General Assembly :
Administrative Unions, Committee on, proceedings of,
505, 551
Aggression, definition of, proceedings on, 882, 925, 966,
1001
Collective Measures Committee (CMC). See Collective
Measures Committee.
Council members, election of, 761
Disarmament Commission. See Disarmament Commis-
sion.
Ewe and Togoland, unification problem, proceedings on,
1046
Financing of economic development, proceedings on,
779, 803, 871, 880, 925, 964
1060
Department of State Bulletin
General Assembly — Continued
"Germ warfare" discussions, question of Communist
participation in, statement (Gross), 673
Greek children, repatriation of, proceedings on, 924,
1044
Indians in South Africa, treatment of, proceedings, 802,
833, 835, 840, 868, 880, 997
Information, freedom of, proceedings on, statements
(Sprague), 789, 920, 1043
International criminal court, Swedish proposal for
establishment, and U.S. attitude, 882
International Law Commission, diplomatic intercourse
and immunities under statute, statement (Green),
proceedings, 786, 997
Japan, application for membership in ICAO, approval
of, 802
Korean question :
Soviet proposal for establishment of commission to
settle, 761
Soviet statement before 7th session, 634
U.S. attitude on Assembly discussion, 457, 476, 570
Land reform, proceedings on, 964, 991, 993, lOOO
Moroccan question, proceedings on, 771, 839, 897, 1044
Nationalization of resources, joint Uruguayan-Bolivian
draft resolution, proceedings on, 1000
Non-Self-Governing Territories, Committee on Infor-
mation from, continuation, proceedings, U.S. delega-
tion, 459, 505, 842, 998
Non-self-governing territories, self-determination of
peoples in, proceedings on, 574, 881, 917, 925, 964,
1015, 1032, 1043
Palestine Conciliation Commission. See Palestine
Conciliation Commission.
Palestine question, proceedings on, 755, 756, 761, 802,
895, 924, 953, 963, 998, 1044
Peace Observation Commission, reappointment of mem-
bers, 802
Prisoner of war issue, proceedings on, 680, 746, 762,
802, 840. SSO, 910, 916, 925, 963, 964
Racial discrimination in dei)endent territories, pro-
ceedings on, 803
Resolutions :
Embargo on shipments to Communist China (May
18, 1951), number of nations applying, 100
Freedom of information, adopted (Dec. 16), 1043
Greek children, repatriation of, adopted (Dee. 17),
1044
Indians in South Africa, treatment of, establishment
of Good Offices Commission for negotiations, text,
adopted (Dec. 5), 835, 840, 997
Palestine refugees, U.N. Relief and Works Agency,
budget, adopted (Nov. 6), 756, 761
Prisoners of war, repatriation, interpretation of pro-
vision in 1949 Geneva convention (Dec. 14, 1950).
excerpt, 746
Prisoners of war, voluntary repatriation, Indian
draft, text, adopted (Dec. 3), 916, 925, 963
Prisoners of war, voluntary repatriation, recognition
of principle of, text of draft, 680
Self-determination of peoples in non-self-governing
territories, adopted (Dec. 16), 1043
Tunisian question, adopted (Dec. 17), text, 1044, 1045
General Assembly — Continued
Resolutions — Continued
U.N. citation for honored dead, adopted (Dec. 5), 997
Self-determination of peoples in non-self-governing ter-
ritories, proceedings on, 881, 917, 925, 1032, 1043
Seventh session :
Agenda items, 334, 632, 673
Opening, proceedings, remarks (Austin), 633, 640
Problems before, address (Hickerson), 645
U.S. representatives, 457
South-West Africa, Ad Hoc Committee on, proceedings,
551
Trust territories, self-government in, proceedings on,
641, 881, 1015
Tunisian question, proceedings on, 771, 839, 897, 964,
986, 1000, 1044, 1045
U.N. Charter obligations, address (Acheson), 639
Oeneral Taylor, refugee transport, significance of arrival,
261
Geneva convention on prisoners of war (1949). See
Prisoners of war, Geneva convention.
Geneva protocol on bacteriological methods of warfare
(1925). See Germ warfare.
Geographic names, standardization of, Congress of
Onomastic Sciences for, U.S. delegation, 378
Geographical Union, International, 8th general assembly
and 17th congress, U.S. delegation and address
(Hickerson), 235, 264
Geological Congress, International, 19th, U.S. delegation,
416
Germ warfare :
Bacterial weapons, elimination of, U.S. proposals, text,
671
Bacteriological methods of warfare, Geneva protocol
(1925), Soviet proposal in U.N. for ratification of,
statements (Gross), 32, 35, 38
U.S. attitude on elimination of, statement (Cohen), 294
"Germ warfare" in Korea, Soviet charges :
General Assembly proceedings re impartial investiga-
tion of charges, 673
"International Commission of Scientists," Communist,
investigation of "germ warfare," 475
Red Cross Conference, Communist propaganda at, re-
marks (C. B. Marshall), 224
U. S. draft resolutions in Security Council: texts, 37,
159; statements (Gross), 35, 153, 159, 160
German external debts :
London conference on: withdrawal of bondholders
representation at, 13 : text of communique, and com-
mittee reports on terms of settlement, 252, 254, 259,
260
U.S. Committee for German Corporate Dollar Bonds,
preliminary negotiations for settlement, text of state-
ment and correspondence with Secretary Acheson,
947, 948
Validation of dollar bonds, article (Moores), and sched-
ule of German law, table, 608, 610
Germany :
Balance-of-payments developments, 394, 395
Bank deposits (pre-occupation) in Soviet zone, deadline
extended for filing of applications for conversion of,
364
Index, July to December 1952
1061
Germany — Cdntinued
Berlin. Sec Berlin.
British sector, Soviet infringement of, tripartite pro-
tests (U.S., France, U.K.), 313, 315, 318
Carl Schurz Award, German winner announced, 104
Conflicting claims to German assets (Brassels Agree-
ment, 1947) : deadline, type of claim, U.S. member-
ship on panel of conciliators, 365
Death of Social Democratic Party leader (Schumacher),
statement (MeCloy),329
Debts. See German external debts.
Detention of U.S. Army oflBcer in Soviet zone, 907
Dollar bonds, COS, 610, 947, 948
Educational system, progress toward democracy under
U.S. Occupation, article (DeLong), 246
Elections, proposals re commission to investigate condi-
tions: texts of identic notes (U.S., U.K., and France),
92, 517; statement (Acheson), 516; Soviet notes, 93,
518
Elections, U.N. Commission to Investigate Conditions,
adjournment and report, 245, 298, 506
European Coal and Steel Community (1951), inaugura-
tion, statement (Acheson), 285; report (Draper),
353
European Defense Community, parliamentary action
on treaty, statement (Truman), 984
HICOG. See Germany, U.S. High Commissioner for,
office of.
International Bank for Reconstruction and Develop-
ment and International Monetary Fund, membership,
330
Interzonal communications between East and West Ger-
many, Soviet restriction, 319
Mutual Security Agency allotments, 486
Negotiations between free world and Soviet Union re-
garding, address (Jessup), 511
Property in Switzerland, Swiss-Allied agreement, text,
and synopsis, 363, 364
Refugee problem in West, excerpt of 10th quarterly
report of U.S. High Commissioner, 136
Soviet children in, detention of, U.S. refutation of Soviet
charges, 924
Soviet firing on French aircraft, 311, 312, 313, 318
Theater, under Nazi control, address (Connelly), 542
Treaties, etc. :
Contractual agreements between Three Powers and
Germany :
German parliamentary action, 984
Relations between Three Powers and Germany, rati-
fication, statement ( Truman ) , 220
U.S. action, 67, 220
Educational exchange, with U.S., signed, 179
European Defense Community, parliamentary action
on, statement (Truman), 984
Jewish victims of Nazi persecution, compensation to,
with Israel, statement (Acheson), 448
Property in Switzerland, with Switzerland, synopsis,
364
U.S. policy in, address (McCloy), 177
U.S. postwar aid to, through June 1951, table, 491, 619
U.S. Secretary of State (Acheson), visit to, 6, 132
Germany, U.S. High Commissioner for :
Donnelly, Walter J. See Donnelly.
McCloy, John J. See McCloy.
Germany, U.S. High Commissioner for, office of (HICOG) :
science advisers (Greulich, Arnold), appointment,
302
Goedhart, G. J. van Heuven, election as U.N. High Com-
missioner for Refugees, 261
Good Offices Commission, U.N., for negotiations re treat-
ment of Indians in South Africa, General Assembly
resolution establishing : text of draft, proceedings, 835,
840 ; adopted, 997
Graham, Prank P., U.N. representative for India and
Pakistan, negotiations re demilitarization of Jammu
and Kashmir :
Addresses, 661, 665
Excerpts of 4th report to Security Council, 626, 1030
Letter to Security Council, 237
Grassland Congress, 6th International, U.S. representa-
tives, 239, 271
Great Lakes, safety promotion by radio on, agreement
with Canada, instruments of ratification exchanged,
952
Greece :
Entry into NATO, significance, article (Howard), 936
International relations, 1951-52, article (Howard), 892
Repatriation of Greek children, U.N. proceedings on,
924, 1044
Green, Senator Theodore P., U.S. Representative to Gen-
eral Assembly, statement on Soviet mistreatment of
foreign diplomats, 786
Greenup, Julian C., appointment as acting U.S. representa-
tive to Inter- American Economic and Social Council
of OAS, 368
Greulich, William W., designated as science adviser to
HICOG, 302
Gross, Ernest A., deputy U.S. representative to U.N.,
statements :
Germ warfare, 32, 35, 38, 153, 159, 160, 673
Kashmir dispute, 666, 996, 1028
Guatemala, ambassador to U.S. (TorieUo), credentials,
575
Haiti, appointment of Point 4 director (Smith), 723
Handy, Maj. Gen. Thomas T., letter to General Chuikov,
313
Harriman, W. Averell, Director for Mutual Security:
Report to Congress (1st semiannual) on security con-
trols over exports to Soviet bloc, released, 652
Report to President on U.S. aid to Italy, 76
Summary of address on relationship between domestic
and foreign policies, 361
Harris, Reed, Acting Administrator of HA, address on
international information program, 971, 1025
Harrison, Lt. Gen. William K., chief U.N. armistice ne-
gotiator :
Correspondence with Gen. Nam 11 on repatriation of
prisoners of war, 752
Statements on Korean armistice negotiations, 474, 601
Statements on prisoner of war issue, 172, 549
Hart, Parker T., appointment as Director, Office of Near
Eastern Affairs, 507
1062
Department of State Bulletin
Hayes, William J., designation in TCA, 198
Health units, mobile, for Point 4 program in Iran, 452
Health (world). See World Health Organization.
Heath, Donald R., confirmation as U.S. Ambassador to
Vietnam and Cambodia, 43
Henderson, Joseph S., designation in State Department,
843
Henderson, Lyle H., appointment to International Bound-
ary and Water Commission (U.S.-Mexico), 830
Hickerson, John D., Assistant Secretary for U.N. Affairs :
Addresses on :
General Assembly, problems before 7th session, 645
Geographic studies, importance in international
affairs, 264
Korea, results of U.S. policy In, 692
Testimony on appointment of U.N. Secretariat em-
ployees, 1026
Highway Congress, Pan American, special session, U.S.
delegation, 837
Highway rehabilitation program in Philippines, U.S. con-
tribution, 60
Home economics and education in nutrition, Caribbean
conference on, report (Roberts), 576
Housing and Urbanization, 21st International Congress
of, U.S. delegate, 502
Howard, Harry N., article on U.S. policy in Near East,
South Asia, and Africa, S91, 936
Hubbard, Leonard S., U.S. Coast and Geodetic Survey,
report on 6th International Hydrographic Conference,
68
Human rights :
Draft convention on political rights of women, U.N.
proceedings, 1046
Draft covenants on, texts and article (Simsarian), 20
Provisions in Puerto Rican Constitution as related to
Declaration of, summary transmitted by U.S. to U.N.,
758
U.N. Commission on, recommendation re self-determi-
nation of peoples, 919, 925
U.N. role in promotion of, address (Acheson), 643
Universal Declaration of, comparison with draft cove-
nants, 20
Hungary :
Land-reform system, statement (Lubin), 994
Mistreatment of U.S. diplomats, statement (Green),
787
U.S. property seized by, return requested, text of U.S.
note, 981
Hvasta, John, American imprisoned in Czeclioslovaljia,
report of escape and statement (Acheson), 262, 285
Iceland :
IBRD loan, for nitrogen fertilizer plant, 367
Mutual Security Agency allotments, 486
Immigration and Nationality Act :
Quotas under, proclamation, 83
Veto, message of the President, and repassage overrid-
ing veto, 78, 78n.
Immigration and Naturalization, Commission on :
Establishment, statement (Truman), and text of Ex-
ecutive Order, 407, 408
Executive Director (Rosenfield), appointment, 502
Import certification-delivery verification (ICDV) proce-
dure, effective date, 409
Imports and exports. See Trade.
India :
Ambassador to U.S. (Mehta), credentials, 723
Colombo Plan, participation in, 443, 444, 447
General Assembly proceedings on treatment of Indians
in South Africa, 802, 833, 835, 840, 868, 880, 997
Inflationary developments, measures against, 396, 397
Kashmir dispute. See Kashmir, demilitarization of.
Land reform, draft joint resolution with Egypt and
Indonesia, U.N. proceedings on, 993, 1000
Pocket-book libraries, IIA shipment to, 331
Prisoners of war. See Prisoners of war.
Social welfare services program in India, article (Ker-
nohan), 372
Technical cooperation activities in, article (Kernohan),
statement (Lubin), 371, 784
U.S. voluntary relief program in, 182
Water resources in, role of IBRD in development of,
387
Indians in South Africa, treatment of. General Assembly
proceedings on. 802, 833, 835, 840, 868, 880, 997
Indo-Pacific Fisheries Council, 4th meeting, U.S. delega-
tion, 721
Indochina (see al.to Cambodia, Laos, Vietnam), U.S.
policy in, address (Allison), 99, 101
Indonesia :
Land reform, draft joint resolution with India and
Egypt, proceedings on, 993, 1000
Visit of U.S. Technical Cooperation Administrator
(Andrews), 61
Inflationary developments, measures against. Interna-
tional Monetary Fund report, 394, 397, 398
Information, freedom of:
American press contrasted with Soviet, statement
(Kotschnig), 109
Draft convention on, development of, in U.N.,
statement (Sprague), 789
Right of correction convention, U.N. proceedings, 789n,
791, 1043
Soviet draft resolution on, underlying objectives of,
statement (Sprague), 920
Information, U.S. Advisory Commission on, 6th semian-
nual report, review, 163
Information Administration, International. See Inter-
national Information Administration.
Information centers, educational role, address (Harris),
977
Information program, domestic, role of educator in, ad-
dress (Phillips), 971
Ingi-am, George M., appointment as Director of Office of
International Administration and Conferences, State
Department, 42
Institute of Inter-American Affairs (see also Technical
cooperation program), participation in cooi)erative
programs, 209, 267, 366
Inter-American Commission of Women, 8th general
assembly, U.S. delegation, 197
Inter-American Congress of Radiology, 4th, U.S. delega-
tton, 837
Index, July to December J 952
1063
luter-American cooperation, addresses on :
Acheson, 47, 87, 89
Miller, 702
Rubottom, 901
Inter-American system, development in postwar years,
address (Bennett), 207
Interim Coordinating Committee for International Com-
modity Arrangements (ICCICA), effectiveness, state-
ment (Lubin), 191
International Astronomical Union (lAU), Sth general
assembly, U.S. delegation, 462
International Bank for Reconstruction and Development
(IBRD) :
Activities during 1952, revievsf (Black), 385
Colombo Plan, participation in, 442, 446
Industrial Development Bank of Turkey, sponsorship
by, 566
International Finance Corporation, proposal for estab-
lishment of, 39, 387
Loans:
Australia, for import of agricultural equipment, 140
Africa, Near East, South Asia, for technical and eco-
nomic assistance, 944
Colombia, for railvcay improvement, 366
Finland, for expansion of wood-products industry,
866
Iceland, for nitrogen fertilizer plant, 367
Turkey, for Seyhan River project, 15
Member.ship, admission to : Germany and Japan, Jor-
dan, 330, 368
Missions :
Africa, economic, 722
Chile, agricultural (Bank-FAO), 1025
Japan, economic, 672
Nicaragua, economic (Bank-Nicaragua), 506
PanaSna, economic (Bank-U.N.), 330
Propo.sed policies, 190
Report, quarterly, 866
Report on Mexican economy, 672
Technical research institutes, visits to Ceylon and Paki-
stan re establishment of, 722
International Boundary and Water Commission (U.S.-
Mexico), appointment of engineers, U.S. section, 830
International Broadcasting Service. See Voice of Amer-
ica.
International Children's Emergency Fund. Sec United
Nations International Children's Emergency Fund.
International Civil Aviation Organization (ICAO) :
Japan, application for membership, General Assembly
approval of, 802
U.S. delegations to meetings, etc.:
Aerodromes, Air Routes, and Ground Aids Division,
5th session, 721
Aeronautical Information Services Division, 1st ses-
sion, 336
Damage caused by aircraft to third parties on sur-
face, conference to revise convention on, 461
Frequency Planning for ICuropean-Mediterranean
Region, Special Meeting on, 837
Rules of the Air and Air TraflBc Services Committee,
European-Mediterranean Region, 4th special meet-
ing, 120
International Civil Aviation Organization (ICAO) — Con.
U.S. delegations to meetings, etc. — Continued
Standing Committee on Performance, 3d meeting, 838
Statistics Division, 2d session, 547
International Code of Ethics in field of information, pro-
posed conference to draft, 842
"International Commission of Scientists," Communist, in-
vestigation of "germ warfare" by, 475
International Confederation of Free Trade Unions
(ICFTU), progress, 828
International Cotton Advisory Committee, 11th meeting,
article (Wall) and U.S. delegation, 185
International Court of Justice:
Iranian oil dispute, proposals for referral to:
Iranian proposal, 534
Joint U.S. -U.K. proposal, text, statement (Acheson),
360, 405
Morocco, rights of U S. nationals in, ruling on, article
(Sweeney), text of French note, 620, 623
International criminal court, proposed establishment,
U.N. proceedings on, 882
International development fund, proposed U.S. attitude,
statement (Lubin), 73
International disputes, settlement by negotiations with
Soviet bloc, address (Jessup), 511
International Farm Youth Exchange, 4-H Clubs' role in,
addresses (Russell, Sargeant), 7, 11
International Federation of Christian Trade Unions
(IFCTU), collaboration with ICFTU, 829
International Finance Corporation of IBRD, proposal for
establishment of, 39, 387
International Hydrographic Conference, 6th, report (Hub-
bard), 68
International Information Administration (IIA) :
Activities to counteract Soviet propaganda program,
addresses (Compton, Harris), 604, 978, 979
Addresses on program of: Compton, 343, 604; Harris,
971, 1025; Sargeant, 739
Advisory Commission on Information, 6th semiannual
report, review, 163
Amerika, suspension of publication: U.S. note, Soviet
note, statement (Compton), 127, 263
Carl Sohnrz Award, German winner announced, 104
Educational exchange. See Educational exchange.
Educational mission of, addresses : Harris, 971, 1025 ;
PhiUips, 971
International Motion Picture Service, 978
International Press Service, 977
Labor cooperation, international, role in, address (Wies-
man), 830
Pocket-book libraries, shipment to India, 331
Private enterprise, cooperation with, address (Comp-
ton), 347
VOA. See Voice of America.
International Joint Commission (IJC) :
Lake Ontario, high water level, problem referred to
IJC by U.S. and Canada, 67
St. Lawrence, power works development, approval by
IJO: U.S.-Canadian application for, order of ap-
proval. Commissioner's dissenting opinion, Commis-
sion's majority opinion, 65, 1019
1064
Department of State Bulletin
International labor, cooperation, contribution to the free
world, address (Wiesman). 827
International Labor Conference, 35th session, proceed-
ings, 101
International Labor Office, Governing Body, 120th session,
U.S. representatives, 926
International Labor Organization (ILO) :
Background, 827
Chemical Industries Committee, 3d session, U.S. dele-
gation, 460, 619
Conventions. Senate action in 82d Congress, 589
Latin American manpower conference, U. S. representa-
tive, 962
Petroleum Committee, 4th session, U.S. delegation, 632
International law and repatriation of prisoners of war,
address (Acheson), 746
International Law Commission, diplomatic intercourse
and immunities, U.N. consideration of, statement
(Green), proceedings, 786, 997
International load line convention (1930), Senate action
in 82d Congress, 589
International Materials Conference (IMC), committees:
Copper-Zinc-Lead, copper allocations, 118, 579
Cotton-Cotton Linters, termination, 117
Manganese-Nicliel-Cobalt :
Allocations, 119, 580, 957
Membership, 503
Pulp-Paper, termination, final report, 579
Sulphur, allocations, 196, 760
Tungsten-Molybdenum, allocations, 117, 548
Wool, termination, 580
International Materials Policy Commission, report. Presi-
dent's statement and letters to chairman (Paley),
President of Senate (Barkley), and Speaker of
House (Rayburn), excerpts of digest of vol. I, ad-
dresses (Bennett, Johnston, Eakens), 54, 55, 208, 210,
541, 734
International Military Tribunal for the Far East, juris-
diction of, 408
International Monetary Fund (IMF) :
Annual report (1952), excerpts of 1st chapter, 390
Discussion of resources, 189
Bjxchange transactions with Australia, Brazil, Nether-
lands, 368
Membership, admission to : Germany and Japan, 330 ;
Jordan, 368
International Motion Picture Service, activities, address
(Harris), 977, 978
International Press Service, activities, address (Harris),
977
International Telecommunication Union (ITU) :
Plenipotentiary Conference, U.S. delegation, 581
Radio Consultative Committee, study group, U.S. dele-
gation, 416
International Wheat Council, 10th session, U.S. delega-
tion, 119
International Wool Study Group, 5th meeting, U.S. dele-
gate, 838
Investment of private capital abroad, 208, 210, 230, 287,
288, 359, 387, 447, 538, 565, 566, 567, 711, 779, 782, 815,
841, 872, 880, 903
Iran (see also Iranian oil dispute) :
Ambassador to U.S. (Saleh), credentials, 575
Famine relief, U.S., Iranian, Uruguayan draft resolu-
tion, statement (Lubin) and text. 111, 113
Land reform, progress in, 451, 535
Oil, purchase by American nationals, U.S. attitude, 946
Technical cooi)eration :
Point 4 program appraisal, statement (Acheson), 449
Shah's land reform program, 535
Student-assistance project, 452
Iranian oil dispute:
IBRD negotiations, status of, address (Black), 387
Proposal (Iranian) for discussion of problem, letters
from Prime Minister Mossadegh to Secretary Acheson
and British Foreign Secretary Eden, 624
Proposals, U.S.-U.K. :
Clarification of, statement (Acheson), 405; text of
U.S. note to Iran, 569
Mossadegh rejection and counterproposal, texts of
notes to U.S. and U.K., 532
Proposed submission of problem to International
Court of Justice, text of proposals and note (U.S.-
U.K.), 360
Summary of 1951-52 developments, article (Howard),
892
U.S. position, address (Byroade), 933
Iraq:
King Faisal II :
Legion of Merit award to, 330
Visit to U.S., 12, 265
Technical cooperation activities :
Agricultural college, development, 864
Flood control and irrigation projects, 781
U.S. Ambassador (Berry), confirmation, 43
Isolation policy, U.S. abandonment of, article (C. B. Mar-
shall), 767, 812
Israel :
Arab-refugee problem, article (Howard), address
(Byroade), 895, 932
Foreign office, proposed move to Jerusalem, U.S. atti-
tude, text of aide-m4moire, 181
Military-assistance agreement with U.S., 331
Palestine question. See Palestine.
President (Ben-Zvi), election, message of congratula-
tion from President Truman, 984
President (Weizmann), messages of condolence (Tru-
man, Acheson) on death of, 824
Italy :
Administration of Zone A, Free Territory of Trieste,
texts of U.S.-U.K. parallel notes and Soviet note, 521,
522
Balance-of-payments developments, 394, 395
Count Sforza, eulogy on (Acheson), 405
European Coal and Steel Community, inauguration,
statement (Acheson), 285
Garlic imports. President's rejection of Tariff Commis-
sion's recommendations re, 303
Land reform, progress in, statement (Luliin), 991
aianganese-Nickel-Cobalt Committee of IMC, member-
ship, 503
tndex, July to December 1952
1065
Italy — Continued
Unemployment problem, described in report on European
developments, 360
U.S. aid to. President's identic letters to Congress re
continuance, and report (Harriman), 75, 76
Jamison, Edward A., appointment as Deputy Director,
Office of Regional American Affairs, 723
Jammu and Kashmir, demilitarization of. See Kashmir.
Japan :
Defense measures, Justification for increase in, address
(Allison), 860
Educational system, article (Aklen), 654
IBRD economic mission to, 672
Land reform, progress in, statement (Lubin), 992
Membership in international organizations:
ICAO, General Assembly approval of application, 802
IMC Manganese-Nickel-Cobalt Committee, 503
International Bank for Reconstruction and Develop-
ment, 330.
International Monetary Fund. 330
U.N., application for, address (Murphy), 524; state-
ments (Austin), 504, 526, 527
Mission in U.S. for discussion of Alaskan forest prod-
ucts utilization, 658
Position in Asia, address (Allison), 857
Reparations problem, 859
Treaty of Peace with (1951), statements (Allison),
102, 448
U.S. policy in, address (Allison), 98
U.S. property in, filing of applications for return of, 13
War Criminals, U.S. Board of Clemency and Parole for :
Activities, 659
Establishment, Executive Order 10393, text, 408, 409
Jebb, Sir Gladwyn (U.K. representative in U.N.), state-
ments on Kashmir dispute, 665, 800
Jernegan, John D., appointment as Deputy Assistant Sec-
retary for Near Eastern, South Asian, and African
affairs, 123
Jessup, Philip C. (U.S. delegate to General Assembly),
addresses and statements :
Dependent peoples, attitudes toward, 571
Moroccan question, 1044
Negotiations between free world and U.S.S.R., 511
Palestine Conciliation Commission, U.S. attitude, 953
Tunisian question, U.S. position, 986
U.N. Relief and Works Agency for Palestine Refugees
in the Near East, budget increase, 755
Jewish victims of Nazi persecution, German compensa-
tion to, statement (Acheson), 448
Johnston, Eric A., chairman of International Develop-
ment Advisory Board, address on capital investment
abroad, 538
Jordan :
Membership in International Monetary Fund and Inter-
tional Bank for Reconstruction and Development,
368
U.S. legation, elevated to rank of embassy, 379
Kashmir, demilitiirization of:
Map, facing 664
Security Council proceedings, 237, 898, 996, 1042
1066
Kashmir, demilitarization of — Continued
U.N. Representative's 4th report to Security Council
(Graham), excerpts, 626, 661; review (Collins), 663
U.S.-U.K. draft resolution, text, and statements (Jebb,
Gross), 800, 801, 996, 1028
Kelly Memorial Committee, sponsor of Franco-American
memorial ceremony at Paris, 329
Kennan, George F., Ambassador to U.S.S.R., recall re-
quested, Soviet note, Secretary's statement, U.S. note,
and correspondence with Senator Knowland, 557, 603
Kernohan, Frances K., U.S. reijresentative. Executive
Board, UNICEP, article on application of technical
assistance concept, 369
Kirk, Admiral Alan G., appointment as Director of
Psychological Strategy Board, 302
Knowland, Senator William F., letter to Secretary Ache-
son proposing recall of Soviet Ambassador, 603
Koerner, Heinrich, winner of Carl Schurz Award, 104
Kohnstamm, M., chairman, U.N. Commission to Investi-
gate Conditions for Free Elections in Germany, letter
to U.N transmitting Commission's report, 298
Korea :
Armistice negotiations. See Korean armistice negotia-
tions.
Bombing of power plants in North Korea, statements
(Acheson, Bruce), 60
Citation for honored dead, General Assembly resolu-
tion on, statement (Sampson), 997
Economic coordination agreement with U.N. Command:
Dollar payment (second) pursuant to provisions of,
330
Text, in report of U.N. Command operations, 499
Elections, 674, 683
Embargo on shipments to North Korea and Communist
China, 100
General Assembly consideration of Korean question :
Soviet statements, 634, 761
U.S. attitude on, 457, 476, 570
General Eisenhower, visit to, text of U.N. Command
communique, 948
"Germ warfare." See "Germ warfare."
Prisoners of war. .See Prisoners of war.
South African contribution to U.N. forces in, 105
Tonnage duties on vessels of, suspension, text of proc-
lamation, 713
U.N. action in, review of, statement ( Acheson) , 679
U.N. Coujmand operations, 42d through 52d reports
(Mar. 16, 1952-Aug. 31, 19.52), 114, 194, 231, 272, 495,
668, 795, 883, 958, 1034, 1037
U.S. Ambassador (Briggs), appointment, 379
U.S. Ambassador (Muecio), return to Washington, 301
Korean armistice negotiations:
British ministers, visit to U.S. for discussion of, 6
Communist motives delaying settlement, statement
(Harrison), 474
Correspondence between Communist commanders and
U.N. Command officers, 751, 752
Prisoners of war. See Prisoners of war.
Korean armistice negotiations, addresses and statements:
Acheson, 457, 570, 597, 600, 690, 744
Clark, 600
Harrison, 474, 549, 601
Department of State Bulletin
Korean armistice negotiations, addresses and state-
ments— Continued
Hickerson, 647, 694
Jessup, 512
Sargeant, 562
Kotsclinig, Walter M., deputy U.S. representative in
BCOSOC:
Report to U.N. committee on forced labor in U.S.S.B.,
excerpts, 821
Statements :
Forced labor in U.S.S.R., 70
Soviet propaganda, 109, 149
UNICEF programs, extension of, 376
World social situation, review of, 142, 161
Kusaila, Joseph, State Department denial of charges
against, 362
Labor :
Conditions in U.S.S.R., address (Acheson), 423
Forced Labor in the Soviet Union, release of State De-
partment publication, excerpts, statement (Truman),
428, 477
Forced lal)or in U.S.S.R., statement (Kotschnig), re-
port (USIS), additional information, 70, 428, 821
Free world, international labor cooperation a contri-
bution to, address (Wiesman), 827
ICFTU. See International Confederation of Free
Trade Unions.
IFCTU. See International Federation of Christian
Trade Unions.
International Labor Conference; Office; Organization.
See International Labor.
NATO countries, situation In, address (Draper), 439
Trade unions, free, prevention of Communist infiltra-
tion, address (Acheson), 595
Lake Ontario, jiroblem of high water level, referral to
International Joint Commission by U.S. and Canada,
67
Lamm, Donald W., U.S. observer at 4th International
Congress of African Tourism, 466
Land reform :
Agricultural and cooperative credit. Point 4 study of,
4o3
General Assembly draft resolution (Egypt-Iudia-Indo-
nesia), proceedings on, 964, 991, 993, 1000
Progress of free world compared with Soviet, state-
ments (Lubin), 990, 993
Technical cooperation programs in Egypt and Iran,
451, 535
Laos, U.N. membership application, U.S. attitude. 504
Latin American Forestry Commission of FAO, 4th ses-
sion, U.S. delegation, 74
Latin American manpower conference (ILO), U.S. rep-
resentative, 962
Lattimore, Owen, revocation of confidential stop order
against, 12
Law, international, U.N. proceedings on, 997
Lebanon :
Mecca airlift, statement (Acheson), 406
Point 4 agreement, signed, 62
U.S. legation, elevated to rank of embassy, 379
Legations. See Foreign Service.
Legion of Merit, awarded to King Faisal II of Iraq, 330
Legislative Bistory of Committee on Foreign Relations,
United States Senate, Eighty-second Congress, ex-
cerpts, 584
Lend-lease settlement with U.S.S.R., exchange of notes,
819
Lenroot, Katharine F., resignation as U.S. representative,
Executive Board, UNICEF, 619
Let Freedom Ring, State Department publication, released,
887
Liberia, director of Point 4 program in, appointment, 743
Libya, U.N. membership application, statement (Austin),
502
Lie, Trygve, Secretary-General of U.N. :
Resignation, text of letter to President of General
Assembly, 839
Statements on collective security and UNESCO, 832
Linder, Harold F., Deputy Assistant Secretary for Eco-
nomic Affairs, address on U.S. trade policy, 383
Linse, Walter, abduction into Soviet zone of Germany :
Text of U.S. note of protest to U.S.S.R., 320
West German investigation, 823
Lithuania, land-reform system in Soviet pattern, state-
ment (Lubin), 995
Lloyd, Selwyn, British Minister of State in the Foreign
Office, visit to U.S., 6
Logistical-support agreement with South Africa, signed,
text, 105, 106
London revision of Bermuda Telecommunications Agree-
ment, 120, 236
Lubin, Isador, U.S. representative in ECOSOC, addresses,
statements, etc. :
Economic and Social Council, article on 14th session,
288
Famine relief, statement re ECOSOC draft resolution,
111
International development fund, proposed, statement of
U.S. attitude, 73
International economic stability, statement, 187
Land reform, statements on free-world and Soviet sys-
tems, 964, 990, 993
Nationalization of natural wealth. General Assembly
draft resolution (Uruguay-Bolivia), statement of U.S.
attitude, 1000
Non-self-governing territories, statement of U.S. policy,
238
Self-determination, statement of U.S. position, 269
Underdeveloped areas :
Loans to, statement of U.S. attitude, 39
U.S. policy in, statement defending, 871
U.S. public and private investment in, statement, 779
U.N. technical assistance program, statement confirm-
ing U.S. support, 841
World social situation, address, 482
Luxembourg, European Coal and Steel Community (1951),
inauguration, statement (Acheson), 285
Lyons, Roger, article on VOA role in field of religion, 727
McCIoy, John J., U.S. High Commissioner for Germany :
Addresses, statements, etc. :
American Memorial Library, Berlin, 5
Germany, U.S. policy in, 177
Kurt Schumacher, death of, 329
Index, July to December 1952
1067
McCloy, John J., U.S. High Commissioner for Germany —
Continued
Addresse.s, statements, etc. — Continued
Threat technique of Soviet propaganda, before Senate
committee, 312
Correspondence :
General Chuikov, Soviet restrictions on road and
other traffic, and attack on French aircraft, 318, 319
Secretary Acheson and MSA administrator Harriman,
transmitting 10th quarterly report, 134
Report, final, letter of transmittal, 903
Resignation as U.S. Higli Commissioner for Germany,
178
McPall, Jack K., appointment as Minister to Finland, 507
McGhee, George C, U.S. Ambassador to Turkey, address
on private enterprise in U.S.-Turkish relations, 564
McMahon, Senator Brien, eulogy by Secretary Acheson,
220
Maffry, August, appointment as Point 4 consultant for
private investment abroad, 711
Malenbaum, Wilfred, article on Colombo Plan, 441
Maney, Edward S., designation in State Department, 507
Marshall, Charles B., member, Policy Planning Staff:
Articles :
U.S. ci\'il-military relations, 348
U.S. commitments', 767, 807
Remarks at Red Cross Conference, 224
Marshall, George C, statement on voting procedure In
Security Council, quoted, 528
Marshall Plan, comments on (Bohlen, Thorp, Anderson),
170, 174, 616
Marshall scholarships offered American students at Brit-
ish universities, 267
Martin, Edwin M., appointment as Special Assistant to
Secretary for Mutual Security Affairs, 42
Materials Policy Commission, International. See Inter-
national Materials Policy Commission.
Mathewson, Maj. Gen. Lemuel, U.S. Commandant in Ber-
lin, letters to Soviet oflScers, 312, 313, 318, 320
Mecca airlift, statement (Acheson), address (Compton),
406, 607
Mehta, Gaganvihari Lallubhai, credentials as Indian Am-
bassador, 723
Mesta, Perle, Minister to Luxembourg, addresses :
Educator's role in defense of U.N. and UNESCO against
Soviet propaganda, 741
Voluntary European unity, 64
Metzger, Stanley D., designation in State Department,
378
Mexican Economy, Major Long-Term Trends in, IBRD-
Mexican report, release of, 672
Mexico :
Boundary and Water Conunission, International, ap-
pointments to U.S. section, 830
Claims convention with U.S. (1941), payment of in-
stallment under, 950
Export-Import Bank loans for sulfur plant, moderniza-
tion of steel operations, 830, 950
Irrigation program sponsored by Mexico, statement
(Lubin), 782
Migrant labor, regularization of recruitment, address
(MUler), 703
Obregon Dam, dedication of, 713
Mexico — Continued
Prisoners of war, voluntary repatriation of, Mexican
proposal in U.N., correspondence with Secretary-
General Lie (Padilla Nervo and Austin), 696
Technical cooperation activities in, 784
TV-channel agreement with U.S. (1951), revised, 267
U.S. Ambassador (O'Dwyer), resignation, 1047
U.S. relations with, review (Miller), 703
Meyers, Howard, address on importance of U.N. to U.S.,
1011
Middle East. See also Near East.
Middle East Command, proposed, U.S.-U.K. attitude, 937
Middle Bast Defense Organization, proposed, U.S. attitude,
938
Migrant Mexican labor, regularization of recruitment,
address (Miller), 703
Migration from Europe. See Provisional Intergovern-
mental Committee for Movement of Migrants.
Military defense, relation to foreign policy, address (Sar-
,want),55S
Military facilities In Azores, agreement with Portugal
(1951), text, 14
Military-assistance agreements :
Dominican Republic, negotiations, 537
Israel, concluded, 331
Uruguay, signed, 53
Military-civil relations in U.S., article (C. B. Marshall),
348
Miller, Edward G., Jr., Assistant Secretary for Inter-
American Affairs, address on inter-American coopera-
tion, 702
Ministers, Foreign, Council of, meeting of deputies, text
of U.S. note inviting Soviet participation in, 404
Ministers of Foreign Affairs of American States, 3d and
4th Meetings of Consultation, results, 49, 50
Ministers of Foreign Affairs of U.S., U.K., and U.S.S.R.,
Moscow meeting (1945), agreements re Korea, 681
Minorities, U.N. Subcommission on Prevention of Dis-
crimination and Protection of, future program, 505,
583
Molybdenum and Tungsten, International Materials Con-
ference allocation of, 117, 548
Monaco, copyright benefits to nationals of, text of U.S.
proclamation, 712
Moores, Roland F., article on validation of German dollar
bonds, 608
Moose, James S., Jr., Minister to Syria, confirmation, 43
Moroccan decree (1948) in violation of rights of U.S.
nationals, International Court of Justice ruling on,
article (Sweeney), text of French note, 620, 623
Moroccan question:
French attitude, statement (Schuman), 839
Meeting of Secretary Acheson with French Foreign
Minister Schuman to discuss, 771
U.S. attitude, article (Howard), statement (Jessup),
897, 1044
Morton, Alfred H., appointment as Head of VGA, 507
Moscow Declaration (1943), provisions re Austrian inde-
pendence, 284, 322
Mosely, Harold W., designation in State Department, 843
Mossadegh, Mohammad, Prime Minister of Iran. See
under Iranian oil dispute.
1068
Department of State Bulletin
Muccio, John J., U.S. representative on Trusteeship Coun-
cil:
Nomination, 301
Statement on situation of Wa-Meru tribe, Tanganyika,
965
Murphy, Robert D., U.S. Ambassador to Japan, statement
on Japanese application for U.N. membership, 524
Museums, international seminar on educational role of,
address (Sargeant), U.S. delegation, 455, 461
Mutual Defense Assistance Control Act of 1951 (Battle
Act) :
First semiannual report to Congress under (Harriman),
release, 652
Reference to provisions of act, 75, 76, 198
Mutual Security, Public Advisory Board for. President's
request for survey of U.S. trade policies by, 104, 359
Mutual Security Act (1951) :
Czechoslovak charges against, exchange of notes with
U.S., 850
Escapee program. See Escapee program for refugees
from Soviet-dominated areas.
Mutual Security Agency (MSA) :
Burma and Indonesia, economic aid to, administration
transferred from MSA to TOA, 62
Far East, fiscal 1953 allotments for, 898
Turkey, road-building program, grant for extension, 490
United Kingdom, West Germany, and Iceland, allot-
ments for, 486
Yugoslavia, currency convertibility, guaranty agree-
ment with U.S., 287
Mutual security program :
American Republics, arrangements with, article (C. B.
Marshall), 809
Dominican Republic, military-assistance agreement,
negotiations, 537
France, Export-Import Bank loan for payment of con-
tracts under, 105
Israel, agreement for purchase of U.S. military equip-
ment, 331
Italy, continuance of U.S. aid to. President's identic
letters to congressional committees, and report (Har-
riman), 75, 76
Near East, South Asia, and Africa, assistance to, re-
view (Howard), 938
President Truman's second report to Congress on, sum-
mary and letter of transmittal, 899, 900
Private Investment abroad, encouragement of, 287, 359,
567
Supplemental Appropriation Act of 1953, effect of provi-
sions on, statement (Truman), 199
Uruguay, military-assistance agreement, signed, 53
Yugoslavia, extension of economic aid to, 825
National Security Resources Board, study of International
Materials Policy Commission recommendations, state-
ment (Truman), 54
Nationalization of natural wealth. General Assembly reso-
lution (Uruguay-Bolivia), U.S. attitude (Lubin), 1000
NATO. See North Atlantic Treaty Organization.
Navigation, 6th International Hydrographic Conference,
report (Hubbard), 08
Nazi amnesty legislation in Austria, U.S. views on, 223
Neal, Jack D., appointment as Deputy Director, Office of
Middle American Affairs, State Department, 275
Near East, South Asia, and Africa :
Export-Import Bank loans (1945-52), table, 943
Review of Point 4 program in Near East (Bingham),
1017
U.S. policy in :
Address (Byroade), 729, 931
Article (Howard), 891, 936
Remarks (Seager), 450
Netherlands :
Anti-inflationary measures. International Monetary
Fund report (1952), 397
Balance-of-payments developments, 394, 395
Capital accounts, transfer authorized, 711
European Coal and Steel Community (1951), inaugura-
tion, statement (Acheson), 285
Exchange transactions with International Monetary
Fund, 368
New Zealand, ANZUS Council, 110, 141, 219, 220, 243, 244,
284, 471
Nicaragua, economic development program, recommenda-
tions of Nicaraguan-IBRD mission, 506
Nichols, John Ralph, designation in TCA, 42
Nickel, International Materials Conference allocation of,
119, 580
Nielsen, Harald H., appointment as science attach^ to
Swedish Embassy, 302
Nomenclature, study of. Congress of Onomastic Sciences
for, U.S. delegation, 378
Non-Self-Governing Territories, U.N. Committee on In-
formation from :
Continuation of, 842, 998
U.N. proceedings, 505
U.S. delegation, 459
Nong Kimny, Ambassador of Cambodia, credentials, 53
North Atlantic Council (NAC) :
Comments on, report and address (Draper), 355, 651
Ministerial meeting, statement (Acheson), U.S. delega-
tion, 985, 995
North Atlantic Treaty. See Treaties, agreements, etc.
North Atlantic Treaty Organization (NATO) :
Background, addresses (Draper), 436, 650
Greek-Turkish entry into, review (Howard), 936
Lisbon conference, report (Draper), 353, 355, 356
Military forces, status of, address (Ridgway), 816
Mutual Security Agency allotments, 486
Petroleum Planning Committee, 3d meeting, U.S. dele-
gation, 548
Progress, report (U.S. Special Repre.?!entative in
Europe) and address (Acheson), 353, 848, 849
Tribute to, address (Bohlen), 170
Unification of members, necessity for, address (Fred
L. Anderson), 815
Northwest Atlantic Fisheries Commission, 2d annual
meeting, U.S. delegation, 74
Nutrition, education in, and home economics, 1st Carib-
bean conference on, 576
Oatis, William N., Czechoslovak trial, and status of im-
prisonment, statements (Acheson, Green), 625. 787
Obregon Dam, Mexico, dedication ceremonies, 713
Index, July to December 1952
1069
O'Dwyer, William, U.S. Ambassador to Mexico, resigna-
tion, 1047
Offshore procurement program, 354, 356
Oil (See also Iranian oil dispute) :
Imports, place in U.S. economy, 733
Purchase from Iran by American nationals, U.S. at-
titude, 946
Tariff concession on crude oil, modification of, 400, 402
Onomastic Sciences, 4th International Congress, U.S.
delegation, 378
Organization of American States (OAS) :
Charter (194S), cited as basis for present Inter- Amer-
ican system, address (Miller), 702
Inter-American Economic and Social Council, appoint-
ment of acting U.S. representative to (Greenup),
368
Ministers of Foreign Affairs of American States, 3d
and 4th Meetings of Consultation, results, 49, 50
Organization for European Economic Cooperation
(OEEC) :
Activities, 357, 358, 359
U.S. grants to OEBC countries as factor in balance-of-
payments developments, 393
Pacific Islands, Trust Territory of:
U.N. mission to visit, 882
U.S. administration of, denial of Communist charges
against, statement (Koosevelt), 1033
Pacific security, U.S. participation in, article (C. B. Mar-
shall), 811
Pacific security and defense treaties, testimony (Dulles),
103, 472
Padilla Nervo. Luis, Mexican representative in U.N., let-
ter to U.N. Secretary-General re proposal for settle-
ment of Korean prisoner of vrar issue, 696
Pakistan :
Colombo Plan, participation in, 444, 447
Irrigation program, 781
Kashmir dispute. See Kashmir, demilitarization of.
Point 4 activities: projects, appointment of program
director (Will), 63, 909
Technical-research institute, IBRD visit re establish-
ment of, 722
U.S. Ambassador (Cabot), appointment, 507
Water resources in, role of IBRD in development of,
387
Wheat, U.S., Export-Import Bank loan for purchase of
490
Palestine Conciliation Commission:
Progress reiiort to 6th General Assembly, excerpt, 895
Review of work, statement (Jessup), text of May 1949
protocol, 953. 954
U.N. proceedings, 924, 963, 998
Palestine question :
Negotiations between Israel and Arab States, U.N.
proceedings, 998, 1044
Refugees :
General Assembly program of relief, continuation of:
statement (Jessup), 755; resolution on UNRWA
budt;et adopted (Nov. 6), text, and article
(Howard), 7.56, 761, S9<)
Problem of repatriation, article (Howard), address
(Byroade), 895, 932
Pan American Congress of Architects, 8th, U.S. delega-
tion, 763
Pan American Consultation on Cartography, 6th, U.S.
delegation, 720
Pan American Highway Congress, special session, U.S.
delegation, 837
Pan American Sanitary Organization (PASO), U.S. dele-
gations to 6th session of Directing Council and 17th
and ISth meetings of Executive Committee, 462, 463
Panama :
Air transport agreement with U.S., annex re routes,
amended, 13
Defense sites negotiations, background, article
(Wright), 212
Joint mission from U.N. and IBRD, 330
U.S. relations vrith, review (Miller), 703
Pancoast, Omar B., Jr., designation in TCA, 198
Paris reparation agreement (1946), distribution of Ger-
man assets in Switzerland pursuant to provisions of,
363
Passports :
Lattimore, Owen, confidential stop order, revoked by
Department, 12
Passport regulations, U.S. revision, text 417
Peiping "peace conference," passports not issued for
American attendance, statement (Acheson), 570
Procedures for issuing, statement (Acheson), 40
"Peace conference," Chinese Communist, statement (Ache-
son), 570
"Peace Congress," Vienna, Communist propaganda
maneuver, 818
Peace Observation Commission membership. General As-
sembly reappointment of, 802
Peace treaty with Japan (1951), provision for return of
U.S. property in Japan, 13
Perkins, E. R., article on history of publication of Foreign
Relations of the U.S., 1002
Permanent Joint Board on Defense, cooperation between
U.S. and Canada in, 848
Peru:
Prisoners of war, repatriation of, draft resolution, 802,
841
Technical cooperation activities in, 211, 783
U.S. relations with, review (Miller), 704
Petroleum. See also Oil.
Petroleum Committee of ILO, 4th session, U.S. delegation,
632
Petrzelka, Karel, credentials as Czechoslovak Ambassador
to U.S., 733
Phelps, Phelps, confirmation as U.S. Ambassador to Do-
minican Republic, 43
Philippines :
Air transport agreement with U.S. (1946), U.S.-Philip-
pine discussions, 1024
Export-Import Bank loans to, 338, 1025
Highway rehabilitation program, U.S.-Philippine, 60
Technical development in, 781
U.S. policy in, address (Allison), 100, 101
PhUlips, Joseph B., Deputy Assistant Secretary for Public
Affairs, addresses :
Information program, domestic, role of education, 971
Teacher-exchange program, 324
1070
Department of State Bulletin
Pierson, Warren Lee, U.S. delegate to conference on Ger-
man external debts, statement requesting American
bondholder representation at conference, 13
Pocket-book libraries, IIA shipment to India, 331
Point 4. See Technical cooperation program, U.S.
Poland, economic situation in, address (Lubin), 875
Portugal :
Balance-of-payments developments, 394
Military facilities in Azores, test of agreement with
U.S. (1951), 14
Potsdam Proclamation (1945), pledge re Korea, 680
President's Commission on Immigration and Naturaliza-
tion, appointment of Executive Director (Rosenfleld),
502
President's Materials Policy Commission report, refer-
ences to, 54, 55, 208, 210, 541, 734
Press, U.S., Soviet charges, statement denying (Sprague),
792
Press Service, International, address respecting activities
of (Harris), 977
Prisoners of war :
Geneva convention (1949). See Prisoners of vyar,
Geneva convention.
Repatriation. See Prisoners of war, voluntary vs.
forced repatriation.
Soviet treaty commitments, history of, address (Ache-
son), 747
Treatment of, U.N. Command practices compared with
Communist, address (Acheson), 744
U.N. Ad Hoc Commission on :
Report to Secretary-General on Soviet noncoopera-
tion, 523
U.S. representative to 3d session (Eugenie Ander-
son), appointment, statements by, 414, 415
Prisoners of war, Geneva convention (1949) :
Observance of, U.S. notes requesting Soviet good oflBces
and Red Cross intercession with North Korean and
Chinese Communists for, 171, 172
Repatriation provision, General Assembly resolution
(1950), excerpt, 746
Violation by Communists, statements on (Harrison,
Acheson), 172, 602, 744
Prisoners of war, voluntary vs. forced repatriation :
Attitudes :
British: statements (Lloyd, Eden), 762, 840
Communist, Chinese and North Korean : statement
on (Harrison), 474
French: statement (Hoppenot), 762
Soviet: comment on (Harrison), statement (Vy-
shinsky), 172, 762
U.N. Command : addresses and statements : Acheson,
600, 691, 745 ; Clark, 600 ; Harrison, 601
U.S. : addresses (Sargeant, Acheson, Hickerson), 562,
597, 647, 694
Indian draft resolution e.stablishing Repatriation Com-
mission :
Statement (Acheson), 910
Text, 916
U.N. proceedings, 880, 925, 963, 964, 966
Interviews with prisoners resisting repatriation, by
U.N. Forces officer, correspondence with President
Truman, 327
Prisoners of war, voluntary vs. forced repatriation — Con.
Mexican proposal, correspondence with Secretary-
General Lie (Padilla Nervo and Austin), 696
Soviet proposal, statement on (Acheson), 750
U.N. action :
Draft resolution (General Assembly) approving
principle of voluntary repatriation, text, 680
Proceedings, 746, 762, 802, 840, 880, 910, 916, 925, 963,
964, 966
U.N. Command correspondence with North Koreans and
Chinese Communists, 751, 752, 754
U.N. Command proposals, statements (Harrison, Ache-
son), 549, 691, 749
Private capital, investment abroad, 208, 210, 230, 287, 288»
359, 387, 447, 538, 565, 566, 567, 711, 779, 782, 815, 841,
872, 880, 903
Private Enterprise Cooperation Staff of IIA, purpose, 347
Private organizations, role in Campaign of Truth, 346
Proclamations :
Copyright benefits granted nationals of Monaco, text,
712
Dried figs, duty increased, text, and statement (Tru-
man), 337
Immigration quotas under Immigration and Nationality
Act, text, 83
Import fees imposed on almonds, text, 569
Reciprocal trade agreement with Turkey (1939), termi-
nation, text, 179
Safety of life at sea, international convention for
(1948), entry into force, 464
Tonnage duties on Korean vessels, suspension of, text,
713
Trade agreement with Venezuela, supplementary, entry
into force, text, 487
Zinc and lead, import duties on, revocation of suspen-
sion of, text, 180, 181
Productivity, Anglo-American Council on, final report re-
leased, 285
Protection of U.S. nationals and property :
American bondholder representation at conference on
German external debts, statement (Pierson), 13
Bulgaria, mistreatment of U.S. diplomats in, address
(Green), 787
Chinese Communist maltreatment of Americans, state-
ment (Acheson), 440
Claims. See Claims.
Friendship, commerce, and consular rights, treaty with
Finland (1934), modification of article on personal
property rights, 949
Morocco, violation of rights of U.S. nationals. Interna-
tional Court of Justice ruling on 1948 decree, article
(Sweeney), text of French note, 620, 623
Seized property, U.S. notes to U.S.S.R'. and Hungary
requesting return of, texts, 981, 982
Soviet firing on American aircraft near Yuri Island,
U.S. protest, text, 650
Swiss-Allied agreement re German property in Switzer-
land, provisions, 364
Provisional Intergovernmental Committee for Movement
of Migrants from Europe (PICMME) :
Activities, 261
Index, July fo December 1952
1071
Provisional Intergovernmental Committee for Movement
of Migi-ants from Europe (PICMME) — Continued
Agreement for transport of escapees from Soviet-bloc
countries, with U.S., signed, 711
3d session, report (Warren), 107
4th session, U.S. delegation, 763
Psychological Strategy Board, Director (Kirk), nomina-
tion, 302
Publications :
Amerika, suspension of, texts of U.S. note and Soviet
note, statement (Compton), 127, 2()3
Distribution centers. State Department, 418
Field Reporter, 1st issue released, statements ( Acheson,
Sargeaut),203
Forced Labor in the Soviet Union:
Excerpts, 428
Released, statement (Truman), 477
Foreign Relations of the U.S.:
History of publication, article (Perkins), 1002
1934, vol. V (American Republics), released, 1006
1935, vol. II (Briti.sh Commonwealth; Europe), re-
leased, 162
Legislative History of Committee on Foreign Relations,
U.S. Senate, S2d Congress, excerpts, 584
Let Freedom Ring, released, 887
Major Long-Term Trends in Mexican Economy, re-
leased, 672
Yngoslavia: Titoism and U.S. Foreign Policy, released,
826
Publications, lists :
Congress, 12, 200, 268, 339, 410, 448, 507, 563, 723
State Department, 42, 162, 201, 239, 331, 379, 466, 591,
635, 843, 1047
United Nations, 18, 301, 465, 503, 716, 760, 927
Puerto Rico, Commonwealth of :
Constitution :
Approval by U.S. Congress, statement (Truman), 91
Summary transmitted by U.S. to U.N., text, 758
U.S. adraiuistration of, denial of Communist charges
in U.N., statement (Roosevelt), 1032
Racial discrimination in dependent territories, draft res-
olution, U.N. proceedings on, 803
Radio :
International Scientific Union, 10th general assembly,
U.S. delegation, 235
Voice of America. See Voice of America.
Radiology, 4th Inter-American Congress, U.S. delegation,
837
Reber, Samuel, Acting U.S. High Commissioner in Ger-
many, 314, 315
Reciprocal Trade Agreement with Venezuela (1939), ne-
gotiations for revision, and supplementary agreement
signed, 180, 267, 400, 454, 487, 704, 734
Red Cross :
Communist propaganda against, comments on (Gross),
154
Intercession with North Korean and Chinese Commu-
nists for observance of Geneva convention (1949),
text of U.S. note requesting, 172
Inve.stigation of "germ warfare" charges, text of U.S.
draft resolution requesting, 37
Red Cross Conference (18th) :
Communist use for propaganda purposes, remarks
(Marshall), 224
U.S. observer delegation, 197
Refugees, U.N. High Commissioner for:
Election of, 261
Second annual report, review, 1001
Soviet charges against oflSce, denial, 881
Refugees and displaced persons :
Escapees from Soviet-dominated areas. iSfee Escapee
program for refugees from Soviet-dominated areas.
Greek children, repatriation of, U.N. proceedings, 924,
1044
Immigration. See Immigration and Nationality Act;
Immigration and Naturalization Commission.
Palestine refugees. See Refugees under Palestine
question.
PICMME. See Provisional Intergovernmental Commit-
tee for Movement of Migrants from Europe.
UNRWA. See United Nations Relief and Works
Agency for Palestine Refugees.
West Germany, postwar problem in, excerpt of 10th
quarterly report (McCloy), 136
Relations, convention between Three Powers and Ger-
many, ratification, statement (Truman), 220
Religion, VGA role in field of, article (Lyons), 727
Restrictions on foreign trade. See Restrictive measures
under Trade.
Restrictive business practices:
Ad Hoc committee of Economic and Social Council, 3d
session, U.S. delegation, 458
U.S. views on, statement (Linder), 383
Ridgway, Gen. Matthew B., Supreme Allied Commander,
Europe, address on status of NATO military forces,
816
Right-of-correction convention, U.N. proceedings, 789 n.,
791, 1043
Rights of Nationals of the United States of America in
Morocco, International Court of Justice ruling on
case of, 620
Rio treaty (1947), cited in addresses (Acheson, Bennett,
MUler), 49, 207, 702
Roberts, Lydia J., report on 1st Caribbean conference on
home economics and education in nutrition, 576
Roosevelt, Mrs. Franklin D., U.S. representative to U.N.,
statements :
Human rights, drafting of covenants on, 20
Self-determination of peoples, 881, 917, 925, 1032, 1043
Root, Elihu, congressional testimony on boundary waters
treaty with Canada, quoted, 847
Rosenfield, Harry N., appointment as Executive Director
of Commission on Immigration and Naturalization,
502
Rubottom, Roy R., Jr. :
Address on relations with American Republics, 901
Appointment as Director, Office of Middle American
Affairs, State Department, 275
Rules of the Air and Air Traffic Services Committee, Euro-
pean-Mediterranean Region, of ICAO, U.S. delegation
to 4th special meeting, 120
1072
Department of State Bulletin
Rumania :
Escapee (Calcai), Voice of America broadcast exposing
Communist propaganda, 563
U.S. Minister (Shantz), appointment, 635
Russell, Francis H., Director, Office of Public Affairs, ad-
dresses on democratic concept, 7, 279
Safety of life at sea, international convention for (1948),
entry into force, 464, 619, 865, 1024
St. Lawrence River, power worlis development, approval
by International Joint Commission : U.S.-Canadian
application for, order of approval. Commissioner's
dissenting opinion. Commission's majority opinion, 65,
1019
Saleh, Allah-Tar, Ambassador of Iran, credentials, 575
Sampson, Edith, U.S. representative to General Assembly,
statement on U.N. citation for honored dead, 997
Sandifer, Durward V., Deputy Assistant Secretary for
U.N. AiSairs, address on disarmament and technical
assistance, 478
Sargeant, Rowland H., Assistant Secretary for Public
Affairs, addresses and comments :
Citizenship, 4-H Club role in International Farm Youth
Exchange, 11
Education, role in the free world, 736
Field Reporter, release of 1st issue, 203
Foreign policy, relation to military defense, 558
Museums, role in education, 455
U N. collective action, 698, 772
UNESCO, objectives and U.S. support, 701, 775, 831, 853
Saudi Arabia, Prince Abdullah Faisal Saud, visit to U.S.,
96
Sayre, Francis B., U.S. representative on Trusteeship
Council, resignation, 301
Scholarships honoring Gen. Marshall offered American
students at British universities, 267
Schrieber, Walter, Acting Mayor of Berlin, acceptance of
grant for American Memorial Library, 5
Schumacher, Kurt, German Social Democratic Party
leader, death of, statement (McCloy), 329
Schuman, Robert, French Foreign Minister, discussion of
Tunisian and Moroccan questions in U.N. :
Address before General Assembly, excerpts, 839
Meeting with SecretaiT Achesfln, 771
Schuman Plan. See European Coal and Steel Community.
Schurz, Carl, correspondence with Lincoln presented to
American library at Berlin, address (Aeheson), 3
Scientific Unions, International Council of (ICSU), 6th
general assembly, U.S. delegation, 546
Seager, Cedric H., address on Point 4 program in Middle
East, 450
Secretariat, U.N., U.S. applicants for appointments to,
question of, 735, 967, 1027
Securities frauds, supplementary extradition convention
with Canada (1951), approved by Canada, 67
Security Council :
Chinese representative, right to presidency challenged
by U.S.S.R., 800
Disai-mament Commission. See Disarmament Com-
mission.
Election of members, 761
Security Council — Continued
Geneva protocol on bacteriological methods of warfare
(1925), U.S. attitude on Soviet draft resolution re
ratification, statements (Gross), 32, 37, 38
"Germ warfare" in Korea, Soviet charges :
Statements (Gross), 35, 153, 159, 160
U.S. draft resolutions, texts : impartial investigation
by Red Cross requested, 37 ; charges concluded false,
159
Kashmir dispute. See Kashmir, demilitarization of.
U.N. membership:
Japanese application, discussion of: address (Mur-
phy), 524; statements (Austin), .504. 526, 527
Libyan application, statement (Austin), 502
Soviet draft resolution on admissions, statement of
U.S. views (Austin), 412
Vietnamese, Lao, and Cambodian applications, U.S.
support, 504
Security treaties. Pacific area, reference in addresses
(Allison) and quoted testimony (Dulles), 103, 472,
860
Security treaty with Australia and New Zealand (1951),
1st meeting of ANZUS Council established by :
Announcements, statements, 110, 141, 219, 220, 243, 284,
471
Communique, 244
Self-determination of peoples :
Exercise of right in non-self-governing territories, 574,
917, 925, 964, 1032, 1043
U.N. role in development of, addresses (Aeheson, Mey-
ers), 641, 1015
U.S. position, statements (Lubin, Jessup, Roosevelt),
269, 574, 1032, 1043
Universality of principle of, statement (Roosevelt), 917,
925
Seyhan River Dam, World Bank loan to Turkey for
financing of, 15
Sforza, Count Carlo, death of, statement (Aeheson), 405
Shantz, Harold, appointment as U.S. Minister to Rumania,
635
Ships. See Vessels.
Simsarian, James, article on draft covenants on human
rights, 20
Sisco, Joseph J., article on 2d report of Collective Meas-
ures Committee, 717
Situations of strength, address (Bohlen), 167
Smith, Raymond C, designation in TCA, 723
Social situation, world, report of U.N. Secretary-General,
reviews (Kotschnig, Lubin), 142, 161, 482
Social Welfare Services program in India, 372
Social Work, 6th International Conference, 835
South Africa, Union of :
Double taxation conventions, income and estate, entry
into force, 180
Export-Import Bank loan to Electricity Supply Com-
mission, 105
Negotiations on South-West Africa question, U.N. pro-
ceedings, 551, 924
Treatment of Indians in. General Assembly proceedings,
802, 833, 835, 840, 868, 880, 997
U. S. logistical support, agreement on payment, text,
105, 106
Index, July fo December 7952
1073
South Pacific Coinmission, 10th session, U. S. delegation,
581
Sovereignty, U.S., charges of U.N. violation, refutation,
address (Sargeant), 775
Sprague, Charles A. (U.S. representative to General As-
sembly), statements:
Eritrea, completion of U.N. action on, proposed General
Assembly resolution, 999
Indians In South Africa, treatment of, U.S. position,
833, 868
Information, freedom of, draft convention, U.S. atti-
tude, 780, 791, 803
Press in Soviet Union, condition of, 920
Right-of-correction convention, U.S. attitude, 789n, 1043
U.S. press, defense of, against Soviet charges, 763, 792
State Department :
American Hellenic Educational Progressive Associa-
tion Conference, denial of influence in, 362
Appointments :
Cargo, William I., as Deputy Director of Bureau of
U.N. Affairs, 42
Carnahan, George, as Special Assistant to Assistant
Secretary for Inter-American Affairs, 723
Dodge, Joseph M., as Consultant to Secretary, 339
Hart, Parker T., as Director, OflBce of Near Eastern
Affairs, 507
Ingram, George M., as Director of OfiBce of Interna-
tional Administration and Conferences, 42
Jamison, Edward A., as Deputy Director, Office of Re-
gional American Affairs, 723
Jernegan, John D., as Deputy Assistant Secretary for
Near Eastern, South Asian, and African Affairs,
123
Martin, Edwin M., as Special Assistant to Secretary
for Mutual Security Affairs, 42
Metzger, Stanley D., as Assistant Legal Adviser for
Economic Affairs, 378
Morton, Alfred H., as Head of VOA, 507
Neal, Jack D., as Deputy Director of Office of Middle
American Affairs, 275
Rubottom, Roy R., Jr., as Director of Ofllce of Middle
American Affairs, 275
Young, Kenneth T., as Director of Bureau of Far
Eastern Affairs, 42
Information activities, domestic and international, ad-
dresses (Harris, Phillips), 971
Lattimore, Owen, revocation of confidential stop order
against, 12
Passport procedures, remarks (Acheson), 40
Passport regulations, revision, text, 417
Publications distribution centers, 418
Publications listed, 162, 239, 331, 379, 466, 591, 635, 843,
1047
U.N. Secretariat, U.S. applicants for appointments to,
question of, 735, 967, 1027
U.S. High Commissioner for Germany:
Donnelly, Walter J., appointment and resignation,
178, 967
McCloy, John J., resignation, 178
Statisticians, 2d Regional Conference of, U.S. delegation,
463
Stone, B. Douglas, U.S. delegate to International Congress
of Housing and Urbanization, 502
Stonebraker, Lt. William L., detention by Soviet authori-
ties in Berlin, and U.S. note of protest, 907
Strategic materials {see also Trade) :
Allocations. See International Materials Conference.
Embargo on exports to Communist China and North
Korea, 100
Export restrictions under Battle Act (1951), Ist semi-
annual report to Congress (Harriman) released, 652
Export-Import Bank loan to South African Electricity
Supply Commission, 105
Foreign imports as source of raw materials, Increased
U.S. dependence on, 282, 361
IMO. See International Materials Conference.
Increase in trade with American Republics, 208
International Materials Policy Commission, digest of
vol. I of report, 55
Lead and zinc, proclamations revoking suspension of
duties on, texts, 180
Nickel mines, Canadian, Export-Import Bank loan for
expansion of, 865
Oil, crude, modification of tariff concession on, 400, 402
Tin, U.S. import of, agreement with U.K. to resume,
exchange of notes, 266
Transshipment of, system for prevention, effective date,
409
Student as.sistance, continuation of Point 4 project in
Iran, 452
Sugar, regulation of production and marketing, interna-
tional agreement (1937), protocols to. Senate action
in 82d Congress, 589
Sulfur, International Materials Conference allocation of,
196, 760
Supplemental Appropriation Act of 1953, statement
(Truman), 199
Sweden :
Educational exchange agreement with U.S., signed,
909
International criminal court, proposal in U.N. for
establishment, 882
Manganese-Nickel-Cobalt Committee of IMC, mem-
bership, 503
U.S. science attach^ to Embassy at Stockholm (Niel-
sen), appointment, 302
Sweeney, Joseph M., article on International Court of
Justice ruling in case of rights of U.S. nationals in
Morocco, 620
Swiss watches. Tariff Commission recommendations re-
jected, text of President's report, 305
Switzerland :
Agreements re German property in, 3(53, 364
Convention with U.S. (1951) re double taxation on
estates and inheritances, entry into force, 486
Tariff Commission recommendation re Swiss watches,
rejection by President (U.S.), 305
Syria :
U.S. legation, elevated to rank of embassy, 379
U.S. Minister (Moose), confirmation, 43
Tanganyika, Trusteeship Council resolution on resettle-
ment of Wa-Meru tribe, statement (Muccio), 965
1074
Department of State Bulletin
TarifE Act of 1930:
Concession on crude oil, modification, agreement with
Venezuela, 402
Proclamations revoking suspension of import duties on
zinc and lead, text, 180, 181
Tariff Commission recommendations :
Dried figs, duty increase, text of proclamation and
statement (Truman), 337
Filbert imports, rejection of quota limitation on, state-
ment (Truman), 743
Garlic and Swiss watches, rejection of recommenda-
tions on, text of President's reports, 303, 305
Tariffs and Trade, General Agreement on (GATT, 1947) :
7th session of contracting parties, U.S. delegation, and
report on, 582, 876
Turkish-U.S. negotiations, address (McGhee), 565
Taxation, double, conventions on :
Action by Senate in 82d Congress, 586
Belgium, income, supplementary agreement signed, 427
South Africa, Union of, income and estate, entry into
force, 180
Switzerland (1951), estate and inheritances, entry Into
force, 486
Taxation, immunity denied to U.S. nationals in Morocco
by International Court of Justice ruling, 622
TOA (Technical Cooperation Administration). See Tech-
nical cooperation program, U.S.
Teacher-exchange program, address (Phillips), 324
Technical assistance program, U.N. :
Greece and Yugoslavia, program in, 774
India, 371
Progress in economic and social fields, address
(Meyers), 1014
U.S. support, 374, 841, 856, 944
Technical cooperation program, U.S. :
Addresses, statements, articles :
Acheson, 449
Andrews, 710
Bennett, 207
Bingham, 1016
Bohlen, 170
Duke. 776
Howard, 939
Johnston, ,538
Kernohan, 369^
Lubin, 482, 779, 873
Sandifer, 478
Seager, 450
Truman, 568
Agreements signed with: Brazil, 950; Burma, 864;
India, 375 ; Lebanon, 62
Agricultural credit, international conference on, 453
Appointments, 42, 198, 660, 711, 723, 743, 909
Budget, U.S. contributions, 61, 62, 63
Burma, visit of TCA Administrator (Andrews), 61
Institute of Inter-American Affairs, participation in,
209, 267, 366
Investment of private capital abroad, role in, 210, 538,
711, 782
Iraq, TCA grant for development of agricultural col-
lege in, 864
Technical cooperation program, U.S. — Continued
Latin America, survey of program In, 366
Missionaries, role in, 485
Near East, article (Howard), remarks (Bingham),
939, 1017
Projects with : Afghanistan, 62, 951 ; American Repub-
lics, 366 ; Burma, 61, 660 ; Chile, 874 ; Dominican Re-
public, 52; Egypt, 941; El Salvador, 776; Ethiopia,
940; Greece, 940; India, 874, 942, 1018; Indonesia,
61; Iran, 451, 452, 535, 874, 940, 1017; Iraq, 864;
Israel, 941 ; Jordan, 941 ; Lebanon, 941 ; Liberia, 940 ;
Libya, 941; Nepal, 943; Pakistan, 63, 909, 942; Pan-
ama, 704 ; Peru, 704, 874 ; Saudi Arabia, 941
Telecommunications :
London revision of 1945 Bermuda agreement, 120, 236
Radio Consultative Committee of ITU, study group, U.S.
delegation, 416
TV-channel agreements with : Canada, signed, 180 ;
Mexico, 1951 agreement, revised, 267
VOA. See Voice of America.
Territorial government. U.N. ad hoc committee for study
of, 1st meeting, U.S. delegation, 459
Thailand, U. S. policy in, address (Allison), 100
Theater, under Nazi and Soviet control, address (Con-
nelly), 542
Thompson, Llewellyn E., Jr., appointment as U.S. Ambas-
sador to and U.S. High Commissioner for Austria,
178
Thorp, Willard L., Assistant Secretary for Economic Af-
fairs, address on economic basis of U.S. foreign policy,
173
Times Herald (Washington) , charges of State Department
influence in AHEPA conference, 362
Togoland. See Ewe and Togoland.
Tonnage duties on Korean vessels, text of proclamation for
suspension of, 713
Toponymy and Anthroponomy, Congress of. See Ono-
mastic Sciences.
Toriello, Guillermo, Ambassador of Guatemala, cre-
dentials, 575
Tourism, African, 4th International Congress, U.S. ob-
server, 466
Trade :
Agreements with :
Turkey, termination of 1939 agreement, proclamation
and exchange of notes, 179, 268
Venezuela, supplementary agreement to 1939 agree-
ment: negotiations, ISO, 267, 704; signature, 400;
text and proclamation, 487 ; entry into force, 454,
734
Commodity arrangements, U.S. views, statement
(Lubin), 191, 192
Copper exports, Chilean, U.S. policy re, 705
Developments, international, in 1952, IMF annual re-
port, 390
Embargo on shipments to Communist China and North
Korea, 100
Labor cooperation, international, contribution to world
peace, address (Wiesman), 827
Oil economy, place of imports in, address (Eakens), 733
Index, July to December 1952
1075
Trade — Continued
Restrictive measures:
Addresses and statements: Andrews, 710; Anderson,
614, 618; Draper, 358; Eakens, 733; Linder, 383;
Thorp, 173, 176
Almonds, import fees imposed on, text of proclama-
tion, 569
Control over exports to Soviet bloc, 1st semiannual
report to Congress (Harriman), 652
Import controls violating rights of U.S. nationals in
Morocco, International Court of Justice ruling on
1948 decree, article (Sweeney), text of French note,
620, 623
Transshipment of strategic materials, procedure for
prevention of, effective date, 409
Tariff Act of 1930. See Tariff Act.
Tariff Commission recommendations. See Tariff Com-
mission.
Tariffs and Trade, General Agreement on (GATT). See
Tariffs and Trade.
Tin, importation by U.S., agreement with U.K. for re-
sumption of, 266
Turkish-American relations, private enterprise in, ad-
dress (McGhee), 564
U.S. policy, survey by Public Advisory Board, requested
by President, 104
U.S. policy developments in : American Republics, 208;
Europe, 358 ; Far East, 100, 101
World Federation of Trade Unions, Soviet dominated,
failure to attain U.N. status, 828
Trade Agreements Extension Act (1951) :
Concessions under, procedures for periodic review (Ex.
Or. 10401), text, 712
References to provisions of act, .303, 305, 400, 402
Trager, Frank N., designation in TCA, 660
Tran Van Kha, Ambassador of Vietnam, credentials, 53
Treaties, agreements, etc. :
Act of Algeciras (1906) and treaty of 1836 with Morocco,
U.S. rights under. International Court of Justice
ruling on, 621
Air transport :
Panama (1949), annex, 13
Philippines (1946), discussions on, 1024
ANZUS treaty. See Security treaty with Australia and
New Zealand (1951).
Austrian state treaty negotiations :
Additional articles to draft treaty, text, 405
Austrian memorandum requesting U.N. support, text,
221
Soviet note rejecting draft treaty, text, 284, 322
U.S. notes and British and French notes to U.S.S.R.,
284, 404: statement (Acheson), 283; and Depart-
ment critique, 321
Aviation, draft convention on damage caused by aircraft
to third parties on surface, ICAO conference on, 461
Bacteriological methods of warfare, Geneva protocol
(1925) : Soviet proposal in U.N. for ratification of,
statements (Gross), 32, 35, 38
Bilateral conventions (double-taxation, consular, com-
mercial). Senate action in 82d Congress, 586, 587,
588
Treaties, agreements, etc. — Continued
Boundary waters treaty with U.K. (1909) :
Lake Ontario, problem of high-water level, referral I
to International Joint Commission by U.S. and '
Canada under, 67
St. Lawrence River, proposed power works develop-
ment of waters within meaning of treaty provisions,
66, 1019
Brussels iutercustodial agreement (1947), conflicting
claims to German enemy assets, deadline, type of
claim, U.S. membership on panel of conciliators,
365
Chinese-Soviet treaty (1950). supplementary agreement,
remarks (Acheson), 476
Claims convention with Mexico (1941), Mexican pay-
ment of installment under, 950
Commercial treaties, bilateral. Senate action in 82d Con-
gress, 588
Consular convention with U.K. (1951), entry into force,
489
Consular conventions, bilateral. Senate action in 82d
Congress, 587
Contractual agreements, German :
Parliamentary action by Germany, statement
(Truman), 984
Relations between Three Powers and Germany, state-
ment (Truman), 220
U.S. Senate approval, statement (Bruce), 67
Currency guaranty, with Yugoslavia, exchange of notes,
287
Double-taxation conventions, bilateral :
Belgium, income, supplementary, signed, 427
Senate action in 82d Congress, 586
South Africa, Union of, income and estate, entry into
force, 180
Switzerland (1951), estates and inheritances, entry
into force, 486
Economic aid to Yugoslavia, continuation, article on
tripartite agreement (U.S., U.K., France) with
Yugoslavia, 825
Economic coordination, between Korea and Unified
Command :
Dollar payment (second) pursuant to provisions of,
330
Text of agreement, 499
Educational exchange agreements signed with : Fin-
land, Germany, Sweden, 53, 179, 909
European Coal and Steel Community (1951), inaugura-
tion, statement (Acheson) and reiwrt (Draper),
285, 353
European Defense Community, German parliamentary
action on, statement (Truman), 9S4
Extradition, with Canada, supplementary convention
(1951), approval by Canada, 67
Friend.ship, commerce, and consular rights with Fin-
land (1934), protocol, signature and text, 949
Geneva convention, prisoners of war (1949). See
Prisoners of war, Geneva convention.
Geneva protocol, bacteriological methods of warfare
(1925). See Bacteriological methods of warfare
under Treaties.
1076
Department of State Bulletin
Treaties, agreements, etc. — Continued
German property in Switzerland, Swiss-Allied agree-
ment, text, and Swiss-German agreement, synopsis,
363, 364
Great Lakes, safety promotion by radio on, agreement
with Canada, instruments of ratification exchanged,
952
Inter-American treaty of reciprocal assistance (1947),
purpose, addresses (Acheson, Bennett), 49, 207
IBRD, IMF, Japan and Germany admitted to member-
ship, articles of agreement signed, 330
ILO and International Load Line (1930), conventions,
Senate action in 82d Congress, 589
Israel-German agreement on compensation to Jewish
victims of Nazi persecution, statement (Acheson),
448
Japanese peace treaty (1951) :
Address, statement (Allison), 102, 448
Return of Allied property in Japan, provision for, 13
Lend-lease agreement (1942), failure of U.S.S.R. to
fulfill obligations under, exchange of notes, 819, 820
Logistical support, U.S., payment of, with South Africa,
signed, text, 105, 106
Military assistance agreements :
Dominican Republic, negotiations, 537
Israel, concluded, 331
Uruguay, signed, 53
Military facilities in Azores, agreement with Portugal
(1951), text, 14
Multilateral conventions (Sugar, ILO, and Interna-
tional Load Line, 1930), Senate action in 82d Con-
gress, 589
North Atlantic Treaty (1949) :
Accession to, Greek-Turkish, cited in article (How-
ard), 936
Agreement in accordance with: U.S.-Portugal (1951),
military facilities in Azores, text, 14
Background, address (Draper), 436
Protocol: approval by Senate, statement (Bruce),
ratification, statement (Truman), 67, 220
Paris reparation agreement (1946), distribution of
German property in Switzerland under terms of,
363
Point 4 agreements signed with : Lebanon, Burma, Bra-
zil, 62, 864, 950
Prisoners of war, Geneva convention (1949) :
Observance of, U.S. notes requesting Soviet good
oflBces and Red Cross intercession with North Ko-
rean and Chinese Communists for, 171, 172
Repatriation provision, General Assembly resolution
(1950), excerpt, 746
Violation by Communists, statements on (Harrison,
Acheson), 172, 602, 744
Refugees :
Escapees from Soviet-bloc countries, transport of,
agreement with Provisional Intergovernmental
Committee for Movement of Migrants from Europe,
signed, 711
Respect for rights, protocol of May 1949 signed by
Israel, Arab States, and U.N. Conciliation Commis-
sion for Palestine, text, 954
Index, July lo December J 952
Treaties, agreements, etc. — Continued
Relations between Three Powers and Germany, ratifica-
tion of convention, statement (Truman), 220
Safety of life at sea, international convention for
(1948), entry into force, 464, 619, 865, 1024
Security treaties. Pacific area, testimony ( Dulles ) , 103,
472
Security treaty with Australia and New Zealand (1951),
1st meeting of ANZUS Council established by :
Announcements, statements, 110, 141, 219, 243, 284,
471
Communique, 244
Senate action on treaties, report of 82d Congress, table,
590
Sugar convention (1937), protocols to, Senate action in
82d Congress, 589
Tariffs and Trade, General Agreement on (GATT,
1947) :
7th session of contracting parties, 582, 876
Turkish-U.S. negotiations, address (McGhee), 565
Telecommunications agreement (Bermuda), London re-
vision (1949), modification discussed, 120, 236
Tin, importation of, agreement with U.K. for U.S. re-
sumption of, exchange of notes, 266
Trade agreements with :
Turkey, termination of reciprocal agreement (1939),
proclamation and exchange of notes, 179, 268, 565
Venezuela :
Reciprocal (1939), negotiations for revision, 180,
267
Supplementary agreement signed, entry into force,
text, proclamation, 400, 454, 487, 704, 734
TV channels :
Canada, allocation, exchange of notes, 180
Mexico (1951), revision, 267
Water treaty (1944), with Mexico, cited, 713
Trieste, Free Territory of, Zone A, administration of,
texts of parallel U.S.-U.K. notes and Soviet note, 521,
522
Trinidad, Georgetown (British Guiana), closing of con-
sulate, transfer of consular district to Port-of-Spain,
967
Truman, Harry S. :
Addresses, statements, etc. :
Duty on dried figs increased, 337
Filbert imports, rejection of quota limitation, 743
Forced LaT)or in the Soviet Union, release of publica-
tion, 477
German parliamentary action on European Defense
Community treaty and contractual agreements, 984
Immigration and Naturalization Commission, estab-
lishment, 407
International Materials Policy Commission report, 54
International relations, joint statement with General
Eisenhower, 850
North Atlantic Treaty, protocol to, ratification, 220
Point 4 program, contribution to peace, 568
Puerto Rican Constitution, approved by Congress, 91
Relations between Three Powers and Germany, ratifi-
cation of convention on, 220
Supplemental Appropriation Act (19.53), 199
U.S. participation in U.N., 123, 529
1077
Truman, Harry S. — Continued
Correspondence :
Captain Ewing, on repatriation of prisoners, 328
Congressional committees, identic letters :
Aid to Denmark, continuation of, 198
Aid to Italy, continuation of, transmitting MSA
report (Harriman), 75, 76
Tariff Commission recommendations, rejection of,
303, 305
Council of Free Czechoslovakia, commemoration of
Czechoslovak Independence Day, 732
Gen. Eisenhower, invitation to meet at White House,
771
Iranian Prime Minister, Joint U.S.-U.K. proposal to
submit oil problem to International Court of Jus-
tice, 360
Israel, Acting President, message of condolence on
President's death, 824
Israeli President, election, 984
Paley, William S., International Materials Policy
Commission report, 54
President of Senate (Barkley) and Speaker of House
(Rayburn), re International Materials Policy
Commission report, 55
Public Advisory Board for Mutual Security, survey
of U.S. trade policies requested, 104
Council of Economic Advisers, excerpts of Economic
Review by, 227
Economic Report to Congress, excerpts, 225
Executive orders. See Executive orders.
Export-Import Bank, semiannual report, 338
Immigration and Naturalization, President's Commis-
sion on, appointment of Executive Director (Rosen-
field), 502
King Faisal II of Iraq awarded Legion of Merit, 330
Messages to Congress :
Immigration and Nationality Act, veto, 78
Trade agreement with Venezuela, supplementary, 401
Mutual Security Program, Second Report on, letter of
transmittal to Congress, 900
Proclamations, gee Proclamations.
Report of U.S. Special Representative in Europe
(Draper), text and White House announcement,
353, 354
U.S. participation in U.N., letter of transmittal of an-
nua! report to Congress, 121
Truman Doctrine, cited, 169, 564
Trust territories :
Ewe and Togoland, Trusteeship Council reports on, 882,
926, 966
Non-self-governing territories. See Non-self-governing
territories.
Pacific Islands:
U.N. mission b) visit, 882
U.S. administration of, denial of Communist charges
against, statement (Roosevelt), 1033
Participation of native inhabitants in work of Trustee-
ship Council, U.N. proceedings on, 1001
Tanganyika, problem of resettlement of Wa-Meru peo-
ple, U.S. attitude, 965
Trusteeship Council:
Election of members, 761
Trusteeship Council — Continued
11th session, proceedings, 882, 966
Ewe and Togoland, problem of unification, reports on
882, 926, 966
Participation of indigenous inhabitants in work of,
U.N. proceedings on, 1001
Report of Council, U.N. proceedings on, 925
Tanganyika, resolution on resettlement of Wa-Meru '
people, U.S. attitude, 965
U.S. representative: resignation (Sayre) ; nomination
(Muccio), 301
Trypanosomiasis Research, International Scientific Com-
mittee for, U.S. obsei-ver, 464
Tsiang, Dr. T. F., representative of Republic of China
in U.N., statement on Soviet challenge to seating as
president of Security Council, 800
Tungsten and molybdenum, International Materials Con-
ference allocation of, 117, 548
Tunisian question :
French attitude, 839
General Assembly resolution adopted, 1044, 1045
Secretary's meeting with French Foreign Minister, 771
U.S. attitude, 897, 964, 986, 1000
Turkey :
North Atlantic Treaty Organization, entry into, and
Turkish reply to Soviet notes of protest, 936, 937n
Relations with U.S., addresses (McGhee, Byroade), 564,
729
Road-building program in, MSA grant for extension,
490
Seyhan River project. World Bank loan for, 15
Trade agreement (1939), reciprocal, termination, text
of proclamation, exchange of notes, 179, 268
Treaties, Turkish-American, cited in address (McGhee),
565
TV channels, agreements with :
Canada, allocation, exchange of notes, 180
Mexico (1951), revision, 267
Underdeveloped areas :
Cotton yields in, discussion by International Cotton
Advisory Committee, article (Wall), 186
Financing of economic development. U.N. proceedings,
39, 73, 387, 779, 803, 871, 880, 925, 964
Social situation, report of U.N. Secretary-General, re-
views (Kotschnig, Lubin), 143, 482
U.S. policy in, addresses (Thorp, Harriman, Lubin),
175, 361, 871; article (Kernohan), 373
UNESCO. See United Nations Educational, Scientific
and Cultural Organization.
UNICEF. See United Nations International Children's
Emergency Fund.
Unified Command. See U.N. Command under Korea.
Union of Soviet Socialist Republics:
Aggression, question of definition in U.N., 882. 925, 966
Ambassador to U.S. (Zarubin), credentials, 5L5
Amerika, U.S. suspension of publication, texts of U.S.
note and Soviet note of reply, remarks (Compton),
127, 263
Anti-Soviet characteristic of U.S. policy toward, article
(C. B. Marshall), 807
Attack on American plane near Yuri Island, exchange
of notes (U.S.S.R. and U.S.), 649, 650
1078
Department of Stale Bulletin
Union of Soviet Socialist Republics — Continued
Attitude toward :
Dependent peoples, 573
Disarmament, 480, 876
German elections, proposals re commission to investi-
gate, 93, 518
Human riglits, U.N. Commission on, draft covenants,
21
Kaslimir dispute, 665
Korean armistice negotiations, proposals for U.N.
commission for settlement : Polish proposal, 634 ;
Soviet proposal, 761
Underdeveloped countries, development of, 803
U.N. membership applications, 504
Austrian state treaty negotiations, noncooperation :
Address (Jessup), statement (Acheson), 512, 570
Soviet note rejecting draft treaty, test, 284, 322
Chinese-Soviet treaty (1950), supplementary agree-
ment, remarks (Acheson), 476
Cbuikov, General, correspondence vpith U.S. officials,
314, 315, 320, 862
Exports to Soviet bloc, free-world restrictions on, 652
Forced labor in :
U.S. Information Service report on, excerpts, and
statement (Truman), 428, 477
U.S. presentation of evidence to U.N., 70, 821
Foreign diplomats (U.S.), Soviet mistreatment of, state-
ment (Green), 786
Geneva convention (1949) :
Communist violation of, statement (Harrison), 602
U.S. note requesting Soviet Kood otHces and Red
Cross intercession with North Korean and Chinese
Communists for observance of, 171, 172
Geneva protocol (1925), Soviet reservations to, state-
ments (Gross), 33, 36
Germany, harassment campaign in :
Charges against West Berlin organizations, 861
Detention of U.S. Army officer by East Berlin au-
thorities, 907, 908
Firing on French aircraft, 311, 312, 313, 318
Interference with allied patrol of Berlin-Marienborn
Autobahn, 312, 313, 314, 318, 320
Kidnapping of Dr. Linse from American sector of
Berlin, 320, 823
Restrictions on access to Western zones of Berlin,
313, 315, 318
Restrictions on interzonal communications between
East and West Germany, 319
Information, freedom of, Soviet draft resolution on,
underlying objectives, address (Sprague), 920
Land reform, Soviet system, statement (Lubiu), 993
Lend-lease settlement, status of, text of Soviet note,
820
Moscow Congress, Soviet strategy formulated at, ad-
dress (Fred L. Anderson), 813
Press, contrast with American, statements (Kotsehnig,
Sprague), 109, 920
Prisoners of war. See Prisoners of war.
Propaganda program, description of, comparison with
Campaign of Truth, addresses (Acheson, Harris), 424,
978, 979
Union of Soviet Socialist Republics — Continued
Reaction to free-world progress :
Negotiations, review of, address (Jessup), 511
Plan of action, address (Draper), 652
Policy revision, address (Acheson), 5596
Bight of Chinese representative to presidency of Se-
curity Council, challenge by, 800
Soviet charges re :
Administration of Zone A, Free Territory of Trieste,
text of Soviet note, 522; U.S. note of reply, 521
Alleged detention of Soviet children in Germany,
U.S. refutation of charges, 924
Press (U.S.), denial of charges, statement (Sprague),
792
West Berlin organizations, rejection by U.S., U.K.,
France of charges, exchange of letters (Donnelly,
Chuikov), 861, 862
Soviet Communist Party Congress, challenge to free
world, 849
Standard of living, comparison with U.S., statement
(Kotsehnig), 145, 149, 151
Theater, under Soviet control, address (Donnelly), 543
Trade-unions in, address (Acheson), 423
Underdeveloped areas, Soviet policy in, address (Lubin),
875
U.N. membership, U.S. views re Soviet resolution on
admissions to, statement (Austin), 412
U.S. Ambassador (Kennan), recall requested, Soviet
note. Secretary's statement, U.S. note, and corre-
spondence with Senator Knowland, 557, 603
U.S. property seized by, text of U.S. note requesting re-
turn, 981
United Kingdom :
Administration of Zone A, Free Territory of Trieste,
texts of U.S.-U.IC. parallel notes and Soviet note,
521, 522
Ambassador to U.S. (Franks), departure, statement
(Acheson), 603
Anglo-American Council on Productivity, final report
released, 285
Anti-inflationary measures, 397
Balance-of-payuients developments, 393, 395
Conference on American Studies, sponsored by U.S.
Educational Commission in, 196
Disarmament, supplement to tripartite proposal for
ceilings on armed forces, text, 292
Egyptian controversy, U.S. position, article (Howard)
and address (Byroade), 895, 933
German elections, proposals re commission to investi-
gate conditions : texts of identic notes (U.S., U.K., and
France), 92, 517; statement (Acheson), 516; Soviet
notes, 93, 518
Iranian oil dispute. See Iranian oil dispute.
Kashmir dispute. See Kashmir, demilitarization of.
Korean question, Soviet-proposed commission for settle-
ment, British attitude toward, 762
Marshall scholarships for American students at British
universities, 267
Ministers of Defence and State, visit to U.S., text of
communique, 6
Mutual Security Agency allotments, 486
index, July to December 7952
1079
United Kinjidom — Continued
Occupation of Berlin, Soviet violation of agreements
on, texts of tripartite letters (U.S., U.K., France) to
Berlin representative of Soviet Control Commission,
313, 315
Soviet charges against West Berlin organizations and
rejection by U.S., U.K., and France, exchange of letters
(ChuilEov, Donnelly), S61
Soviet firing on French aircraft, letters of protest to
Gen. Chuikov, 311, 312, 313, 318
Tanganyilia, Trusteeship Council resolution re resettle-
ment of Wa-Meru tribe, U.S. attitude, 965
Teacher-exchange program, address (Phillips), 324
Treaties and agreements :
Austrian state treaty draft, Soviet rejection: U.S.
notes and similar British and French notes to
U.S.S.R., 284, 404; statement (Acheson), 283;
DeiJartment critique, 321 ; additional articles to
draft treaty, 405
Consular convention with U.S., entry into force, 489
Relations between Three Powers and Germany, ratifi-
cation, statement (Truman), 220
Swiss-Allied agreement re German property in
Switzerland, text and summary, 363, 364
Telecommunications, conference for renegotiation of
rates established by Bermuda and London agree-
ments (1945. 1949), 120, 236
Tin, agreement with U.S. on U.S. importation, ex-
change of notes, 266
Yugoslavia, continuation of economic aid to, tripartite
agreement (U.K., U.S., France) with Yugoslavia,
825
U.N. staff appointment. 802
U.S. failure to inform British of bombing of power
plants in North Korea, statements (Acheson, Bruce),
60
U.S. Secretary of State, visit, statements (Acheson), 6,
132
United Nations :
Africa, South-West, ad hoc committee on, proceedings,
551
Agencies, specialized. See specific agencies.
Austrian state treaty, text of Austrian memorandum
requesting U.N. support of, 221
Budgetary questions (1953) :
Appropriations, 803, SSI
U.S. assessment, 842, 998
Charter obligations, address (Acheson), 639
Collective security system, statement (Austin), and
text of U.S. memorandum, 411, 412
Disarmament proceedings. See Disarmament Commis-
sion, proceedings.
Documents listed, 18, 301, 465, 503, 716, 760, 927
Economic and Social Council. iSee Economic and Social
Council.
General Assembly. See General Assembly.
International Court of Justice. See International
Court.
Korea. See Korea.
Membership applications, statements on :
Japan (Austin), 504, 526, 527; (Murphy), 524
Libya (Austin), 502
United Nations — Continued
Membership applications, statements on — Continued
Soviet draft resolution on admissions (Austin), 412"
Vietnam, Laos, Cambodia (Austin), 504
Palestine Conciliation Commission. See Palestine
Conciliation Commission.
Prisoner-of-war question. See Prisoners of war.
Secretariat stafiC appointment policy:
Commission of international jurists, advisory group
for study of problem, appointment of, 802
State Department viewpoint, 735, 967 I
Statement by Secretary-General, 998 ■
U.S. employees of Secretariat, status of, statement
(Hickerson), 1026 ■
Secretary-General, letter of resignation, text, 839 |
Security Council. See Security Council.
Soviet nonparticipation in U.N. welfare organizations,
significance (Kotschnig), 152
Technical a.ssistance program, U.S. and U.N. agencies
participation in, 369, 480, 774, 841
Territorial government, ad hoc committee for study of,
1st meeting, U.S. delegation, 459
Trusteeship Council. See Trusteeship Council.
U.S. participation in. President's message to Congress
and statements (Truman, Acheson), 121, 123, 529
World social situation, Secretary-General's report, re-
views of (KoLschnig, Lubin), 142, 482
United Nations Command Operations in Korea. See
Korea.
United Nations Commission for India and Pakistan:
Kashmir dispute. See Kashmir, demilitarization of.
Reports to Security Council, 661
Resolutions (1948, 1949), 661, 663, 666
United Nations Commission of International Jurists, ad-
visory group for study of Secretariat staff appoint-
ment policy: selection of jurists, 802; statements
(Lie, Hickerson), 998, 1028
United Nations Commission to Investigate Conditions for
Free Elections in Germany, adjournment and text of
report with covering letter, 245, 29S, 506
United Nations Day, addresses on (Acheson, Sargeant),
529, 698
United Nations Educational, Scientific and Cultural Or-
ganization (UNESCO) :
Addresses on : Mesta, 742 ; Sargeant, 701, 775, 831, 853
Conferences, U.S. delegations to:
International Conference of Artists, 457
International Seminar on Role of Museimis in Educa-
tion, 455, 461
Seventh conference of UNESCO, &36
Universal Copyright Convention, conference on, 293
United Nations Good Office.s Commission, draft resolution
for establishment, text, proceedings, 802, 835, 840
United Nations High Commissioner for Refugees :
Election of, 261
Second annual report, review, 1001
Soviet charges against Office of, denial, 881
United Nations International Children's Emergency Fund
(UNICEF) :
Executive Board, U.S. representative: resignation (Len-
root), and appointment (Eliot), 619
1080
Deparfmenf of State Bulletin
United Nations International Children's Emergency Fund
( UNICEF ) —Continued
Extension of programs, U.S. attitude, statement
(Kotschnlg), 376
U.N. appeal for contributions, recommendation In Gen-
eral Assembly, 1001
U.N. technical assistance program, participation In, 371
U.S. contribution, 237, 377, 945
United Nations Relief and Works Agency for Palestine
Refugees in the Near East (UNTIWA), continuation
of General Assembly program :
Budget resolution (Nov. 6), text, adoption, article
(Howard), 756, 761, 896
Statement (Jessup), 755
United States Bureau of Public Roads, role in Philippine
highway rehabilitation, 60
United States Educational Commission In United King-
dom, sponsor of conference on American studies, 196
United States foreign policy concept, evolution of, article
(MarshaU), 767, 807
United States High Commissioner for Germany. ,8ee
Donnelly ; McCloy.
Uclted States High Commissioner for Germany, Office of,
appointment of science advi.sers (Greulioh, Arnold),
302
United States Information Service (USIS), report on
Soviet forced labor, excerpts, 428
United States Special Representative in Europe. See
Draper.
United States-Brazil Joint Commission for Economic
Development :
Appointment of U.S. member (Bohan), 368
Statements re establishment and progress (Acheson,
Bennett, Miller), 48, 210, 705
Uruguay :
Draft resolutions sponsored in U.N. :
Famine relief, text, statement (Lubin), 111. 113
Nationalization of wealth and resources, U.N. proceed-
ings, statement (Lubin), 1000
Military-assistance agreement with U.S., signed, 53
Venezuela :
Oil production, 210, 704, 734
Trade agreement with U.S., supplementing 1939 agree-
ment: negotiations, 180, 267; signature, 400; entry
into force, date announced, 454; tests' of agreement
and proclamation, 487; signi0cance, 704, 734
Vessels :
Courier, VOA floating transmitter, departure for
Rhodes, inauguration of relay activities, 182, 466
Curtailment of movements to Antarctica, 900
General Taylor, transiMrtation of refugees, 261
Korean, suspension of tonnage duties, text of proclama-
tion, 713
Lend-lease settlement with U.S.S.R., status of, exchange
of notes with U.S.S.R., 819, 820
Vietnam :
Ambassador to U.S. (Tran Van Kha), credentials, 53
U.N. membership application, U.S. attitude, 504
U.S. Ambassador (Heath), confirmation, 43
Virgin Islands, Government House furnishings, gift from
Denmark, 268
Voice of America (VOA) :
Activities of, address (Harris), 978
Appointment of Alfred H. Morton as Head, 507
Broadcast by Rumanian escapee (Calcai) exposing
Communist propaganda, 563
Courier, floating transmitter, departure for Rhodes,
inauguration of relay activities, 182, 466
Crusade of ideas against Communist campaign of hate,
significance of role in, address (Compton), 344
Religion, role In field of, article (Lyons), 727
Wadsworth, Frank H., report on 4th session of Latin
American Forestry Commission of FAG, 492
Wadsworth, George, appointment as U.S. Ambassador
to Czechoslovakia, 635
Wall, Eulalia L, article on 11th meeting of International
Cotton Advisory Committee, 185
War Criminals, Board of Clemency and Parole for, estab-
lishment, text of Executive Order 10393, activities,
408, 409, 659
Ward, Angus, confirmation as U.S. Ambassador to
Afghanistan, 43
Warren, George L., Adviser on Refugees and Displaced
Persons :
Article on escapee program, 261
Report on 3d session of PICMME, 107
Washington, Declaration of (1951), unanimous adoption
cited in address (Acheson), 51
Washington accord (1946), provisions for total liquida-
tion of German assets in Switzerland made ineffec-
tive by Swiss-German agreement (1952), 363
Water treaty (1944), with Mexico, cited, 713
Weizmann, Chaim (President of Israel), death, 824
West Indian Conference, 5th session, 961
Wheat, U.S., Export-Import Bank loan to Pakistan for
purchase of, 490
Wheat Council, International, 10th session, U.S. delega-
tion, 119
Wiesman, Bernard, address on international labor co-
operation, 827
Wiley, Senator Alexander, statement on U.S. contribution
to U.N., 842
Will, Ralph R., designation in TCA, 909
Willard, Clarke L., designation in State Department, 507
Women, Inter-American Commission of, 8th general as-
sembly, U.S. delegation, 197
Women, political rights of, draft resolution, U.N. pro-
ceedings on, 1046
Woodward, Robert F., designation in State Department,
198
Wool Study Group, International, 5th meeting, U.S. dele-
gate, 838
World Bank. See International Bank for Reconstruction
and Development.
World economy, role of U.S. farmer in, address (An-
drews), 708
World Federation of Trade Unions, Soviet dominated,
failure to attain U.N. status, 828
World Health Organization (WHO) :
Fight against disease, addresses (Sargeant), 700, 774
Programs in India, Egypt, Pakistan, Turkey, 371, 945
Regional Committee, 4th meeting, U.S. delegation, 462
Index, July to December 1952
1081
World Meteorological Organization (WMO), 3d session Yugoslavia:
of Executive Committee, U.S. delegation, 460 Currency convertibility guaranties, available under
World social situation, report of U.N. Secretary-General, agreement with U.S., 287
reviews (Kotschnig,Lubin), 142, 161, 482 Economic aid to, continuation, under agreement with
Wright, Almon R., article on defense-site negotiations U.S., U.K., and France, article (Colbert), and back-
with Panama, 212 ground summary, 825, 826
Yugoslavia: Titoism and U.S. Foreign Policy, released,
Yalta Conference, cited (Boblen), 169 826
Young, Kenneth T., appointment as Director of Bureau
of Far Eastern Affairs, 42 Zarubin, Georgi N., Soviet Ambassador, credentials, 515
Department of State publication 4927
Released October 1953
DIVISION OF PUBLICATIONS
0. S. GOVERNMENT PRINTING OFFICE; 1953
For sale by the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D.C. Price 20 cents.
1082 Depatimsnf of Sfafe BuUeiin
^^?>5^.|AB0
tJrie/ ^eho/ylTyienl/ ^ C/taie^
oL'XXVII, No. 680
July 7, 1952
.VtC^NT Ofr
^■ATEa o*
LAYING THE CORNERSTONE OF THE AMERICAN
MEMORIAL LIBRARY AT BERLIN • Remarks by
Secretary Acheson 3
WELLSPRINGS OF AMERICAN DEMOCRACY • by
Francis H. Russell .............. 7
U.S. PROPOSES INVESTIGATION OF BACTERIO-
LOGI^CALIWARFARE CHARGES • Statements by
Ernest A, Gross ^ .'^ .............. 32
TWO COVENANTS OF HUMAN RIGHTS BEING
DRAFTED • Article by James Simsarian 20
For index see back cover
M
'le
z!/^€fia/j(tin€^ ^£^ t/ial^
bulletin
Vol. XXVrr, No. 680 • Publication 4654
July 7, 19S2
For sale by the Superintendent of Documents
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U. S. SUPERINTENDENT OF DOCUMENTS
AUG 1 1952
Laying the Cornerstone of the American Memorial Library at Berlin
Remarks l>y Secretary Acheson
On June 29 Secretary Acheson spoke at corner-
stone-laying ceremonies at the site of the American
Memorial Library at Berlin. The previous eve-
ning he attended a dinner given hy Mayor Ernst
Renter of Berlin and presented to his host a vol-
ume for the library. Following are texts of his
remarks on the two occasions.
A TOKEN OF SPIRITUAL FELLOWSHIP
[Released to the press June 28]
We will witness tomorrow the ceremonial lay-
ing of the cornerstone of the American Memorial
LiLrary, a monument to the fellowship of the
American people and the people of Berlin. In
connection with this ceremony, I would like to
present to you, Mr. Mayor, a token of spiritual
fellowship a century old. This is a volume which
contains copies of more than 50 letters exchanged
between Carl Schurz, a liberal of German birth,
and President Abraham Lincoln. These letters
were written before and during the Civil War
period and deal with philosophical and political
problems as well as with strictly military ones.
This book is the only one of its kind. It has been
prepared for this occasion by the Library of Con-
gress, which I understand has agreed to enter into
a cordial working relationship with the American
Memorial Library.
The year 1952 is the one hundredth anniversary
of Carl Schurz' immigration to the United States.
I am sure you are familiar with his extraordinary
career in the United States. He rose from the
ranks of local politics, and became later Minister
of the LTnited States to Spain, Brigadier General
of Volunteers in the Army of the Potomac, U.S.
Senator from Missouri, and Secretary of the
Interior in the Cabinet of President Hayes. Many
of our foreign-born citizens have attained great
stature and national fame in the United States.
But few have reached a position of such eminence
as Carl Schurz. There are many good reasons
for this. Schurz was a brilliant man, and gifted
orator, writer, politician, and statesman. What
is more, he was a fighting liberal, a man inspired
by deep humanitarian principles and devoted to
the democratic concept that all men are created
equal. It was the fine heritage of 1848 which he
defended all his life and which endeared him to
the American people and to Abraham Lincoln.
During the Presidential campaign of 1860,
Lincoln wrote Schurz: "To the extent of our
limited acquaintance, no man stands nearer my
heart than yourself."
This correspondence between Lincoln and
Schurz brings out a number of differences of
opinion regarding military affairs, and this dem-
ocratic give and take is in itself interesting. It
also shows a remarkable similarity of views in
such fundamental matters as the abolition of
slavery, the necessity for the preservation of the
Union, and the adoption of a liberal policy for the
postwar reconstruction of the South and its inte-
gration into the Union.
I am happy to make this contribution to the
contents of the American Memorial Library.
May the ideals of Carl Schurz and Abraham
Lincoln inspire and guide the defenders of free-
dom, in Berlin as in America.
"FREEDOM TO LEARN, TO STUDY, TO SEEK THE
TRUTH"
[Released to the press June 29]
Today we are laying the cornerstone of the
American Memorial Library. It is to be open to
all who desire to enter and learn what men of all
nations and all beliefs have thought and written.
When Mr. McCIoy ^ suggested to me last month
that I might like to come to Berlin and take part
in the dedication of this bulding, the suggestion
appealed to me immediately. I have been anxious
to return to Berlin and to see and feel again, as
I did in 1940, the great courage and vitality that
make the people of this city a source of inspiration
in this sorely tired world.
At the same time this honor rightly belonged
to Mr. McCloy. For we are dedicating this li-
' John J. McCloy, U.S. High Commissioner for Germany.
July 7, 1952
3
brary today because Mr. McCloy, 2% years ago,
had the idea of erecting a practical and enduring
memorial to serve as a constant reminder of the
spirit of cooperation and mutual respect which
has characterized the relationships between Amer-
icans and Berliners in recent years. Berlin
needed many things and Mr. McCloy hoped that
the memorial would contribute to the enriclmient
of the lives of all Berliners, East and West.
With this guiding principle in mind, a group
of Americans and prominent Germans met to dis-
cuss possibilities. Many suggestions were pre-
sented but the one whicli received overwhelming
support was for a public library.
They chose well. For it is not only a building
which we are dedicating today but a symbol of
our common cause and of our joint undertakings.
More important, perhaps, it signified the fact that
the freedom we seek to promote is ultimately a
very simple, very unpretentious, and very personal
affair. It is freedom to learn, to study, to seek
the truth. This is the essence of a free society.
This is the source of our greatest strength.
Our American forefathers early recognized the
close connections between knowledge, truth, and
freedom. They recognized that the intellectual
and spiritual inheritance of any generation must
be acquired by that generation. Concrete things,
such as land and wealth, can be inlierited from the
preceding generation. But the only way really
to receive an intellectual and spiritual inheritance
is to relearn it, to reacquire it. AVe know that it
is possible for a single generation to lose the most
important elements of the culture that has been
handed down to it.
This was something which the pioneers who
came to our country understood and with which
they wei'e deeply concerned. Even as our fore-
fathers cut the trees down and protected them-
selves against attack, they saw how quickly their
own heritage would be lost unless something earn-
est and drastic was done. Beginning in those
early years and continuing throughout the his-
tory of American migration across the wide con-
tinent, it was of primary and not secondary im-
portance to provide schools, colleges, meeting
houses, and libraries at each new outpost. And
with its roots in those early heroic efforts, these
institutions have kept alive, and expanding, and
available to all who earnestly seek it our rich
inheritance.
We are indebted to the Old World for the basis
of our cultural heritage, but we have extended
the frontiers of knowledge to the common man.
Knowledge in our eyes is not the privilege of the
expert or of the mighty; it is the property of
everyone who strives earnestly to attain it.
In America, the public library symbolizes tliis
philosophy. It is for these reasons that I feel it
is particularly appropriate than an American me-
morial should take the form of a public library.
Tribute to German Culture
The memorial library is also a tribute to Berlin's
cultural heritage which has been generously
shared with us. We remember that our own cul-
tural heritage owes much to Germany and to
Berlin. We have benefited greatly from your
academies and your learned men. The fame and
influence of Berlin's academies of science and of
the arts, its university, its theaters, its music, and
its great publishing trade, have been deeply felt
in America. Not only the youth of Germany but
the young men and women from all over Europe
and from the United States came to Berlin to re-
ceive their training in your educational institu-
tions and in turn to carry the messages of the
Humboldts, of Virchow, and Mommsen all over
the world. The wealth of creative activity which
characterized the life of Germany and of Berlin
in the early part of the century, and particularly
in the twenties, continues to exert influence around
the world.
Two thousand years ago it was written : "and
ye shall know the truth and the truth shall make
you free." Today, as then, truth and freedom
are inseparably joined. Tyrants may seek to
throw up barricades against the truth. But truth
will prevail and with it freedom.
There are nations today who seem to be deathly
afraid of this freedom. Free access to knowl-
edge, open shelves, unchecked selection of books —
all this is anathema to them. They have placed
their books under lock and key ; they ban the writ-
ten and spoken word when it originates with un-
controlled sources. They punish severely those
who seek the truth wherever it may be found.
Nothing can point up in more telling fashion
the nature of the conflict which divides our world
today than this : where others retire behind barbed
wire, we open wide the doors to knowledge so that
the truth may guide us.
The American Memorial Library will remind
future generations of the spirit of fellowship
which the people of America and the people of
Berlin have demonstrated in maintaining jointly
the freedom of the city. We Americans have al-
ways felt a deep kinsliip with those who are
staunch in the defense of their liberty. Genera-
tions of early Americans, in the face of almost con-
stant danger, never waivered in their determina-
tion to defend their liberty, if need be, with their
bare hands. The Freedom Bell which tolls from
your city hall in Schonberg and our Liberty Bell
in Philadelphia are symbols of this determination.
This memorial declares the sympathy and re-
spect of the American people for the unfaltering
struggle of the people of Berlin under the inspiring
and confident leadership of Mayor Ernst Renter
to defend their liberties in the face of the threats
and intimidation of a system which makes denial
of free thought a primary tenet.
While wo honor those who are engaged in the
Department of State Bulletin
defense of their freedom, we never forget those
other Germans who have been deprived of their
hberty. With those Germans of the Soviet zone,
who despite all threats and hardships have kept
burning in their hearts the flame of libei'ty, truth,
and the rule of law, we look forward eagerly to
that day when they may rejoin the free world in a
Germany united in peace and honor. In the
meantime, through their courage and steadfast-
ness they are aiding in the restoration of German
unity and freedom. To these people and to us,
Berlin remains a symbol of the goal of German
unity.
A few weeks ago, as you know, the Government
of the United States, together with the Govern-
ments of France and Great Britain, concluded a
very important agreement with the Government
of the Federal Republic. For all practical pur-
poses, this agreement will give the Federal Re-
public the powers of self-government and the sta-
tus of equality in international relations, which
are the prerogatives of free nations.
The agreement does not apply to Berlin, al-
though Berlin will benefit indirectly from the new
arrangements. It is our intent that the people of
Berlin enjoy to the fullest extent possible the
rights and privileges enjoyed by free men every-
where.
The responsibility for such restrictions as re-
main rests squarely on those who do not wish to
recognize the rights of all Germans, East and
West, of free elections, to live in freedom under
one goverimient and one constitution. The re-
sponsibility must rest with those who do not wish
to acknowledge the great progress made in Western
Germany toward political sovereignty and pros-
perity and who wish to turn back the clock on this
progress. The responsibility must rest with those
who feel that they can serve their own ends only
by keeping the rest of the world in a state of
intimidation or servitude. They shall not succeed.
Continued U.S. Support for Berlin
Whatever the political or legal status of Berlin
is to be for the time being, it will affect in no way
United States support for the welfare of the city
and the safety of its citizens. We have joined
the Governments of France and Great Britain in
reaffirming our abiding interest in the protection
of Berlin. We have given notice, in plain and
unmistakable language, that we are in Berlin as
a matter of right and of duty, and we shall remain
in Berlin until we are satisfied that the freedom
of this city is secure. We have also indicated in
unmistakable terms that we shall regard any at-
tack on Berlin from whatever quai'ter as an attack
against our forces and ourselves.
I mention another memorial in Berlin which
Berliners themselves have dedicated. It is the
memorial to those valiant men. Allied and Ger-
The American Memorial Library
at Berlin, Germany
[Released to the press June 28]
The American Memorial Library, Berlin, is a gift
of the American people to the citizens of Berlin to
commemorate the end of the period of Occupation
by the American Armed Forces. John J. McCloy,
U.S. High Commissioner for Germany, looking for-
ward in 1950 to the end of the Occupation period,
expressed his desire that this memorial should take
some cultural form expressing the American way of
life, which would be most acceptable to the citizens
of Berlin. Among the suggestions made at the time
were an opera house, a museum, a concert hall, and
a library. A committee of leading citizens of Berlin
met and expressed their preference for a library.
The Office of the United States High Commissioner
for Germany then set aside the sum of 5,000,000
DM fiom counterpart funds derived from the Mar-
shall Plan, 4,000,000 of which were to defray the
costs of the building and 1,000,000 for books and
periodicals. Mr. McCloy said at the time the grant
was made on Augiist 17, 10.51 :
"It is not only money but something tangibly
good. I hope it attains the objective we have in
mind — to help restore this great city to the status it
once had and to continue its reconstruction as a
symbol of freedom to the whole world."
In aceeijting the grant Dr. Walter Schrieber, the
Acting Mayor of Berlin, replied :
"We are especially grateful that this grant will
be used for a library, because we have suffered not
only great physical damage, but also great spiritual
damage. This gift will not only help us in our
general cultural life, but will aid us in the education
of our youth to enable them to play their part in the
establishment of a free world."
Approximately 200 German architects living in
Berlin and in the Western zones of the German
Republic took part in the democratic architectual
competition which followed. While prizes were
given to the best designs by a jury including Ger-
mans and Americans, the final design for the
building which is now being erected was derived
from the best features of the four most outstanding
designs submitted. The 6-story structure wiU be
525 feet in length and the library 250 feet wide at
its greatest depth with a book capacity for approxi-
mately one million volumes. The interior will re-
flect American library practice with the open-shelf
system predominating, thus making the books and
periodicals readily available to the German public.
Plans are being made so that the contents will not
duplicate the holdings of existing scientific and
technical libraries in Berlin, nor the new library of
the Free University of Berlin which the Ford Foun-
dation has recently presented. It is planned, how-
ever, to establish a central catalog in the library
in which the titles of the books in the other libraries
in the Western sector of Berlin will be listed. Like
the public libraries in our American cities, it will
contain books primarily useful to the ordinary
citizen, whether he be a musician, journalist,
teacher, laborer, or public servant. Provision has
also been made for a music room and a children's
library. In general it will reflect the fundamental
American principle that access to truth and knowl-
edge is not only the privilege but the inherent and
inalienable right of the citizen.
Ju/y 7, J 952
man, who gave their lives during the airlift so
that tliis bastion of freedom might survive.
One of the significant details about the aii-lift
which has gone almost unnoticed is the fact that
it brought to Berlin, along with food and other
essential goods, approximately 4,000 technical vol-
umes donated by ximerican universities and insti-
tutions designed to assist in the establishment of
the library of the free university. In addition,
it brought to Berlin an average of 60 tons of paper
weekly for use in producing books and periodicals
and at the gravest period of the airlift 210 tons
of newsprint weekly to permit the continued pub-
lication of Berlin's free press. This was a power-
ful demonstration of the understanding that
learning and truth are part of the very breath of
life in a free society.
This is the spirit inherited and carried forward
by the institution we are here to dedicate. The
airlift memorial is a monument to the dead; this
building will be a monument to the living. Both
monuments are symbols of freedom.
It is mj' hope that the doors of this libraiy will
never be closed to those who earnestly seek the
truth, and that it may serve, as far as possible, the
entire population of Berlin, both East and West,
and that everj' citizen may find here the knowl-
edge and truth which are so basic to our freedom.
I should like to leave with you words spoken by
Thomas Jefferson in connection with the found-
ing of the University of Virginia. Jefferson said :
This institution will be based on the illimitable freedom
of the humnn mind. For here, we are not afraid to fol-
low the truth wherever it may lead, nor to tolerate error
so long as reason is left free to combat It.
Secretary Acheson Departs
for Europe and Brazil
Statement hy the Secretary ^
As you know I am making a very quick trip to
London, to Berlin and Vienna, and from there
to Brazil. In England I shall be discussing a
number of things with Mr. Eden and with the
French Foreign Minister. I am also going to
Oxford where an honorary degree is being con-
ferred on me.
At ]\Ir. McCloy's suggestion, I shall spend a day
in Berlin where a memorial library is being
dedicated. This will give me an opportunity to
pay tribute to the Berliners whose courage and
tenacity in the face of great harassment has been
admired by everyone in the free world.
From tliere I am going to Vienna at the invita-
tion of the Austrian Government where another
'Made :it the W.ishington National Airport on June 22
and released to the press on the same date.
brave and determined people have been patiently
waiting for the independence promised them in
1943.
Foreign Minister Neves de Fontoura's invita-
tion for me to visit Brazil on the return trip will
afford me an opportunity to see for the first time
the great sister Republic which has such long and
firmly established ties of cooperation and good
will with the United States. My only regret is
that I cannot on this occasion visit the other repub-
lics of this hemisphere as well.
Visit of British Ministers
of Defence and State
Text of Comviunique
[Released to the pi'ess June 2^]
Field Marshal Lord Alexander of Tunis, the
British ?iTinister of Defence, and Mr. Selwyn
Lloyd, the Minister of State in the Foreign Office,
spent Monday, June 23d in Washington in a series
of informal meetings at the Department of Defense
and the Department of State. The American
representatives engaged in the discussions included
Mr. Robert Lovett, Secretary of Defense, General
Omar Bradley, Chairman of the. Joint Chiefs of
Staff, and Mr. David Bi-uce, Acting Secretary of
State.
The British Ministers gave a description of
their recent journey which included visits to Japan
and Korea. During the journey Lord Alexander
and Mr. Lloyd had had the opporttmity of con-
ferring among others with General Mark Clark,
Commander-in-Chief of the United Nations Com-
mand for Korea; Mr. Robert Murphy, United
States Ambassador to Japan ; General James Van
Fleet, Commander of the Sth Army; General
Naydon Boatner, Commanding Officer of the
Prisoner of War Camp at Koje-do; and General
A. J. H. Cassels, Commander of the Common-
wealth Division of the United Nations Forces.
The Minister of State also visited the United Na-
tions Organizations in Pusan concerned with the
rehabilitation of Korea.
During the talks in Washington, the American
and Britisli representatives discussed all aspects
of the Korean campaign, including the prospects
of bringing tlie armistice talks to a successful con-
clusion and the importance to the United Nations
cause of stable political conditions in the Republic
of Korea. The conversations proved most useful
to both sides.
Lord A lexander and Mr. Lloyd concluded their
visit with a call on the President of the United
States at the White House this morning. They
leave tonight by air for London.
Department of State Bulletin
Wellsprings of American Democracy
hy Francis H. Russell
Director of the Office of Puhlic Affairs '
Before telling you lohat I am going to talk
about, I would like first to tell you why I am
going to talk about it.
First was something that hapjjened to one of
our Point Four experts when he was on assign-
ment in India to help increase the corn yield in
that country. On the very first morning, in the
middle of the discussion, one of the Indian farm-
ers interrupted the talk on corn planting by de-
manding of the expert: ""Wliat is your philos-
ophy?"' That was not as peculiar as it sounds.
Corn, and what we can do to help India grow
more of it, is important to Indians, but even more
important in their eyes is understanding "our
philosophy."
The second reason for the subject of my talk
was something that happened to me personally.
I took a trip a short while ago to some of the
Nato countries. I found that more frequent than
questions about our military strength or our
economic production were questions designed to
find out about the average American's attitude
toward race relations. How do we square, for
instance, the segregation we have here in the Na-
tion's Capital with our Declaration of Independ-
ence? You find this concern every wliere. And
I found them genuinely interested in learning
about the great progress we have made over the
past hundred years — and are making today — in
dealing with this whole broad problem.
The third reason was an article that appeared
a while back in one of our American periodicals.
A Columbia University professor, writing in
Foreign. Affairs, said: "The United States is
facing [the present world crisis] with the . . .
ideological equipment of 1775. . . . Our prin-
cipal weakness today is not economic or military,
'Address made before the 22d National 4-H Clubs
Camp at Washington on June 24 and released to the
press on the same date.
but ideological — not a matter of goods or guns,
but of ideas."
A high-school teacher put it, I believe, even
better in an article in the Saturday Evening Post.
"It is a tragic commentary," she said, "that mil-
lions of Americans would willingly die to save
the Constitution but only a few of them will ever
read it. I can refer my students," she said, "to
authoritative sources on foreign isms, Marx and
Engels' Communist Manifesto, Lenin's The State
and Revolution . . . Hitler on National
Socialism . . . but who or what is authentic
on contemporary Americanism ?" "When we take
an oath of allegiance," she said, "we should be able
to explain the thing to which we give our
allegiance."
There are scores of editorials written every
week in American newspapers pointing out that
we need to be more than just a/i/i-Communist and
anti-Ynsc\st. We need to be pro something.
But rarely do any of them go on to say hoiu we
should give expression to this "pro."
Our difficulty stems, in part, from the fact that
we have been so busy here in Ajiierica for the past
century and a half iuilding our democracy, in
living it and a]5plying it, that we have taken no
time to give verbal expression to it. The dif!iculty
is greater, of course, because it is not jjossible for
a society like ours, that represents multifarious
vitalities, forces, values, and beliefs, to present a
single fanatic creed. Life for us is not a one-
dimensional proposition — as it is with the Com-
munists with their exclusive insistence on economic
determinism.
The final reason for my subject is you 4-H Club
members who are going to foreign countries this
summer. You will be questioned. People will
try to find out from you what makes Americans
"tick"; what the "philosophy" is that has enabled
this country to give its people the highest standard
of living in the world and the greatest freedom.
Jo/y 7, 7952
But they are interested also because they see the
world today split between two ways of life, and the
United States is the acknowledged leader of one
of them.
The Communists fill the air with charges that we
are a crass, money-mad, ruthlessly competitive
society. They say we have large oppressed mi-
norities; that we are bent on war; that we are
promoting colonialism politically and economi-
cally ; that we push smaller nations around ; that
we live, ourselves, under a dog-eat-dog system that
gives the lesser dogs only the "leavings."
These are some of the things our friends have
heard about us. Few of them really believe it but
they are anxious because they know that we must
provide tlie leadership for the free world and they
want to know into what kind of hands this leader-
shiij has gone.
So they will ask you such questions as "Wliat is
America's philosoijhy?"
America's Philosophy
That is what I want to talk about this afternoon.
It is the biggest single piece of unfinished business
in our struggle against the enemies of a free so-
ciety. Our program for military preparedness is
well under way. Our international political in-
stitutions are daily becoming stronger. The free
world's economy is potentially adequate. Those
are three of the fronts on which the present
struggle is being waged. But the struggle of
ideas is the first and the foremost front of all.
Now, the most important thing to notice about
this item of unfinished business is that it must be
finished by American citizens themselves. We can
set up a military establishment to be responsible
for organizing our defense. We can hire econo-
mists to tackle our economic problems. But we
cannot hire people, in a democracy, to tell us what
we think, how we live, and the things we stand for.
For the essence of our beliefs is that no person
or group of persons ought to dictate to us a body
of political doctrine. Everyone of us has the re-
sponsibility to help provide an answer, and no one
of us can give the answer.
Right tliere, of course, is the fork in the road
that divides us from the Communists. Almost
any Communist anywhere in the world can give
the Communist answer on almost any world prob-
lem. That is because the Communist answers are
fixed by a very small group of men and every Com-
munist, if he really is a Communist, has to give
that answer, and no other.
That seems at first blush to "ive tliem something
of an advantage : every member of the organiza-
tion knowing how to find out quickly and easily
what to say, and sa3'ing it.
The situation in a democracy, where no two
people say exactly the same thing because it is
believed that each person not only may think for
himself but that he should do so, may seem chaotic.
But we should remind ourselves of John Bur-
i-oughs' comment : "Nature always hits the mark
because she shoots in all directions."
In a society where everyone is free to think and
to submit his thoughts for honest discussion, we
are more likely to come upon the eternal truths
than in a society like that of the Soviet Union
where everyone "shoots" in just one direction.
The chance of that one direction being right is
infinitesimally small.
This does not mean that a democractic society,
any more than the individuals who make it up,
must always be running off in all directions. But
it does mean that it can look in all directions be-
fore making up its mind and setting its direction.
It is not bound and blindfolded by an authoritar-
ian political creed. This is one of the reasons for
our insistence upon freedom of thought, freedom
of the press, freedom of speech, and freedom of
assembly.
I said a moment ago that each one has an obliga-
tion in a democractic society to think through
what he believes to be the essence of the democratic
way of life. You have that obligation. And so
do i.
If I were to be in Italy next week, as some of
you will be, and were to have an Italian university
student come up and ask me what "my philosophy"
of democracy is and how it differs from the philos-
ophy of communism that he hears so much about,
I would try to draw upon some of the things I
have been hearing Americans say in the last year
or two and I would say something like this :
Conversation With a Friend
"You can understand American democracy, my
friend, only if you realize that it is not a particular
constitution, a particular set of laws, or economic
system, or religion. It is an approach, an atti-
tude, a freedom to think in all directions.
"There are several ways anyone could go about
defining our democracy for you. One would be
to describe its operations and manifestations:
how our labor unions work ; how our business or-
ganizations are owned and run — for instance, how
a typical American big business has some 50,000
owners; how America tends toward a classless
society because of its great mobility, horizontally
and vertically; about our graduated income and
inheritance taxes, putting the burden of govern-
ment on a more equitable basis; our social se-
curity; our nongovernment organizations; our
church life; our public schools; our widespread
opportunities for higher education, not to men-
tion county fairs, town meetings, community
chests, amateur musicals, and all the rest. Some
of these things we have evolved ourselves. For
many of them we have drawn upon the experience
of other peoples.
"But another way to define our democracy, my
friend, and the one that I would like to try for
8
Department of State Bulletin
you today, is to search out the sources, the well-
springs, that have made our democracy what it
is and that keep it going.
"If we do this we find that American democracy
has three main sources upon which it has drawn.
And in these three sources, incidentally, you find
the basic differences between American democracy
and Soviet communism.
Sources of the American Democracy
(1) Exfenence of the Ages
"The first source of American democracy is
what we may call the experience of the ages. The
millions of ])ilgrims who have come to our shores
have brought with them the accumulated wisdom
of their people down through the centuries: ex-
perience in such things as how to organize town
affairs; how people of different religions can get
along with each other; how to set up legislatures
and institutions of justice; how to provide fairly
for the ownership of property. All of these
things are the result of centuries of trial and
experiment, of discarding the unworkable and
keeping the good. No small group in our country
has ever been in a position at any time to decree
that such and such would be the way that things
should be done. We drew upon what seemed to
be tlie best in many countries and have continued
to change and improve.
"The Communists, on the other hand, believe
that the ways that have been worked out through
the centuries are evil. They have a few people
who sit down and decide how things shall be.
And this single pattern they impose by force
wherever they go. It is a synthetic fabrication to
fit the theories of a few individuals. In most of
its fundamentals it flies in the face of all experi-
ence. But when they make a decree that is the
way it is, even though, as in the case of the com-
munizing of the farms of Kussia, it results in the
death of millions of people.
"Of coui'se. all societies have conflicting inter-
ests. It is inherent in nature. But in a democ-
racy these conflicts are resolved by the majority
of the people or their representatives. In a totali-
tarian state they are resolved by force, purges,
executions, and slave camps.
"All of history shows that if men are chained
and oppressed, there are upheavals, reprisals, and
bloodshed; that stability is possible only in a
society where men have freedom. No govern-
ment can endure for very long if it denies people
the right to seek truth and to proclaim it.
"In short, freedom works and oppression does
not.
"So the experience of the ages is the first source
of our beliefs.
(2) Grotoing Knowledge of the Nature of Man
"The second great source of American democ-
racy, my friend, is what we may call our constantly
grotoing knowledge of the nature of man.
July 7, 7952
"Our Declaration of Independence, in its most
famous phrase, said that all men are endowed by
their Creator with certain unalienable rights,
among them being life, liberty, and the pursuit of
happiness. The framers of the Declaration thus
stated their belief that the indispensable pre-
requisite of happiness is liberty; the indispensable
prerequisite of liberty being life itself.
"You find the phrase, 'the happiness of the
people,' all through the sayings and writings of
the early Americans who addressed themselves to
the problem of the purposes of society.
"Listen to the words of the preamble of the
Constitution of one of our States, the Common-
wealth of Massachusetts:
The end ... of goveiument is to . . . furnish,
individuals with the power of enjoying . . . the
blessings of life . . . it is instituted for the . . .
happiness of the people ; and . . . the people alone
have an incontestable . . . right to . . . alter
. . . [it], when their . . . happiness re-
quire[s] . . .
"This concept was for a while brought into
disrepute because of an attempt to equate 'happi-
ness' with 'pleasure.' But our forefathers knew
what they meant. They knew there is an un-
happiness that is the lot of slaves and of those who
are ground down by poverty or ignorance, just as
millions today know it in a society characterized
by the sudden knock on the door, the enforced
spying of friend upon friend, and terrorism.
"And they knew there is an 'inward happiness'
that comes from the growth of the individual per-
sonality, from participation, from using one's
powers, from a sense of belonging.
"All that we have been able to find out about
the nature of man — and our store of knowledge
about what makes for his 'inward happiness,' and
what does not, is growing rapidly — points equally
to this same need for him to have freedom to
grow — to grow physically, mentally, and spirit-
ually, to have a sense of worth, a sense of moving
forward.
"Listen to modern psychology : 'All cells,' it
says, 'so long as they are living, are functioning.
And in every form of living substance exists an
inclination toward a specific series of processes.
The spinning apparatus of the spider, the wings
of the bird, the feelers of the crustacean have a
drive toward activity. So it is with the infinite
capacities of the human being, physical, intel-
lectual, and spiritual.' 'Happiness,' the psy-
chologists say, 'is what results from the success of
the process of working toward the goals of these
infinite human functions.'
"All this is not just pure theory. For example,
with the growth of industrial society the problem
arose, how do assembly-line workers achieve this
full life? We have found from experience that
for man to be really happy, his activity must be
end-guided. If the worker is reduced to the status
of a means and denied any goal except the intrinsic
one of wage, the wage, however great, cannot
redress the deep wrong to his personality involved
in tlie denial.
"Ours is a competitive society, and the competi-
tion stems from the desire of the individual to
prove to liimself his own worth. He measures it
by looking around him and seeing what the
achievements of otlier liuman beings have been.
We accept conflict and utilize it.
"Communism is based on 'cooperation' but it is
a cooperation which it finds is necessary to enforce
the police state.
"AH tlirough our effort, as you see, has been the
premise tliat the final and ultimate values are the
human beings who make up the society; the prem-
ise that society was made for man and not man
for society.
"And here we come upon a curious irony. Be-
cause the great threat today is the threat to the
freedom of tlie individual, a great deal of the
literature about the democratic way of life deals
with the rights of the individual ; and this has led
to many people abroad thinking of us as rabid
individualists with each man pursuing his own
lonely path.
"The truth is, my friend, that Americans have
an unusual capacity for cooperation. Community
life is at the core of our pattern of living. Free-
dom of association between people is our great
unwritten freedom. We believe the more bodies
of society you liave, the stronger and healthier
will be the resulting structure. So we are bound
together not only by the state but by a thousand
additional ties. We are the greatest 'Joiners' in the
world.
"Here again we have a conflict between democ-
racy and the authoritarian society. Under the
Soviet system you have no honest communities,
because under a police state each person has to be
on his own. He cannot trust even the members of
his own family. A Communist is the touchiest
person in the world.
"In the eyes of the Kremlin, power flows down
from the state, not up from the people, and human
beings are pawns, cogs, instruments to serve the
regime. Therefore, knowledge about the nature
of nian is of little importance.
"The Communists lay claim to having found the
scientific approach to human relations. But it is
a spurious claim. The science they apply is tlie
mechanical science of the machine — and man is
not a machine.
"We are entitled, however, to say that, in a pro-
founder sense, the process of democracy is scien-
tific. Given the problem as being one of an
adjustment of human relations calculated to
satisfy the claims made upon one another by indi-
viduals and groups in the hurly burly of human
contacts and the frictions which those contacts
produce, the democratic process is perhaps the
most scientific possible. It is based upon this
rapidly growing science of the nature of man.
(3) A Spiritual Approach to Life
"The third source of our American way of life,
my friend, is tlie great body of mankind's spiritual
insights. Americans can be understood only by
understanding what Lord Bryce called 'their
strong religious sense.' He put it first among
their traits — before their 'passion for liberty,'
'their individualistic self-reliance,' and even be-
fore 'their suspicious attitude toward officials.'
"We believe, with Jefferson, in the existence of
a moral instinct, and with Lao-Tze that only that
government has value which is in accord with this
moral nature.
"Many of our early settlers came here to escape
religious ]5ersecution, and we have always had a
great concern with freedom for religious convic-
tions and for varieties of religious worship. Many
Americans are adherents of formal religions;
many, like Lincoln, have drawn their inspiration
from less formal convictions, from a 'reverence for
life' and a devotion to man's duty toward man.
"From this 'religious sense' flow the honesty,
devotion to duty, and respect for human life, as
well as the understanding, the sympathy, the
warmth, the tolerance, the forbearance which
underlie our political and economic life and per-
meate our daily pattern of living — and without
which no formal institutions of society, no matter
how perfect, can long function effectively. Need-
less to say, we do not practice to perfection all of
these things that we believe : but we tend to have
a bad and uncomfortable conscience when we
don't.
"Here, too, we find a head-on conflict between
democracy and communism. Communism was
conceived in hate — and it is still saying the same
things in the same way after a lumdred years,
although the present conditions of labor in the
United States would be beyond the wildest
thoughts of Marx, and although the place where
labor conditions are nearest to those against which
Marx inveighed are today in the Soviet Union.
This hate shows itself in the speeches of vitupera-
tion that Communist re]>resentatives continuously
make in the United Nations, over the air waves
and among their owm people.
"Communism denies categorically the spiritual
approach to life. It calls religion 'an opiate for
the masses.' It proclaims materialism and glori-
fies it.
"Now j'ou may ask, my friend, whether the
principles that underlie our democracy are ap-
plicable in other areas and to other people, or are
they ]>ossible only in our special cii'cumstances.
"A partial answer is to be found in the fact that
we liave a mixed racial and cultural heritage, a
tradition of universality.
"Tlie second answer is that man, himself, is still
man no matter where you find him. His physical
wants are the same, and so, basically, are his
spiritual wants. Indeed, here in our own country
the environment, and the nature of the social prob-
10
Department of State Bulletin
lems, have changed. A hundred and fifty j'ears
ago ours was lai'gely a frontier society, predomi-
nantly agricultural. One person in twenty lived
in the city. Today that frontier has disappeared.
We have become an industrial society. Two-
thirds of our people live in cities. But the basic
principles still apply and will as long as men
remain men.
'Tt would be a mistake, therefore, to regard
these three wellsprings of our democratic society
as something only of the past.
"We are 'the continuous revolution,' the revolu-
tion of ordered progress for the common man.
It is operating today as powerfully as ever."
These are some of the things that I would say
to my young Italian friend if he were to ask me
about American democracy.
And then I would also saj^ : "We of the mid-
twentieth century have an exciting prospect. We
have the opportunity to lay the foundations of a
democratic world. It is a challenge which none
of us, anywhere, can escape. The rewards of suc-
cess, or the penalties of failure, will accrue to
everyone."
The Meaning of Citizenship
hy Howlamd H. Sargeant
Assistant Secretary for Public Affairs ^
Standing here in the shadow of this memorial
to one of the greatest of all Americans, I think
of what the essence of good citizenship is as
Jefferson saw it. To him citizenship meant an
obligation and a sacred trust.
The citizenship pledge of the 4-H Clubs re-
flects Jefferson's ideals. I like particularly the
closing paragraph :
We will endeavor to transmit this nation to posterity
not merely as we found it but freer, happier and more
beautiful than when it was transmitted to us.
You will not go far wrong if you make that
pledge your test of good citizenship.
In these troubled times young people are often
confused. You wonder, very naturally, what
you can do to make your America freer, happier,
and more beautiful. The 4-H Clubs are, I think,
showing you the way. They give you the basic
principles of good citizenship — and teach you
how to live and work by them.
I was particularly impressed this morning
when I watched a group of your club members
' Address made before the National 4-H Clulis Camp at
the Jeffersoa Memorial, Washington, on June 24 and
released to the press on the same date.
receiving their commissions as "Grass Roots
Ambassadors."
This particular group, I was told, will go to
22 countries — in Europe, the Near East, and
Africa. They will live and work with the peoples
of these countries. They will learn, but they will
also teach.
What an opportunity ! And what an expan-
sion of the concept of good citizenship ! For
your generation the horizons have widened to in-
clude the whole world, and you have the courage
and confidence to handle that responsibility.
Not all of you, of course, have been given this
responsibility. You are, however, backing the
4-H Clubs' "ambassadors of good will" with both
material and moral support. Each of you par-
ticipates, in a fashion, in everything these boys
and gii'is do in spreading good will for America
abroad.
This fall some of you wijl cast your first vote.
As free men and women you will have your say
in the kind of Government under which this
country will operate for the next 4 years, or
perhaps longer.
His vote is the good citizen's greatest privilege
and greatest responsibility. I hope you, all of you
who are eligible, are going to vote. Unfortunately,
many Americans do iot. A recent survey, in fact,
showed that in 1950 only 41 percent of the poten-
tial voters of the United States actually cast a
ballot. For some of these negligent citizens there
was, perhaps, an excuse. For the great majority
there was not. They merely failed to meet the
responsibility entrusted to them.
Some of you boys, this year perhaps, will be
called upon to assume one of citizenship's gravest
responsibilities — to defend, in uniform, the free
dom won for you by such men as Jefferson.
Here, again, it is a question of privilege and
responsibility. A young veteran, Maj. [then
Capt.] James Jabara, ace jet pilot of the U.N.
Forces in Korea, returned from Korea. He was
interviewed by a reporter from his home town of
Wichita, Kans. The reporter asked him : "Why
are we fighting in Korea, Captain?"
Jabara answered : "So we won't have to fight in
Wichita, Kans."
Your duty may not take you to Korea. But
wherever it takes you, keep that fact in mind. If
you serve in Korea or Europe, or remain in the
United States, the answer is the same. You are
defending your freedom in Wichita, Kans., in
Louisville, Ky., in any town in the United States
you may name.
'\^nien this Nation was young, we were able — we,
its citizens — to devote ourselves to the development
of our own beautiful land. We had only occasion-
ally to worry about other lands and other peoples.
That day is past. Wlien the North Koreans
struck at the Republic of Korea, 2 years ago at just
about this time, they struck at the freedom and
security of every American community, every
iu\y 7, J 952
11
American home, wlietlier a farm in the country or
an apartment in the city.
Major Jabara put it very tersely in that short
interview. But in those brief words he said
everything.
Today the horizon of the good citizen has broad-
ened. A "freer, happier and more beautiful
America" is possible only if we think and act in
these broa der terms.
This does not mean, for any of us, that we love
America the less. These boys and girls who are
leaving for their overseas assignments — upon their
return they will have tales to tell of these other
lands they have seen and of the people they have
met. I do not think, however, that any one of them
will return loving their own America the less.
They will be better, more loyal, and devoted Ameri-
cans for their experiences.
You have taken a pledge to serve America.
Keep that pledge alive in your hearts. Work at it.
And, with God's help, you will transmit to the
generation that comes after you "a freer, happier
and more beautiful America" indeed.
Department Expresses Regret
to Owen Lattimore
[Released to the press June 28}
On May 1, 1952, the Department announced that
all passports were being stamped "Not Valid for
Travel in the U.S.S.R. and its Satellites" unless
such travel was specifically authorized.^
On May 26, 1952, the Department of State re-
ceived from an official security source a report
that Owen Lattimore was making arrangements
to travel to the U.S.S.R. Pending further in-
vestigation, the Department sent a confidential
stop order to the Customs Bureau requesting it
not to permit the departure of Mr. Lattimore
from the United States. The confidential stop-
order procedure has been in force for 11 years to
prevent the possible violation of laws or of Gov-
ernment regulations for controlling the travel
abroad of American citizens. The existence of
tliis confidential stop order was divulged in the
newspapers on June 20.^
' I'.ui.i-ETiN of May 12, 19.j2, p. 73G.
' In a press release issued on that date, the Department
stated :
"An allegation was recently made to the Department
that Owen Lattimore was making arrangements for a
possible visit to the Union of Soviet Socialist Repulilics
and/or its satellites. The Department immediately be-
gan an investigation of this allegation.
"Pending the results of this investigation the Customs
Bureau was notified that Mr. Lattimore (who was not
in possession of a passport duly vali<lated for such travel)
should not be permitted to leave the United States.
"Mr. Lattimore last year applied for and was granted
a passport to visit Great Britain. This passport is no
longer in eHect and Mr. Lattimore has not since applied
for a pa.ssport."
The thorough investigation of the charges con-
cerning Mr. Lattimore requested by the Depart-
ment has now been completed. The F.B.I, has
notified the Department that the original in-
formant has admitted that the story which he had
furnished concerning Lattimore's alleged travel
abroad was a complete fabrication.
Proceedings were instituted which resulted
yesterday in the indictment by a Federal grand
jury of the individual who initiated the false
report.
Accordingly, the Department has revoked its
confidential stop order against Mr. Lattimore.
The Department of State expresses to Mr. Latti-
more its sincere regret over the embarrassment
caused him.
Visit of King Feisal II of Iraq
[Released to the press June IS]
King Feisal II of Iraq has accepted an invitation
to visit the United States during the months of
August and September. The 17-year-old heir to
the throne of Iraq will be accompanied by his
uncle the Regent of the Kingdom of Iraq, His
Royal Highness Prince Abdul Illah. The coast-
to-coast visit will be on an informal, unofficial
basis, and will include trips to various irrigation
and agricultural development projects in this
country. The King and the Regent will meet with
the President during the course of their visit.
King Feisal will ascend the throne of Iraq on
his 18th birthday. May 2, 1953. He is now a
student at Harrow School in England, and will
complete his studies there in July.
Current Legislation on Foreign Policy
The Mutual Security .\ct of 1!}.'32. S. Kept. 1575, 82d
Cong., 2d sess. [To accompany S. 3086] 1 p.
Amending the Foreign Service Buildings Act, 1926. S.
Kept. 15SG, 82d Cong., 2d sess. [To accompany H. R.
6661] 8 pp.
Free Importation by Keligious Organizations of Altars,
Pulpits, Communion Tallies, Baptismal Fonts, Shrines,
or Parts of the Foregoing, and Certain Kinds of
Statuarj'. S. Rept. 1601, 82d Cong., 2d sess. [To ac-
company H. R. 7593] 2 pp.
Official Contriliution of the United States Government
to the United Nations Yearbook of Human Rights,
19.50. S. Doc. 116, 82d Cong., 2d sess. 22 pp.
Convention on Relations With the Federal Republic of
Germany and a Protocol to the North Atlantic Treaty.
Message from the President of the United States
Transmitting the Convention on Relations Between
the Three Powers and the Federal Republic of Ger-
many, Signed at Bonn on May 26, 1952 and a Protocol
to the North Atlantic Treaty Signed at Paris on
May 27, 1952. S. Exec. Q and R, 82d Cong., 2d sess.
328 pp.
Emergency Powers Continuation Act. H. Rept. 2041, 82d
Cong., 2d sess. [To accompany H. J. Res. 477.]
46 pp.
Mutual Security Act of 1952. H. Rept. 2031, S2d Cong.,
2d sess. [To accompany H. R. 7005.] 22 pp.
12
Department of State Bulletin
Foreign Bondholders' Representatives
and German Debt Conference
[Released to the press June 24]
FoUowing is the text of a statement issued at
London on June 21^ iy Warren Lee Pierson, U.S.
delegate to the Conference on German External
Debts:''
I regret that the Foreign Bondholders Pro-
tective Council has withdrawn its representative
from the London debt discussions of the Young
and Dawes loans.
The settlement proposal for these loans, which
is now under consideration by the London con-
ference on German debts, is entirely tentative and
is subject to consideration not only from the stand-
point of its implications to U.S. holders of Young
and Dawes bonds but also from the standpoint of
its general effect upon other creditors of Germany
including all the other classes of American
creditors.
Private creditor and governmental representa-
tives of the United States, the United Kingdom,
France, and the other interested countries have
labored for more than a year to bring about a com-
prehensive and equitable settlement of the German
debts. In this effort, the German delegation on
external debts has given excellent cooperation.
As a result of these efforts, a satisfactory conclu-
sion of the London debt conference is within sight.
Efforts are continuing to be made to find a
settlement arrangement with respect to the Dawes
and Young loans which will be acceptable to all
interested parties. It is to be hoped that the
representatives of American holders of these bonds
will return to the conference to resume negotia-
tions regarding the Dawes and Young loans.
Claims of Nationals For Return
of Property in Japan
[Released, to the press June 25]
Under article 15 (a) of the peace treaty between
the Allied Powers and Japan, which came into
force on April 28, 1952, the Japanese Government
is required to return all property of Allied Powers
and their nationals within the present territorial
limits of Japan, and in cases where such prop-
erty was within Japan on December 7, 1941, and
cannot be returned or has been damaged, to pro-
vide compensation to property owners for their
loss or damage sustained as a result of the war
' This conference, which first convened at London on
Feb. 28, recessed on Apr. 4 and was reconvened on May
19. For previous announcements relating to the confer-
ence, see Bulletin of Feb. 11, 19ii2, p. 206; ibid.. Mar.
10, 19.->2, p. 397; Hid., Mar. 24, 1952, p. 4(51; and ibid..
May 26, 1952, p. 821.
within Japan in accordance with terms of the
Allied Powers Property Compensation Law
(Japanese Law No. 264 of 1951).
In order to assist American nationals who
desire to file applications under the treaty for
the return of their property in Japan or, in appro-
priate instances, claims for compensation under
the Allied Powers Property Compensation Law,
the Department of State has prepared, after con-
sultation with authorities of the Japanese Gov-
ernment, a memorandum regarding the manner in
which such applications or claims should be pre-
pared and filed. A copy of the memorandum is
being sent to all American nationals who, on the
basis of information available to the Department
of State, have indicated a desire to file applica-
tions for the return of property or claims for
compensation. American nationals who desire
to file such applications or claims, but have not
previously communicated with the Department,
may obtain copies of the memorandum from the
Office of the Legal Adviser, Department of State,
Washington 25, D. C.
Applications for the return of property must
be submitted by this Government to the Japanese
Government before January 28, 1953. Claims
for compensation must be sulamitted by this Gov-
ernment to the Japanese Government on or before
October 28, 1953. However, to insure proper
consideration of applications for restitution of
property and claims for compensation, they
should be filed with the Department of State with
the least possible delay.
Annex to U. S.-Panama
Air Transport Agreement
[Released to the press June 20]
The Department of State announced on June 20
an exchange of diplomatic notes between the De-
partment and the Embassy of Panama implement-
ing the route annex to the Bilateral Air Transport
Agreement between the Government of the United
States of America and the Government of the
Republic of Panama, signed March 31, 1949,^ to
provide for a route for Panamanian air carriers.
Schedule two of the annex of the foregoing
agreement has been amended to read as follows:
"Airlines designated by the Republic of Panama
are accorded in the territory of the United States
of America the rights of "transit and non-traffic
stop, as well as the right to pick up and dis-
charge international traffic in passengers, cargo
and mail via intermediate points in both directions
at the points specified below :
"1. From the Republic of Panama to Miami,
Florida via intermediate points in the Carib-
bean."
' BtTLLETlN of Apr. 10, 1949, p. 466.
July 7, J 952
13
U. S., Portuguese Defense Agreement
[Released to the i>rcss June 19]
The Portuguese and U.S. Governments on June
19 released tlie text of an agreement regarding
military facilities in the Azores signed at Lisbon
on September 6, 1951.^ It was announced at that
time that this agi'eement, which would be made
public, was concluded in accordance with Noi'th
Atlantic Treaty Organization (Nato) defense
plans.
Text of the agreement follows :
The Portuguese Government and the Government of
the United States of America :
Having in mind the doctrine and obligations arising
from Articles 3 and 5 of the North Atlantic Treaty signed
in Washington April 4, 1949 ;
Resolved, in accordance with the preamble of that
Treaty to unite their efforts for the common defense and
for the preservation of peace and security ;
Considering the necessity of executing in peacetime the
measures of military preparation necessary to the common
defense, in conformity with plans approved by the nations
signatory to the referred to Treaty ;
Taking into consideration that according to the pro-
visions adopted in the North Atlantic Treaty Organization,
the area of the Azores directly interests Portugal and the
United States and that between them they must establish
agreements for the determination and utilization of the
facilities which it is possible for the first of the mentioned
Governments to grant in those islands ;
Agree as follows :
Article 1
The Portuguese Government grants to the Government
of the United States In case of war in which they are
involved during the life of the North Atlantic Treaty and
within the framework and by virtue of the responsibilities
assumed thereunder the use of facilities in the Azores
which will be provided for in technical arrangements to
be concluded by the Ministers of Defense of the two
Governments.
Whenever reference is made in the text of this Agree-
ment to technical arrangements, it is understood that such
reference has to do with the technical arrangements to be
agreed upon by the Jlinisters of Defense of the two Gov-
ernments, and which are hereby authorized.
Article 2
The Governments of Portugal and of the United States,
in technical and financial collaboration, and in harmony
with technical arrangements to be agreed upon, will con-
struct new installations and enlarge and improve those
existing for the purpose of preparing and equipping the
agreed facilities in the Azores with what is necessary for
the execution of the missions for which under the defense
plans they are charged with in time of war.
1) These preparatory works shall include, among other
things, the storage of oil, munitions, spare parts and any
supplies considered necessary for the purposes in view.
2) The term for the execution of what is set forth in the
body of the present Article and in subparagraph 1 will
run from the date of signature of this Agreement until the
first of September 1956 with a period of grace of four
months.
Article 3
All constructions and materials incorporated in the soil
will from the start be considered property of the Portu-
guese State without prejudice to the recognized right of the
' lUrLLETiN of Sept. 17, 1951, p. 4G6.
United States to use such constructions and materials in
time of war or in time of peace to the extent and in the
manner provided in this Agreement, and to raze and
remove them for its account at the end of the term re-
ferred to in Article 1 or if the hypothesis mentioned in
Article 8 should eventuate, all in accordance with techni-
cal arrangements to be agreed upon.
At the end of the period referred to in Article 1, as
well as in the hypothesis provided for in Article 8, and
without prejudice to the technical arrangements referred
to above, the United States may raze or remove for its
account technical equipment belonging to it and not neces-
sary to the future functioning of the bases, the Portuguese
Government making e(]Uitable payment for that which
it desires to acquire and which may be ceded to it.
Article 4
Having in mind their eventual use In harmony with the
provisions of Article 1, the I'ortuguese Government will
undertake the maintenance of the facilities in all the pe-
riod subsequent to the withdrawal of the American per-
sonnel, as stipulated in Article 7.
Article 5
For the purpose of the previous Article, and in accord-
ance with what will be agreed upon between the Defense
Jlinisters of the two Governments, the Government of the
United States will provide facilities necessai? for the
apprenticeship and training of Portuguese personnel hav-
ing in mind the perfect functioning of the bases as well
as facilitate duly qualified American personnel and mate-
rial both deemed indispensable for the missions charged
to the military forces in the Azores, in time of peace as
well as in time of war, in harmony with the plans estab-
lished by the competent organs of tlie North Atlantic
Treaty Oi'ganization. This American personnel in the
period subsequent to the evacuation of the bases in time
of peace will be under Portuguese direction.
Article 6
During the period of the preparation of the bases, in
conformity witli Article 2 subparagraph 2, and during the
period of evacuation granted under Article 7, the transit of
American military aircraft through the Lagens Airdrome
continues to be permitted and there will be authorized
on that base, during the same periods, the training of
United States aviation and naval personnel, and United
States military and civilian personnel stationed there may
be increased up to the necessary. There will also be per-
mitted the eventual visit to the airdrome of Santa Maria
of some military aircraft which will be provided for by
technical arrangements to be concluded between the Min-
isters of Defense of the two Governments.
These arrangements will fix the number and missions of
the personnel employed and will define the legal statute to
which they will be subject, as well as the exemptions
which the personnel and material will enjoy in time of
peace and in time of war.
Ajktict^ 7
For a term beyond the periods in which the facilities
.should be utilized either in time of war or under condi-
tions provided for in subparagraph 2 of Article 2, there
will be granted by the Portuguese Government between six
months and a year, in accordance with the circumstances
and difficulties of the occasion, for the complete evacuation
of the American personnel and their accompanying equip-
ment, which will take place whether or not it has been
possible to carry out the provisions of Article 5.
Stockpiling of materials and supplies necessary to the
preparation for war, in accordance with the reasonable
exigencies of the international situation, and in accord-
ance with technical arrangements to be agreed upon. Is
authorized during the term referred to in Article 1.
14
Department of State Bulletin
Aeticle 8
The Government of the United States may at any
moment renounce the concessions granted under the pres-
ent Agreement in which case the ohligations assumed in
this respect by the Portuguese Government will likewise
cease.
Aeticle 9
In case of war the facilities granted may be utilized by
the rest of the North Atlantic Treaty Organization mem-
bers. The conditions for the utilization of the facilities
by the members of the Nato will be established by agree-
ment between the competent Portuguese and American
authorities.
The Portuguese Government reserves the right to extend
to the Governnicnt of His Britannic JIajesty in the United
Kingdom facilities analogous to those granted under this
Agreement.
Abticle 10
The Portuguese Government will authorize, after the
period of evacuation fixed in .Article 7, the transit through
Lagens of military aircraft of the United States canning
out missions within the framework of the North Atlantic
Treaty Organization. This transit will be carried out
by the utilization of the Portuguese services in the re-
ferred to Base, whether or not it has been possible to
carry out the qirovisions of Article 5.
For beyond the period in question, and from time to
time, as may be agreed between the Ministers of Defense
of the two countries in the face of circumstances and in
each case, the I.agens base may be utilized for the exer-
cises of combined training of the appropriate forces of
NATO. The non-Portuguese personnel necessary to effect
this training will remain in the Azores only for the
time necessary for each operation.
Abticle 11
Nothing in the technical arrangements to be agreed upon
by the Ministers of Defense of the two Governments may
be understood in a contrary sense to the provisions of the
present Defense Agreement.
Article 12
This -Vgreenient will enter into effect on the date of its
signature and on the same date the Agreement of Feb-
ruary 2. 1948, will cease to have validity.
In testimony thereof the respective plenipotentiaries of
the two Governments have placed their signatures and
affixed their seals to the present Agreement.
Done in Lisbon in two copies, in Portuguese and English,
both texts having equal value, this sixth day of September,
1951.
Lincoln MacVeagh
Paulo Cunha
Loan to Turkey To Help Finance
Seyhan River Dam
The International Bank for Eeconstruction and
Development on June 18 made a loan of $1^5,200,000
to the Republic of Turkey to assist in the develop-
ment of the Adana Plain, a productive agricultural
and industrial area in south-central Turkey. The
loan will help to finance a multipurpose dam on the
Seyhan River — to be used for flood control, irriga-
tion, and hydroelectric power — and related power
facilities.
These installations form the key part of the
Seyhan project, a comprehensive plan being
carried out by the Turkish Government for the
full control and utilization of the waters of the
Seyhan River. The economic development of the
Aclana Plain has thus far been limited by ruinous
seasonal floods, by lack of water for irrigation in
other seasons, and by a serious shortage of electric
power.
The works which will be financed by the Bank's
loan include the construction of an earth dam,
a powerhouse, step-up and step-down substations,
and transmission lines to the industrial centers of
Adana, Mersin, and Tarsus. The power plant
will contain two 18,000-kilowatt generators. It is
estimated that by 1965 the annual consumption of
energy from these will reach 164 million kw.-hrs.,
which is about four times the total energy, both
mechanical and electrical, consumed in the area in
1951. Housing will be provided for a third
generator which may be installed later.
The total cost of these works will be the equiv-
alent of about 35.8 million dollars. The Bank's
loan will finance the foreign exchange costs,
amounting to the equivalent of 25.2 million dollars.
The loan will be used for purchases in the United
States and Europe of construction materials and
equipment, generating and transmission units, and
for payment of engineering and contracting fees.
Local currency requirements, equivalent to about
10.6 million dollars, will be provided partly by the
Turkish Government and partly by private in-
vestors. The works are expected to be completed
by the summer of 1956.
Other parts of the Seyhan project will be
financed out of Turkey's own resources. The en-
tire project includes the building of a system of
flood-control levees along the Seyhan, Berdan, and
Ceyhan Rivers, and collection channels at the foot-
hills of the Taurus Mountains to catch the run-ofl'
of small streams; the construction of a network
of canals to provide regular irrigation for ap-
proximately 144,000 hectares (356,000 acres) of
land; and the further expansion of power facili-
ties. AVork on the flood-control levees is virtually
completed and will be finished this year. A begin-
ning has been made on the irrigation system ; work
will be resumed in 1956 after completion of the
dam and is expected to be finished in 1961. Some
time after 1965, power requirements should justify
the expansion of the facilities being financed by
the Bank. The entire program will cost the equiv-
alent of about 67 million dollars.
Completion of the Seyhan project will bring
substantial benefits to both agriculture and indus-
try. The prevention of flood damage to crops and
other property will result in average savings esti-
mated at the equivalent of about 3 million dollars
annually. Irrigation is expected to increase the
production of crops in the Adana Plain, especially
cotton, oilseeds, and citrus fruits, and ultimately
will bring farmers additional profits estimated at
the equivalent of about 16 million dollars annually.
July 7, J 952
15
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings ^
Adjourned during June 1952
West Point Sesquicentennial West Point Jan.-June
International Exhibition of Drawings and Engravings Lugano Apr. 10-June 2
UN Economic and Social Council:
Human Rights Commission: 8th Session New York Apr. 14-June 6
Itu (International Telecommunication Union):
Administrative Council: 7th Session Geneva Apr. 21- June 6
European Conference on VHF Broadcasting (41 mc/s to 216 mc/s) . . Stockholm May 28-June 30
Paris International Trade Exhibition Paris May 17-June 2
Wmo (World Meteorological Organization):
Regional Association for Europe: 1st Session Zurich May 26-June 9
UNESCO (United Nations Educational, Scientific and Cultural Organiza-
tion) :
Executive Board: 30th Session Paris May 26-June 6
IcAO (International Civil Aviation Organization):
Sixth Annual Assembly Montreal May 27-June 7
International Conference on Large Electric High Tension Systems: 14th Paris May 28-June 7
Session.
Who (World Health Organization):
Executive Board: 10th Session Geneva May 29- June 4
International Convention for Protection of Industrial Property .... Vienna June 2-7
Fao (Food and Agriculture Organization)'
Meeting of Committee on Commodity Problems Rome June 3-7
Council: 15th Session Rome June 9-14
Latin American Forestry Commission: 4th Session Buenos Aires June 16-21
International Whaling Commission: 4th Meeting London June 3-6
Ilo (International Labor Organization):
35th Session of the Ilo Geneva June 4-28
International Meeting of Tonnage Measurement Experts The Hague June 4-14
Third Session of the Provisional Intergovernmental Committee for the Washington June 10-13
Movement of Migrants from Europe (Picmme).
Sample Fairs Barcelona June 10-30
21st Session of the International Criminal Police Commission Stockholm June 9-12
Annual Meeting of the Directing Council of the American International Montevideo June 13-14
Institute for the Protection of Childhood.
Committee on Highway Programming and Planning Washington June 23-28
In Session as of June 30, 1952
International Materials Conference Washington Feb. 26, 1951-
International Conference on German Debts London Feb. 28-
Universal Postal Union: 13th Congress Brussels May 14-
UN (United Nations):
Economic and Social Council: 14th Session New York May 20-
Trusteeship Council: 11th Session New York June 3-
26th Biennial International Exhibition of Art Venice June 14-
Fao (Food and Agriculture Organization) :
European Forestry and Forest Products Commission: Meeting of Nice June 28-
Working Group on Torrent Control and Protection from Ava-
lanches.
Meeting on Home Economics and Education in Nutrition (Fao- Port-of-Spain June 30-
Caribbean Commission).
International Philatelic Exhibition Utrecht June 28-
Icao (International Civil Aviation Organization):
Fourth Special Meeting of Rules of the Air and Air Traffic Services Paris June 30-
Committee — European-Mediterranean Region.
International Commission for the Northwest Atlantic Fisheries: Annual St. Andrews (New Bruns- June 30-
Meeting. wick).
Ilo (International Labor Organization) :
Governing Body: 120th Session Geneva June30-
' Prepared in the Division of International Conferences, Department of State, June 24, 1952.
16 Deparfment of State Bulletin
Calendar of Meetings — Continued
Scheduled July 1-September 30, 1952
International Wheat Council: 10th Session
Fifteenth International Congress on Public Education
Inter- American Commission of Women: 8th General Assembly. . . .
Itu (International Telecommunication Union) :
Conference for the Revision of the Bermuda Telecommunications
Agreement of 1945.
International Radio Consultative Committee (Ccir): Study Group
X.
UNESCO (United Nations Educational, Scientific and Cultural Organiza-
tion):
International Center for Adult Education — Seminar on Workers' Edu-
cation.
International Conference To Negotiate a Universal Copyright Con-
vention.
Seminar on Museums
International Congress of the Arts
Wmo (World Meteorological Organization) :
Commission for Maritime Meteorology, Meeting of
Third Session of the Executive Committee
International Soil Fertility Meeting
Eighteenth Conference of the International Red Cross
Paigh (Pan American Institute of Geography and History) :
Third Consultation on Geog phy
UN (United Nations) :
Economic and Social Council:
Economic Commission for Asia and the Far East:
Worliing Party on Small Scale Industries and Handicrafts
Marlceting: 2d Meeting.
Inland Transport Committee, Highway Subcommittee: 1st
Session.
Second Regional Conference of Statisticians
Inland Transport Committee, Inland Waterway Subcommittee:
1st Session.
Commission on Prisoners of War: 3d Session
Committee on Information from Non-Self-Governing Territories . .
Ad Hoc Committee on Factors (Non-Self-Governing Territories). . .
Administrative Unions Committee
International Sugar Council
Inter-American Seminar on Vocational Education
Second International Congress on Analytical Chemistry
Thirteenth International Exhibition of Cinematographic Art
International Geographical Union: 8th General Assembly
International Astronomical Union: Symposium on Radio Astronomy .
Fourth World Assembly of the World Organization for Early Childhood
Education.
International Radio Scientific Union: 10th General Assembly ....
Edinburgh Film Festival, Sixth International
Grassland Congress, Sixth International
Fourth International Congress of Onomastic Sciences
International Championships for 1952 Military Pentathlon
IcAO (International Civil Aviation Organization) :
Aeronautical Information Services Division: 1st Session
Special Diplomatic Conference to Conclude a Convention on Damage
Caused by Foreign Aircraft to Third Parties on the Surface.
Statistics Division: 2d Session
International Wine Office, 32d Plenary Session of the Committee . . .
Izmir International Trade Fair
International Union of Theoretical and Applied Mechanics: 2d General
Assembly.
Interparliamentary Union, XLI General Assembly • •
Fourth International Congress of Anthropological and Ethnological
Sciences.
Bank for Reconstruction and Development, International — and Inter-
national Monetary Fund: 7th Annual Meeting of the Boards of
Governors.
Third General Assembly of the International Union for the Protection
of Nature.
International Astronomical Union: 8th General Assembly
Seventh International Congress and Exposition of Photogrammetry . .
19th International Geological Congress
Thirteenth International Horticultural Congress
Ilo (International Labor Organization) :
Chemical Industries Committee: 3d Session
Paso (Pan American Sanitary Organization) :
17th Meeting of the Executive Committee
London July 1-
Geneva July 7-
Rio de Janeiro .... July 8-
London July 9-
Geneva Aug. 20
Paris July 12-
Paris Aug. 18-
New York Sept. 15-
Venice Sept. 21
London July 14-
Geneva Sept. 9-
Dublin July 21-
Toronto July 23-
Washington July 25-
Bangkok July 28-
Bangkok Aug. 18-
Bangkok Sept. 1-
Bangkok Sept. 16-
Geneva Aug. 25
New York Sept. 11-
New York Sept. 18-
New York Sept. 23-
London July or Aug.
University of Maryland . Aug. 2-
Oxford Aug. 4-
Venice Aug. 8-
Washington Aug. 8-
Sydney Aug. 11-
M6xico, D. F Aug. 11-
Sydney Aug. 11-
Edinburgh Aug. 17-
State College, Pa. . . . Aug. 17-
Uppsala Aug. 18-
Brussels Aug. 18-
Montreal Aug. 19-
Rome Sept. 9-
Montreal Sept. 16-
Freiburg Aug. 19-
Izmir Aug. 20-
Istanbul Aug. 25-
Bern Aug. 28-
Vienna Sept. 1-
Mdxico, D. F Sept. 3-
Caracas Sept. 3-
Rome Sept. 4-
Washington and Dayton Sept. 4-
Algiers Sept. 8-
London Sept. 8-
Geneva Sept. 9-
Habana Sept. 10-
iuly 7, 1952
213616—52-
17
Calendar of MeetingH — Continued
Scheduled July 1-September 30, 19^2— Continued
Paso (I'an American Sanitary Organization) — Continued
Sixth Session of the Directing Council — and Fourth Regional Com-
mittee of the World Health Organization.
18th Meeting of the Executive Committee ...
Fourth Meeting of the International Scientific Committee for Trypano-
somiasis Research.
Fag (Food and Agriculture Organization) :
Fag-Ecla Central American Seminar on Agricultural Credit ....
Technical Advisory Committee on Desert Locust Control: 2d Meetmg
Eucalvptus Study Tour
Fourth international Congress of African Tourism
Twenty-first International Congress for Housing and Town Plannmg .
International Council for the Exploration of the Sea ........
International Council of Scientific Unions: 4th Meeting of the Executive
Board.
Habana Sept. 19-
Habana Sept. 26-
Louren^o Marques (Moz- Sept. 10-
ambique) .
Guatemala City .... Sept. 15-
Ronie Sept.-
Australia Sept.-
Lourengo Marques . . . Sept. 15-
Lisbon Sept. 21-
Copenhagen Sept. 29-
Amsterdam Sept. 30-
Current United Nations Documents:
A Selected Bibliography ^
Disarmament Commission
France, the United Kingdom of Great Britain and North-
ern Ireland and the United States of America : Work-
ing Paper setting forth proposals for fixing numerical
limitation of all armed forces. DC/10, May 28, 1952.
5 pp. mimeo.
First Report of the Disarmament Commission. DC/11,
May 29, 1952. 6 pp. mimeo.
Economic and Social Council
Commission on the Status of Women. Resolutions of
May 23, 26 and 28, 1952. E/2237, June 3, 1952. 7 pp.
mimeo.
Economic Development of Under-Developed Countries:
Methods of Financing Economic Development. Sug-
gestions from Member Governments on financing
of economic development of under-developed coun-
tries in respon.se to General Assemlily resolution 520
A (VI) and Council resolution 368 (XIII). E/2242,
June 2, 1952. 6 pp. miinpo.
Implementation of Recommendations on Economic and
Social Matters. Resolution 283 (X). E/2165/Add.35,
April 23, 1952. 5 pp. mimeo.
Report of the International Bank for Reconstruction and
Development. B/2168/Add.l, April 30, 1952. 23 pp.
' Printed materials may be secured in the United States
from the International Document Service, Columbia Uni-
versity Press, 2960 Broadway, New York 27, N. Y. Other
materials fmimeographed or processed documents) may
be consulted at certain designated libraries in the United
States.
The United Nations Secretariat has established an
Official Records series for the General Assembly, the Se-
curity Council, the Economic and Social Council, the
Trusteeship Council, and the Atomic Energy Commission,
which includes summaries of proceedings, resolutions, and
reports of the various commissions and committees. In-
formation on securing subscriptions to the series may be
obtained from the International Documents Service.
Development of Arid Land. Report by the Secretary-
General on the Activities of the United Nations and
the Specialized Agencies. E/2191, April 18, 1952. 52
pp. mimeo.
International Co-operation on Water Control and Utili-
zation. Report of the Secretary-General under Coun-
cil resolutinn 346 (XII). E/2205/Add.l, April 22,
19.52. 118 pp. mimeo.
Elections. Election of Members of the Permanent Central
Opium Board. E/2216, May 1, 1952. 11 pp. mimeo.
Implementation of Recommendations on Economic and
Social Matters. Economic and Social Council Resolu-
tion 2S3 (X). Texts of Replies from Governments of
Member States. E/2165/Add.37, May 2, 1952. 7 pp.
mimeo.
Implementation of Recommendations on Economic and
Social Matters. Report by the Secretary-General.
E/2166, May 7, 1952. 117 pp. mimeo.
Teaching of the Purposes and Principles, the Structure
and Activities of the United Nations and the Special-
ized Agencies in Schools and Educational Institutions
of Member States. Report by the Secretary-General
and the Director-General of UNESCO. E/2184, May
2, 1952. 84 pp. mimeo.
Narcotic Drugs. International Limitation of Opium Pro-
duction. E/2]8G/Add.2, May 19, 19.52. 13 pp. mimeo.
World Conference on Population. Report by the Secretary-
General. E/2190/Add.l, May 15, 19.''i2. 5 pp. mimeo.
Co-ordination of the Work of the United Nations and the
Specialized Agencies. Information on Regional Co-
ordination of Programs of the United Nations and the
Specialized Agencies and Relations with Non-United
Nations Regional Organizations. Report of the Sec-
retary-General. E/2204, April 30, 1952. 44 pp. mimeo.
International Co-operation on Water Control and Utiliza-
tion. Report of the Secretarv-General under Council
resolution 346 (XII). E/2205, April 25, 1952. 70 pp.
mimeo.
United Nations Programme of Technical As.sistance.
Under General Assembly resolutions 200 (III), 246
(III), 418 (V) and Economic and Social Council
resolution 222 A (IX). Report bv the Secretary-
General. E/2209, April 21, 1952. 106 pp. mimeo.
Report of the International Refugee Organization.
E/2211, April 23, 1952. 38 pp. mimeo.
Freedom of Information. Enquiry under Council Resolu-
tion 414 (XIII), Section B, III, Paragraph 28 on the
18
Department of State Bulletin
Future Work of the United Nations in the Field of
Freedom of Infoi'matlon. Report by the Secretary-
General. E/2217, May 5, 1952. 21 pp. mimeo.
Economic Development of Under-Developed Countries.
Integrated Economic Development and Commercial
Agreements (General Assembly Resolution 523
(VI) ). Replies from Governments of Member States
in response to General Assembly Resolution 523 (VI)
on action taken concerning production, distribution
and prices of commodities and measures to combat
inflation. E/2243, June 3, 1952. 63 pp. mimeo.
Freedom of Information. Report of the Sub-Commission
on Freedom of Information and of the Press (Fifth
Session). E/2251, June 11, 1952. 5 pp. mimeo.
The Problem of Statelessness. Consolidated report by
the Secretary-General. E/2230, A/CN.4/56, May 26,
1952. 206 pp. mimeo.
Expanded Programme of Technical Assistance. Fourth
Report of the Technical Assistance Board to the
Technical Assistance Committee. E/2213 (Vol. I
and Vol. II), May 8, 1952. Vol. I, 150 pp.. Vol. II,
329 pp. mimeo.
Migration. Report by the Director-General of the Inter-
national Labour Office to the Economic and Social
Council in accordance with Council re.solution 396
(XIII) of 25 August 1951 on methods of international
financing of European emigration. E/2235, May 28,
1952. 11 pp. mimeo.
Report of the World Health Organization. E/2239, June
3, 1952. 86 pp. mimeo.
Report of the Social Commission (Seventh Session).
E/2065, August 4, 1951. 8 pp. mimeo.
Economic Development of Under-develoi)ed Countries.
Methods of financing economic development. (Gen-
eral Assembly resolution .520 A (VI) ). 31 pp. mimeo.
Replies of Governments to the Questionnaire on Forced
Labour. E/AC. 36/11, May 9, 1952. 110 pp. mimeo.
United Nations International Children's Emergency Fund.
Financial Report for the Year Ended 31 December
1951. E/ICEF/193, April 10, 1952. 15 pp. mimeo.
Arrangement of Business at the Fourteenth Session. E/L.
315, May 16, 1952. 8 pp. mimeo.
Mutual Security Act of 1952. Hearings before the Com-
mittee on Armed Services, 82d Cong., 2d sess. on S.
3086. May 8, 9, and 13, 1952. 140 pp.
General Ridgway. Hearing before the Committee on
Armed Services, U.S. Senate, 82d Cong., 2d sess.
Discussion with Gen. Matthew B. Ridgway re Far
Eastern Situation, Koje-Do POW Uprising, and Nato
Policies. May 21, 1952. 34 pp.
Food and Famine. Procedures for International Action
in the Event of Emergency Famines Arising from
Natural Causes. E/2220, May 14, 1952. 16 pp.
mimeo.
Report of the Economic Commission for Europe. Work
Programme and Priorities 1952-1953. E/2221, May
19, 1952. 36 pp. mimeo.
Economic Development of Under-developed Countries.
Methods to Increase World Productivity (General
Aissembly Resolution 522 (VI)). E/2224, May 21,
1952. 5 pp. mimeo.
Proceeds of Sale of Unrra Supplies. Report by the Sec-
retary-General. E/2227, May 23, 1952. 35 pp. mimeo.
Prevention of Discrimination and Protection of Minorities.
Report by the Secretary -General under Council resolu-
tion 414 B 11 (XIII) on the future work of the United
Nations in the fields of prevention of discrimination
and protection of minorities. E/2229, May 23, 1952.
36 pp. mimeo.
Freedom of Information. Annotated list of documents
prepared for the third, fourth and fifth sessions of
the Sub-Commission on Free<lom of Information and
of the Press. E/2231, May 27, 1952. 5 pp. mimeo.
Expanded Programme of Technical Assistance. Report of
the Technical Assistance Committee on the admin-
istration of the Expanded Programme. B/2238, May
29, 1952. 18 pp. mimeo.
Teaching of the Purposes and Principles, the Structure
and Activities of the United Nations and the Special-
ized Agencies in Schools and Educational Institutions
of Member States. Report by the Secretary-General
of the United Nalions and the Director-General of
UNESCO. E/2184/Add. 2, May 23, 1952. 21 pp. mimeo.
General Assembly
Report of the United Nations High Commissioner for
Refugees to the General Assembly. A/2126, May 29,
1952. 39 pp. mimeo.
Replies of Go%'ernments (Non-Self-Governing Territories)
A/AC.58/l/Add.l, May 28, 1952. 10 pp. mimeo.
Trusteeship Council
Examination of Annual Reports. Observations of the
United Nations Educational, Scientific and Cultural
Ortranization on the reports for 1951 on the Trust
Territories of Tanganyika, Togoland under British
administration, Togoland under French administra-
tion, Cameroons under British administration, and
Oameroons under French administration. T/1012,
June 17, 1952. 21 pp. mimeo.
Land Utilization in Somaliland Under Italian Adminis-
tration. Memorandum submitted by the Italian Gov-
ernment. T/AC.36/L.50, May 12, 1952. 10 pp.
mimeo.
Population, Land Categories and Tenure in Togoland
Under French Administration. Working paper pre-
pared by the Secretariat. T/AC.36/L.51, May 14,
1952. 13 pp. mimeo.
Memorandum Submitted by the United Nations Educa-
tional, Scientific and Cultural Organization. Trans-
mitted in reply to the letter of the Secretary-General
of April 18, 1952, inviting Unesco to consider the type
and manner of assistance which it might give to the
Committee on Rural Economic Development of the
Trust Territories in connection with its study.
T/AC.36/L.52, May 20, 1952. 6 pp. mimeo.
Rural Economic Development of the Trust Territories.
Draft Second Progress Report of the Committee on
the Rural Economic Development of the Trust Ter-
ritories. T/AC.36/L..53, May 26, 1952. 7 pp. mimeo.
Land Utilization in Now Guinea. Memorandum sub-
mitted by the Australian Government. T/AC.36/L.56,
June 3, 1952. 5 pp. mimeo.
Standing Committee on Administrative Unions. Texts of
documents referred to in the letter dated March
8, 1952 from the representative of France on
the Trusteeship Council to the Secretarv-Gen-
eral. T/C.1/L.24, April 29, 1952. 13 pp. mimeo.
Social Advancement in Trust Territories. (General As-
sembly Resolution 323 (IV)) Penal Sanctions for
Breach of Labour Contracts by Indigenous Inhabi-
tants. T/9S5, May 5, 1952. 15 pp. mimeo.
Summaries of the Proceedings of the East Africa Central
Legislative Assembly. Working paper prepared by
the Secretariat. T/C.1/L.25, May 20, 1952. 8 pp.
mimeo.
Information Relating to Paragraph 7 of Resolution 293
(VII) of the Tinjsteeship Council Concerning Ad-
ministrative Unions. Working paper prepared by the
Secretariat. T/C.1/L.26, May 23, 1952. 9 pp. mimeo.
Conditions in the Trust Territory of Somaliland Under
Italian Administration. Working paper prepared
by the Secretariat. T/L.2C6, June C, 1952. 59 pp.
mimeo.
Conditions in the Trust Territory of Ruanda-Urundi.
Working paper prepared by the Secretariat. T/L.267,
June 11, 1952. 57 pp. mimeo.
Tenth Report of the Standing Committee on PetitioD&
T/L.273, June 4, 1952. 64 pp. mimeo.
July 7, J 952
19
Two Covenants on Human Rights Being Drafted
DRAFTS RELATING TO CIVIL AND POLITICAL RIGHTS AND TO ECONOMIC, SOCIAL AND
CULTURAL RIGHTS REVISED AT 1952 SESSION OF U. N. COMMISSION ON HUMAN RIGHTS
hy James Simsarian
The U.N. Commission on Human Rights re-
viewed sections of the two draft Covenants on
Human Rights at its 9-week session at New York
from April 14 to June 13, 1952. The Commis-
sion decided to ask the Economic and Social Coun-
cil to instruct the Commission to complete its work
on the two draft Covenants at its next session in
1953, prior to the consideration of the two drafts
by the Council and the General Assembly.
The Commission divided the previous draft of
a Covenant on Human Rights into two Covenants
at the request of the General Assembly — one Cove-
nant on Civil and Political Rights and the other
Covenant on Economic, Social, and Cultural
Rights. The Commission rejected a proposal sub-
mitted by the Union of Soviet Socialist Republics
to combine the two documents into a single
Covenant.
The two Covenants are being drafted in the
form of treaties, to be opened for ratification or
accession by Governments after they are finally
drafted by the Commission on Human Rights and
approved by the General Assembly. Each Cove-
nant will come into force when it is ratified by 20
countries and will apply only to countries which
ratify it. The Covenants are in contrast to the
Universal Declaration of Himian Rights (ap-
juoved by the General Assembly on December 10,
1948), which was drafted not in the form of a
treaty but as a declaration without legally binding
force.
As Mrs. Franklin D. Roosevelt, the U.S. rep-
resentative on the Commission on Human Rights,
pointed out at the close of the 1952 session of the
Commission : ^
The drafting of the Universal Declaration of Human
Kights and of the Covenants on Human Riglits are part
of an international eit'ort designed to acquaint the world
' BtTLLETiN of June ,30, 1902, p. 1024.
with the ideas of freedom and of the vital necessity for
their pre-servation and extension. Such an effort is in-
dispensable in tliis day vphen totalitarian concepts are
beinK spread vigorously not only by Communists but also
by the remnants of nazism and fascism. The U.N. eam-
paiKn for the promotion of human rights must be con-
tinued and prosecuted successfully if our free way of
life is to be preserved.
Mrs. Roosevelt stressed the point that:
Neither of the Covenants as now drafted contains any
provisions which depart from the American way of life
in the direction of communism, socialism, syndicalism or
sialism. When such provisions have been proposed, the
United States has opposed them ; every proposal by the
Soviet Union and its satellites to write "statism" into
the Covenant has been defeated. ... In its approach to
the economic and social articles, as well as the civil and
political articles, the U.S. delegation has been guided by
our Constitution and by existing statutes and policies
approved by the legislative and executive branches of the
Federal Government.
Covenant on Civil and Political Rights
The Commission on Human Rights retained in
the Covenant on Civil and Political Rights the
basic civil and political rights which have been
included in the draft Covenant since it was first
considered by the Commission in 1947. They
have been reviewed and revised by the Commis-
sion and its Drafting Committee in 1947, 1948,
1949, and 1950. as well as at its session in New
York this year. These basic civil and political
rights are well-known in American tradition and
law. They include the right to life, protection
against torture, slavery, forced labor, arbitrary
arrest or detention, freedom to leave a country,
freedom to return to one's country, right to a fair
and public hearing by an independent and impar-
tial tribunal, right to be presumed innocent until
proved guilty, protection against ex post facto
20
Deparfmenf of State Bulletin
laws, freedom of religion, expression, assembly
and association, and equality before the law.^
Union of Soviet Socialist Republics
As at previous sessions of the Commission, the
Union of Soviet Socialist Republics sought to
weaken the provisions of the Covenant but these
efforts were rejected by the Commission. For ex-
ample, in the consideration of the article on free-
dom of expression,^' the U.S.S.R. proposed that
this freedom be limited "in the interests of democ-
racy." The U.S.S.R. has repeatedly sought to
distort the term "democracy" by claiming that it
is descriptive of the Communist State. In line
with its usual practice, the U.S.S.R. was obvi-
ously seeking by its amendment to insert language
so that it could later claim that this freedom
did not go beyond the limited scope of the Soviet
Constitution which allows the right of expression
only to those supporting the Communist State.
This effort of the U.S.S.R. to negate the provision
on freedom of expression in the Covenant was re-
jected, with only three members voting for it,
the U.S.S.R. and its two satellites, the Ukraine
and Poland. The U.S.S.R. submitted a similar
amendment in an effort to limit the provisions of
the Covenant on freedom of assembly and associa-
tion, but this amendment was also rejected, with
the same three being the only members of the
Commission voting for the amendment.
In the case of the article of the Covenant * call-
ing for a fair and public hearing by an independ-
ent and impartial tribunal, the U.S.S.R. proposed
the elimination of the term "impartial" by an
amendment it submitted to the Commission. The
Commission, however, rejected this amendment.
Complaint and Reporting Procedures
The Commission had only sufficient time at its
1952 session to review the substantive articles re-
lating to civil and political rights and economic,
social, and cultural rights. The Commission ac-
cordingly did not review the complaint machinery
drafted at previous sessions with respect to the
consideration of alleged violations of the articles
on civil and political rights."* The draft Cove-
nant has thus far provided only for the filing of
complaints by countries ratifying the Covenant.
Such complaints may be filed only against coun-
tries which have ratified the Covenant. The
Commission has rejected proposals submitted by
some members of the Commission to authorize
individuals, groups, or non-governmental organi-
° Articles 5 to 19 of Covenant on Civil and Political
Rights.
'Article 16 of Covenant on Civil and Political Rights.
* Article 12, par. 1, of Covenant on Civil and Political
Rights.
'Articles 20 to 46 of Covenant on Civil and Political
Eights.
zations to file complaints. These issues will no
doubt be considered again by the Commission at
its session next year. The Commission will also
no doubt consider at that time the reporting pro-
cedure proposed for the Covenant ou Economic,
Social, and Cultural Rights.^
Covenant on Economic, Social, and Cultural Rights
The draft Covenant on Economic, Social, and
Cultural Rights sets forth provisions relating to
employment, conditions of work, trade-unions,
social security, motherhood, maternity, children,
young persons, the family, food, clothing, hous-
ing, standard of living, health, education, science,
and culture.'
Differences Between Two Covenants
In drafting the Covenant on Economic, Social,
and Cultural Rights, the Commission recognized
that the provisions of this Covenant differed in a
number of respects from the Covenant on Civil and
Political Rights. These differences were set forth
in the Covenant on Economic, Social, and Cul-
tural Rights in a number of ways :
(1) The economic, social, and cultural rights
were recognized as objectives to be achieved "pro-
gressively." ' In the case of the civil and political
rights, countries ratifying the Covenant will be
under an obligation to take necessary steps to give
effect to these rights.^ A much longer period of
time is clearly contemplated under the Covenant
on Economic, Social, and Cultural Rights for the
achievement of the objectives of this Covenant.
The term "rights" is used in both the civil and
political articles and the economic, social, and cul-
tural articles. This term is used, however, in two
different senses. The civil and political rights
are looked upon as "rights" to be given effect im-
mediately. The economic, social, and cultural
rights, although recognized as "rights," are looked
upon as goals toward which countries ratifying
the Covenant would undertake to strive and to
achieve these objectives to the extent permitted by
available resources.
(2) It was recognized that economic, social, and
cultural rights were to be achieved by many means
and methods, private as well as public, and not
solely through legislation. Article 2 of the Cov-
enant on Economic, Social, and Cultural Rights
expressly states that the rights recognized in that
Covenant are to be achieved "by other means" as
well as by legislation. The members of the Com-
mission acknowledged that the reference to "other
means" was a recognition by them that the rights
" Articles 17 to 26 of Covenant on Economic, Social and
Cultural Rights.
' Articles 6 to 16 of Covenant on Economic, Social and
Cultural Rights.
" Article 2, par. 1, of Covenant on Economic, Social, and
Cultural Rights.
" Article 2, par. 2, of Covenant on Civil and Political
Rights.
July 7, 1952
21
set forth in this Covenant could be achieved
throiijjh private as well as governmental action.
The obligation of a country ratifying this Cove-
nant will be to take steps to promote conditions for
economic, social, and cultural progress and
development.
The U.S.S.R. repeatedly urged this year, in the
same manner that it urged last year in the Com-
mission, that economic, social, and cultural rights
be stated in terms of state legislation only, but
other members of the Commission rejected this
approach.
(3) The economic, social, and cultural rights
were necessarily drafted in general terms as con-
trasted to the articles on civil and political rights.
It was felt by the Commission that since the eco-
nomic, social, and cultural rights were stated in
terms of broad objectives, general language would
be adequate.
Covenants Are Non-Self-Executing
There is appropriate language in both Cove-
nants to assure that they are non-self-executing.
Article 2 of the draft Covenant on Civil and
Political Rights provides that where the rights
recognized in the Covenant have not already been
"provided for by existing legislative or other
measures, each [Contracting] State undertakes to
take the necessary steps, in accordance with its
constitutional processes and with the provisions
of this Covenant, to adopt such legislative or other
measures as may be necessary to give effect to the
rights recognized in this Covenant".
This article makes it clear that the provisions of
the Covenant would not, themselves, be enforce-
able in the courts as "the supreme Law of the
Land" under article VI of the U.S. Constitution.
The United States, however, when it becomes a
party to the Covenant, would, together with other
contracting countries, have a firm obligation to
enact the necessary legislative or other measures
to give effect to the rights set forth in the Cove-
nant to the extent such measures have not already
been enacted. Such legislative or other measures
■which are enacted would, of course, be enforceable
in the courts of the United States.
Article 2 of the draft Covenant on Economic,
Social, and Cultural Rights similarly ensures the
non-self-executing character of its provisions.
Under this Covenant, each contracting country
undertakes to take steps "with a view to achieving
progressively the full realization of the rights
recognized in this Covenant by legislative as well
as by other means." There is a recognition by this
phraseology of the need for affirmative action for
the achievement of the rights set forth in this Cov-
enant. The provisions of this Covenant would
not, themselves, be enforceable in the courts as
"the supreme Law of the Land" under article VI
of the United States Constitution.
Covenants Not to Lower Existing Standards
Provision is included in each of the Covenants
to make it expressly clear that "there shall be no
restriction upon or derogation from any of the
fundamental human rights recognized or existing
in any Contracting State pursuant to the law [of
that State] ... on the pretext that the pres-
ent Covenant does not recognize such rights or
that it recognizes them to a lesser extent".^" The
Commission included this provision in the Cove-
nants to stress the point that under no circum-
stances should either Covenant be utilized as a
pretext for any decrease in the higher standards
existing in some countries (such as the United
States) with respect to fundamental human rights
accorded to persons in these countries because of
more advanced Constitutional safeguards or for
any other reason.
At the same time, the Commission changed the
word "shall" to "may" in the provisions on ex-
ceptions in the articles on freedom of religion,
expression, assembly, and association " to make
it entirely clear that the exceptions to these rights
are permissive only and not in any sense manda-
tory. In no instance is any country called upon
to apply these permissive restrictions.
With the inclusion of these provisions and
changes, the members of the Commission sought
to avoid the possibility of the Covenant lowering
any existing higher standards of freedom in any
country. They stressed the fact that the objective
of the two Covenants is to raise standards in coun-
tries not so advanced as other countries with re-
spect to human rights and freedoms.
Federal-State Article
The Commission did not have sufficient time to
consider the inclusion of a Federal-State article
in the two Covenants. The U.S. delegation, to-
gether with the delegations of Australia and India,
laowever, submitted a new draft of a Federal-State
article to the Commission; it will doubtless be
considered at its 1953 session. The U.S. delega-
tion has insisted on the inclusion of such an article
in the Covenants since the earliest U.N. considera-
tion of the Covenant in 1947. The Federal-State
article would ensure that the constitutional bal-
ance between the powers delegated by the Fed-
eral Constitution to our Federal Government, on
the one hand, and the powers reserved to the
States, on the other, would not be altered by the
proposed Covenants on Human Rights.
Under the proposed Federal-State article, the
United States, upon its ratification of a Covenant,
would undertake the same obligations as other
"° Article 4, par. 2, of Covenant on Civil and Political
Rights ; see also article 5, par. 2, of Covenant on Economic,
Social, and Cultural Rights.
" Articles 15, 16, 17, and 18 of Covenant on Civil and
Political Rights.
22
Department of Stale Bulletin
ratifying countries with respect to rights set forth
in that Covenant wliich fall within the constitu-
tional jurisdiction of the Federal Government.
With respect to provisions which are wholly or
in part within the jurisdiction of the several states,
the only obligation of the United States would be
to bring these provisions to the notice of the ap-
propriate authorities of the individual states with
a favorable recommendation and a request for in-
formation as to the law of the states in relation
to these provisions of the Covenant. The United
States would transmit this information to the
United Nations.
The Federal-State article as now proposed ex-
pressly provides that the Covenant "shall not op-
erate so as to bring within the jurisdiction of the
Federal authority of a Federal State . . . any
of the matters referi-ed to in this Covenant which
independently of the Covenant, would not be
within the jurisdiction of the Federal authority."
The Federal-State division of powers in the
United States would be preserved by this pro-
vision ; the national power would not be increased.
The proposal for a Federal-State article makes
it clear that the obligations undertaken by the
United States under the Covenant would be lim-
ited to matters which under the Constitution of
the United States are within the Federal jurisdic-
tion independent of the coming into force of the
Covenant itself.
Self-Determination
The Commission approved three paragraphs of
an article on self-determination for inclusion in
both Covenants. The first two paragraphs were
along the lines of language adopted at the sixth
session of the General Assembly on February ,5,
1952. The third paragraph was added by the
Commission. The United States Delegation voted
for the first two paragi-aphs but opposed the third
paragraph. In voting for the first two para-
graphs, tha United States delegation explained
that it, however, reserved its position to propose
changes in these paragraphs in the future.
The fii-st paragraph recognizes that "All peoples
and all nations shall have the right of self-deter-
mination, namely, the right freely to determine
their political, economic, social and cultural
status.' The second paragraph calls on all
countries to promote the realization of the right
of self-determination in all their territories and
to respect the maintenance of that right in other
countries in conformity with the provisions of
the United Nations Charter. The third para-
graph, which the U.S. delegation opposed, pro-
vides that "the right of the peoples to self-deter-
mination shall also include permanent sovereignty
over their natural wealth and resources. In no
case may a people be deprived of its own means
of subsistence on the grounds of any rights that
may be claimed by other States."
DRAFT COVENANT ON CIVIL AND POLITICAL
RIGHTS
(Preamble and first 19 articles were revised ty the Comr
mission on Hunmn Rights at its April-Jv/ne 1952 Session)
PreamMe
The States Parties hereto,
CoNsiDEEiNO, that, in accordance with the principles
proclaimed in tlie Charter of the United Nations, recog-
nition of the inherent dignity and of the equal and in-
alienable rights of all members of the human family is
the foundation of freedom, justice and peace in the world,
Recognizing that these rights are derived from the
inherent dignity of the human person.
Recognizing that, in accordance with the Universal
Declaration of Human Rights, the ideal of free men en-
joying civil and political freedom and freedom from fear
and want can only be achieved if conditions are created
whereby everyone may enjoy his civil and political rights,
as well as his economic, social and cultural rights.
Considering the obligation of States under the Charter
of the United Nations to promote universal respect for,
and observance of, human rights and freedoms.
Realizing that the individual, having duties to other
individuals and to the community to which he belongs,
is under responsibility to strive for the promotion and
observance of the rights recognized in this Covenant,
Ayree upon the following articles :
PARTI
Article 1 [Self-Determination]
[The Commission on Human Rights drafted this article
at its 1952 Session. The Commission did not hai^e suffi-
cient time to consider whether the provisions of Parts II
and IV should apply to this Article 1]
1. All peoples and all nations shall have the right of
self-determination, namely, the right freely to determine
their political, economic, social and cultural status.
2. All States, including those having responsibility for
the administration of non-self-governing and trust terri-
tories and those controlling in whatsoever manner the
exercise of that right by another people, shall promote
the realization of that right in all their territories, and
shall respect the maintenance of that right in other States,
in conformity with the provisions of the United Nations
Charter. .
3. The right of the peoples to self-determination shall
also include permanent sovereignty over their natural
wealth and resources. In no case may a people be de-
prived of its own means of subsistence on the grounds of
any rights that may be claimed by other States.
PART II [GENERAL PROVISIONS]
Article 2
1. Each State Party hereto undertakes to respect and
to ensure to all individuals within its territory and sub-
ject to its jurisdiction the rights recognized in this Cove-
nant, without distinction of any kind, such as race, colour,
sex, language, religion, political or other opinion, national
or social origin, property, birth or other status.
2. Where not already provided for by existing legisla-
tive or other measures, each State undertakes to take the
necessary steps, in accordance with its constitutional proc-
esses and with the provisions of this Covenant, to adopt
such legislative or other measures as may be necessary to
give effect to the rights recognized in this Covenant.
3. Each State Party hereto undertakes:
(a) To insure that any person whose rights or free-
doms as herein recognized are violated shall have an ef-
fective remedy, notwithstanding that the violation has
beei committed by persons acting in an official capacity ;
July 7, 1952
23
(b) To develop the possibilities of judicial remedy
and to ensure that any person claiming such a remedy
shall have his right thereto determined by competent au-
thorities, political, administrative or judicial ;
(c) To ensure that the competent authorities shall
enforce such remedies when granted.
Article S
1. In time of public emergency which threatens the
life of the nation and the existence of which is otficially
proclaimed, the States Parties hereto may take measures
derogating from their obligations under this Covenant to
the extent strictly required by the exigencies of the situ-
ation, provided that such measures are not inconsistent
with tlieir other obligations under international law and
do not involve discrimination solely on the ground of race,
colour, sex, language, religion or social origin.
2. No derogation from Articles 3, 4, 5 (paragraphs 1
and 2), 7, 11, 12 and 13 may be made under this provision.
3. Any State Party hereto availing itself of the right
of derogation shall inform immediately the other States
Parties to the Covenant, through the intermediary of the
Secretary General, of the provisions from which it lias
derogated, the reasons by which it was actuated and the
date on which it has terminated such derogation.
Article 4
1. Nothing in this Covenant may be interpreted as im-
plying for any State, group or person any right to engage
in any activity or perform any act aimed at the destruc-
tion of any of the rights and freedoms recognized herein
or at their limitation to a greater extent than is provided
for in this Covenant.
2. There shall be no restriction upon or derogation from
any of tlie fundamental human rights recognized or exist-
ing in any Contracting State pursuant to law, conventions,
regulations or custom on the pretext that the present
Covenant does not recognize such rights or that it recog-
nizes them to a lesser extent.
PAKT in [CrilL AND POLITICAL EIGHTS]
Article 5
1. No one shall be arbitrarily deprived of his life.
Everyone's right to life shall be protected by law.
2. In countries where capital punishment exists, sen-
tence of death may be imposed only as a penalty for the
most serious crimes pursuant to the sentence of a compe-
tent court and in accordance with law not contrary to the
principles of the Universal Declaration of Human Rights
or the Convention on the Prevention and Punishment of
the Crime of Genocide.
3. Anyone sentenced to death shall have the right to
seek pardon or commutation of the sentence. Amnesty,
pardon or commutation of the sentence of death may be
granted in all cases.
4. Sentence of death shall not be carried out on a
pregnant woman.
Article 6
No one shall be subjected to torture or to cruel, inhuman
or degrading treatment or punishment. In particular,
no one shall be subjected without his free consent to medi-
cal or scientific experimentation involving risk, where
such is not required by his state of physical or mental
health.
Article 7
1. No one shall be held in slavery ; slavery and the
slave trade in all their forms sliall be prohibited.
2. No one shall be held in servitude.
3. (a) No one shall be required to perform forced or
compulsory labour.
(b) The preceding sub-paragraph shall not be held
to preclude, in countries where imprisonment with hard
labour may be imposed as a punishment for a crime, the
performance of hard labour in [mrsuance of a sentence to
such punishment by a competent court.
(c) For the puiTxise of this paragraph the term
"forced or compulsory labour" shall not include :
(i) Any work or service, not referred to in sub-
paragraph (b), normally required of a ijerson who is un-
der detention in consequence of a lawful order of a court ;
(ii) Any service of a military character and, in
countries where conscientious objection is recognized, any
national service required by law of conscientious
objectors ;
( iii ) Any service exacted in cases of emergency or
calamity threatening the life or well-being of the
community ;
(iv) Any work or service which forms part of
normal civic obligations.
Article S
1. Everyone has the right to liberty and security of
per.son. No one shall be subjected to arbitrary arrest or
detention. No one shall be deprived of liis liberty except
on such grounds and in accordance with such procedure
as are established by law.
2. Anyone who is arrested shall be informed, at the
time of arrest, of the reasons for his arrest and shall be
promptly informed of any charges against him.
3. Anyone arrested or detained on a criminal charge
shall be brought promptly before a judge or other officer
authorized by law to exercise judicial power and shall be
entitled to trial within a reasonable time or to release.
It shall not be the genera! rule that persons awaiting
trial shall be detained in custody, but release may be sub-
ject to guarantees to appear for trial, at any other stage
of the judicial proceedings, and, should occasion arise, for
execution of the judgment.
4. Anyone who is deprived of his liberty by arrest or
detention shall be entitled to take proceedings before a
court, in order that such court may decide without delay
on the lawfulness of his detention and order his release
if the detention is not lawful.
5. Anyone who has been the victim of unlawful arrest
or deprivation of liberty shall have an enforceable right
to compensation.
Article 9
No one shall be imprisoned merely on the ground of
inability to fulfil a contractual obligation.
Article 10
1. Subject to any general law of the State concerned
which provides for such reasonable restrictions as may
be necessary to protect national security, public safety,
health or morals or the rights and freedoms of others,
consistent with the other rights recognized in this
Covenant :
(a) Everyone legally within the territory of a State
shall, within that territory, have the right to (i) liberty
of movement and (ii) freedom to choose his residence;
(b) Everyone shall be free to leave any country in-
cluding his own.
2. (a) No one shall be subjected to arbitrary exile;
(b) Subject to the preceding sub-paragraph, anyone
shall be free to enter his own country.
Article 11
An alien lawfully in tlie territory of a State party hereto
may be expelled therefrom only in pursuance of a decision
reached in accordance with law and shall, except where
compelling reasons of national security otherwise require,
be allowed to submit the reasons against his expulsion
and to have his case reviewed by and be represented for
the purpose before the competent authority or a person or
persons specially designated by the competent authority.
Article 12
1. All persons shall be equal before the courts or tri-
bunals. In the determination of any criminal charge
against him, or of his riglits and obligations in a suit at
law, everyone shall be entitled to a fair and public hearing
by a competent, independent and impartial tribunal es-
tablished by law. The Press and public may be excluded
24
Department of Stale Bulletin
from all or part of a trial for reasons of morals, public
order or national security in a democratic society, or wtien
the interest of ttie private lives of the parties so requires,
or to the extent strictly necessary in the opinion of the
Court in special circumstances where publicity would
prejudice the interest of justice ; but any judgment
rendered in a criminal case or in a suit at law shall be
pronounced publicly except where the interest of juveniles
otherwise requires or the proceedings concern matrimonial
disputes or the guardianship of children.
2. Everyone charged with a criminal offence shall have
the right to be presumed innocent until proved guilty
according to law. In the determination of any criminal
charge against him, everyone shall be entitled to the
following minimum guarantees, in full equality :
(a) To be informed promptly in a language which
he understands and in detail of the nature and cause of
the accusation against him ;
(b) To have adequate time and facilities for the
preparation of his defence;
(c) To defend himself In person or through legal
assistance of his own choosing; to be informed, if he does
not have legal assistance, of this right; and to have legal
assistance assigned to him, in any case where the interests
of justice so require, and without payment by him in any
such case where he does not have sufBcient means to pay
for it ;
(d) To examine, or have examined the witnesses
against him and to obtain the attendance and examina-
tion of witnesses on his behalf under the same conditions
as witnesses against him ;
(e) To have the free assistance of an interpreter if
he cannot understand or speak the language used in court ;
(f) Not to be compelled to testify against himself,
or to confess guilt.
3. In the case of juveniles, the procedure shall be such
as will take account of their age and the desirability
of promoting their rehabilitation.
4. In any case where by a final decision a person has
been convicted of a criminal offence and where subse-
quently his conviction has been reversed or he has been
pardoned on the ground that a new or newly discovered
fact shows conclusively that there has been a mi.scarriage
of justice, the person who has suffered punishment as a
result of such conviction shall be compensated unless it
is proved that the non-disclosure of the unknown fact in
time is wholly or partly attributable to him.
Article 13
1. No one shall be held guilty of any criminal offence
on account of any act or omission which did not consti-
tute a criminal offence, under national or international
law, at the time when it was committed. Nor shall a
heavier penalty be imposed than the one that was appli-
cable at the time when the criminal offence was committed.
If, subsequent to the commission of the oft'ence, provision
is made by law for the imposition of a lighter penalty, the
offender shall benefit thereby.
2. Nothing in this article shall prejudice the trial and
punishment of any per.son for any act or omission, which,
at the time when it was committed, was criminal accord-
ing to the general principles of law recognized by the
community of nations.
Article IJf
Everyone shall have the right to recognition every-
where as a person before the law.
Article 15
1. Everyone shall have the right to freedom of thought,
conscience and religion. This right shall include freedom
to maintain or to change his religion or belief, and free-
dom, either individually or in community with others
and in public or private, to manifest his religion or be-
lief in worship, observance, practice and teaching.
2. No one shall be subject to coercion whicli would
impair his freedom to maintain or to change his religion
or belief.
3. Freedom to manifest one's religion or beliefs may
be subject only to such limitations as are prescribed by
law and are necessary to protect public safety, order,
health, or morals or the fundamental rights and freedoms
of others.
Article 16
1. Everyone shall have the right to hold opinions with-
out interference.
2. Everyone shall have the right to freedom of expres-
sion ; this right shall include freedom to seek, receive
and impart Information and ideas of all kinds, regardless
of frontiers, either orally, in writing or in print, in the
form of art, or through any other media of his choice.
3. The exercise of the rights provided for in the fore-
going paragraph carries with it special duties and respon-
sibilities. It may therefore be subject to certain restric-
tions, but these shall be such only as are provided by law
and are nece-ssary, (1) for respect of the rights or reputa-
tions of otliers, (2) for the protection of national security
or of public order, or of public health or morals.
AJticle n
The right of peaceful assembly shall be recognized.
No restrictions may be placed on the exercise of this right
other than those imposed in conformity with the law and
which are necessary in a democratic society in the in-
terests of national security or public safety, public order,
the protection of public health or morals or the protection
of the rights and freedoms of others.
Article 18
1. Everyone shall have the right to freedom of associa-
tion with others, including the right to form and join trade
unions for the protection of his interests.
2. No restrictions may be placed on the exercise of
this right other than those prescribed by law and which
are necessary in a democratic society in the Interests of
national security or public safety, public order, the pro-
tection of public health or morals or the protection of the
rights and freedoms of others. This article shall not
prevent the imiJosition of lawful restrictions on the exer-
cise of this right by members of the armed forces or of
the police.
3. Nothing in this article shall authorize States Parties
to the Freedom of Association and Protection of the Right
to Organize Convention, 194S, to take legislative measures
which would prejudice, or to apply the law in such a
manner as to prejudice, the guarantees provided for in
that convention.
Article 19
All persons are equal before the law. The law shall
prohibit any discrimination and guarantee to all persona
equal and effective protection against discrimination on
any ground such as race, colour, sex, language, religion,
political or other opinion, national or social origin,
property, birth or other status.
PAKT IV (COMPLAINT PBOCEDURE)
[Part IV nas revised by the Commission on Human
Riflhts at its 19'tl session and was not considered at its
1952 sessi07i because of the lack of sufficient time to do
so. The renumhcrinn of the articles of Parts IV arid V
is not official, but has been done for the convenience of
the reader. The Commis.non has not as yet decided
lohether the implementation procedure set forth in this
Part IV should also be included in the Covenant on Eco-
nomic, Social and Cultural Riqhts. The discussion in the
1951 session of the Commission indicated, however, xoide
sentiment in the Commission against the applicability of
this procedure to the economic, social and cultural rights.
Tliis procedure ivas initially drafted by Hie Commission
with respect to the civil and political rights in this Cove-
nant. For these reasons this procedure is included only
in this Covenant. '\
July 7, 1952
25
Article 20
[formerly Article 33]
[Note: The Commission decided at its 1951 session to
postpone the vote on the whole of this article. The fol-
lowing is the provisional text of the article.]
1. With a view to the Implementation of the provisions
of the International Covenant on Human Ri;,'hts, there
shall be set up a Human Rights Committee, hereinafter
referred to as "the Committee", composed of nine mem-
bers vfith the functions hereinafter provided.
2. The Committee shall be composed of nationals of the
States Parties to the Covenant who shall be persons of
high moral standing and recognized competence in the
field of human rights, consideration being given to the
usefulness of the participation of some persons having a
judicial or legal experience.
3. The members of the Committee shall be elected and
shall serve in their personal capacities.
Article 21
[formerly Article 34]
1. The members of the Committee shall be elected from
a list of persons possessing the qualifications prescribed
in Article 33 [now 20] and specially nominated for that
purpose by the States Parties to the Covenant.
2. Each State shall nominate at least two and not more
than four persons. These persons may be nationals of
the nominating State or of any other State Party to the
Covenant.
3. Nominations shall remain valid until new nomina-
tions are made for the purpose of the next election under
Article 39 [now 26]. A person shall be eligible to be
renominated.
Article 22
[fonnerly Article 35]
At least three months before the date of each election
to the Committee, the Secretary General of the United
Nations shall address a written request to the States
Parties to the Covenant inviting them, if they have not
already submitted their nominations, to submit them
within two months.
Article 23
[formerly Article 36]
The Secretary General of the United Nations shall pre-
pare a list in alphabetical order of all the persons thus
nominated, and submit it to the International Court of
Justice and to the States Parties to the Covenant.
Article 21,
[formerly Article 37]
1. The Secretary-General of the United Nations, on
behalf of the States Parties to the Covenant, shall re-
quest the International Court of Justice to elect the
members of the Committee from the list referred to in
Article 36 [now 23] and in accordance with the conditions
set out below.
2. On receipt of the list from the Secretary-General of
the United Nations, the President of the International
Court of Justice shall fix the time of elections for mem-
bers of the Committee.
Article 2.5
[formerly Article 38]
1. No more than one national of any State may be a
member of the Committee at any time.
2. In the election of the Committee consideration shall
be given to equitable geographical distribution of mem-
bership and to the representation of the main forms of
civilization. The persons elected shall be those who ob-
tain the largest number of votes and an absolute ma-
jority of the votes of all the members of the Court.
3. The quorum of nine laid down in Article 25, para-
graph 3, of the Statute of the Court shall apply for the
holding of the elections by the Court.
Article 26
[formerly Article 39]
The members of the Committee shall be elected for a
term of five years and be eligible for re-election. How-
ever, the terms of five of the members elected at the first
election shall expire at the end of two years. Immedi-
ately after the first election the names of the members
whose terms expire at the end of the initial period of
two years shall be chosen by lot by the President of the
International Court of Justice.
Article 27
[formerly Article 40]
1. Should a vacancy arise, the provisions of Articles
35, 36, 37 and 38 [now 22, 23, 21, and 25] shall apply to
the election.
2. A member of the Committee elected to fill a vacancy
shall, if his predecessor's term of oflBce has not expired,
hold office for the remainder of that term.
Article 28
[formerly Article 41]
A member of the Committee shall remain in office until
his successor has been elected ; but if the Committee has,
prior to the election of his successor, begun to consider
a case, he shall continue to act in that case, and his suc-
cessor shall not act in that case.
Article 20
[formerly Article 42]
The resignation of a member of the Committee shall
be addressed to the Chairman of the Committee through
the Secretary of the Committee who shall immediately
notify the Secretary-General of the United Nations and
the International Court of Justice.
Article SO
[formerly Article 43]
The members of the Committee and the Secretary,
when engaged on the business of the Committee, shall
enjoy diplomatic privileges and immunities.
Article 31
[formerly Article 44]
1. The Secretary of the Committee shall be appointed
by the International Court of Justice from a list of three
names submitted by the Committee.
2. The candidnte obtaining the largest number of votes
and an absolute majority of the votes of all the members
of the Court shall be declared elected.
3. The quorum of nine laid down in Article 25, para-
graph 3 of the Statute of the Court shall apply for the
holding of the election by the Court.
Article 32
[formerly Article 45]
The Secretary-General of the United Nations shall con-
vene the initial meeting of the Committee at the Head-
quarters of the United Nations.
Article SS
[formerly Article 46]
The Committee shall, at its initial meeting, elect its
Chairman and Vice-Chairman for the period of one year.
26
Deparfment of State Bulletin
Article Si
[formerly Article 47]
The Committee sliall establish its own rules of pro-
cedure, but rhese rules shall provide that :
(a) Seven members shall constitute a quorum;
(b) The work of the Committee shall proceed by a
majority vote of the members present; in the event of au
equality of votes the Chairman shall have a casting vote ;
(c) All States Parties to the Covenant having an
Interest in any matter referred to the Committee under
Article 52 [now 39] shall have the right to make submis-
sions to the Committee in writing.
The States referred to in Article 52 [now 39] shall fur-
ther have the right to be represented at the hearings of
the Committee and to make submissions orally.
(d) The Committee shall hold hearings and other
meetings in closed session.
Article 35
[formerly Article 48]
1. After its initial meeting the Committee shall meet :
(a) At such times as it deems necessary;
(b) When any matter is referred to it under Article
52 [now 39] ;
(c) When convened by its Chairman or at the re-
quest of not less than five of its members.
2. The Committee shall meet at the permanent Head-
quarters of the United Nations or at Geneva.
Article 36
[formerly Article 49]
The Secretary of the Committee shall attend its meet-
ings, make all necessary arrangements, in accordance with
the Committee's instructions, for the preparation and
conduct of the work, and carry out any other duties as-
signed to him by the Committee.
Article 37
[formerly Article 50]
The members and the Secretary of the Committee shall
receive emoluments commensurate with the importance
and responsibilities of their ofiice.
Article SS
[formerly Article 51]
The Secretary-General of the United Nations shall pro-
vide the necessary staff and facilities for the Committee
and its members.
Article 39
[formerly Article 52]
1. If a State Party to the Covenant considers that
another State Party is not giving effect to a provision
of the Covenant, it may, by written communication, bring
the matter to the attention of that State. Within three
months after the receipt of the communication, the receiv-
ing State shall afford the communicating State an ex-
planation or statement in writing concerning the matter,
which should include, to the extent possible and pertinent,
references to domestic procedures and remedies taken,
or pending, or available in the matter.
2. If the matter is not adjusted to the satisfaction of
both Parties within six months after the receipt by the
receiving State of the initial communication, either State
shall have the right to refer the matter to the Committee,
by notice given to the Secretary of the Committee and to
the other State.
3. Subject to the provisions of Article 54 [noio 41]
below, in serious cases where human life is endangered
the Committee may, at the request of a State Party to
the Covenant referred to in paragraph 1 of this Article,
deal forthwith with the case on receipt of the initial
communication and after notifying the State concerned.
July 7, J 952
Article 40
[formerly Article 53]
The Committee shall deal with any matter referred
to it under Article 52 [now 39] save that it shall have
no power to deal with any matter:
(a) For which any ojgan or specialized agency of
the United Nations competent to do so has established
a special procedure by which the States concerned are
governed ; or
(b) With which the International Court of Justice
is seized other than by virtue of Article ... of the
present Covenant.
Article 41
[formerly Article 54]
Normally, the Committee shall deal with a matter
referred to it only if available domestic remedies have
been invoked and exhausted in the case. This shall not
be the rule where tlie application of the remedies is
unreasonably prolonged.
Article 42
[formerly Article 55]
In any matter referred to it the Committee may call
upon the States concerned to supply any relevant
information.
Article 43
[formerly Article 56]
The Committee may recommend to the Economic and
Social Council that the Council request the International
Court of Justice to give an advisory opinion on any legal
question connected with a matter of which the Committee
is seized.
Article 44
[formerly Article 57]
1. Subject to the provisions of Article 54 [now 41], the
Committee shall ascertain the facts and make available
its good offices to the States concerned with a view to
a friendly solution of the matter on the basis of respect
for human rights as recognized in this Covenant.
2. The Committee shall, in every case and in no event
later than eighteen months after the date of receipt of
the notice under Article 52 [now 39], draw up a report
which will be sent to the States concerned and then com-
municated to the Secretary-General of the United Nations
for publication. The Committee shall complete its report
as promptly, particularly when requested by one of the
States Parties where human life is endangered.
3. If a solution within the terms of paragraph 1 of this
article is reached the Committee shall confine its report
to a brief statement of the facts and of the solution
reached. If such a solution is not readied, the Committee
shall state in its report its conclusions on the facts and
attach thereto the statements made by the parties to
the case.
Article 45
[formerly Article 58]
The Committee shall submit to the General Assembly,
through the Secretary-General, an annual report of its
activities.
Article 46
[formerly Article 59]
The States Parties to this Covenant agree not to submit,
by way of petition, to the International Court of Justice,
except by special agreement, any dispute arising out of
the interpretation or application of the Covenant in a
matter within the competence of the Committee.
27
Article ^7
[Territories Application Article]
[This article iocs adopted hy the General AssemMy at
its 1950 Session and revised only slightly by the Commis-
sion on Human Rights at its 1951 Session]
The provisions of tlie present Covenant sliall extend
to or be applicable equally to a signatory metropolitan
State and to all the territories, be they Non-Self-Govern-
ing, Trust, or Colonial Territories, vphich are being
administered or governed by such metropolitan State.
Article 48
[Federal State Article]
[The comideration of this article was postponed until
the 1953 Session of the Commission on Human Rights.
The United States, together with Australia and India,
submitted the following proposal for this article:
1. A federal State may at the time of signature or
ratification of, or accession to, this Covenant make a
Declaration stating that it is a federal State to which
this Article is applicable. In the event that such a
Declaration is made, paragraphs 2 and 3 of this Article
shall apply to it. The Secretary General of the United
Nations shall inform the other States Parties to this
Covenant of such Declaration.
2. This Covenant shall not operate so as to bring veithin
the jurisdiction of the federal authority of a federal
State making such Declaration, any of the matters re-
ferred to in this Covenant which independently of the
Covenant, would not be within the jurisdiction of the
federal authority.
3. Subject to paragraph 2 of this Article, the obliga-
tions of such federal State shall be :
(a) In respect of any provisions of the Covenant,
the implementation of which is, under the constitution
of the federation, wholly or in part within federal juris-
diction, the obligations of the federal government shall,
to that extent, be the same as those of Parties which have
not made a declaration under this Article.
(b) In respect of any provisions of the Covenant,
the implementation of which is, under the constitution
of the federation, wholly or in part within the jurisdic-
tion of the constituent units (whether described as states,
provinces, cantons, autonomous regions, or by any other
name), and which are not, to this extent, under the con-
stitutional system bound to take legislative action, the
federal government shall bring such provisions with fa-
vorable recommendations to the notice of the appropri-
ate authorities of the constituent units, and shall also
request such authorities to inform the federal government
as to the law of the constituent units in relation to those
provisions of the Covenant. The federal government
shall transmit such information received from constitu-
ent units to the Secretary General of the United Nations.]
[Former articles 70 and 73 iccre revised by the Com-
mission on Human Rights at its 1950 Session and were
not considered at its 1951 or 1952 session because of the
lack of sufficient time to do so.]
Article .'i9
[formerly Article 70]
[Ratification and accession]
1. This Covenant shall be open for signature and rati-
fication or accession on behalf of any State Member of the
United Nations or of any non-member State to which an
invitation has been extended by the General Assembly.
2. Ratification of or accession to this Covenant shall be
effected by the deposit of an instrument of ratification or
accession with the Secretary-General of the United Na-
tions, and as soon as twenty States have deposited such
instruments, the Covenant sliall come into force among
them. As regards any State which ratified or accedes
28
thereafter the Covenant shall come into force on the date
of the deposit of its instrument of ratification or accession.
3. The Secretary-General of the United Nations shall
inform all Members of the United Nations, and other
States which have si.sned or acceded, of the deposit of each
instrument of ratification or accession.
Article 50
[formerly Article 73]
[Amendments]
1. Any State Party to the Covenant may propose an
amendment and file it with the Secretary-General. The
Secretary-General shall thereupon communicate the pro-
posed amendment to the States Parties to the Covenant
with a request that they notify him whetlier they favour
a conference of States Parties for the purpose of con-
sidering and voting upon the proposal. In the event that
at least one third of the States favour such a conference
the Secretary-General shall convene the conference under
the auspices of the United Nations. Any amendment
adopted by a majority of States present and voting at the
conference sliall be submitted to the General Assembly
for approval.
2. Such amendments shall come into force when they
have been approved by the General Assembly and ac-
c-epted by a two-thirds majority of the States Parties
to the Covenant in accordance with their respective con-
stitutional processes.
3. When such amendments come into force they shall
be binding on these Parties which have accepted them,
other Parties being still bound by the provisions of the
Covenant and any earUer amendment which they have
accepted.
DRAFT COVENANT ON ECONOMIC, SOCIAL
AND CULTURAL RIGHTS
(Preamble and first 16 articles were revised by the
Commission on Human Rights at its April-June 1952
Session)
Preamble
The States Parties hereto.
Considering, that, in accordance with the principles
proclaimed in the Charter of the United Nations, recog-
nition of the inherent dignity and of the equal and inalien-
able rights of all members of the human family is the
foundation of freedom, justice and peace in the world.
Recognizing that these rights are derived from the
inherent dignity of the human person.
Recognizing that, in accordance with the Universal
Declaration of Human Rights, the ideal of free men en-
joying freedom from fear and want can only be achieved
if conditions are created whereby everyone may enjoy
his economic, social and cultural rights, as well as his
civil and political rights.
Considering the obligation of States under the Charter
of the United Nations to promote universal respect for,
and observance of, human rights and freedoms.
Realizing that the individual, having duties to other
individuals and to the community to which he belongs, is
under responsibility to strive for the promotion and ob-
servance of the rights recognized in this Covenant,
Agree upon the following articles :
PAET I
Article 1 [Self -Determination]
[The Commission on Human Rights drafted this article
at its 1952 Session. The Commission did not have suf-
ficient time to consider whether the provisions of Parts II
and IV should apply to this Article 1.]
Department of State Bulletin
1. All peoples and all nations shall have the right of
self-Jetermination, namely, the right freely to determine
their political, economic, social and cultural status.
2. All States, including those having responsibility for
the administration of non-self-governing and trust terri-
tories and those controlling in whatsoever manner the
exercise of that right by another people, shall promote
the realization of that right in all their territories, and
shall respect the maintenance of that right in other
States, in conformity with the provisions of the United
Nations Charter.
3. The right of the peoples to self-determination shall
also include a permanent sovereignty over their natural
wealth and resources. In no case may a people be de-
prived of its own means of subsistence on the grounds of
any rights that may be claimed by other States.
PART II [general provisions]
Article 2
1. Each State Party hereto undertakes to take steps,
individually and through international co-operation, to
the maximum of its available resources, with a view to
achieving progressively the full realization of the rights
recognized in this Covenant by legislative as well as by
other means.
2. The States Parties hereto undertake to guarantee
that the rights enunciated in this Covenant will be exer-
cised without distinction of any kind, sucli as race, colour,
sex, language, religion, political or other opinion, national
or social origin, property, birth or other status.
Article 3
The States Parties to the Covenant undertake to ensure
the equal right of men and women to the enjoyment of
all economic, social and cultural rights set forth in this
Covenant.
Article -i
The States Parties to this Covenant recognize that in
the enjoyment of those rights provided by the State in
conformity with this Covenant, the State may subject
such rights only to such limitations as are determined by
law only in so far as this may be compatible with the
nature of these rights and solely for the purpose of
promoting the general welfare in a democratic society.
Article 5
1. Nothing in this Covenant may be interpreted as im-
plying for any State, group or person, any right to engage
in any activity or to perform any act aimed at tlie de-
struction of any of the rights or freedoms recognized
herein or at tlieir limitation, to a greater extent than is
provided for in this Covenant.
2. No restriction upon or derogation from any of the
fundamental human rights recognized or existing in any
Country in virtue of law, conventions, regulations or cus-
tom shall lie admitted on the pretext that the present
Covenant does not recognize such rights or that it recog-
nizes them to a lesser extent.
PART III [ECONOMIC, SOCIAL, AND CULTURAL RIGHTS]
Article 6
1. Work being at the basis of all human endeavour, the
States Parties to the Covenant recognize the right to
work, that is to say, the fundamental right of everyone
to the opportunity, if he so desires, to gain his living by
work which he freely accepts.
2. The steps to be taken by a State Party to this Cove-
nant to achieve the full realization of this right shall in-
clude programmes, policies, and techniques to achieve
steady economic development and full iiroductive employ-
ment under conditions safeguarding fundamental politi-
cal and economic freedoms to the individual.
Article 7
The States Parties to the Covenant recognize the right
of everyone to just and favourable conditions of work,
including :
(a) Safe and healthy working conditions;
(b) Remuneration which provides all workers as a
minimum with :
(i) Fair wages and equal remuneration for work
of equal value without distinction of any kind, in par-
ticular, women being guaranteed conditions of work not
inferior to those enjoyed by men, with equal pay for
equal work ; and
(ii) A decent living for themselves and their fam-
ilies ; and
(c) Rest, leisure and reasonable limitation of work-
ing hours and periodic holidays with pay.
Article 8
The States Parties to the Covenant undertake to en-
sure the free exercise of the right of everyone to form
and join local, national and international trade unions
of his choice for the protection of his economic and social
interests.
Article 9
The States Parties to the Covenant recognize the right
of everyone to social security.
Article 10
The States Parties to the Covenant recognize that :
1. Special protection should be accorded to motherhood
and particularly to maternity during reasonable periods
before and after childbirth ; and
2. Special measures of protection, to be applied in all
appropriate cases within and with the help of the family,
should be taken on behalf of children and young persons,
and in particular they should not be required to do work
likely to hamper their normal development. To protect
children from exploitation, the unlawful use of child
labour and the employment of young persons in work
harmful to health or dangerous to life should be made
legally actionable ; and
3. The family, which is the basis of society, is entitled
to the widest possible protection. It is based on mar-
riage, which must be entered into with the free consent
of the intending spouses.
Article 11
The States Parties to the Covenant recognize the right
of everyone to adequate food, clothing and housing.
Article 12
The States Parties to the Covenant recognize the right
of everyone to an adequate standard of living and the
continuous Improvement of living conditions.
Article IS
The States Parties to the Covenant, realizing that health
is a state of complete physical, mental and social well-
being, and not merely the absence of disease or infirmity,
recognize the right of everyone to the enjoyment of the
highest standard of health.
The steps to be taken by the States Parties to the
Covenant to achieve the full realization of this right shall
include those necessary for :
(a) The reduction of infant mortality and the pro-
vision for healthy development of tlie child ;
(b) The improvement of nutrition, housing, sanita-
tion, recreation, economic and working conditions and
other a.spects of environmental hygiene ;
(c) The prevention, treatment and control of epi-
demic, endemic and other diseases ;
Jo/y 7, 7952
29
(d) The creation of conditions which would assure
to all medical service and medical attention in the event
of sickness.
Article H
1. The States Parties to the Covenant recognize the
right of everyone to education, and recognize that edu-
cation shall encourage the full development of the human
personality, the strengthening of respect for human rights
and fundamental freedoms and the suppression of all
Incitement to racial and other hatred. It shall promote
understanding, tolerance and friendship among all na-
tions, racial, ethnic or religious groups, and shall further
the activities of the United Nations for the maintenance
of peace and enable all persons to participate effectively
in a free society.
2. It is understood :
(a) That primary education shall be compulsory
and availnlile free to all ;
ih) That secondary education, in its different forms,
including technical and professional secondary education,
shall be generally available and shall be made progres-
sively free ;
(c) That higher education shall be equally accessible
to all on the basis of merit and shall be made progressively
free ;
(d) That fundamental education for those persons
who have not received or completed the whole period of
their primary education shall be encouraged as far as
possible.
3. In the exercise of any functions which they assume
in the field of education, the States Parties to the Cove-
nant undertake to have respect for the liberty of parents
and, when applicable, legal guardians to choose for their
children schools other than those established by the
public authorities which conform to such minimum edu-
cational standards as may be laid down or approved by
the State and to ensure the religious education of their
children in conformity with their own convictions.
Article 15
Each State Party to the Covenant which, at the time
of becoming a party to this Covenant, has not been aljle
to secure in its metropolitan territory or other territories
under its .iinnsdiction compulsory jirimary education, free
of charge, undertakes, within two years, to work out and
adopt a detailed plan of action for the progressive im-
plementation, within a reasonable number of years, to
be fixed in tlie plan, of the princi|iie of compulsory pri-
mary education free of charge for all.
Article 16
1. The States Parties to tlie Covenant recognize the
right of everyone :
(a) To take part in cultural life;
(b) To enjoy the benefits of scientific progress and
its applications.
2. The steps to l)e taken Iiy the States Parties to this
Covenant to achieve the full realization of this right
shall include those necessary for the conservation, the
development and the diffusion of science and culture.
3. The States Parties to the Covenant undertake to
respect the freedom indispensable for scientific research
and creative activity.
PAIIT IV [BEPORTINO PKOCEDUEE]
(Part IV was initially drafted by the Commission on
Human Rights at its 19.51 Session and was not considered
at its 1952 Session because of the lack of sufficient time
to do so. The renumbering of the articles of Parts IV and
V is not official, l)ut has I)een done for the convenience of
the reader. The Commission has not as yet decided
whether the procedure set forth in this Part IV should
also be applicable to civil and political rights. Senti-
ment at the 19.51 session of the Commission was divided
on this issue. This procedure was, however, initially
drafted by the Commission with respect to the economic,
social and cultural rights in this Covenant. For this
reason this procedure is included only in this Covenant.)
Article n
[formerly Article 60]
The States Parties to this Covenant undertake to sub-
mit reports concerning the progress made in achieving
the observance of these rights in conformity with the
following articles and the recommendations which the
General Assembly and the Economic and Social Council,
in the exercise of their general responsibility may make
to all the Members of the United Nations.
Article IS
[formerly Article 61]
1. The States Parties shall furuLsh their reports in
stages, in accordance with a programme to be established
by the Economic and Social Council after consultation
with the States Parties to this Covenant and the special-
ized agencies concerned.
2. Reports may indicate factors and diflSculties affect-
ing the degree of fulfilment of obligations under this
part of the Covenant.
3. Where relevant information has already previously
been furnished to the United Nations or to any specialized
agency, the action required by this Article may take the
form of a precise I'eference to the information so
furnished.
Article 19
. [formerly Article 62]
Pursuant to its responsibilities under the Charter in
the field of human rights, the Economic and Social Coun-
cil shall make special arrangements with the specialized
agencies in respect of their reporting to it on the progress
made in achieving the observance of the provisions of
this Part of the Covenant falling within their compe-
tence. These reports shall include particulars of de-
cisions and recommendations on such implementation
adopted by their competent organs.
Article SO
[formerly Article 63]
The Economic and Social Council shall transmit to
the Commission on Human Rights for study and recom-
mendation tlie reports concerning human rights submitted
by States, and those concerning human rights submitted
l)y the competent specialized agencies.
Article 21
[formerly Article 64]
The States Parties directly concerned and the special-
ized agencies may submit comments to the Economic and
Social Council on the report of the Commission on Human
Rights.
Article 22
[formerly Article 65]
Tlie Economic and Social Council may sulimit from 1
time to time to the General Assembly, with its own re- '
ports, reports sununarizing the information made avail-
able by the States Parties to the Covenant directly to the
Secretary-General and by the specialized agencies under
Article . . . indicating the progress made in achieving
general observance of these right.s.
Article 23
[formerly Article 66]
The Economic and Social Council may submit to the
Technical Assistance Board or to any other appropriate
international organ the findings contained in the report
of the Commission on Human Rights which may assist
30
Departrr.enf of State Bulletin
such organs in deciding each within its competence, on
the advisaljility of international measures liltely to con-
tribute to the progressive implementation of this
Covenant.
Article 2//
[formerly Article 67]
The States Parties to the Covenant agree that inter-
national action for the achievement of these rights in-
cludes such methods as conventions, recommendations,
technical assistance, regional and technical meetings and
studies with governments.
Article 25
[formerly Article 68]
Unless otherwise decided by the Commission on Human
Eights or by the Economic and Social Council or requested
by the State directly concerned, the Secretary-General of
the United Xations shall arrange for the publication of
the report of the Commission on Human Rights, or re-
ports presented to the Council by specialized agencies as
well as of all decisions and recommendations reached by
the Economic and Social Council.
Article 2G
[formerly Article 69]
Nothing in this Covenant shall lie interpreted as im-
pairing the provisions of the Charter of the United Nations
and of the Constitutions of the specialized agencies, which
define the respective responsibilities of the various organs
of the United Nations and of the specialized agencies in
regard to the matters dealt within this Covenant.
Article 27
[Territories Application Article]
[This article was adopted iij the Oeneral Assemlili/ at
its 1950 Session and revised only sUphtlii bij the Commis-
sion on Human Rights at its 1951 Session]
The provisions of the present Covenant shall extend to
or be applicable equally to a signatory metropolitan State
and to all the territories, be they Non-Self-Governing,
Trust, or Colonial Territories, which are being adminis-
tered or governed by such metropolitan State.
Article 28
[Federal-State Article]
[The consideration of this article was postponed until
the 1953 Session of the Commission on Human Rights.
The United States, together with Australia and India,
submitted the following proposal for this article:
1. A federal State may at the time of signature or ratifi-
cation of, or accession to, this Covenant make a Declara-
tion stating that it is a federal State to which this Article
Is applicable. In the event that such a Declaration is
made, paragraphs 2 and 3 of this Article shall apply to
it. The Secretary General of the United Nations shall
inform the other States I'arties to this Covenant of such
Declaration.
2. This Covenant shall not operate so as to bring
within the jurisdiction of the federal authority of a fed-
eral State making such Declaration, any of the matters
referred to in this Covenant which independently of the
Covenant, would not be within the jurisdiction of the
federal authority.
3. Subject to paragraph 2 of this Article, the obliga-
tions of such federal State shall be:
(a) In respect of any provisions of the Covenant,
the implementation of which is, under the constitution
of the federation, wholly or in part within federal juris-
diction, the obligations of the federal government shall,
to that extent, be the same as those of Parties which have
not made a declaration under this Article.
(b) In respect of any provisions of the Covenant,
the implementation of which is, under the constitution of
the federation, wholly or in part within the jurisdiction
of the constituent units (whether described as states,
provinces, cantons, autonomous regions, or by any other
name), and which are not, to this extent, under the con-
stitutional system bound to take legislative action, the
federal government shall bring such provisions with fa-
vorable recommendations to the notice of the appropriate
authorities of the constituent units, and shall also request
such authorities to inform the federal government as to
the law of the constituent units in relation to those
provisions of the Covenant. The federal government shall
transmit such information received from constituent units
to the Secretary General of the United Nations.]
[Former Articles "10 and 13 were revised by the Com-
miiision on Human Rights at its 1950 Session and ivere
not considered at its 1951 or 1952 Session because of the
lack of sufficient time to do so.]
Article 29
[formerly Article 70]
[Ratification and Accession]
1. This Covenant shall be open for signature and rati-
fication or accession on behalf of any State Member of
the United Nations or of any non-member State to which
an invitation has been extended by the General Assembly.
2. Ratification of or accession to this ("ovcnant shall be
effected by the deposit of an instrument of ratiflcatiim or
accession with the Secretary-General of the United Na-
tions, and as soon as twenty States have deposited such
instruments, the Covenant shall come into force among
them. As regards any Slate which ratified or accedes
thereafter the Covenant shall come into force on the date
of the deposit of its instrument of ratification or
acce.ssion.
3. The Secretary-General of the United Nations shall
inform all Members of the United Nations, and other
States which have signed or acceded, of the deposit of
eacli instrument of ratification or accession.
Article 30
[formerly Article 73]
[Amendments]
1. Any State Party to the Covenant may propose an
amendment and file it with the Secretary-General. The
Secretary-General shall thereupon communicate the pro-
posed amendment to the States Parties to the Covenant
with a request that they notify him whether thev favour
a conference of States Parties for the purpose of consider-
ing and voting upon the proposal. In the event that at
least one-third of the States favour such a conference the
Secretary-General shall convene the conference under the
auspices of the United Nations. Any amendment adopted
by a majority of States present and voting at the confer-
ence shall be submitted to the General Assembly for
approval.
2. Such amendments shall come into force when they
have been approved by the General Assembly and accepted
by a two-thirds majority of the States parties to the
Covenant in accordance with their respective constitu-
tional processes.
3. When such amendments come into force they shall
be binding on those parties which have accepted them,
other parties being still bound by the provisions of the
Covenant and any earlier amendments which they have
accepted.
*Mr. Simsarian is assistant oificer in charge of
United Nations Cidtwral and Human Rights
Affairs and also adviser to the U.S. representative
on the Commission on Human Rights.
July 7, J 952
31
U.S. Proposes Investigation of Bacteriological
Warfare Charges
Statements hy Ernest A. Gross
Deputy U.S. Representative to the United Nations
NEED FOR ELIMINATION OF GERM WARFARE'
Mr. President:^
Despite the lateness of the hour, I feel that the
situation and the comments which you have made
require a reply on my part. With the permission
of the Council I should like to proceed to make
such a reply.
Mr. President, it seems to me that we are faced
with a situation which we must consider very
carefully. For some time, there has been under
way on the part of the Government of the Soviet
Union a campaign which has been repeatedly char-
acterized by all responsible officials of the Unified
Command,"and by others in a position to know the
facts, as a false and malicious campaign regarding
the use of bacteriological warfare in Korea.
In view of the nature of the statement which
the representative of the Soviet Union has made
this afternoon, I do not intend at this time to go
into detail regarding the nature of that campaign
of lies nor to elaborate other than to say that
there has been no evidence, no evidence whatever,
placed before the membership of the United Na-
tions or manifested in any other way, on any other
front, throughout the world that the Soviet Gov-
ernment has abandoned its campaign of lies re-
garding the question of germ warfare.
It is a matter —
[At this point, the I'resident, Mr. Jlalik, appeared to con-
sider ruling Ambassador Gross out of order.]
I believe I have the floor, Mr. President. I think
that many people will be touched, if not interested,
in the respect which the President of the Council
purports now to observe for the rules of procedure
■ Made in the Security Council June IS and released to
the press by the U.S. Mission to the U.N. on tlie same date.
''Takov Malik, U.S.S.R. representative to the U.N.,
.served as president of the Security Council during June.
He also serves as representative of the U.S.S.K. on the
U.N. Disarmament Commission.
32
in contrast to the abuse of those rules in August of
lOoO.^' I think that it will be clear to the members
of the Council, and I hope as well to the President
of the Council, that what I am about to say will
show very definitely and clearly why the comments
which I have made are completely relevant to the
question of the Geneva protocol and its ratifica-
tion.
I had started to say, Mr. President, that I do
not intend to speak more about the germ warfare
charge at this time, except to say that we are not
yet convinced by any means that the Soviet Gov-
ernment is prepared to abandon a false and mali-
cious charge, the continuation of which can be
fraught only with misfortune and disaster.
The reference to the germ warfare propaganda
campaign which the Soviet Government has been
carrying on is quite relevant, inescapably con-
nected with the subject of the Geneva protocol. I
am sure that everyone will realize that in apprais-
ing the merits of the proposal of the Soviet Gov-
ernment in the resolution regarding the Geneva
protocol, it is absolutely essential to keep in mind
whether the motive ofthose who make that pro-
posal stand the light of truth and of inspection.
The draft resolution, which the Soviet repre-
sentative submitted today and to which I shall
address myself directly, the draft resolution would
have the Security Council appeal to all states to
accede and to ratify the Geneva protocol of 1925.
And the protocol, as is known, provides for the
prohibition of the use in war of asphyxiating,
poisonous, or other gases, and of all analogotis
liquids, materials, or devices, as well as bacteri-
ological methods of warfare.
As was said in the Disarmament Commission,
when the proposal was made by the Soviet repre-
sentative regarding the Geneva protocol, and when
the claim was made that the ratification of that
^ A reference to Mr. Malik's presidency of the Council
in August 1950.
Deparfmeni of Sfofe Bulletin
protocol is an essential condition, an element of a
peaceful world and of a disarmament program, it
was our representative in the Commission, Am-
bassador Cohen, who said then, and I repeat his
words now :
Those who make false charges concerning the use of
bacteriological warfare can just as easily make false
promises not to use bacteriological warfare.*
When in 1925 the Geneva protocol was proposed
and signed, statesmen still hoped that exchange
of promises would be honored by all states. Most
of them then, as most of them today, regarded
treaties as binding on those who signed them. An
agreement was an agreement; and many thought
that this was sufficient without any need for ma-
chinery to safeguard the observance of the
agreements.
The United States signed but did not ratify this
protocol. The reasons why the United States
Senate did not ratify the protocol may be of inter-
est to the historian of American attitudes of that
period. But these reasons are no more relevant
to a consideration of the problem today than
would, let us say, consideration by the Security
Council of the attitudes of the Soviet Government
toward the rest of the world in 1925. What mat-
ters deeply to us and to all those who, we believe,
comprise the freedom-loving world, what matters
are the problems which confront us all today. It
was in full recognition of these problems that we
are talking about today, that in 1947 the President
of the United States withdrew the Geneva protocol
from the Senate calendar along with 18 other
treaties which had become just as obsolete as the
Geneva protocol. The world has moved since 1925
and the (juestion of ratification must be viewed in
the light of today's facts.
Soviet Reservations
One of those facts is that the Soviet Union, in
acceding to the Geneva protocol, stated the fol-
lowing reservation :
(1) The said Protocol only binds the Government of
the USSR in relation to tlie States which have sisned and
ratified or which liave definitely acceded to the I'rotocol.
(2) The said Protocol shall cease to be binding on the
Government of the USSR in regard to all enemy States
whose armed forces or whose Allies dc jure or in fact do
not respect the restrictions which are the object of tliis
Protocol.
The first point, the point in the first reservation
to which I have referred, means that the Soviet
Government by its own reservation feels free to
use poison gases or germ weapons against any
state which for any reason has not ratified the pro-
tocol. This, it seems to me, exposes the sham
character of the pretense that poison gases or
germ weapons should never be used under any
circumstances, which is implied by the statement
of the Soviet representative in his resolution that
* Bulletin of Juno 9, 1952, p. 912.
the use of these weapons is inadmissible. They
are clearly not considered inadmissible for use by
the Soviet Government under the conditions which
are set forth in the reservations which the Soviet
Government made to the protocol.
The second point, the second reservation is
equally important, even more important. It
means that the Soviet Government regards itself
as free to use poison gases or germ warfare against
any state which it decides to label an enemy and
which it declares has used these weapons, where
as I have said the reservation states that the jjroto-
col "shall cease to be binding on the Government
of the USSR in regard to all enemy States whose
armed forces or whose Allies de jure or in fact do
not respect the restrictions which are the object of
this Protocol."
It is here that the President will observe that the
close connection between the actions which his
Government has taken in a campaign of lies re-
garding germ warfare are so intimately related to
the question of what the Geneva protocol means
to the Soviet Government today.
I do not mean to suggest for a moment that the
reservation which I have quoted is in itself inap-
propriate. Other states which acceded to the pro-
tocol, including some members of this Council,
have expressed a similar reservation. What I do
say is that the Soviet Government by charging the
U.N. Command with the use of bacteriological
weapons has set the stage for using these weapons
itself if it should decide to declare that the states
resisting aggression in Korea are its enemies.
The Chinese Communist and North Korean au-
thorities are not parties to the protocol. But even
if they signed it or should do so today, under the
Soviet reservation and on the basis of the same
false charges they have made against the United
Nations regarding the use of germ warfare, they
could proclaim this very afternoon their right to
attack with germ weapons every member of the
United Nations which is supporting the action
against their aggression in Korea.
It seems to me very clear how extremely limited
is the nature of the illusion of a Soviet promise
in the Geneva protocol. The Soviet representative
in his statement a short while ago referred to a
declaration of policy regarding the stockpiling of
weapons. The Geneva protocol does not refer to
or limit in any way the stockpiling of weapons.
The Soviet Union has not by signing the proto-
col or otherwise agreed to stop manufacturing
weapons either for gas warfare or for bacterio-
logical warfare. It has not even promised not
to use such weapons. It has promised, for what
that promise is worth, not to use them first except
against countries which have not ratified the con-
vention, and there they do not even attach that
limitation of not using them first.
The present resolution, therefore, the one before
us, we characterize and stamp as a fraud, for in
Jo/y 7, 7952
33
it the Soviet Government asks other states, or
would have the Council recommend to other states,
to ratify a protocol which the Soviet Union on
the basis of its own false charges, which have not
been withdrawn by anything whicli the represent-
ative of the Soviet Union said today, on the basis
of its own false charges his Government could
declare no longer bincling upon itself.
Tliat is the situation in which the world finds
itself today.
The real question is not the exchange of ]:)romises
with or without reservations. The woi-ld is con-
cerned not about the announced intentions of
states, whether or not they plan to use or promise
not to use certain weapons. It is concerned about
the known abilities of states, whether or not they
possess certai)! weapons, and of the capacities and
means to employ them.
Soviet Union Engaged in Research
The Soviet Union admits it is engaged in re-
search on bacteriological weapons. For instance,
in 1938, Marshal Voroshilov said :
Ten years aso or more the Soviet Union signed a con-
vention abolishing the nse of poison gas and bacterio-
logical weapons. To that we still adhere, but if our
enemies use such methods against us I tell jou we are
prepared and fully preiiared to u.se them also and to use
them against aggressors on their own soil.
There was never an attempt made on the part
of the Soviet Union to conceal the fact that it was
prepared and fully prepared, as Voroshilov said,
to use this weapon, the use of which the Soviet
resolution fraudulently describes, from its own
point of view, as inadmissible.
The United States, for its part, thinks it is ob-
vious that until an effective disarmament program
is agreed upon, we must build our own defenses,
for this is the only way left to us to deter potential
aggressors.
It is the possibility that states may use bacterio-
logical weapons that must be faced. It is the
danger that aggressors may use bacteriological
weapons that must be eliminated.
The best evidence of the United States attitude
toward germ warfare is our own record. The
TTnited States has never used germ warfare in
World War II or at any other time. I am au-
thorized to say on behalf of the Unified Command
tliat the United States has not and is not using
germ warfare of any kind in Korea. The people
of the United States, along witli the rest of tlie
decent world, are sickened at the very thought of
the use of the weapons of mass destruction. We
are sickened also by aggression and the threat of
aggression. That is why the United States stands
ready to eliminate weapons of mass destruction
through the establishment of an effective system
based upon pffective safeguards so that their use
may be prohibited effectively and would indeed be
impossible.
The United States, however, is unwilling, com-
pletely unwilling to participate in committing a
fraud on the world through placing reliance solely
upon paper promises which permit the stockpil-
ing of unlimited quantities of germ warfare or
other weapoi'S that could be used at the drop of
a hat; which permit the most elaborate prepara-
tions behind the Iron and behind the Bamboo Cur-
tains and with preparations that could not pos-
sibly be detected.
Let us eliminate tlie weapons. That will bring
a sense, a real sense of security to the world.
My Government proposes not the exchange of
promises against the use of such weapons but the
absolute ehmination of suclt weapons. We want
to see the world in a situation where these weap-
ons together with all weapons of mass destruc-
tion cannot in fact be used at all, for the simple
reason that no one has them and that everyone
can be sure that no one has them.
The Soviet Union now in effect proposes a
"declaration" prohibiting atomic weapons. The
United States proposes a system of international
control of atomic energy, which will actually pro-
hibit and prevent the use of atomic weapons be-
cause no nation will possess the means to make
them. An overwhelming majority of the mem-
bers of the United Nations have shown through
the years their conviction that only through
this approach can the world be freecl from the
danger of atomic warfare. An overwhelming
majority showed a similar conviction with re-
gard to germ warfare when they voted last fall
to establish under the Security Council the Dis-
armament Commission and directed it to find
means of eliminating all weapons of mass destruc-
tion under a system of safeguards adequate to
insure that they really are eliminated.
It is in the Disarmament Commission of course
that this discussion, this very discussion, properly
belongs. The Soviet representative, in my view
erroneously invoking a point of order under the
rules, has pointed out — I regret that he has not
done so more frequently in the Disarmament Com-
mission— has pointed out that there is a great and
important distinction between the question of reg-
ulation of armaments on tlie one hand and the
question of charges, false charges, concerning their
use on the other.
By his own admission this question and this
proposal deal not with the false charges of germ
M-arfare. They deal with the problem of the reg-
ulation of armaments and the prohibition of weap-
ons of mass destruction. That admission merely
confirms, what I think most of us realize, that the
Disarmament Commission is the proper body in
which to pursue this discussion and at the present
time, I think, the only proper body.
We have ourselves in the Disarmament Commis-
mission, as have a number of our colleagues,
already explained our position in regard to the
Geneva protocol and in regard to the elimination,
34
Deparfment of State Bulletin
the actual elimination, of all -weapons of mass
destruction, including atomic and germ warfare.
By his draft resolution the Soviet representa-
tive is attempting to transfer the discussion of
one phase of the regulation of armaments from
the Disarmament Commission at this time to the
Security Council. I thinli I have shown that the
Geneva protocol itself does not even begin to pro-
vide the minimum requirements needed today to
guarantee against the use of bacteriological
warfare.
Nevertheless, the declared objective of the
Soviet draft resolution is to provide, and I quote
from it, "for the ]:)rohibition of the use of bac-
teriological weapons." That objective my Gov-
ernment shares. That objective my Government
believes, and I think the overwhelming majority
of the members of the United Nations shares our
view, can be achieved only by detailed jjlans of
international control set in a framework of com-
prehensive disarmament proposals covering all
armed forces and all armaments.
For these reasons the U.S. delegation moves,
pursuant to rule 33, paragraph 4, of our rules of
procedure, that the Soviet draft resolution, docu-
ment S/2663, be referred to the Disarmament
Commission for consideration, pursuant to the
terms of reference of that commission, in connec-
tion with the proposals which the General As-
sembly has directed the Disarmament Commission
to prepare "for the elimination of all major weap-
ons adaptable to mass destruction."
I respectfully hope that members of the Coun-
cil will agree that this is the proper way for the
Council to deal with the Soviet clraft resolution.
Item 2 of the program of work adoj^ted by the
Disarmament Commission on March 26 of this
year reads : '"Elimination of weapons of mass de-
struction and control with a view to ensuring their
elimination."
That is the program of work of the Disarma-
ment Commission. Unless there be any doubt as
to what that means, the U.S. representative on the
Disarmament Commission, along with several
otiier members, has said that this specifically is
intended to include bacteriological weapons. He
has also said, and this is pei-tinent to our discussion
today, the U.S. Government is interested in dis-
armament as a means of preventing war. outlaw-
ing war, not as a means of regulating war.
That statement of policy I think brings us, and
I conclude with this, very close to the heart of
our problem here. Aggression is the enemy, not
the particular weapons used, as the General As-
sembly has itself declared in a resolution over-
whelmingly supported by the United Nations
under the title Peace Through Deeds. Aggres-
sion is the enemy. The elimination of weapons of
mass destruction, the drastic reduction of armed
forces, and the regulation of the weapons needed
to support those armed forces will decrease the
possibility of aggression. It is because we wish
to see real progi'ess in this vital task that we pro-
pose the referral of the Soviet draft resolution to
the Disarmament Commission.
REQUEST FOR IMPARTIAL INVESTIGATION ^
The resolution which the President of the Coun-
cil has submitted to us has all the characteristics
of a disembodied spirit.
The Soviet representative has asked the Council
to adopt a resolution urging the ratification of a
protocol now 27 years old. However, if his argu-
ments prove anything at all, it is not that the
Council should act. On the contrary, taking his
argument at face value, it shows the need for press-
ing on in the Disarmament Commission with plans
for the eflfective control of all weapons of mass
destruction, including germ warfare weapons.
Everything he says confirms our view that the
Soviet draft resolution should be referred to the
Disarmament Commission for consideration pur-
suant to its terms of reference.
In the Disarmament Commission, the Soviet
representative spoke in a manner utterly contra-
dictory to what he says here in the Security Coun-
cil. In speech after speech he attacked my
country with utterly false and malicious accusa-
tions, that we were killing Korean and Chinese
civilians and soldiers through the use of germ
warfare. He does not now withdraw and abandon
these lies. Instead, he submits to the Council a
resolution asking for the ratification of the Geneva
protocol of 1925 on the prohibition of bacteriologi-
cal weapons.
But between his resolution and the charges re-
garding germ warfare he proceeds to draw a thin
and rusty iron curtain. He tells us there is no
connection whatever between the two. Why does
he make these delicate distinctions?
Can it be because the introduction of the germ
warfare charges inevitably invites an investiga-
tion into the charges ?
The Soviet representative has concentrated on
the Geneva protocol of 1925, implying that there
must be something sinister in the fact that the
United States has not ratified it.
I have already called his attention to the fact
that this is the year 1952, not 1925. We are con-
cerned, the whole free world is concerned, with
the facts of life which we face today. In light
of the facts of history, is it any wonder that in the
field of weapons control, the paper pledge has
given way to insistence upon workable, practical
systems for elimination of all weapons of mass
destruction, including germ warfare and the atom
weapon ?
The Soviet representative brought in the report
by the Special Committee of the League of Na-
' Statement made in the Security Council June 20 and
released to tlie press by the U.S. Mission to the U.N. on
the same date.
July 7, J 952
35
tions as authority for the contention that there
could be no effective control of bacteriological
weapons. The Soviet Government appai'ently
believes that it is useless even to try to devise such
controls. My Government differs.
To wage bacteriological warfare on any large
scale is a vast operation requiring extensive muni-
tions of the conventional type, arsenals for manu-
facturing and loading, and carriers. Prepara-
tions for waging such warfare can be detected in
a relatively open world. An open world such as is
envisaged in the proposals before the Disarma-
ment Commission where international inspectors
have free access to the entire national territory
of all states, we believe, would afford an effective
safeguard against large-scale preparation for bac-
teriological warfare.
We are convinced that the methods for effective
safeguards must be sought by sincere people work-
ing honestly to accomplish that objective. The
proper place to accomplish this is in the Disarma-
ment Commission and in its committees.
In his statement here on Wednesday [June IS],
the Soviet representative indicated that the Dis-
armament Commission was sidestepping the con-
trol of germ warfare. He stated in particular
that the United States had submitted no practical
proposals on the prohibition of bacteriological
weapons and that we opposed a proposal concern-
ing the prohibition of bacterial weapons. He is
wrong in both cases. "\'\liat are the facts? The
United States has consistently taken the position
that the elimination of bacteriological weaj^ons
must be included in a comprehensive and coordi-
nated disarmament program. To quote from a
statement to the Disarmament Commission by the
United States representative. Ambassador Cohen,
on May 27 : "
Bacteriological weapons can be eliminated only if cer-
tain states are willing, as the United States is willing,
to establish an effective s.ysteni of safeguards. The tech-
nical safeguards connected with bacteriological warfare
would differ from those of atomic energy and also from
those in connection with other types of nonatomic
weapons. . . .
The first and all-important safeguard against bacterio-
logical warfare, however, is an open world, a world
where no state could develop the military strength neces-
sary for aggression without other states having ample
warning and the opportunity to protect themselves.
But what of the Soviet representative's second
claim, his contention that in the Disarmament
Commission we opposed consideration of the ques-
tion of banning bacteriological weapons? He is
an accomplished creator of straw men and this is
no exception. He has selected a paragrapli from
the Soviet Plan of Work, which was voted down
as a whole by a vote of 9 to 1. The Commission
adopted as a better formulation another plan of
work which covered the prohibition of germ war-
fare. It is included in subparagraph B of the
° Bulletin of June 9, 1952, p. 91.3.
work plan on the elimination of all major weapons
adaptable to mass destruction. It is therefore
quite untrue to state that the United States op-
poses or has opposed consideration of the prohibi-
tion of germ warfare in the Disarmament
Commission.
In his statement here Wednesday, the Soviet
representative also referred to the protracted dis-
cussion in the United Nations on the reduction
of ai'maments and the prohibition of atomic weap-
ons as having diverted attention from the prohibi-
tion of bacterial weapons. He added that atten-
tion was drawn to this point by the report of the
Secretary-General of the United Nations to the
tltird session of the General Assembly.
However, on this very report of the Secretary-
General, of which Mr. Malik spoke so warmly on
Wednesday, Pravda in its issue of September 16,
19-18, declared:
Trygve Lie twice refers to bacteriological warfare. Is
not the definite purpose of this to distract the attention
of the General Assembly and of world public opinion
from the existing unresolved question of atomic energy?
This attitude of Trygve Lie Is in accord with the interests
of the Anglo-American Bloc, but in no way conforms with
the interests of peace and security of the peoples of the
world.
In much the same vein on Wednesday, the Soviet
representative accused us of diversionary tactics
in connection with his resolution. For example,
take the question of reservations to the Geneva
l^rotocol. If you will recall, I jjointed out that
the Soviet Union had made certain reservations
to the Geneva protocol. These reservations had
the effect of allowing the Soviet Government to
use poison gas or germ warfare against any state
which had not ratified the protocol. Further-
more, I pointed out that the Soviet Goverinnent,
through its reservations, was free to use poison
gas or germ warfare against any state which it
labeled an enemy, and which it declares has used
these weapons.
I pointed out that many states had expressed
similar reservations concerning the Geneva pro-
tocol. I was not criticizing them for having done
so. The Soviet representative either misunder-
stood or intentionally missed the point. Let me
bring out the point as sharply as possible.
These reservations become a fraud and a trick
when the government which expresses them
habitually and brazenly uses in its propaganda
arsenal the weapon of the lie. There is a world
of difference between the government which re-
serves its right to fight fire witli fire and that
which paves the way for using such weapons by
falsely charging others with their use.
We have witnessed for months now an inter-
national campaigii, sponsored by the Soviet Union
and designed to sell the world on the false and
wicked lie, that the United States is waging
bacterial warfare in Korea. Acting on this totally
false premise, the Chinese and Nortli Korean
Communists, even if they were full signatories
36
Department of State Bulletin
to the Geneva protocol, could proclaim today their
right to use germ warfare against the United
Nations forces in Korea.
Geneva Protocol Not Enough
This is the point which the Soviet representa-
tive avoided. This is how a legal and justifiable
reservation can be twisted into a basis for criminal
action. This is how even such a well motivated
document as the Geneva protocol can be used not
as a defense against an aggressive act but as an
excuse for it. This is why the Geneva protocol
is not enough. This is why we place our faith
in an international, coordinated system for the
control and elimination of weapons of mass de-
struction, including bacteriological weapons.
But we know, even if the Soviet representative
chooses to state otherwise, that the Geneva proto-
col has been invoked here for purposes other than
the legitimate control of bacteriological weapons.
It is, as we have said, part of the campaign of
lies pressed so assiduously by the international
Communist movement concerning the alleged use
of germ warfare in Korea. For it is designed to
"prove" that the United States has always wanted
to have a free hand to wage germ warfare, if it
chose to do so.
The Soviet representative seems determined to
isolate the Geneva protocol from the realities of
Soviet propaganda. That is his privilege in the
Council. We, on the other hand, have a right to
expose the falsity of these charges and we intend
to ask for it now. We are not misled by the sham
device of the Soviet representative in pretending
in this forum that his arguments on the Geneva
protocol are not related to his Government's false
charges of germ warfare.
We believe the Council must concern itself with
this question. We should have an impartial in-
vestigation of the alleged use of germ warfare.
I request the Security Council to meet on Mon-
day, June 23, at 3 p. m. to consider the following
new agenda item : "Question of request for investi-
gation of alleged use of bacteriological warfare."
I request the Acting Seci-etary-General and you,
Mr. President, to place this new item directly after
the item which deals with the Geneva protocol of
1925, if action on that item has not been completed
prior to the Monday meeting.
On Monday if that item dealing with the Geneva
protocol appears on the provisional agenda, I shall
at that time vote for the adoption of an agenda
with my Government's new item directly after the
Geneva protocol item.
Action by the Security Council is necessary to
prevent the charges of bacteriological warfare
from continuing to poison the relations between
states and to obscure the historic and decisive sig-
nificance of the U.N. action in repelling aggression
in Korea. For the information of the Council,
Mr. President, I am now handing to you a draft
resolution for circulation under my agenda item.
It is less than a page in length. For the informa-
tion of the Council I should like to read it.
Text of U.S. Draft Resolution '
THE SECURITY COUNCIL
Noting the concerted dissemination by certain govern-
ments and authorities of grave accusations charp;ing the
use of bacteriological warfare by United Nations forces
in Korea ;
Noting that the Government of the USSR has repeated
these charges in organs of the United Nations ;
Recalling that when the charges were first made the
Unified Command for Korea immediately denied the
charges and requested that an impartial investigation be
made of them ;
Reqltests the International Committee of the Red Cross,
with the aid of such scientists of international reputation
and such other experts as it may select, to investigate
the charges and to report the results to the Security
Council as soon as possible ;
Calls upon all governments and authorities concerned
to accord to the International Committee of the Red Cross
full cooperation, including the right of entry to, and free
movement in, such areas as the Committee may deem
necessary in the performance of its task,
Requests the Secretary General to furnish the Com-
mittee with such assistance and facilities as it may
require.
' U.N. doc. S/2671, dated June 20, 1952.
Jo/y 7, J 952
37
The United States in the United Nations
'[June 20-Jiily 3, 19521
Security Council
The Council on June 26 rejected the Soviet draft
resohition calling on all states to accede to and
ratify the Geneva Protocol of 1925 on the prohi-
bition of bacteriological warfare. All the mem-
bers, with the exception of the Soviet Union,
abstained from voting after unanimously empha-
sizing that the problem of dealing with mass-
destruction weapons is one of eliminating the
weapons rather than offering paper pledges con-
cerning their use. They supported the view that
the comprehensive program under discussion in
the Disarmaiuent Commission would take care of
the elimination of all weapons of mass destruction.
Ambassador Ernest A. Gross (U.S.) , in explain-
ing the United States vote on tlie motion, stated:
. . . I think it is clear to all that the ten votes . . .
have been ca.st as a measure of the scorn and of the re-
piuliation which I think all ten members of the Council,
•except the Soviet representative, feel for the futile and
vain trick which the Soviet Government has attempted to
perpetrate upon this Council, in raising the false issue of
the ratification of the Geneva I'rotocol. It seems clear
from the debate which has taken place and from the action
■which we have witnessed .iust now as a symbol of unity,
which will not crack and strain however violent the efforts
may lie of the Soviet Government to confuse and to divide
and to terrorize the free world.
Ambassador Gross concluded by stating that in
view of the Council's repudiation of the U.S.S.R.'s
^'attempt to mislead us and others throughout the
world into believing that the Geneva Protocol is
the secret of security today," he did not consider
it necessary to present the United States motion to
refer to the Disarmament Commission the rejected
Soviet resolution.
On June 20 Ambassador Gross requested that
the Council place on its agenda as of June 2-3 a
United States item entitled "Question of Request
for Investigation of Alleged Bacterfological War-
fare" and in connection therewith submitted a
■draft resolution ' requesting the International
Committee of the Red Cross (IcRc), with the aid
of such scientists of international reputation and
such other experts as it may select, to investigate
the charges against the United Nation^Forces in
' For text, see p. 37.
Korea and to report the results to the Security
Council as soon as possible. The draft resolution
also called upon all governments and authorities
concerned to accord to the Icrc full cooperation,
including the right of entry to and free movement
in, such areas as the Committee may deem neces-
sary in the performance of its task.
Through the obstructionist tactics of Mr. Malik
(U.S.S.R.), President of the Security Council for
June, the vote — 10-1 (Soviet Union )-0 — to in-
clude this item on the agenda was not taken until
June 25. The Soviet representative insisted that
before the item could be adopted it would be neces-
sary to approve his proposal that representatives
of the People's Republic of China (Pec) and of
North Korea be invited to participate in the dis-
cussion. Ambassador Gross pointed out that such
a matter could not be decided in advance and that
such a course had never been followed before. He
recalled that in the Disarmament Commission the
U.S.S.R. had repeatedly made the bacteriological
charges and, in fact, had spoken for the Prc and
Northern Korean representatives on those oc-
casions. After adoption of the agenda item, the
Council would decide what sort of problem it was
faced with and then could consider any proposals
regarding participation. He added, however, that
the United States would oppose such an invitation.
The United States was not asking for presentation
of evidence in the Security Council, he said. The
essence of the proposal was to conduct an investi-
gation through an impartial liody.
On July 1 the Council rejected the Soviet pro-
posal by "a vote of 1 (U.S.S.R.)-IO-O, and de-
cided—9-1 (U.S.S.R.)-l (Pakistan)— to give
priority to the United States item over the agenda
item of admission of new members. Mr. Malik
reiterated that the question of an investigation
commission was impossible without the partici-
pation of the representatives of the Prc and North
Korea and that the Soviet delegation therefore
would not participate in the debate and would
vote against the United States resolution.
Ambassador Gross (U.S.) remarked that the
Soviet representative might try to evade the truth
with a "sit-down strike" but he could not sit on the
truth or "veto the facts." He explained the rea-
sons for the United States request for an impartial
38
i
Department of Slate Bulletin
investigation and recalled in detail the facts of the
origin and nature of the canijiaign of false charges
concerning the use of germ warfare in Korea by
the United Nations Command. In conclusion,
he reiterated that the larger issue involved was the
awful Soviet policy of hate. As this was a revolt
against the fundamental purpose of the Charter,
Ambassador Gross urged that the United Nations
and the whole world keep alert to its effects.
On July 3 the U.S.S.R., casting its forty-ninth
veto, voted against the United States resolution
requesting an investigation by the Icrc. The vote
was 10-1-0. Ambassador Gross then introduced
a resolution condemning the dissemination of
false charges, "which increases tension among
nations. . . ."
Economic and Social Council
A major item considered by Ecosoc during the
past month of the fourteenth session was the larob-
lem of economic development of underdeveloped
countries and methods of financing such develop-
ment. In this connection it considered the annual
report of the International Bank for Reconstruc-
tion and Development. Eugene R. Black, presi-
dent of the Bank, stated that by March 31, 1952,
the Bank had lent just over 1.3 billion dollars for
more than 250 projects in 26 member nations.
The Bank also submitted its report, which had
been requested by Ecosoc, on the proposed estab-
lishment of an International Finance Corporation
"to promote the financing of productive private
enterprise either through loans without govern-
ment guarantee and through equity investments,
or through other methods intended for the same
purpose." Although not expressing opinions on
the merits of such an institution and noting that
further study would be required, the report de-
clared that the corporation "would fill an impor-
tant gap in the existing machinery for financing
economic development."
Isador Lubin, U.S. representative, stated that
altliough Ills Government was favorable to a plan
tlu-ough whicli private capital might be stimulated
to invest in sound enterprises in underdeveloped
countries, it was felt "that governments sliould
wisli carefully to consider the various aspects and
implications of tliis proposal before deciding
whether to embark upon it. There is also need to
increase tlie movement of domestic private savings
in the underdeveloped countries into local business
enterprises," lie said. He introduced a joint draft
resolution, with Canada and Pakistan, which re-
quested the International Bank to examine further
this proposal for an International Finance Corpo-
ration ; to consult with member governments and
other interested governments on the desirability of
establishing such a corporation ; and to report the
results of its further examination and the action
it has taken to Ecosoc during 1953. On June 23
this resolution, with the additional cosfionsorship
of the Philippines, was adopted by a vote of
15-0-3 (Soviet bloc).
Under this same item, the Council also adopted,
June 23, by a vote of 15-0-3 (Soviet bloc), a draft
resolution sponsored by Burma, Chile, Cuba,
Egypt, Iran, the I'hilippines, and Yugoslavia
which i^rovided for the establishment of a 9-mem-
ber committee, serving in personal cajjacities, to
prepare a detailed plan for establishing a special
development fund for grants-in-aid and for low-
interest, long-term loans to underdeveloped coun-
tries. The Secretary-General was asked to
appoint the members of the committee, which is to
report to the Council not later than March 1, 1953.
In connection with this resolution, Mr. Lubin
(U.S.) stated:
Our opposition is based on the grounds that the time Is
not opportune. In addition, the Government of the
United States has reservations, in principle, to the pro-
vi.sion of grant aid by an international agency. . . .
AVe fully recognize the need of the less developed countries
for external assistance. We have iirovided and we will
continue to provide aid in the form of grants, loans, tech-
nical assistance and in other appropriate ways. . . .
Subject to the conditions contained in the sixth General
Assembly resolution, namely tliat "the study and elabora-
tion of the plans . . . cannot and must not be regarded
as in any way committing the governments ... in
any degree, whether financially or otherwise," the United
States Delegation is prepared to support the reso-
lution. . . .
Among other actions taken by the Council dur-
ing the past month are the following :
It noted the 1950-51 report of the Food and
Agriculture Organization (F.vo) and (1) adopted
by a vote of 15-0-3 (Soviet bloc) a French-Iranian
resolution recommending that all members should
take steps to help achieve the general objective of
increasing the production of principal foodstuffs
at an annual rate exceeding by from 1 to 2 percent
the rate of the increase in population; and (2)
adopted unanimously on June 30 a revised United
States-Iran-Uruguay resolution calling upon the
United Nations, individual governments, inter-
national organizations, and voluntary organiza-
tions to make plans for coming to the aid of the
people in any country in the case of emergency
famines with which the governments concerned are
unable to cope. This resolution also requests,
Inter alia, that the Fao continue to develop and
perfect its arrangements to detect famine emer-
gencies as early as possible, and that the Secretary-
General arrange for the coordination of the
famine-emergency relief activities and report to
Ecosoc on action taken.
Ju/y 7, 7952
39
Explanation of Passport Procedures
Press Conference Remarks iy Secretary Acheson
[Released to the press June IS]
I should like to talk with you for a few moments
about the passport work of the Department. I
am doing this because it has been the subject of
discussion throughout the country pretty much
over the years but rather intensively in the last
few weeks.
The criticisms of the Department fall into two
main categories.
One of them comes from very determined efforts
which have been made by Communist organiza-
tions who attack the Department and undermine
its work in order to obtain greater fi-eedom of
movement for people engaged in the Communist
movement and in Communist- front organizations.
There was recently a meeting at Chicago which
was devoted to this purpose. It was a meeting
of an organization called the "American Commit-
tee to Survey Labor Conditions in Europe." This
was an organization which had sent propaganda
groups to Moscow and the purpose of the meeting
was to start a vigorous campaign against the State
Department because of its passport policy with re-
spect to Communists. With that criticism I am
not concerned. We expect that and that, of
course, is a matter to which we will pay no atten-
tion.
There are other discussions by people who are
not in any way afliliated with such groups who are,
I think, sincerely worried about procedures, al-
though they do not, I think, attack the principles
upon which we operate. They are concerned
about our procedures, and it is about those pro-
cedures, against the background of the passport,
the development of the passport over the last 30
.years or so, that I wish to speak.
In tlie first place, I would like to say a woi'd
about Mrs. Shipley, who is the head of the Pass-
port Division in the State Department. She has
been there for many years. I, myself, have been
a colleague of Mrs. Shipley for the past 12 years,
and in various capacities which I have held in
the Department I worked very closely with her.
I do not know any person in the service of the Gov-
ernment who brings to her work greater devotion.
greater sense of public obligation and public duty,
greater knowledge of the field, and greater skill
than does Mrs. Shipley. I believe quite fortu-
nately that view is widely held throughout the
country. I have the greatest confidence in Mrs.
Shipley and her administration of the Passport
Division.
Now a word about passports and this matter of
freedom of travel. Before World War I the pass-
port was a fairly rare document. When I was a
young man, the first two or thi-ee times that I
went abroad one could, if one wished, come to the
State Department and obtain a passport if the
Government felt one was entitled to this official
identification. But most people did not do that.
It was not required and they traveled perfectly
freely, got on a boat and went where they wished
to go.
During World War I an official document per-
mitting one to travel was required almost univer-
sally and this involved a sanction on the part of
at least two governments. The government of the
traveler's own country gave him an official paper
signed by a high official of the government identi-
fying the pei'son as a citizen of that country and
sponsoring to that extent his travel abroad. The
receiving country then had to look at the docu-
ment and grant a visa. So travel took on a more
official character than it had before.
The American Government always in issuing
passports exercised some judgment and was re-
quired to exercise some judgment. Nobody has
any serious question of the fact that people who
are fugitives from justice, people who are mentally
ill, people who are setting out on a mission ad-
verse to the national interests of the country con-
cerned cannot expect to be given an official docu-
ment permitting them to travel. That has always
been true, and under the law the Secretary of
State has to exercise his discretion and his good
sense in this matter. I believe that that has been
exercised fairly and properly as long as I can re-
member and that deals strictly with the adminis-
tration of Mrs. Shipley.
Recently other considerations have become in-
volved : the growth of the Communist conspiracy;
40
Department of Stale Bulletin
the growth of the Communist-front organizations ;
the growing awareness both by our courts and
Congress that members of this organization were
engaged in activities detrimental to the national
interests of the United States has led the Congress
to pass some legislation dealing with people of this
sort which is not yet operative and has led the De-
partment to give consideration to the appropriate-
ness of issuing passports to such people. This, by
no means, concerns the gi'eat category of people
who are denied them. There are all the other cate-
gories which I mentioned earlier.
Now, I would like to put this whole matter in a
certain statistical perspective. For instance, be-
tween July of last year and May 31 of this year,
325,000 passports have been issued by the Govern-
ment of the United States. During that period,
95 requests for passports were denied because of
evidence of membership in subversive organiza-
tions and another 95 passports were recalled after
action by the passport holders indicated subversive
affiliation or intent. So, this is the quantitative
dimension of the problem with which we are deal-
ing. That, of course, does not solve the problem
at all. Whether only 95 or only 1 have been
denied, if that one was improperly denied
through improper procedures, or was whimsically
denied, or unjustly denied, that would be wrong
and would require corrective action.
In my judgment, there has been no arbitrary
action of any sort. The action has been taken to
the very best judgment of the persons concerned.
Our procedures are not perfect. The judgment
of these human beings may not be perfect but it
is exercised as fairly and as well and as much in
the devotion to the jiublic interest as is possible
for human beings to do. We can always improve
our procedures. We are always trying to improve
our procedures. They are flexible in grow-
ing, and we are at work now on improving our
procedures.
Procedures for issuing Passports
Perhaps you would like to know what they are.
They are as follows : Wlien an application is re-
ceived for a passport at the Passport Division, the
files of the Department are examined, and if there
is nothing in those files to raise any questions re-
garding the person concerned, the passport is
issued immediately, as a matter of routine.
Then we come to the second step. If there is
adverse information, this information is reviewed
at a higher level in the Passport Division, and if
the information is not such as to provide reason-
able grounds for belief that the passport should be
denied — and the reasons for denial I have already
mentioned to you — if there are not reasonable
grounds from the totality of its evidence to indi-
cate the applicant does not fall within any of the
categories mentioned, then the passport is issued.
Sometimes the infonnation in our files is not
adequate to reach a fair decision. In that case,
the proper investigative bodies of the Govermnent
are asked to make a further examination regard-
ing the applicant and to provide all the informa-
tion regarding him or her wdiich they can collect.
When this has been collected, the file is sent to the
Security Division of the Department, where the
information is evaluated to see whether it is mere
gossip — whatever is said about the person in re-
gard to any of these criteria — whether it is or is
not in the judgment of the Security Division
persuasive.
If, after that review, it does not establish factual
evidence suiRcient to deny a passport, the passport
is issued. If there is sufficient factual evidence,
it is denied, and the applicant is informed that his
travel is not considered in the best interests of the
United States.
Third, if the case is complicated in any way — if
there are difficult questions in it — the Passport
Division submits the files and its decision to higher
levels in the Department for decision, before the
applicant is denied or granted a jjassport. The
l^erson concerned is informed that he may supply
any additional information or may discuss the case
with officials of the Passport Division. This has
been done in a great number of cases, and new evi-
dence furnished by the apjDlicant has often resulted
in the issuance of a passport.
Fourth, if the question of denial is based on the
ground that the travel of the applicant may be
harmful to the national interests of the United
States, the political officers of the geographic areas
in which the travel is to take place are consulted,
and they take part in the decision as to whether
the passport should be granted or rejected.
Fifth, any new evidence or information which
the applicant may submit is referred to the officers
who first evaluated the case. These officers are re-
quired to evaluate the new infonnation and give
their opinion as to whether the jjassport should or
should not be issued.
Sixth, although we cannot violate the confi-
dential character of the passport files by making
public confidential information contained therein,
the disclosure of which would affect the national
security, an effort is made to inform the applicant
of the reasons for the denial to the fullest extent
possible within the security limitations.
Applicant Has Rigiit to Counsel
The procedures which I have just described are
pointed out to him so he may have opportunity to
present his case. He is also informed that he
may be represented by counsel of his choice, and
that he or his counsel, or both, may be heard by
the chief of the Passport Division or some other
responsible officer.
At the present time the Passport Division does,
in this way that I have described, hear many
appeals from a preliminary decision to deny a
July 7, 7952
41
passport. In many cases this hearing, generally
conducted by the chief or assistant chief of the
Passport Division — far from being capricious or
arbitrary — has led to the reversal of the prelim-
inary procedure and the granting of a passport.
Furtliermore, the chief of the Passport Division
does not have final authority in the denial of
passports, and the fact that this is so is made
known to the applicant so that the applicant can
ask for what further consideration he or she
thinks necessary.
These are the procedures under which we are
operating. As I say, they are the best that we
have been able to develop to date, in order to pro-
tect both the interests of the United States, which
are very great in this matter, and the interests
of the citizen, which are also great.
We are continually reviewing these procedures.
They are being reviewed now as they have been
many times before ; and if any improvements can
be found, anything recommended by INIrs. Shipley,
by the Deputy Under Secretary in charge of
Administration, or by the Legal Adviser, all of
■whom are interested — deeply interested in perfect-
ing these procedui'es — those improvements will
be put into effect.
We are doing the best we can. We know that
this is a situation in which we never can please
everybody because we must, in the national inter-
est, reject some applicants, and those applicants
are always going to feel aggrieved by our action.
Therefore, there will always be criticism. Some
of the criticism will be honest criticism. I don't
for a moment wish to impugn the motives of any
of the persons other than this group of Com-
munist-front organizations who are attacking the
State Department in this manner. We know that
our task is difficult. We know that we have great
public responsibilities which we are trying to dis-
charge in the best way that we can. We are doing
the best that we know how to do.
PUBLICATIONS
THE DEPARTMENT
Appointment of Officers
Kenneth T. Tonng as Director of the Bureau of Far
Eastern Affairs, effective March 20.
George M. Ingram as Director of the OflRce of Interna-
tional Administration and Conferences, effective Jlay 16.
Edwin M. Martin as Special Assistant to the Secretary
for Mutual Security Affairs, effective May 19.
William I. Cargo as Deputy Director of the Bureau of
United Nations Affairs, effective June 3.
Point Four Appointment
John Ralph Nichols as Director of Technical Coopera-
tion in Egypt, effective May 20.
Recent Releases
For sale hp tlic Superintendent of Documents, Government
Printing Office, Wasliinyton 25, U. C. Address requests
direct to the Superintendent of Documents, except in the
case of free publications, ichich may he obtained from
the Department of State.
Germany: External Debt. Treaties and Other Interna-
tional Acts Series 2274. Pub. 4323. 13 pp. 5^.
Agreement between the United States, the United
Kingdom, France, and the Federal Republic of Ger-
man.v — Signed at Bonn Mar. 6, 1951 ; entered into
force Mar. 6, 1951.
Oil Shale Study in Brazil. Treaties and Other Interna-
tional Acts Series 2296. Pub. 4352. 9 pp. 5^
Agreement between the United States and Brazil-
Signed at Rio de .Janeiro Aug. 16, 1950; entered into
force Aug. 16, 1950.
Army Mission to Venezuela. Treaties and Other Inter-
national Acts Series 2299. Pub. 4365. 12 pp. 10<t.
Agreement between the United States and Vene-
zuela— Signed at Washington Aug. 10, 1951 ; entered
into force Aug. 10, 1951.
Agriculture: Cooperative Program in Panama. Treaties
and Other International Acts Series 2302. Pub. 4368.
9 pp. 5^.
Agreement between the United States and Panama —
Signed at Panam;l July 30, 1051 ; entered into force
July 30, 1951.
Defense Materials. Treaties and Other International
Acts Series 2305. Pub. 4382. 4 pp. 5(f
Agreement between the United States, the United
Kingdom, France, and the Federal Republic of Ger-
many—Signed at Bonn Oct. 23, 1950 and Mar. 6, 1951 ;
entered into force Mar. 6, 1951.
Technical Cooperation. Treaties and Other International
Acts Series 2307. Pub. 43S4. 5 pp. 5<(.
Agreement between the United States and Saudi
Arabia — Signed at Jidda Jan. 17, 1951 ; entered into
force Jan. 17, 1951.
Naval Mission to Cuba. Treaties and Otlier Interna-
tional Acts Series 2310. Pub. 438S. 12 pp. 5«*.
Agreement between the United States and Cuba —
Signed at Washington Aug. 28, 1951 ; entered into force
Aug. 28, 1951.
Conference for the Conclusion and Signature of the
Treaty of Peace With Japan, San Francisco, Calif., Sept.
4-8, 1951 — Supplement. International Organization and
Conference Series II, Far Eastern 3. Pub. 4392A. 101
pp. Limited distribution.
Supplement to the Record of Proceedings.
Highway Project in Ethiopia: Services and Facilities of
the United States Bureau of Public Roads. Treaties and
Other International Acts Series 2312. Pub. 4394. 10
pp. 50.
Agreement between the United States and Ethiopia —
42
Department of State Bulletin
Sifrned at Addis Ababa Feb. 2G and 27 and May 2,
1951 ; entered into force Feb. 27, 1951.
Exchange of OfiScial Publications. Treaties and Other In-
ternational Acts Series 2314. Pub. 4402. 3 pp. 5(}.
Agreement between the United States and the United
Kingdom— Signed at Washington July 13 and 30,
1951 ; entered into force July 30, 1951.
Vocational Education Mission to El Salvador. Treaties
and Other International Acts Series 2315. I'ub. 4403. 3
pp. 5<}.
Agreement between the United States and El Salvador
extending and modifying agreement of Jan. 27 and
Feb. 12. 1951— Signed at San Salvador June 25. 1951;
entered into force June 25, 1951; operative Julv 1,
1951.
Inter-American Highway. Treaties and Other Interna-
tional Acts Series 2319. Pub. 4411. 4 pp. 5(?.
Agreement between the United States and Costa Kica
amending agreement of Jan. 16, 1942— Signed at
Washington Jan. 13 and 17, 1951 ; entered into force
Jan. 17, 1951.
Parcel Post. Treaties and Other International Acts Se-
ries 2322. Pub. 4414. 28 pp. 10«i.
Agreement and detailed regulations between the
United States and the Gold Coast Colon.v— Signed at
Accra June 3, 1951, and at Washington June 14, 1951 ;
entered into force Aug. 1, 1951.
Norwegian Mobile Surgical Hospital: Participation in
the United Nations Operations in Korea. Treaties and
Other International Acts Series 2325. Pub. 4425. 3 pp.
Agreement between the United States and Norway —
Signed at Washington Sept. 17, 1951; entered into
force Sept. 17, 1951.
Economic Cooperation With Ireland Under Public Law
472, 80th Congress, as Amended. Treaties and Other In-
ternational Acts Series 2326. Pub. 4428. 2 pp. 5^.
Agreement between the United States and Ireland
amending agreement of June 28, 1948, as amended —
Dated at Dublin Apr. 20 and June 7, 1951 ; entered
into force June 7, 1951.
Food Production: Cooperative Program in Haiti. Trea-
ties and Other International Acts Series 2329 Pub
4433. 4 pp. 5^.
Agreement between the United States and Haiti sup-
plementing agreement of Sept. 18 and 27, 1950— Signed
at Port-au-Prince June 28, 1951 ; entered into force
June 29, 1951.
Food Production: Cooperative Program in Haiti. Trea-
ties and Other International Acts Series 2330. Pub 4434
4 pp. 5?'.
Agreement between the United States and Haiti sup-
plementing agreement of Sept. IS and 27, 1950, as
amended— Signed at Port-au-Prince Aug. 23 and Sept.
28, 1951 ; entered into force Sept. 28, 1951.
Education: Cooperative Program in Honduras. Treaties
and Other International Acts Series 23:«. Pub. 4439. 15
pp. 100.
Agreement between the United States and Honduras-
Signed at Tegucigalpa Apr. 24, 1951; entered into
force Apr. 24, 1951.
Fisheries Mission to El Salvador. Treaties and Other
International Acts Series 2337. Pub. 4442. 8 pp. 5^.
Agreement between the United States and El Salva-
dor—Signed at San Salvador July 19, 1951 ; entered
into force July 19, 1951.
July 7, 1952
Disposal of Defen.se Installations and Equipment. Trea-
ties and Other International Acts Series 23.53. Pub. 4450.
3 pp. 5(f.
Agreement between the United States and Canada —
Signed at Ottawa June 17 and 18, 1949; entered into
force June 18, 1949.
Health and Sanitation: Cooperative Program in Bolivia.
Treaties and Other International Acts Series 2.354. Pub.
4472. 3 pp. 54.
Agreement between the United States and Bolivia-
Signed at La Paz Aug. 27 and Oct. 19, 1951; entered
into force Oct. 19, 1951.
Aviation : Air Transit Facilities in the Azores. Treaties,
and Other International Acts Series 2345. Pub. 4483.
3 pp. 5(*.
Agreement between the United States and Portugal-
Signed at Lisbon Slay 30, 1940; entered into force
May 30, 1946.
Finance: Collection and Application of the Customs Rev-
enues of the Dominican Republic. Treaties and Other
International Acts Series 2365. Pub. 4490. 3 pp. 5i}.
Termination of convention and exchange of notes be-^
tween the United States and the Dominican Republic
signed Sept. 24, 1940— Exchange of notes signed at
Washington Aug. 9, 1951.
Automobiles, Customs Concessions. Treaties and Other
International Acts Series 2370. Pub. 4407. 3 pp. 50.
Provisional agreement between the United States and
Chile— Signed at Santiago June 2, 1951 ; entered into
force June 2, 1951 ; operative retroactively from Mar
16, 1951.
Education, Cooperative Program in Panama, Additional
Financial Contributions. Treaties and Other Interna-
tional Acts Series 2372. Pub. 4499. 4 pp. 50.
Agreement between the United States and Panama —
Signed at Panama Aug. 10 and Oct. 23, 1951 ; entered
into force Oct. 23, 1951.
Economic Cooperation With Austria Under Public Law
472, 80th Congress, as Amended. Treaties and Other
International Acts Series 2380. Pub. 4507. 2 pp. 50.
Agreement between the United States and Austria —
Signed at Vienna May 11 and 15, 1951; entered into
force May 15, 1951.
Technical Cooperation. Treaties and Other International
Acts Series 2385. Pub. 4517. 5 pp. 5«?.
Agreement between the United States and Costa Rica
amending agreement of Jan. 11, 1951 — Signed at San
.lose Dec. 19 and 20, 1951; entered into force Dec
20, 1951.
THE FOREIGN SERVICE
Confirmations
The Senate on June 24 confirmed nominations of the
following: Burton Y. Berry as Ambassador to Iraq;
Donald K. Heath as Ambassador to tlie State of Vietnam
and to the Kingdom of Camliodia ; and James S. Moose, Jr.,
as Minister to the Republic of Syria.
The Senate on June 26 confirmed the nominations of
Phelps Phelps as Ambassador to the Dominican Republic
and Angus Ward as Ambassador to Afghanistan.
43
July 7, 1952
Index
Vol. XXVII, No. 680
Page
American Principles
The meaning of citizenship (Sargeant) ... 11
Wellsprings of democracy (Russell) 7
American Republics
BRAZIL: Secretary Acheson departs for Europe
and Brazil 6
PANAMA: Annex to U.S. -Panama air transport
agreement 13
Asia
IRAQ: Visit of King Feisal 11 12
JAPAN: Claims of nationals for return of prop-
erty in Japan 13
KOREA: U.S. proposes investigation of bac-
teriological warfare charges (Gross); text of
draft resolution 32
TURKEY: Loan by International Bank to help
finance Seyhan River Dam 15
Aviation
Annex to U.S.-Panama air transport agreement . 13
Claims and Property
Claims of nationals for return of property in
Japan 13
Foreign Bondholders' Council and German Debt
Conference 13
Check List of Department of State
Press Releases: June 22-28, 1952
Releases may be obtained from the Ollice of the
Special Assistant for Press Relations, Department
of State, Washington 25, D. C. Items marked (*)
are not printed in the Bdxxetin ; items marked (f)
will appear in a future issue.
No.
474
477
480
482
484
Date
6/18
6/lS
6/19
6/20
6/20
Subject
Acheson : Passport procedures
Visit of King Feisal II of Iraq
Military facilities in Azores
U.S.-Panama air tranisport agreement
Allegation regarding Ovpen Lattimore
(combined with 505)
485 6/22 Acheson : Departure for Europe &
Brazil
*4S6 6/23 Mesta: Honorary degree
487 0/23 Sargeant : Meaning of citizenship
*488 6/23 Pt. 4 personnel complete course
t489 6/24 Lake Ontario high-water level
*490 6/24 Thailand: Anniversary
t491 6/24 S. African air force agreement
492 6/24 Rus!3ell: The first front
*493 6/24 Death of J. Hall Paxton
494 6/24 Visit of British Ministers
t495 C/24 Mesta : International questions
*496 6/24 Exchange of persons
497 6/24 Pierson : German external debts
498 6/25 Claims of nationals in .Tapan
*499 6/25 Bruce : Death of Gen. Brink
*500 6/26 Exchange of persons
501 6/27 Dedication of Berlin library
502 6/27 Acheson : Presentation of book
t503 6/27 Allison: U.S. and the Far East
504 6/28 Acheson: Remarks at cornerstone
laying
505 6/28 Statement on Owen Lattimore
Page
Congress
Current legislation on foreign policy listed . . 12
Europe
GERMANY: Laying the cornerstone of the
American Memorial Library at Berlin
(Acheson) 3
U.K.: Visit of British Ministers of Defence and
State 6
PORTUGAL: U.S.-Portuguese defense agree-
ment 14
Finance
Foreign Bondholders' Council and German Debt
Conference 13
Loan to Ttorkey by International Bank to help
finance Seyhan River Dam 15
Foreign Service
Confirmations 43
Human Rights
Two Covenants on Human Rights being drafted
(Simsarian) ; texts 20
International Meetings
Calendar of meetings 16
Publications
Recent releases 42
State, Department of
Appointment of officers 42
Department expresses regret to Owen Lattimore . 12
Explanation of passport procedures 40
Secretary departs for Europe and Brazil ... 6
Treaty Information
Annex to U.S.-Panama air transport agreement . 13
U.S.-Portuguese defense agreement 14
United Nations
Current U.N. documents: a selected bibliog-
raphy 18
International Bank: Loan to Turkey to help
finance Seyhan River Dam 15
U.S. in the U.N 38
U.S. proposes investigation of bacteriological
warfare charges (Gross) ; text of draft reso-
lution 32
Name Index
Acheson, Secretary 3, 6, 40
Alexander, Field Marshal 6
Berry, Burton Y 43
Bradley, Gen. Omar 6
Bruce. David 6
Cargo, William I 42
Feisal II, King of Iraq 12
Gross, Ernest A 32
Heath, Donald R 43
Ingram, George M 42
Lattimore, Owen 12
Lloyd, Selwyn 6
Lovett, Robert 6
Martin, Edwin M 42
Moose, James S.. Jr 43
Nichols, John Ralph 42
Phelps, Phelps 43
Pierson, Warren Lee 13
Russell, Francis H 7
Sargeant. Howland H 11
Simsarian, James 20
Ward, Angus 43
Young. Kenneth T 42
U. S. GOVERNMENT PRINTINC OFFICE: 1952
tJrie/ ^eha/yl7neni/ xw ^aie/
. XXVII, No. 681
July 14, 1952
A REVIEW OF U.S. -BRAZILIAN RELATIONS • by
Secretary Acheson .............
A MATERIALS POLICY FOR THE UNITED STATES:
Report of the President's International Materials
Policy Commission 5^
INCREASING THE SAFETY OF THE WORLD'S
SHIPPING • by Commander Leonard S. Hubbard . « 6{
U.S. PRESENTS EVIDENCE OF FORCED LABOR IN
U.S.S.R. • Statement by Walter M. Kotschnig .... 7(
For index see back cover
_j^.»t o.
U. S. SUPERINTENDENT OF DOCUMtNTS
AUG 29 t9t>2
tJAe ^e/i^t/y^^e^ ^k
o/sfiak bullGtin
Vol. XXVII, No. 681 • Publication 4659
July 14, 1952
For sale by the Superintendent of Documents
U.S. Government Printing Office
Washington 25, D.C.
Price;
62 issues, domestic $7.50, foreign $10.25
Single copy, 20 cents
The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1962).
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
ot 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
selected press releases on foreign pol-
icy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as icell as
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.
Publications of the Department, as
well as legislative material in the field
of international relations, are listed
currently.
A Review of U.S.-Brazllian Relations
Address iy Secretary Acheson''
I am deeply gratified and greatly honored to be
with you here. More than once I have envied my
predecessors whose ofBcial duties brought them to
Brazil : Elihu Root, Charles Evans Hughes, Cor-
dell Hull, Edward Stettinius, George Marshall.
I am extremely happy also to see here my old
friend, Ambassador Herschel Johnson, who has
made such a great contribution to the cause of
Brazilian-United States friendship in the years
that he has lived among you here in Brazil.
With the same pleasurethat I have been looking
forward to seeing Rio de Janeiro, President Tru-
man has been looking back on his visit to this in-
comparably beautiful capital. I bring from him
to President Vargas a personal message of greeting
and good will. As a sincere friend of this great
country. President Truman has been deeply im-
pressed by the tremendous progress which is being
realized in Brazil under the administration of
President Vargas. Like all Americans, President
Truman remembers vividly the loyal and spon-
taneous cooperation between our two countries
during the last war as well as the close personal
friendship between President Vargas and Presi-
dent Roosevelt.
President Truman's message of good will is
extended from the people of the United States to
the Brazilian people, who as peoples have an un-
broken—I speak from the heart when I say, an
unbreakable and very special — record of friend-
ship.
It has be«n a friendship never passive, but
always actively cooperative. Brazil and tho
United States have, as your President recalled in
his message to Congress on March 1.5, "been joined
m war and in peace with ties of friendship to
which we have always given the most decided and
loyal collaboration." And assuredly the "we"'
applies to both our countries. As he also said on
another occasion, both historical tradition and
' Alade at a banquet given by Brazilian Foreign Minister
foao Neves da Fontoura at Itamaraty Palace, Rio de
Faneiro, Brazil, on July .3 and released to tbe i)ress (No
>-■> ) on the same date.
luly 14, 1952
political and economic interests are conducive to-
day, as always, to this policy of close collaboration.
There can be no doubt— I am certain that you
feel no doubt— that on Brazil, as on the United
States, falls a great responsibility for cooperation
with the other democracies in this period, when
democracy is as never before the hope of all who
love freedom.
Inter-American Solidarity
Your country is the fifth largest in the world :
It is by far the largest of the American Repub-
lics—as large as the United States plus another
Texas, and it has the longest coast line of any
nation. Like my own country, it has the re-
sponsibility that comes with size, with strength,
and with immense resources.
Your great nation has an additional responsibil-
ity deriving from your unique experience in trans-
Atlantic relationships. It is one of the most
dramatic incidents of history that when Europe
was in the grip of the Napoleonic wars, the
mother-government, Portugal, sought and found
refuge here in her mighty colony of Brazil. You
have had, therefore, the colonial, the imperial, and
the republican experience. From that remark-
able past you have emerged as one of the great
democracies of the world.
Brazil's influence in international relations has
always been beneficent, constructive, and coopera-
tive. It IS a peaceful and healing influence. It
is an influence which we hope will be ever greater
and ever more beneficent. It is a reflection of
the inherent sense of kindness, loyalty, and re-
sponsibility of the Brazilian people." Brazil's con-
tinuous historical development as a nation has
been accompanied always by a sense of respon-
sibility toward the other peoples of the world,
a realization that a country so richly endowed
should promote the common welfare. That, un-
doubtedly, is one reason why Brazil has labored
zealously, as has my country, on behalf of the
solidarity of the American Republics.
47
Since the end of World War II, my Government
has necessarily devoted much attention in the field
of foreign relations to organizing the defense of
the free world against the immediate threat of ag-
gression in Europe and in the East. We have
had to face up to difficult and complex problems.
This has required months and, in some cases, years
of painstaking negotiation. All this has been
done under the threat of one of the most terrible
menaces to the freedom of mankind that the world
has ever known.
We live in an era of grave danger and we have
had to address oui-selves to that danger. But the
fact that we have been involved in these difficult
problems in Europe and in the East does not mean
any lessening of our interest in this part of the
world. Although the United States has become,
out of necessity, involved in many ways, against
our natural inclination, in other parts of the world,
our cooperative programs in this hemisphere are
being carried out more intensively than at any
time in our history. And we have continued
meanwhile to weave the fabric of our inter-
American relations.
The problem of our security is indivisible. We
cannot have categories or priorities in this re-
gard. My country has been called upon to work
simultaneously on all fronts, but these problems
are not ours alone. For Western Europe or Indo-
china or Iran or Turkey to fall into the hands of
the Soviet Union would be just as catastrophic
as for a citizen of Belo Horizonte or Recife or a
citizen of Boston or San Francisco. Likewise,
though we are involved very deeply in Europe
and the East, our interest in the welfare of Canada
or Brazil or Chile must necessarily be greater to-
day than at any time in the past. We should not
mistake new commitments in other parts of the
world for a slackening of interest in this part of
the world.
Industrial Development
During my recent visits to Europe I have been
greatly encouraged by the resourcefulness of our
democratic world. In our recent meetings at Lon-
don, at Lisbon, at Paris, and at Bonn, the nations
of Western Europe have created a new European
community for the common defense. We have a
long way to go before the European Defense Com-
munity will be fully developed, but all of us on
this side of the Atlantic can take heart over the
courageous way in which the countries of Europe
have already overcome difficulties of incredible
magnitude. The spii'it of determinatioii in
Europe, so magnificently shown by the unflinch-
ing courage of the citizens of Berlin and Vienna
whom I have seen in the last few days, can be an
inspiration to us all.
And I might especially mention in connection
with my recent European travels that my visit to
48
Lisbon last February and my fii-st direct contact
with a Portuguese-speaking people increased the
anticipation with which I looked forward to my
visit to Brazil.
This last week I have been through countries of
the sharpest contrasts imaginable. To fly in a few
hours over the industrial countries of Western
Europe and the desert areas of West Africa is a
vivid experience. Brazil — unlike either of the
other areas — is in a third stage of economic de-
velopment. It would be wrong to refer to Brazil
as an "underdeveloped" country. The tremend-
ous industrial progress which you have achieved
in Sao Paulo, at Velta Eedonda in the State of
Rio de Janeiro, in the great State of Minas Gerais,
and elsewhere in Brazil is proof enough of your
development. Yet there is much that remains to
be done to enable the citizens of this great country
to enjoy the maximum benefits of its economic
potential.
The United States wants to help Brazil in every
possible way in its efforts towards economic prog-
ress. We are well aware that in a relatively short
period of time Brazil can become one of the richest
countries in the world. We in my country want
Brazil to prosper. We want to see it strong eco-
nomically. Brazil has always been our friend,
and it is to the mutual interest that each member
of the friendship should be as strong as possible.
The proof of this conviction lies not just in
words but in deeds. Beginning with Velta
Eedonda we have shown the world that we can
work together towards practical and constructive
goals.
Many people once expressed skepticism over the
Joint Brazil-United States Economic Develop-
ment Commission. The work of organizing this
Connnission and of attacking the monumental
problems of rehabilitating and integrating the
transportation system of Brazil and of developing
plans for electric energy adequate to the needs of
the country has been a long and arduous one. A
great American, Francis Adams Truslow, just a
year ago gave his life to this cause. But the Com-
mission has overcome all difficulties. With the
financing last month of the first projects approved
by the Commission, the work of this important
body has entered on a new and decisive stage.
I have familiarized myself with the work of the
Commission, and I look forward to meeting with
its members while I am here. The work that has
already been completed and in process is an amaz-
ing tribute to the untiring efforts of these patriotic
men who are devoting their talents and energies
to this important task. I have no doubt that this
body will have a vital impact upon the future of
the Brazilian economy. The Commission has cer-
tain specific and well-defined tasks to perform, and
it should do them in the quickest possible tune
that it has entered into this new stage of„
now
operations.
Department of State Bulletin
Constructive Contributors to Brazil's Progress
1 wish to pay tribute to those in tlie Brcaziliaii
Government who have so loyally supported the
Commission at all stages. I include specifically
your distinguished Minister of Foreign Afi'airs,
Joao Neves da Fontoura, with whom I had the
pleasure of exchanging views about tlie Commis-
sion when he was in Washington in March 1951 ;
your dynainic Minister of Finance, Horacio Lafer,
whose mission to Washington last September was
such a brilliant success ; ="the tenacious Brazilian
Commissioner, Ary Torres, and his wise and
trusted financial adviser, Valentim Boucas; and
your young and extremely competent Ambassador,
Waltlier Moreira Salles, whose arrival in Wash-
ington coincided with the Commission's new phase
of activities.
Finally, I wish to express appreciation for the
services of Burke Knapp as U.S. Commissioner
since he took over last year. Although Mr.
Knapp must go back to important work in Wash-
ington next month, the continuity of the work of
the Connnission will not be ' impaired. Mr.
Knapp's place -will be taken by an outstanding
friend. Ambassador Merwin Bohan.
What I have said about our desire to help Brazil
to become ever stronger applies to all of the other
American Republics who seek our help. The
Good Neighbor Policy is an unshakable and fun-
damental part of the foreign policy of the United
States.
This month we are having two political conven-
tions in our country, and from now until Novem-
ber \ye shall be hearing the sound and fury of our
Presidential election campaign. But it is certain
that no one in either party will challenge the sanc-
tity and the validity of the Good Neighbor Policy.
And whichever candidate of whichever party
comes into office next year will, I am certain, ad-
here firmly to the principles of our inter-American
policy which have been worked out by both Demo-
crats and Republicans in our country over the
last 25 years.
One of the most pleasant recollections of my
official career is of my participation in the Fourth
Meeting of Consultation of Ministers of Foreign
Affairs of American States which was held at
Wasliington last year. It was a pleasure to sit
around our common democratic council table with
my friend. Dr. Neves da Fontoura, and our col-
' leagues from the other American countries. I
would note parenthetically that no single person
I at that meeting made a greater contribution to its
I work than Dr. Neves da Fontoura. As is typical
I of his character and his career, he proved to be
! a courageous and f arsighted colleague. In his
t reply to President Truman at the opening session
[ of the meeting, Dr. Neves da Fontoura spoke of
I our inter-American relations and said, "the politi-
' For a statement on this mission, see Bulletin of Oct.
8, 19.51, p. 581.
cal solidarity among the American republics has
not undergone in these troubled post-war years the
slightest alteration either in its integrity or in its
intensity."
As in every one of our inter-American confer-
ences, the Fourth Meeting of Consultation re-
sulted in greater progress towards unity of pur-
pose in the Americas. We do not legislate in our
inter-American meetings. But we have what is
important in relations between nations, namely,
community of purpose. As we go on with these
meetings, that understanding and that community
of purpose will grow and develop and through our
inter-American organization we can continue to
develop faith in each other. I firmly believe that
friction among our countries disappears as true
understanding of each other's objectives grows.
Desire for Hemispheric Security
That is one reason why I have welcomed with
eagerness the opportunity accorded me by your
Foreign Minister to visit Brazil. Direct meeting
between government officials goes far to enhance
mutual understanding. I am grateful to the gov-
ernments of other countries in South America who
have been so gracious as to invite me to visit their
countries. I only wish that time would permit
me to make a more extensive journey. Some day
I hope to return, but meanwhile I shall have de-
rived profit and pleasure from this first, too brief,
glimpse of this great continent.
I might say in passing that Rio de Janeiro has
come to have a special significance in the history
of inter-American cooperation. This beautiful
city has been host to meetings whose deliberations
have proved decisive for this hemisphere and,
indeed, for the world in general.
The Third Meeting of Consultation of Ministers
of Foi-eign Affairs of American States, held in a
dark hour in January 1942, was decisive in solidi-
fying our hemisphere against the terrible peril
that then confronted us. The result of those de-
liberations was a transfusion of strength to the
allied world whose cause then seemed to hang by
such a slender thread.
Five years later, and 5 years ago this month, the
Inter-American Conference for the Maintenance
of Continental Peace and Security forged the
Treaty of Rio de Janeiro. This is the basic docu-
ment for the maintenance of our freedom in this
hemispliere. That treaty is a further extension
of the expressions of solidarity which had been
made here by the Foreign Ministers in 1942.
More than 2 years ago, I told an inter-American
audience in New York that one of tlie foremost
]X)licies of my Government is to fulfill its obliga-
tions under the Rio Treaty and to seek the maxi-
mum cooperation among the American nations
for the achievement of a secure and peaceful
hemisphere. My country has striven and strives
unceasingly to that end. I wish to acknowledge
Ju/y 14, 1952
49
here the equ;illy tireless efforts of Brazil for the
same high purpose.
At the Fourth Meeting of Foreign Ministere
held in Washington last March, our countries
proceeded from where we had left off in Rio de
Janeiro in 1947 and in Bogota in 1948 to broaden
and strengthen the fabric of inter-American
solidarity. To my mind one of the most impor-
tant decisions of that meeting was resolution III
on inter- American military cooperation. This
resolution is of profound significance. For the
first time in our inter- American history we agi-eed
to direct the maintenance of our military estab-
lishments toward the common goal of continental
security which has been the theme of all our inter-
American work for so many years.
]My Government, to carry out the purposes of
this resolution, and in line with plans made by the
Inter-American Defense Board under the Rio
Treaty, entered into a series of bilateral agree-
ments with other countries in the hemisphere,
including Brazil. There is nothing aggi-essive or
warlike about these agreements. Our adversaries
have tried to make them ajjpear so. But we have
all come to know by now that what these adver-
saries say is not designed to be helpful or
constructive.
These agreements are public documents. Their
purpose is quite simply to cany out the purpose
of resolution III by helping existing units of the
armed forces of the countries concerned to act
more effectively in common defense in the event
of war.
Interdependence of U.S. and Brazil
In all of these cooperative actions we find what
Thomas Jefferson more than a centui'y ago called
"the advantages of a cordial fraternization among
all the American nations." They also call to mind
President Roosevelt's farsighted advice to the
American peoples when he addressed the Supreme
Court in Brazil in 19o6: "Each one of us has
learned the glories of independence," he said ; "Let
each one of us learn the glories of inter-
dependence."
That sense of interdependence has been quick-
ened by the pressing needs of our time into co-
operative achievement incredible even a generation
ago. We have learned in the Americas tliat to live
together — to continue to live at all — we must work
together.
In the words of Elihu Root, nobly spoken in
your Monroe Palace 46 years ago, on July 31,
1906 :
No nation can live iintu itsi'lf alinic and (.■ontinup to
live. Each nation's si'owtli is a part of the development
of the [human] race. Tliere may be leaders and there
may be laggards: but no nation can long continue very
far in advance of the seneral profiress of mankind, and
no nation that is not doomed to extinction can remain
very far beliind. . . . There is not one that will not
gain by the prosi)erity, the peace, the happiness of all.
That same intei'dependence has caused Brazil
and the United States, together with the other
American Republics, to be partners in the great
enterprise which is the United Nations. All of
the nations of this hemisphere played an impor-
tant role in the San Francisco Conference in 1945.
Their firm support of the principles of the United
Nations reflects the principles of justice which are
so important in the minds of the leaders of this
continent.
The United Nations has given abundant evi-
dence of the high value placed by fellow members
on Brazilian cooperation. Your delegations to
the United Nations are looked upon with respect
by the other delegations. Brazilians have been
frequently called upon to serve in jilaces of honor
in the United Nations as well as in other associated
bodies, such as the International Monetary Fund
and the International Bank, International Court
of Justice, UNESCO, and the Food and Agriculture
Organization. I have no doubt that our countries
shall continue to participate with effectiveness and
solidarity in the great work of the United Nations.
Cultural Amalgamation
Our two countries have not limited their active
interests to economic, political, and military prob-
lems. This cooperation also extends to the more
intangible and spiritual field of cultural relations.
There are many differences between our Anglo-
Saxon cultural traditions on the one hand and
your Latin and Iberian traditions on the other.
We in our country have understood the reasons of
sentiment and tradition which have inspired your
Foreign Minister to be one of the leaders in the
creation of the Latin Union, the first meeting of
which was convened here in Rio de Janeiro last
October. It is not a paradox that the differences
between our cultures give depth and strength to
many things we have in common.
Tlie United States is an Anglo-Saxon country
in its origin and in the formulation of its political
and social institutions. We are proud of these
traditions, as you are proud of yours. But we
have drawn heavily, not only in our population
but in our cultural interests and habits, from
Europe. Our States of Rhode Island and Cali-
fornia are heavily populated by persons of Portu-
guese ancestry. In the last election for Mayor of
New York, the three princijjal candidates were of
Italian ancestry. In the Southwest, Spanish tra-
dition is still jjredominant in many parts. In tlie
United States we have 35 newspapers printed in
the Spanish language, 21 in Fi'ench, and no less
than 11 in Portuguese. Though we are pre-
dominantly a Protestant country, the Roman
Catholic Church has a membership of over 150
million of our people, which makes it the largest
single denomination of any faith in our country.
It is inidoubtedly the variety and catholicity in
our cultural interests on both sides rather than any
50
Department of State Bulletin
narrow insistence by either upon one superior
50urce of wisdom, truth, and beauty which made
it possible for our two countries to have signed a
:onvention strengthenino; the cultural ties between
3ur peoples — the first cultural treaty the United
States has ever signed. In the United States we
feel a genuine api^reciation of Brazilian art —
^our painting, your magnificient architecture, and
your music; the popular music of your carnival
season and the creative works of your composers,
IS well as the brilliant interpretations given them
by your concert artists. Your literature also is
ittaining wide popularity, a fact attested by the
constantly increasing audience of translations of
Brazilian books.
Last year, in the Hall of the Americas of the
Pan American Union, the 21 Republics of this
tiemisphere adopted unanimously the Declaration
jf Washington, which was based in large part
jpon the proposal presented by the delegation of
Brazil. That document, embodying our common
faith and our united resolution, expresses "the firm
determination of the American Republics to re-
main steadfastly united, both spiritually and ma-
terially, in the present emergency or in the face
of any aggression or threat against any one of
them." It also reasserts the belief of the Repub-
lics of the hemisphere in "the efficacy of the prin-
ciples set forth in the Charter of the American
States and other inter- American agreements" and
their supjDort of the action of the United Nations
as "the most effective means of maintaining the
peace, security, and well-being of the people of the
world under the rule of law, justice, and inter-
national cooperation." That Declaration, that
meeting, were the hemisphere's steadily reiterated
answer to every evil force that would plunge the
world into darkness. The hemisphere is united
in its determination to keep the torch of freedom
aloft and burning.
No stress, no emergency, can make a free people
willing to relinquish its freedom. The American
Republics, nations born of the will to liberty,
nurtured on the principles of liberty, are resolved
that libei-ty shall be the inalienable heritage of
their children's children. In every crisis of our
time, we have shown always in the hour of decision
that for us only one outcome is possible : adherence
to the principle of freedom, a truth by which we
live as free men and as free peoples.
U.S. Relations With Dominican Republic Reflect
Trend Toward International Cooperation
hy Ralph H. Ackerm-an
Ambassador to the Dominican Repvhlic ^
Any diplomat to be successful must be well
versed in the humanities and the philosophies,
drawing from the bottomless well of the knowledge
and the experience of the great thinkers of all
times, and he must have an understanding of the
effect of those philosophies on present human re-
lationshijDS. As he spends a large part of his life
away from his native land and is in daily associa-
tion with peoples of different nations and speaking
different languages, he cannot hold narrowly na-
tionalistic views. It is his task not only to project
to the governments and the peoples of the land in
which he lives the thoughts, sentiments, aims, and
' Excerpts from the English version of an address made
at the University of Santo Domingo, Ciudad Trujillo,
D.R., on June 9 ; printed from telegraphic text. The occa-
sion was the conferring of an honorary degree of Doctor
of Philosophy on Ambassador Ackerman, who has since
left the Dominican Republic and on June .30 retired from
the Foreign Service.
ambitions of his own people and government in
such manner as to win their understanding and
friendship and to convince them of the mutual
benefits which may flow from close cooperation
and association but also he must be capable of
envisioning and interpreting accurately to his own
government the effect on the welfare of his nation
which may stem from the acts, conditions, philoso-
phies, and ideologies of the country to which he is
assigned.
To perform this task he should have a broad
knowledge of the historical backgrounds of the
peoples with whom he is in daily association, a
knowledge of their institutions, of their accom-
plishments, their aspirations, and their language.
Without this knowledge his impressions from
current acts or happenings may be false, and his
erroneous interpretation may lead to misunder-
standings and strained relations. It does not suf-
fice for the diplomat to hold within himself these
Ju/y 74, J 952
51
attributes, if his mission is to be successful, for
the end is not mere speculative knowledge of what
is to be done but rather the doing of it. His ac-
complishments will be enhanced or diminished, in
a large measure, by his courtesy and by the con-
sideration he accords to the views of those with
whom he treats.
You may recall that Victor Hugo said, "Phi-
losophy should be an energy. It should find its
aims and its effect in the amelioration of man-
kind." The philosophy of a diplomat should be
an energy; the philosophj^ of Western nations
today is the amelioration of mankind.
Beginnings of Pan Americanism
Early in their history, the nations of this con-
tinent sought to put into practice this philosophy
and gathered together, under the auspices of the
great liberator, Bolivar, in a meeting to create a
real spirit of pan-Americanism in 1826. After a
lapse of 60 years, that is, in 1888, the idea was
again activated by the first of the series of Pan
American Conferences which has become normal
procedure. The Pan American Union and the
Organization of the American States were the in-
struments selected for organizing and following
up the work of these Conferences. As a conse-
quence of this and the determination among the
American nations to get along one with the other,
strife between them has been reduced to a mini-
mum, and the pan-Americanism that we know to-
day gives a lesson in conduct which might well be
emulated throughout the world.
The United Nations was conceived as an instru-
ment to attain and maintain the peace of the
world. It soon discovered that the best assurance
for a peaceful world lay in impi'oving the condi-
tions under which mankind lives, to make them
conscious of the fact that war promises benefits to
neither the victor nor the vanquished and can only
bring disaster to the human race and to its hopes
for a better civilization. All Western nations,
either through the United Nations or by individ-
ual action, and many private groups, are today
striving to make effective the philosophy enun-
ciated by Victor Hugo, the amelioration of man-
kind, by bringing to their fullest development the
benefits available through the knowledge and
progress we have made in science and the humani-
ties. Governments are taking a greater interest
in the welfare of their nationals and of other
peoples.
Your own illustrious President, Kafael Leoni-
das Trujillo, gave illustration of this trend when,
in a speech he made only a few daj's ago, he reit-
erated an aspiration lie has often voiced before,
to raise the standard of living in the Dominican
Kepublic so that his people may benefit from a
fuller life. No one can gainsay the great benefits
he has already succeeded in bringing about in the
form of better educational facilities, hospitaliza-
tion, water supplies, port facilities, roads, and ir
every branch of economic activity. My own Gov-
ernment, concomitant with many domestic socia]
reforms, has put into practical effect, in additior
to its contributions to the United Nations, th(
World Health Organization, the United Nations
Educational, Scientific and Cultural Organiza
tion, and other organizations complementing th(
United Nations, a world-wide program designee
to assist in the diffusion of skills and the products
of modern science, to benefit mankind, a progran
known as the Point Four Program, which has beer
acclaimed by many nations as one of the most
effective weapons in the struggle for peace.
These are evidence that the Western World ii
conscious of the need to give practical effect to th(
philosophical counsel of Victor Hugo, a conscious
ness which has become more acute as there ha;
emerged in the years immediately succeeding th<
last war the threat of a powerful state which seeki
to destroy the systems of government and the mod<
of living which have been evolved from the ex
perience of the past and developed as civilizatioi
has progressed, and to dominate all peoples. The
influence of that state, and the appeal of its philos
ophy of distrust and hatred, has prospered onh
where force has coerced or where ignorance anc
poverty have prevailed. It can be arrested or con
quered by the combined strength of the democratic
nations and by their cooperative effort to ameli
orate conditions which breed unrest and despera
tion. Many governments recognize that to thi;
end we must make common cause, that we must
set aside differences arising from a narrow nation
alism and find that intelligent degree of intenia
tionalism which will contribute to the maintenanct
of our free institutions and permit our peoples
to enjoy the fruits within our reach made possible
by scientific advancements.
U. S. -Dominican Republic Relations Improved
Excelencia Senor Rector, it has been my privi-
lege to live in this beautiful country for almost
i years. It has been my duty to advance the in-
terests of my country. I have considered that
that duty imposed upon me the responsibility ol
getting to know you and winning your friendship
and your esteem. You have been most kind ir
meeting me more than halfway in this process ol
cultivation, and I believe it to be an incontestable
fact that relations between our Governments and
our peoples have shown a great improvement dur-
ing these 4 years.
The Governments of our two countries have en-
tered into a number of agreements from which we
are deriving mutual benefits. We have encour-
aged the movement of Dominicans to the United
States and Americans to the Dominican Republic
as a means for our peoples to know one another
better and to exchange information and knowl-
edge. We are cooperating in a plan for the dis-
52
Department of State Bulletin
semination of skills and experience under the
Point Four Profiram whicli should redound to the
benefit of the Dominican people and to the com-
merce between our two countries; we have en-
deavored to bring to your people, tlirough the
Dominican-American Cultural Institute, a better
understanding of the United States; we have both
become parties to a multilatereal agi-eement affect-
ing our tariffs and trade, and I sincerelj' hope this
may be followed by a bilateral agreement of a
somewhat more extensive nature. Your Govern-
ment has made available to my Government gen-
erous facilities for the conduct of experiments
with guided missiles, and we have entered into
mutually beneficial agreements concerning air
commerce. It is my hope that these programs of
cooperation can be extended as their benefits be-
come api^arent and that the seeds which have been
sown or cultivated during my short tenure of office
will grow into a robust tree, for I, too, believe in
the practical application of a philosophy seeking
to benefit mankind.
Military Assistance Agreement
Witli Uruguay
The Departments of State and Defense an-
nounced on June 30 the signing at Montevideo of
a bilateral military assistance agi-eement with the
Government of Uruguay."
This agreement is consistent with, and con-
forms to, inter-American instruments already in
effect, such as the Inter-American Treaty of Re-
ciprocal Assistance (the Rio Treaty), the resolu-
tion on inter-American military cooperation ap-
proved at the Washington Meeting of Foreign
Ministers of 1951, and the continuous planning of
the Inter-American Defense Board.
The agreement is the seventh of its kind to be
signed between the United States and one of the
other American Republics.^ Similar agreements,
involving the provision of military grant-aid by
the United States to promote the defense of the
Western Hemisphere, have been signed with Ecua-
dor, Peru, Cuba, Brazil, Chile, and Colombia.
These agreements were initiated under the pro-
gram of military grant-aid for Latin America,
authorized in the Mutual Security Act of 1051.
They illustrate the spirit of cooperation prevailing
among the American Republics which makes it
possible for them to concentrate, through self-
hcl]) and mutual aid, upon increasing their ability
to contribute to the collective defense of the West-
fin Hemisphere and, by serving as a deterrent to
potential aggressors, to contribute to the main-
tenance of world peace.
' For text of the agreement, see Department of State
press release 513 of .June 30.
■ For text of a similar agreement with Ecuador, see
Bulletin of Mar. 3, 1952, p. 336.
Educational Exchange
Agreement With Finland
Press release 527 dated July 3
Finland and the United States signed an agree-
ment on July 2 putting into operation the pro-
gram of educational exchanges authorized by
Public Law 584, 79th Congress (the Fulbright
Act). The signing took place at Helsinki with
Foreign Minister Sakaria Tuomioja representing
the Republic of Finland and American Minister
John M. Cabot representing the Government of
the LTnited States.
The agreement provides for an annual expendi-
ture not to exceed the equivalent of $250,000 in
Finnish currency for a period of 5 years to finance
exchanges between that country and the United
States for purposes of study, research, or teaching.
The program will be financed from certain funds
made available by the U.S. Government resulting
from the sale of surplus property to the Republic
of Finland.
All recipients of awards under this program
are selected by the Board of Foreign Scholarships,
appointed by the President of the United States.
Under the terms of the agreement, a U.S. Edu-
cational Foundation in Finland will be estab-
lished to assist in the administration of the pro-
gram. The Board of Directors of the foundation
will consist of eight members, four of wliom are
to be citizens of Finland and four to be citizens
of the United States. The American Minister to
Finland will serve as honorary chairman of the
Board.
After the members of the foundation have been
appointed and a program formulated, informa-
tion about sjiecific opportunities will be made
public.
Letters of Credence
VietTiam
The newly appointed Ambassador of Vietnam,
Trail Van Kha, presented his credentials to the
President on July 1, 1952. For the texts of the
Ambassador's remarks and the President's reply,
see Department of State press release 519 of July 1.
Cambodia
The newly appointed Ambassador of Cambodia,
Nong Kimny, presented his credentials to the Pres-
ident on July 1, 1952. For the texts of the Am-
bassador's remarks and the President's reply, see
Department of State press release 520 of July 1.
luly 14, J 952
53
A Materials Policy for the United States
REPORT OF THE PRESIDENT'S INTERNATIONAL MATERIALS POLICY COMMISSION
On June 23 there wm released volume I of a report by the Presi-
denfs International Materials Policy Commission entitled Eesources
for Freedom. The 178-page volume, ''■Founidations for Growth and
Security,'' will be folloived by four others: ''The Outlook for Key
Commodities'" {210 pages), ''The Outlook for Energy Sources'' {0
pages), "The Promise of Technology" {228 pages), and "Selected
Reports to the Commission" {15Jf pages). Following are the text
of a letter, released June 23, from the President to William S. Paley,
chairman of the Com/mission; a statem-ent by the President on actions
taken to continue the Commissionh work; a letter from the President
to Congressional^ leaders; and excerpts from, a digest of volume I pre-
pared by the Convmission.
THE PRESIDENT TO CHAIRMAN PALEY
Dear Mr. Paley : Your Commission's report is
a landmarlv in its field. I do not believe there has
ever been attempted before such a broad and far-
sighted appraisal of the material needs and re-
sources of the United States in relation to the needs
and resources of the whole free world. Nor, in
my judgment, has the conclusion ever been so
forcefully stated and documented that interna-
tional cooi:)eration in resource development and
international trade in raw materials is imperative
to world peace and prosperity.
Your report likewise makes clear exactly where
and how we need to conserve and strengthen our
natural resources here at home, and to maintain
our dynamic progress in science and technology.
The conviction you have expressed that this Na-
tion, despite its serious materials problem, can
continue to raise its living standards and
strengthen its security in partnership with other
freedom loving nations should be heartening to
people everywhere.
I have not yet had an opportunity to stvuly in
detail each of your specific recommendations but
I am sure they merit careful consideration, not
only by the Congress and the executive branch of
the Federal Government, but by state govern-
ments, the general public and especially by farm,
labor, industry and other private groups most
closely related to the problem. It is my hope that
your report will stimulate further study and dis-
cussion, both in and out of Government, of all
aspects of this vital problem.
54
I extend to your Commission and its staff niy
thanks and congi'atulations for the public service
you have rendered. Your study, I feel sure, will
be appreciated not only in our own country but by
people of other nations with which the United
States is cooperating toward the preservation of
freedom and peace, and the enrichment of human
life.
Sincerely yours,
Harry S. Trtiman
STATEMENT OF THE PRESIDENT
White House press release dated July 1
I liave today taken a number of actions to im-
plement the report of the President's Materials
Policy Commission, entitled "Eesources for Free-,
dom," which was submitted to me a week ago. I
This report tells the story of the needs and re-
sources of this Nation and the nations of the free
world extremely well. The document should
serve for years to come as a basic guide in \>vo-
viding adequate supplies of the materials we and
other friendly nations of the world must have if
we are to expand our economy and at the same
time remain secure from threats of aggression.
The Commission has done a very constructive
job. and I propose to do all that I can to see to it
that tlie Federal Government acts promptly and
effectively in continuing the excellent work which
the Commission has initiated. To this end I have
today taken the following actions :
Department of Sfafe Bulletin
1. I am transmitting the Commission's report
to the Congress. I am not at this time asking for
action on specific recommendations, bnt rather I
am calling the entire document to the attention
of the Congress in the hope tliat it will be studied
by each member and by the appropriate com-
mittees of the Congress.
2. I am directing the National Security Re-
sources Board to undertake a continuing review
of the entire materials situation, as recommended
in the Cormnission's report. The National Se-
curitj' Resources Board will, of course, need ade-
quate funds if this activity is to be carried out
effectively and I hope the Congress will provide
needed appropriations for this vital project.
3. I am also asking the National Security Re-
sources Board to organize a special task force re-
cruited from various Government agencies to study
the detailed recommendations of the Commission
and to give me, within no more than 60 days, sug-
gestions for carrying them out.
4. I am asking the heads of departments and
agencies concerned with the materials problem to
study the report and to advise me through the
National Security Resources Board, within no
more than 60 days, what steps they believe are
appropriate in implementing these "recommenda-
tions as they pertain to their respective agencies.
5. I am directing the Bureau of the Budget to
make a comprehensive review, from an organiza-
tional standpoint, of the operations of the exe-
cutive branch with respect to the materials prob-
lem, and to advise me of its findings within no
more than 60 days.
The Government, of course, can only do a part
of the job. Much of it will have to "be done by
private industry. Labor organizations, farm
groups, and other private bodies can help work
out solutions. The universities and private foun-
dations can make a very significant contribution.
It is my hope that both public and private groups
will join together in the vital task of making cer-
tain that in the yeare to come through wise use of
their resources the United States and the nations
of the free world will enjoy continued growth and
security.
LETTER TO CONGRESSIONAL LEADERS'
The President on July 1 sent the folio loing tet-
ter to Alhen W. Barkley, President of the Senate,
and Sam Eayburn, Speaker of the Rouse of Rep-
resentatives:
I am transmitting to the Congress the report of
the President's Materials Policy Commission, "Re-
sources for Freedom." Our laiowledge and un-
derstanding of the materials position of the
United States and of its allies throughout the free
world will be considerably increased by the de-
' H. doc. 527.
July 14, 1952
tailed review which has been prepared by the Com-
mission. This is a document which deserves the
most careful study by every member of the Con-
gress, and I hope each one of them will take the
time to familiarize himself with its contents.
Tliis report, the fruit of months of intensive
study by an independent citizen's group aided by
experts drawn from Government, industry, and
universities, shows that in the past decade the
Unitecl States has changed from a net exporter to
a net importer of materials, and projects an in-
creasing dependence on imports for the future.
The report indicates that our altered materials
situation does not call for alarm but does call for
adjustments in public policy and private activity.
In more than seventy specific recommendations,
the Commission points out the actions which, in its
judgment, will best assure the mounting supplies
of materials and energy which our economic prog-
ress and security will require in the next quarter
century.
I am requesting the various Government agen-
cies to make a detailed study of these recommen-
dations, and I am directing the National Security
Resources Board to assume the responsibility of
coordinating the findings and of maintaining a
continuing review of materials policies and pro-
grams as a guide to public policy and private en-
deavor. As the need arises for legislation to solve
materials problems affecting this Nation and other
free nations, appropriate recommendations will be
made to the Congi-ess.
It is my hope that this report and the actions
M'hich may be taken as a result of it will contribute
significantly to the improvement of this Nation's
materials position and to the strengthening of the
free workl's economic security, both of which are
the continuing objectives of United States policy.
Sincerely yours,
Harry S. Truman
DIGEST OF VOLUME I
[Excerpts]
There is a Materials Problem of considerable
severity affecting the United States and the indus-
trialized nations of Western Europe. Unless the
jn-oblem is effectively met, the long range security
and economic growth of this and other free na-
tions will be seriously impaired. The Commis-
sion's report is primarily concerned with the
United States problem, which cannot, however, be
isolated from the rest of the free world problem.
The basic reason for the problem is soaring
demand. This country took out of the gi-ound
two-and-one-half times more bituminous coal in
10.50 than in 1900; three times more copper, four
times more zinc, thirty times more crude oil. The
quantity of most m-etaJs and 7mneral fuels used
in the United States since the first World War
55
exceeds th-e total iised throughout the entire world
in all of history preceding 1911^. Although ahnost
all materials are in heavily increasing demand,
the hard core of the materials problem is minerals.
In 1950, the United States consumed 2.7 billion
tons of materials of all kinds — metallic ores, non-
metallic minerals, agricultural materials, construc-
tion materials, and fuels — or about 36,000 pounds
for every man, woman, and child in the country.
With less than 10 percent of free world popula-
tion, and only 8 percent of its area, the United
States consumed more than half of 1950's supply
of such fundamental materials as petroleum,
rubber, iron ore, manganese, and zinc.
The President's Materials Policy Commission
was asked by President Truman to investigate the
long-term aspects of the materials problem as dis-
tinct from short range or emergency aspects, and
picked as the period for study the quarter century
between 19.50 and 1975. The Commission's report
does not overlook the possibility of war in this
period but neither does it assume war. War would
alter the patterns of materials demand and supply
in swift and drastic ways; yet if permanent jjeace
should prevail, and all the nations of the world
should acquire the same standaixl of living as our
own, the resvdting world need for materials would
be six times pre.sent consumption. In considering
materials at long range, therefore, we have roughly
the same problems to face and actions to pursue,
war or no war.
For the last hundred years, the United States'
total output of all goods and services (the (xross
National Product, or Gnp) has increased at the
average rate of three percent a yeai% compounded.
Such a rate means an approximate doubling every
twenty-five years (which would mean a nineteen-
fold increase in a full century). As of 1950, the
Gnp was approximately $283 billion. In consider-
ing the next quarter century the Commission has
made no assumption more radical than that the
Gnp will continue to increase at the same three
percent rate compounded every year, which is the
average of the last century, all booms and depres-
sions included. This would mean a Gnp in the
middle of the 1970's of about $566 billion, measured
in dollars of 1950 purchasing power. The Com-
mission has also assumed, after consultation with
the Bureau of the Census, that population will
increase to 193 million by 1975, and the working
foi'ce to 82 million, compared to the 1950 figures
of 151 million and 62 million. It has also assumed
a shortening work week, but that man-hour pro-
ductivity will continue to rise somewhat more than
in the recent past. But even these conservative
assumptions bring the United States up against
some very hard problems of maintaining materials
supply, for natural resources, whatever else they
may be doing, are not expanding at compound
rates.
Absolute shortages are not the threat in the ma-
terials problem. We need not expect we will
some day wake up to discover we have run out of
materials and that economic activity has come to
an end. The threat of the materials problem lies
in insidiously rising costs which can undermine
our rising standard of living, impair the dynamic
quality of American capitalism, and weaken the
economic foundations of national security. These
costs are not just dollar costs, but what economists
refer to as real costs — meaning the hours of human
work and the amounts of capital required to bring
a pound of industrial material or a unit of energy
into useful form. Over most of the 20th century
these real costs of materials have been declining,
and this decline has helped our living standards to
rise. But there is now reason to suspect that this
decline has been slowed, that in some cases it has
been stopped, and in others reversed. The central
challenge of the materials problem is therefore to
meet our expanding demands with expanding sup-
plies while averting a rise in real costs per unit.
In materials, there is always a tendency for real
costs to rise because invariably people use their
richest resources first and turn to the leaner sup-
plies only when they have to. Wliat is of concern
today it that the combination of soaring demand
and shrinking resources creates a set of upward
cost 25ressures much more difficult to overcome than
any in the past. In the United States there are
no longer large mineral deposits in the West wait-
ing to be stumbled upon and scooped up with picks
and shovels ; nor are there any longer vast forest
tracts to be discovered. We^ can always scratch
harder and harder for materials, but declining or
even lagging pi-oductivity in the raw materials in-
dustries will rob economic gains made elsewhere.
The ailment of rising real costs is all the more
serious because it does not give dramatic warning
of its onset; it creeps upon its victim so slowly that
it is hard to tell when the attack began.
In recent years, the general inflation has struck
with special force at many materials, causing their
prices to rise more than the price structure as a
whole. Some materials prices are high today be-
cause demand has temporarily outrun supply;
here we can expect the situation to adjust itself.
But in other cases the problem is more enduring
than this, and reflects a basic change of supply con-
ditions and costs. It would be wishful, for exam-
ple, to except lumber prices to settle back to their
pre-1940 price relationship; we are running up
against a physical limitation in the supply of
timber, set by the size and growth rates of our for-
ests, and cost relief through easy expansion is not
to be expected. For such metals as copper, lead,
and zinc. United States discovery is falling in re-
lation to demand, and prices reflect the increasing
pressure against limited resources.
The Commission's report discusses at length the
ways and means whereby rising real costs can be
halted, and a trend toward lower real costs, such
as we enjoyed through most of the first half of the
20th century, re-established. It recognizes also
56
Department of Slate Bulletin
the problem of having enough materials physi-
cally available in the event of war, and considers
various ways of assuring materials security. The
report emphasizes that "there is no such thing as
a purely domestic policy toward materials that all
the world must have ; there are only world policies
that have domestic aspects." The Commission
states its conviction that if the United States and
other free nations are, in the years ahead, to enjoy
economic growth and national security, "they must
coordinate their resources to the ends of common
growth, common safety and common welfare."
The Commission states as the major premise of its
report that :
The over-all objective of a national materials policy for
the United States should be to insure an adequate and de-
pendable flow of materials at the lowest cost consistent
with national security and with the welfare of friendly
nations.
Three Major Paths
In general, the United States has three major
paths to follow in working out the problems of
high consumption, prudent conserving, and a do-
mestic resource base that is shrinking in compari-
son with our needs :
1 ) We can make new discoveries of needed ma-
terials at home, and otherwise increase the useable
fraction of our total resource base.
2 ) We can alter our patterns of use away from
scarce resources and toward more abundant ones.
3) We can import larger quantities of materials
from other nations of the free world on terms ad-
vantageous to buyer and seller.
Getting More From Imports
If there is to be a 50 to 60 percent increase in
onr use of materials in the next quarter century,
this will mean that our total materials consump-
tion will rise from 2.7 billion tons a year now to
around 4 billion tons by 1975. The trend toward
: greater imports, perhaps amounting to a fifth or
: a quarter (by value) of what we use, thus seems
inescapable. But here, too, we have flexibility.
Wliere import conditions are unattractive we can
always raise domestic output (at higher cost),
develop substitutes or, if need be, use less. But
where conditions for economic cooperation are
favorable, it will, in the opinion of the Commis-
sion, pay us to import. The resource-rich but
relatively undeveloped nations of South America,
Africa, South Asia, and the Middle East will also
profit, for by exporting to us they can obtain the
dollar exchange with which to acquire more of
the capital goods they need to assist their own
economic growth. Such an interchange can take
place between the industrial and resource nations,
the report states, "to the tremendous advantage of
i each." The Commission rejects completely the
concept of United States "self-sufficiency" as
amounting to "nothing more than a self-imposed
blockade." The report continues :
The fact that nature distributed resources very un-
evenly over the face of the earth in relation to human
population and consumption alone argues in favor of in-
creasing Integration of the various national economies
of the free world. But the hard political facts of mid-
twentieth century add further great weiglit to the propo-
sition that it will be to the mutual advantage of all
freedom-loving peoples of the earth to achieve a greater
measure of economic and political cooperation than ever
before, founded on the principles of mutual help and
respect. Such cooperation can succeed only if it is based
on a clear understanding of the varying needs and re-
sources of all the nations concerned, and the opportuni-
ties which lie in mobilizing the strength of all to meet
the particular weaknesses of each.
On paper, the economic opportunities in free
world cooperation to produce materials are tre-
mendous ; they suggest a possible new era of world
advancement dazzling in its promise. Unfortu-
nately a great many problems, mostly man-made,
lie in the path. Less developed countries today
are highly conscious of the disparity between their
own standards of living and those of more highly
developed countries. They resent the stigma of
"colonialism" which often attaches to economies
heavily dependent on raw material exports. They
remember the great depression of the 1930's when
falling prices for their big raw material exports
wiped out their ability to buy the goods they
needed from their more industrialized neighbors.
On the other hand, individuals and corpora-
tions with capital to invest in foreign raw ma-
terials production hold back for fear of legal
uncertainties, fear of expropriation, and the pos-
sible impermanence of governments with whom
they might make contracts. They fear arbitrary
administration of import and export controls and
limitations on the convertibility of their earnings
into American dollars. At home, tariffs, "Buy
American" legislation, and certain aspects of our
tax laws add to the obstacles.
It would be folly for policymakers in this or
any other nation to assume that the present tur-
moil of the world will work itself out in ideal
fashion. The violent political upheavals of this
century clearly have not yet spent their force.
What happens internally in the less developed
nations, and to their economic and political re-
lations with the industrially advanced nations of
the free world, will largely determine whether
materials development can be used to help world
progress.
Enormous new investment would be needed for
foreign resources expansion. Wliereas the recent
level of private U.S. investment in mining and
smelting development abroad has averaged around
$50 million a year, the Commission estimates that
$100 mililon a year will be needed for the next
25 years to fulfill free world needs for copper
alone.
Ju/y 74, J 952
57
The Principle of Least Cost
With the United States economy facing stronger
and stronger pressures toward rising real costs
of materials, this Commission believes that na-
tional materials policy should be founded squarely
on the principle of buying at the least cost possible
for equivalent values. With growth pressing so
heavily against our resource base we cannot anord
to legislate against this principle for the benefit
of particular producer groups at the expense of
our consumers and foreign neighbors, and ulti-
mately with prejudice to our own economic growth
and security.
This cardinal principle of least cost has appli-
cation to all major sectors of national materials
policy : to development of domestic resources, to
energy and technology, to imports of foreign ma-
terials, and to security. Its application is most
often challenged, however, with respect to imports
and security.
That our economy can best develop by obtain-
ing its material at the lowest possible cost is most
often attacked by those whose costs are higher
than those of foreign competitors. It is they who
ask for restriction of imports on the grounds of
"protecting the American standard of living from
the competition of lower paid foreign labor."
This argument is often buttressed with the asser-
tion that we should strive to be as self-sufficient
as possible in view of the security risks we face.
The Commission feels strongly that this line of
argument is fallacious and dangerous. The idea
that the American standard of living must be pro-
tected from low-cost foreign supplies based upon
"cheap labor" is an idea based on unemployment
psychology. In a full employment situation the
supply of any material from abroad at a price
below that of our domestic costs (provided it does
not represent a temporary dumping), does not
lower the standard of living but actually helps
push it higher. In the United States it enables
us to use manpower and equipment to better ad-
vantage in making something that is wortli more
than the cheaper material that can be obtained
from abroad. Abroad, our purchases will con-
tribute to a strengthening of economic life and
improvement of working conditions in the nations
from whom we import.
It is true that where our domestic industries
face a considerable reduction in output, witli em-
ployees and capital unable to transfer quickly to
more remunerative activities, the Government has
the responsibility of easing the transition to the
new situation. This, however, is hardly likely to
be an important problem in the materials field,
where even the declining industries are more likely
to be faced with a shortage of manpower than
with a surplus.
The Problem of Security
As, in one material after another, we reach the
stage at which we must turn abroad for additional
supplies, the point may be raised that we are en-
dangering our security by dependence on foreign
sources; on "fair weather friends" whose supplies
in time of war will not be available to us.
This point is substantial enough for serious con-
sideration. The issue must be defined. It is to
gain the greatest security at the lowest cost.
Sometimes the least-cost route to security is to
give special aid to domestic industry, sometimes
it is not; when aid is indicated it is always best
to tailor it to the specific situation. Self-suffi-
ciency for many materials is impossible ; for many
others it is economic nonsense. It is certainly not
true that for all materials an unqualified depend-
ence on domestic supplies is the best in the end,
even when physically possible. With some mate-
rials, peacetime dejiendence on domestic supplies
may mean such depletion that if war comes a re-
serve which might otherwise have existed will
have been destroyed. With some materials it is
much more economical to depend upon expanded
output in safe areas abroad and on stockpiles built
in whole or in part on foreign supplies than to
maintain a domestic industry behind elaborate
and expensive protection. With some materials
it may be advisable to maintain a domestic in-
dustry which normally supplies only part of our
requirements, but is capable of a rapid expansion.
It is far from obvious that because we need a
material desperately in wartime, the one best solu-
tion is to maintain a high-cost domestic industry
in peacetime. That may sometimes be proper, but
it is not generally so, and our policy must be to
make separate decisions based on examination of
the particular merits of each case.
The fallacy of self-sufficiency as a basic guide
to a soimd materials jDolicy is that it costs too
much, in every way. A 50-cent increase per bar-
rel of petroleinn or a 2-cent increase in the average
price per ])ound of basic metals would add to our
annual bill for these materials about $1.0 billion
and $2.5 billion respectively. Yet it is not in
dollars alone that the increased costs of self-suffi-
ciency would be paid. Other countries in the free
world find markets for their exports in the United
States and we, to our profit, are a principal source
of industrial products for them. Interferences
with these normal channels of trade in the name
of self-sufficiency would inevitably check economic
growth both at home and abroad. The political
consequences of self-sufficiency, with its accom-
panying damage to carefully established security
arrangements, would prove even more serious.
Tlie dimensions of the materials security prob-
lem are far broader than the needs of the United
States alone, for we have a real concern to see
that our allies are likewise well supplied with
materials to support their own military strengths.
58
Deparfment of Sfafe Bulletin
If a war should cut off the flow of oil to Western
Europe from the Middle East, the burden of fuel-
ing Western Europe would fall heavily upon the
oil producing nations of the Western Hemisphere.
The problem then facing the United States of
reconciling its own needs with those of its allies
would transcend pm-ely domestic considerations.
For the United States and the rest of the free
world the geography and logistics of a possible
wai-, the greater mechanization of our armed
forces, the superior care and protection of our
manpower and the higher living standards of our
people all put a heavier drain upon our resources
than our adversaries are likely to encounter.
Hence, to accomplish the same war ends, the free
nations would require more materials than would
the enemy. To meet or anticipate our needs from
the supply side, we stockpile, and we seek reserve
materials capacity in safe areas, domestic and
foreign. On the supply side, civilian authority
remains more or less in control. But on the
demand side, the military, particularly in wartime,
is in a commanding position. With each succes-
sive war, and now with preparation against the
contingency of another, the military has become
a greater and greater claimant against the mate-
rial of the whole economy. It would be impossible
to fix a maximum percentage of military claims
to the total economy and say "beyond this point
you may not go." But even though the point can-
not be fixed it is known to exist — and to push mili-
tary consumption beyond it is to collapse the
civilian economy and hence, yer 5e, to lose the war.
Thus the military carries a heavy responsibility
to use materials efficiently and to hold its demands
to the lowest limits properly consistent with ade-
quate military strength, both in peacetime and
wartime. Progress has been made here in recent
years, but there is room, and pressing need, for
more.
The Fundamental Concepts
The report sums up the convictions of the Com-
mission as follows :
First, we share the belief of the American people in the
principles of Growth. Where there may be any unbreak-
able upper limits to the continuing growth of our economy
we do not pretend to know, but it must be part of the
materials task to examine all apparent limits.
Srcoiid, we believe in private enterprise as the must
efficacious way of perfornilntt industrial tasks in the
United, States. We believe in a minimum of interference
with its patterns, but this does not mean we believe this
minimum must be set at zero. Private enterprise itself
has often asked for help or restraints from Government ;
we have thus long experienced a mixture of private and
public influences on our economy. The Commission sees
no reason either to blink this fact or to decry it, believ-
ing that the co-existence of great private and public
strength is not only desirable but essential to our
preservation.
Third, we believe that the destinies of the United States
and the rest of the free non-Communist world are in-
extricably bound together. Applied to the Materials
Problem, this belief implies that if the United States is
to increase its imports of raw materials — as we believe
it must — it must return in other forms strength for
strength to match what it receives. If we fail to work
for a rise in the standard of living of the rest of the free
world, we thereby hamper and impede the further rise
of our own, and equally lessen the chances of democracy
to prosper and peace to reign the world over.
The Recommendations of the Commission
The Commission made over seventy recom-
mendations to ease the materials problem and to
ensure as far as possible against the threat of
rising real costs. These recommendations appear
in full in Volume I of the Commission's report.
To Stimttlate Foreign Trade and Open ttp New
Free World Material Sources —
The Commission recommended that :
The United States should negotiate government-
to-government agreements with resource countries,
designed to encourage and protect the enormous
investment necessary to create new materials pro-
duction abroad. (It was also the Commission's
view that United States representatives should en-
courage a wider use of United Nations technical
assistance in geological surveying and minerals
exploration in the underdeveloped countries.)
The United States should expand, perhaps to
as much as four million dollars a year, its own
technical assistance along the lines of geological
surveys, preliminary exploration and mining tech-
nology advice, with assurances from the resource-
countries' governments that they will proinote
conditions favorable to developing new minei-al
resources discovered.
"Wlien current emergency agencies eventually
disband, a permanent agency should be empow-
ered to make long-term purchase contracts, in-
cluding price guarantees, with resource nations;
to make loans for foreign materials production
where special security interests justify assump-
tion of risks beyond those assumable by the Ex-
port-Import Bank,
Legislation explicitly authorizing the Govern-
ment to enter into management contracts for for-
eign materials expansion should be enacted by the
Congress.
There should be permanent legislation empow-
ering the elimination of duty, apart from recipro-
cal action by other countries, when U.S. need for
imports of a particular material becomes crucial.
(The Commission believes there should also be
expansion of authority under the Reciprocal Trade
Agreements Act to reduce duties on raw materials
in which the United States is deficient.)
The "Buy American" Act, characterized by the
Commission as "a relic of depression psychology"
should be repealed.
There should be a continuing study of world
materials demand and production, with statistics
July 14, 1952
59
maintained by the United Nations; special inter-
national study groups should be set up when par-
ticular difficulties are encountered, similar to those
now reviewing wool, rubber and tin. (For re-
ducing marlvet instability the Commission saw
promising possibilities in the multilateral con-
tract, such as the International Wheat Agree-
ment and in testing international buffer stocks as
com))ensating inventories in a few materials.)
Certain changes in the U. S. tax laws should be
made to sj^ur materials investment by U. S. citi-
zens in foreign countries as follows : allowing tax-
payers to elect annually between "per country"
and "over-all limitation" in claiming credits on
their U. S. tax bill for taxes paid abroad ; permit-
ting deferral of reporting income until actually
received ; extending the privilege of filing consoli-
dated returns with foreign subsidiaries ; allowing
stockholders in foreign corporations which have
invested in exploration and development to treat
part of their dividends as a tax-free return of
capital rather than as taxable income.
Bombing of Power Plants
in Nortli Korea
Press release 516 dated June 30
During the course of an informal private talk
to memhers of the British Parliament on June 26,
Secretary Acheson covered a variety of subjects
concerning various areas of the world. At 07ie
point during his talk the Secretary made sorne
remarks about the bombing of power ^ plants in
North Korea. There have been. con-fl.icting reports
of what the Secretary actimlly said on this sub-
ject. In view of this misunderstanding,^ Mr.
Acheson on June 30 authorized the publicatio7i of
the verbatim text of his remarks concerning these
bomMngs, His remarks follow:
If I may digress for a moment, I shall make
some remarks about a matter which is one of con-
troversy and which I would not speak about in
England were it not for the fact that this is off-
the-reoord. I shall restrict my remarks to what I
think it is my duty to say to you at this time. This
is about the matter that you have been debating
in the last 2 or 3 days.
You would ask me, I am sure, if I did not say
this, two questions, and I should like to reply
very frankly to both of them. One question you
would ask is: Shouldn't the British Government
have been informed or consulted about this? To
that, my answer would be "yes." It should have
been ; indeed, it was our intention to do it. It is
only as the result of what in the United States
is known as a "snafu" that you were not consulted
about it.
I am sure that you are wholly inexperienced
in England with government errors. We, un-
60
fortunately, have had more familiarity with them,
and, due to the fact that one person was supposed
to do something and thought another person was
supposed to do something, you were not consulted.
Tlierefore, you should have been. We have no
question about that.
If you ask me whether you had an absolute
right to be consulted, I should say "no," but I
don't want to argue about absolute right.
What I want to say is that you are a partner of
ours in this operation, and we wanted to consult
you ; we should have, and we recognize an error.
Now you ask me whether this was a proper ac-
tion. To that I say : Yes, a very proper action, an
essential action. It was taken on military
grounds. It was to bomb five plants, four of which
were far removed from the frontier, one of which
was on the frontier. We had not bombed these
plants before because they had been dismantled,
and we wished to preserve them in the event of
unification of Korea. They had been put into
ojjeration once more; they were supplying most
of the energy which was used not only by airfields
wliich were operating against us but by radar
which was directing fighters against our planes.
Statement by Acting Secretary Bruce
Press release 526 dated July 2
Asked for a timetable of developments arising
out of failure to inform the British of the con-
templated action in bombing power installations
in North Korea, Acting Secretary Bruce made the
following extemporaneous statement at his press
conference on July 2 :
"It would be very difficult for me to give you any
chronological statement. But I might say this:
the failure to inform the British of the contem-
plated action was one which was due to a lack of
coordination, if I may put it that way, between
some of the departments of the Government. I
think it is perfectly idle to try to ascribe the blame
to one department or the other. There has been
no difference of opinion between ourselves about
it. We did not coordinate the action as we should
have, and there it is."
U.S.-Philippine Cooperation
Rebuilds Highway System
Press release 509 dated June 30
June 30, 1952, has been set as the official date for
the close of the highway rehabilitation program
in the Philippines. Beginning in the fall of 1945,
teams of trained engineers and administrators
from the U.S. Bureau of Public Roads have been
working side by side with the Philippine Bureau
of Public Works in the gigantic task of rehabili-
tating the war-ravaged highway system in thei
Department of State Bulletin
Philippines and extending it to serve the expand-
ing needs of the country.
Approximately 52 million dollars (104 million
pesos) have been spent in the construction or re-
construction of 263 bridges and 618 kilometers of
highways. This work has put back in use all the
highways existing before the war. In addition as
a result of this program, many rich areas of the
country are now receiving adequate highway serv-
ice for the first time. As an example, tlie rich
Cagaj'an Valley in north central Luzon will have
all-weather highway connections with the rest of
the island as bridges built with rehabilitation
funds replace the seasonably inadequate ferries at
several river crossings on Highway No. 5.
Almost 4 years of war and enemy occupation
had left the highway system in a deplorable state.
Bridges had been blasted and roadway surfaces
were shell-pocked and broken from the heavy
military traffic. Even more noticeable was the
surface deterioration caused by 4 years of
neglected maintenance. Largely as a result of
work done by the U.S. Army after the liberation,
most of the important routes of travel were
opened during 1945. However, much of that
work was of a temporary, makeshift nature and
pei'manent reconstruction was necessary. The
United States recognized that the jirompt re-
habilitation of the highways was beyond the
physical and financial resources of the young
Philippine Eepublic. They recognized, too, the
essential role adequate highways play in the
physical well-being of a nation. This "was par-
ticularly true in the Philippines where the rail-
road system, inadequate at best, had suffered equal
if not greater damage during the war and where
,'he very life of the young Republic depended upon
free and ready movements of goods and people
3ver the highways.
In recognition of this need, as a gesture of
ofood will and in a democratic effort to strengthen
mother government of free peojile in the postwar
roubled world, the Couirress of the United States
3y Public Law No. 370 (79th Cong., 2d sess.) allo-
cated 40 million dollars to the planning, design-
ing, and building of such roads, essential streets,
ind bridges as might be necessary for the national
lefense and the economic rehabilitation and de-
velopment of the Philippines. The U.S. Public
Roads Administration (now the U.S. Bureau of
Public Roads) was assigned to carry out this
■vork. The highway-reconstruction project was
)ut one of several rehabilitation programs pro-
dded under that law. Those other programs,
nvolving less extensive physical work, have all
)een successfully completed and the termination
)f the highway project brings to a close the United
states' share of the rehabilitation work.
The work that is just finishing is a shining ex-
mple of the cooperation that can be effected be-
ween two independent countries when they join
inces in mutual trust and respect. While the
o/y 14, 1952
214697—52— — 3
U.S. Government has supplied the larger part
of the funds, the Philippine Government did con-
tribute to the extent of their resources so that the
work could be extended to all parts of the country.
Approximately 12 million dollars (24 million
pesos), or one dollar in every four, was provided
by the local govermuent out of their meager re-
sources in addition to even larger sums expended
for normal highway maintenance needs. All the
work was done by Philippine contractors, with
Philippine labor, working under the direction of
the Philippine Bureau of Public Works. In the
beginning the U.S. Bureau of Public Roads had
to contribute heavily in technical direction and
engineering. As the Bureau of Public Works re-
built its oi-ganization, more and more of the tech-
nical and administrative work was given into its
charge until now, as the program draws to a close,
only a handful of American engineers remain.
The close of the rehabilitation program does
not mean the end of highway construction. The
phenomenal growth in motor vehicle registration
and the awakening development of the country
demand that the construction and expansion of
the highway system continue. The aid provided
by the United States has made up for the losses
during the 4 years of war and occupation. The
experience gained working alongside the Amer-
ican technicians has qualified the Bureau of Public
Works to continue with the expansion and de-
velopment necessary to maintain the Philippine
highway system in its service to the nation.
Mr. Andrews To Visit
Indonesia and Burma
Press release 528 dated July 3
Stanley xVndrews, Point Four Administrator,
will leave Washington July 6 for Djakarta and
Rangoon to plan the continuation under the Tech-
nical Cooperation Administration (Tca) of co-
operative progi-ams for economic develoj^ment in
Indonesia and Burma.
Mr. Andrews is scheduled to be in Djakarta
July 10-14 for discussions with officials of the
Indonesia Government and the U.S. economic
mission and in Rangoon for discussions with U.S.
and Burma Government officials July 15-19. He
plans to return to the United States via the
Pacific, stopping briefly in Tokyo and reaching
San Francisco about July 23.
During fiscal year 1952, U.S. authorized eco-
nomic aid to Burma amounted to 14 million dol-
lars and to Indonesia to 8 million dollars. Both
programs emphasized the development of agri-
culture, health, education, small industry, trans-
portation, and public administration and were
61
similar in many respects to Point Four programs
administered by Tca in other countries.
U.S. economic aid in Indonesia and Burma has
been administered by the Mutual Security Agency
(Msa). The transfer of administrative respon-
sibility from Msa to Tca took place in accordance
with the provision of the new legislation. Under
the new Mutual Security Act (Public Law 400 of
June 20, 1952) the Mutual Security Agency from
now on will administer programs which directly
support military preparedness and mutual de-
fense, while the Tca will administer the long-term
Point Four programs authorized by the Act for
International Development.
Point Four Programs
Afghanistan
Press release 515 dated June 30
Help in overcoming effects of ravages during the
twelfth and fourteenth centuries by Genghis
Khan and Tamerlane on vital irrigation works in
the Helmand Valley of southwest Afghanistan is
among provisions of an allocation of $348,740 of
Point Four funds made June 30 for that country
by the Technical Cooperation Administration
(Tca) of the Department of State.
Afghanistan, with 12 million people, is a land-
locked country, largely pastoral and agricultural,
lying strategically between the U.S.S.R., Paki-
stan, and Iran.
The authorization includes $03,44fi to supply
American technicians and some needed equip-
ment to assist the Afghans in settling families on
existing land and on an estimated 800,000 acres
of newly arable areas expected to result from
irrigation works financed by the Government of
Afghanistan and a $21 million loan from the U.S.
Export-Import Bank. The Tca program _ also
embraces educational and agricultural projects,
including aerial spraying against the age-old
desert locust menace. " The Tca is cooperating
with the United Nations in the technical assist-
ance offered to Afghanistan and is preparing to
pool efforts in a development plan in the Helmand
Valley.
The seven U.S. experts in the valley will include
a chief of the technical mission, land reclamation
and settlement officers, an agronomist, and agricul-
tural extension specialists, one with experience in
forestry.
A system of dams and canals, with laterals and
ditches, utilizing the Helmand and Arghand Ab
Rivers, constitutes the irrigation project. The
Arghand Ab Dam and a diversion dam have been
completed, and the remaining structure across
the Helmand Eiver — the Kajaki Dam— is expected
to be ready for water storage in 1953. An Amer-
ican engineering firm, Morrison-Knudsen of
62
Boise, Idaho, began large-scale construction work
6 years ago upon invitation of King Mohammed
Zahir Shah, who used foreign exchange accumu-
lated during World War II and the Export-Im-
port Bank loan to finance the project.
Also included in the present authorization is
$69,519 for education, $75,675 for 16 Afghan
trainees in agriculture, coal mining, irrigation and
education, and $43,300 for locust control.
The Mongol conquests of Genghis Klian and
Tamerlane swept from China as far as the Balkans
before receding. Ruins of ancient cities and civil-
ized amenities remain among the present day vil-
lages dotting the relatively narrow cultivated
strip beyond which stretches the alluvial desert to
be reclaimed by the development.
Wlieat cultivation and sheep raising are the
country's principal occupations, and its chief ex-
ports are karakul, fruit, nuts, and wool. Its
industries now consist of two cotton textile and
two woolen mills, a beet sugar refinery, a canning
factory, and a few small power stations.
Lebanon
Press release 511 dated June 30
The Governments of the United States and
Lebanon have signed a program agreement out-
lining a broad scope of activities to be undertaken
through the Point Four Program, the Department
of State announced June 30. The U.S. contribu-
tion has been set at $3,100,000.
The signing of this agreement brings the United
States into a partnership for technical cooperation
with another of the Middle Eastern nations
Under the agreement an extensive list of projects
is scheduled with major emphasis on agriculture
health and sanitation, and natural resources de-
velopment. Other broad project categories in-
clude education and training grants, social affairs
and transport and communications.
More than two-thirds of Lebanon's people liv(
on farms, and agriculture forms the principal sup-
port of the country. The Point Four Prograir
includes a number of agricultural projects, sucl
as animal husbandry, irrigation, marketing, cp
operatives, agronomy, and agricultural credit
All are closely related as components of a broac
rural-improvement program with concentratioi
on food production.
In the field of natural resources, projects wil
be carried on in village water development anc
salt-water fisheries. Work will also continue ii
surveys connected with the Litani River basin
The development of this 125-mile-long river val
ley is of prime importance in a country only 4,00(
square miles in area with a population of ove
1.200,000.
Health and sanitation programs are also o
major importance in the new agreement. Pri
mary projects are village health and medical serv
ices and the construction of a central public healtl
Department of State Bulletl
laboratory, considered to be the key to the nation's
public health efforts.
The Point Four education programs are aimed
at the establishment of primary and secondary
schools and include teacher training as a basis for
long-range progress in this important field.
In social affairs, a portion of the total progi-am
fund is being set aside for demonstration projects
in housing, which will serve as a guide for pro-
posed slum-clearance work.
Anotlier major allotment is in the field of train-
ing, with grants established for the training of
Lebanese nationals in the United States. These
students must agree to spend a year in the public
service of the government after completion of
their courses. There are also courses set up at the
American University of Beirut through an earlier
Point Four grant which are open to qualified stu-
dents from the other Arab states. They will form
1 nucleus of experts and teachers for the further
spreading of technical knowledge.
The agreement was signed June 26 at Beirut.
Pakistan
Press release 518 dated July 1
The Department of State on July 1 announced
:he details of a broad program of internal develop-
ment in Pakistan to be undertaken with U.S. co-
Dperation under the Point Four Program. An
igreement outlining the specific projects to
be carried out was signed June 30, providing for
the expenditure of $10,000,000 of U.S. funds.
The agreement was signed in New York by
Jonathan Bingham, Deputy Administrator of the
Technical Cooperation Administration, for the
United States, and by Said Hasan, Joint Secre-
tary, Ministry for Economic Affairs, who is in the
United States attending sessions of Unesco as a
representative of his country, for Pakistan.
Matching funds in rupees, equivalent to a mini-
mum of $10,000,000, are to be provided by
Pakistan for the projects.
The new agi-eement covers specific activities to
oe undertaken under the terms of the Point Four
Program agreement signed by the two govern-
nents on February 2, 1952.'
One outstanding project, to which $2,-390,000 of
U.S. funds will be devoted, consists of a rural
igricultural-industrial development program
:'overing improved methods of crop and livestock
iroduction, marketing and home management;
lealth and education; village industries, notably
landicrafts; and cooperative organizations in
' Bulletin of Feb. 25, 1952, p. 296.
marketing, purchasing, and rural credit. Some
600,000 persons in approximately 1,000 villages
will be reached through this work in the first year
of operation.
This is considered the beginning of a long-
range village development program planned on
such a simple scale that the provinces can carry
forward the work after only a brief period of
assistance from the Pakistan and U.S. Govern-
ments. Institutes for training the necessary vil-
lage workers for this program are to be attached
to four provincial agricultural colleges, with the
United States furnishing some of the teachers and
equipment.
A major provision is $4,000,000 for a fertilizer
plant at Mianwali, in the West Punjab, to pro-
duce 50,000 tons of ammonium sulphate annually
toward meeting Pakistan's need for this aid to
food production. In addition, 10,000 tons of fer-
tilizer will be imported with Point Four funds,
most of it to be sold to farmers for purposes of
large-scale demonstration, which is expected to
increase food grain production by about 20,000
tons this first year.
Another outstanding provision is $1,100,000
toward a road demonstration and transportation
project in East Pakistan where floods of the
Ganges and Brahmaputra Rivers and their tribu-
taries have cut off farmers from markets for
extended periods.
Health measures include making available DDT
for use in preventing disease among some 5,000,-
000 refugees in Pakistani communities, a field in
which U.N. health personnel are actively training
local technicians.
TcA administrator Stanley Andrews pointed
out that:
In its i% years of independence, Paliistan, with 80
millions of people, has made remarkable progress. It
has a stable government which is progressive and deter-
mined to improve the income and living standards of the
people. It has a 6-jear program of economic and social
betterment comprising more than 100 projects. JIany of
these are being financed and carried out entirely by
Pakistan. For fiscal year 1951-52 alone, ,$175,000,000 in
rupees is being supplied by the National Government and
$150,000,000 in rupees by the Provincial Government.
External aid is also being supplied by U.N. organizations,
the Ford Foundation, and the Colombo Plan.
There are now 60 Pakistanis training in the
United States under earlier Point Four grants.
The number will be increased to 200 by the new
agreement. The over-all intent of the training
program is to provide local experts to continue
activity uninterrupted in future years.
»\Y 14, J 952
63
Europe's Voluntary Unity
by Perle Mesta
Minister to Luxembourg ^
There never was a time when international ques-
tions so demanded the attention of all people. It
is no lonjier a question of "let "Washington worry."
We have all got to worry. And we have plentj
to worry about.
I am, by nature, an optimist. But there is no
blinking the facts. AVe, the free peoples, either
win through this present crisis or freedom itself
goes down. If we lose that, we lose everything.
I doubt if very many of us present here this even-
ing woidd see the day wlien we wovdd be free
again.
That sounds very discouraging. I am not, how-
ever, discouraged. For I do believe we will win.
Almost day by day, I seem to see the scales tipping
in our favor.
Luxembourg has been called the cross road of
Europe. It is, indeed, about as good a place as
one could find to get the pulse of Europe.
I have seen and talked to many of Europe's
leading statesmen. I have talked to professional
and business people — to workers and to farmers.
I find the attitude of these people amazing.
These people have just come through the great-
est and most destructive war in all history. They
live today almost in the shadow of the Hammer
and the Sickle.
The threat under which we all live is very near
to them. It is an ever-present danger.
And yet these people have their heads up. They
have performed miracles of faith and courage.
When I try to be specific, I find it difficult to
pick out just one development to mention first.
All are important.
Take, for example, the agreements signed re-
cently at Bonn and Paris.
As Secretary Acheson said of them :
"These agreements touch the lives of everyone
of us. They represent the birth of a new Ger-
many, a new Europe, and a new period in
history."
Briefly, these agreements do three things.
They end the Occupation of Germany. They
create a new European Defense Community in
which Gernumy will be a part. They extencl the
mutual guaranties of help against armed attack
among all the members of this new European De-
fense Community and all the Nato nations.
This is what this means. Just a few years ago
these nations were at war. That war left death
' Excerpts from an address made before the Interna-
tional Federation of Business and Professional Women.
New York, on June 20 and released to the press on the
same date.
and destruction in its wake unprecedented in
history.
Traditionally, the heritage of war is hatred.
The Euro^Deans have known such hatred over the
centuries. Today, they turn their backs upon it.
They have chosen rather to build peace and to
make their friendship the basis of that peace.
This same spirit gave birth to the Schuman
Plan, only last week finally ratified by the parlia-
ments of all the nations involved. Here is a plan
not only for peace, but peace with prosperity —
prosperity for all.
I would like to talk, if I had time, of Nato.
Much of Nato's success, unquestionably, is clue to
General Eisenhower's magnificent efforts. But
General Eisenhower would have been powerless
if the spirit to cooperate had not been there.
Generations of statesmen and thinkers have ad-
vocated what has been accomplished in Europe
these past few years. Dante is the first name that
comes to my mind. He probably wasn't the first,
however, and there have been a host of others.
There have been attempts to bring about such
unity by force among the European peoples. We
need think only of Hitler's "new order" for
Europe. Happily this did not succeed.
On the other hand, you and I have lived to see
a great idea — a voluntary European unity — being
put into effect. We are seeing it icork.
It woidd be highly egotistical for me to claim,
as an American, that the United States was re-
sponsible for all of this miracle. We were not.
The credit belongs to those wise and farsighted
European statesmen who have put humanity be-
fore nationalistic prejudice. It belongs to them
and the millions and millions of Europeans, just
the plain people, who have backed these men.
Our foreign policy, however, has helped.
Wherever and whenever it was possible, we have
backed the European leaders to the limit. We did
not create, but we have fostered.
That is something, I think, in which we all —
all Americans — can take pride. For we have
backed our Government. We have backed it not
only financially but with our moral support.
I said I was an optimist. Looking back over the
last few decades, I see many reasons for being
just that. It isn't that mankind has changed, but
his thinking most certainly has.
Certainly, we still have a long way to go. There
are many and great injustices still existing in
not only the world but in our own country. But
we have shown amazing capacity for progress.
And I, personally, see no reason why this progress
should not continue.
Again, I am not unaware of the great dangers
threatening us. But we are meeting them. And
we are meeting them together. We are meeting
them with faith in each other and courage in our
hearts. Backed by that faith and courage, if we
stay together, I have no doubt of the outcome.
64
Depatimeni of Sfafe Bo//efin
Preliminary Step Taken Toward Construction
of St. Lawrence Seaway by Canada
U.S., CANADA SUBMIT APPLICATION TO JOINT COMMISSION
FOR APPROVAL OF POWER DEVELOPMENT
Press release 506 dated June 30
The Department of State announced on June
30 that an application has been submitted by the
U.S. Government to the International Joint Com-
mission for an order of approval of the construc-
tion of works for power development in the Inter-
national Rapids Section of the St. Lawrence
River. The Canadian Government has also sub-
mitted a concurrent application in Ottawa.
Agreement was reached on the final details of
the applications by the two Governments at a
meeting in Washington on June 30 between
Acting Secretary Bruce and the Canadian Min-
ister of Transport, Lionel Chevrier. At the meet-
ing in Washington, Mr. Bruce and the Canadian
Ambassador, H. H. Wrong, exchanged notes in
which the Ambassador reiterated the intention of
the Canadian Government to construct a deep-sea
waterway from Montreal to Lake Erie when ar-
! rangements have been completed for power de-
velopment.i The seaway, to be built on the Ca-
nadian side of the international boundary, will be
constructed as nearly as possible concuri-ently with
the power development.
Texts of the Canadian and U. S. notes of June
30 follow.
Canadian Note
Sir,
I have the honour to refer to our exchange of
notes of January 11, 1952, relating to the St. Law-
rence Seaway and Power Project. In my note to
you, I informed you that the Canadian" Govern-
ment is prepared to proceed with the construction
'At a meeting in Washington on Sept. 8, 1951, Prime
Minister Louis St. Laurent of Canada informed President
Truman of Canada's willingness to construct the seaway
as a Canadian project and to malie arrangements with
the appropriate U.S. authority for the required power
development. The President expressed his preference for
joint United States-Canadian action on the seaway but
said he would support Canadian action if an early com-
mencement on the joint development does not prove
possible. See Bulletin of Oct. 8, 1951, p. 581.
July 14, J 952
of the seaway as soon as appropriate arrangements
can be made for the construction of the power
base of the project as well.
I have been instructed by my Government to
inform you that, when all arrangements have been
made to ensure the completion of the power phase
of the St. Lawrence project, the Canadian Gov-
ernment will construct locks and canals on the
Canadian side of the International Boundary to
provide for deep-water navigation to the standard
s))ecified in the proposed agreement between
Canada and the United States for the develop-
ment of navigation and power in the Great Lakes-
St. Lawrence Basin, signed March 19, 1941, and
in accordance with the specifications of the Joint
Board of Engineers, dated November 16, 1926, and
that such deep-water navigation shall be provided
as nearly as possible concurrently with the com-
pletion of the power phase of the St. Lawrence
project.
The undertaking of the Government of Canada
with respect to these deep-water navigation facili-
ties is based on the assumption that it will not be
possible in the immediate future to obtain Con-
gressional approval of the Great Lakes-St. Law-
rence Basin Agreement of 1911. As it has been
determined that power can be developed economi-
cally, without the seaway, in the International
Rapids Section of the St. Lawrence River and as
there has been clear evidence that entities in both
Canada and the United States are prepared to
develop power on such a basis, the Canadian Gov-
ernment has, with Parliamentary approval, com-
mitted itself to provide and maintain whatever
additional works may be required to allow unin-
terrupted 27-foot navigation between Lake Erie
and the Port of Montreal, subject to satisfactory
arrangements being made to ensure the develop-
ment of power.
Canada's undertaking to provide the seaway is
predicated on the construction and maintenance
by suitable entities in Canada and the United
States of a sound power project in the Interna-
tional Rapids Section. The features of such a
power project are described in section 8 of the
65
applications to be submitted to the International
Joint Commission by the Governments of Canada
and of the United States. They are also described
in the Agreement of December 3, 1951, between
the Government of Canada and the Government
of Ontario, forming part of the International
Rapids Power Development Act, Chapter 13 of
the Statutes of Canada, 1951, (Second Session),
a copy of which is attached hereto. The Canadian
Government wishes to make it clear that, even
were the seaway not to be constructed, Canada
would not give its approval to any power develop-
ment scheme in the International Rapids Section
of the St. Lawrence River which omitted any of
the features so described.
However, in order to ensure that construction
of both the power project and the deep waterway
may be commenced without any further delay and
notwithstanding —
(a) that the power-developing entities would
be required, if power were to be developed alone,
to provide for continuance of 14-foot navigation
(such provision was indeed made in the 1948
applications by the Province of Ontario and
the State of New York), and that the Canadian
Government's commitment to provide concur-
rently a deep waterway between Lake Erie and
the Port of Montreal does not alter the basic
principle that any entity developing power in
boundary waters must make adequate provision
for the maintenance of existing navigation fa-
cilities, and
(b) that, in view of the clear priority given to
navigation over power by Article VIII of the
1909 Boundary Waters Treaty, provision of
channeling to the extent specified in the Annex
to the 1951 Canada-Ontario Agreement referred
to above is reasonable and in conformity with
Canadian practice,
the Canadian Government is now prepared to
agree —
(a) that the amount to be paid to Canada, as
specified in the Agi-eement of December 3, 1951,
between Canada and Ontario, in lieu of the con-
struction by the power-developing entities of
facilities required for the continuance of 14-
foot navigation, be excluded from the total cost
of the power project to be divided between the
Canadian and United States power-developing
entities, in consideration of the fact that actual
replacement of 14-foot navigation facilities will
be rendered unnecessary by reason of the con-
current construction of the deep waterway in
Canada, and
(b) that the Authority to be established pur-
suant to the provisions of the St. Lawrence Sea-
way Authority Act, Chapter 24 of the Statutes
of Canada, 1951 (Second Session), contribute
$15 million towards the cost of the channel en-
largement which the power-developing entities
must undertake in the St. Lawrence River, as set
out in paragraph 4 of the Annex of the Canada-
Ontario Agreement of December 3, 1951, and in
section 8 of the applications to the International
Joint Commission, in consideration of the bene-
fits which will accrue to navigation from such
channel enlargement.
I understand that your Government approves
the arrangements outlined in this note and that
it is further agreed, subject to the modifications
outlined in the preceding paragraph, that the Gov-
ernment of Canada and the Government of the
United States will request the International Joint
Commission to allocate equally between the two
power-developing entities the cost of all the fea-
tures described in Section 8 of the applications to
the International Joint Commission and in the
Agreement of December 3, 1951, between Canada
and Ontario.
Accept [etc.]
Hume Wrong
United States Note
Excellency :
I have the honor to ac*knowledge the receipt of
your note of June 30, 1952, in which you inform
me that your Government, when all arrangements
have been made to ensm-e the completion of the
power phase of the St. Lawrence project, will con-
struct locks and canals on the Canadian side of the
International Boundary to provide deep-water
navigation to the standard specified in the pro-
posed agreement between the United States and
Canada for the development of navigation and
power in the Great Lakes-St. Lawrence Basin,
signed March 19, 1941, and in accordance with the
specifications of the Joint Board of Engineers,
dated November 16, 1926, and that such deep-
water navigation shall be provided as nearly as
possible concurrently with the completion of the
power phase of the St. Lawrence project.
My Government approves the arrangements set
forth in your note and, subject to the modifications
there proposed and outlined below, agrees to re-
quest the International Joint Commission to al-
locate equally between the power-developing en-
tities the cost of all the features described in Sec-
tion 8 of the applications to the International
Joint Commission and in the Agi-eement of De-
cember 9, 1951, between the Governments of Can-
ada and Ontario.
These modifications are :
(a) the amount to be paid to Canada, as speci-
fied by the Agreement of December 3, 1951, be-
tween Canada and Ontario, in lieu of the con-
struction by the power-developing entities of
facilities required for the continuance of 14-foot
navigation, be excluded from the total cost of the
power project to be divided between the Canadian
and United States power-developing entities, in
consideration of the fact that actual replacement
66
Departmenf of Sfafe Bullefin
of 14-foot navigation facilities will be rendered
unnecessary by reason of the concurrent construc-
tion of the deep waterway in Canada, and
(b) that the Authority to be established pur-
suant to tlie provisions of the St. Lawrence Sea-
way Authority Act, chapter 24 of the Statutes of
Canada, 1951 (Second Session), contribute $15
million toward the cost of channel enlargement
which the power developing entities must under-
take in the St. Lawrence River, as set out in Sec-
tion 8 of the applications to the International
Joint Commission and in paragraph 4 of the
Annex to the Canadian-Ontario Agreement of
December 3, 1951, in consideration of the benefits
which will accrue to navigation from such chan-
nel enlargement.
Accept [etc.].
David Bruce
U.S., Canada Refer Lake Ontario
Complaints to Joint Commission
The Department of State announced on June
25 that the United States and Canada had agreed
upon terms of a reference which was forwarded
on that date to the International Joint Commis-
sion— United States and Canada — relating to the
high level of water in Lake Ontario.
Residents along the shores of Lake Ontario have
complained regarding serious damage to their
property as a result of the unprecedented high
level of water in Lake Ontario.^ Some of the
complainants considered that the high level was
caused to a considerable extent by the Gut Dam
constructed in the St. Lawrence River by the
Canadian Government in 1903-04 and by the di-
version of the waters of the Long Lac and Ogoki
Rivers from Hudson Bay into Lake Superior.
The diversion of waters of Lake Michigan through
the Sanitary Drainage Canal at Chicago was also
an element which was considered of importance in
regard to the present situation.
In order that all possible methods of remedying
this unfortunate situation might be considered and
all possible measures taken to provide relief, the
United States requested, and Canada has agreed,
to have this matter referred to the Commission in
accordance with the provisions of article IX of
the treaty signed on January 11, 1909, relating to
boundary waters.
' BuiXETiN of June 9, 1952, p. 903.
Supplementary Extradition
Convention With Canada
Press release 508 dated Juue 30
The Department of State has been informed
that the Canadian Parliament has approved a
Supplementary Extradition Convention with the
United States which covers securities frauds.'
The U.S. Senate has already given its consent to
ratification. The convention was signed at Ot-
tawa on October 26, 1951, and amends the Ex-
tradition Convention of December 13, 1900.
For some years governmental authorities in
both countries have been concerned over the activ-
ities of a small group of stock promoters in
Canada who have carried out securities frauds
involving millions of dollars annually through
sales in the United States. Existing extradition
arrangements proved unsatisfactory to cope with
the techniques of these brokers who operated
through mass mail campaigns and extensive tele-
phone solicitation.
The Supplementary Convention redefines the
list of offenses for which extradition can be had
and adds the crime of mail fraud for the first time.
The new convention will go into effect when
instruments of ratification are exchanged.
Senate Ratifies German Treaty
and NATO Protocol
Press Conference Statement hy Acting Secretary
Bruce
Press release 525 dated July 2
In response to a request for comment on Sena-
torial consent to ratification of the German Con-
tractual Agreements and the NATO Protocol^
Acting Secretary Bi-nce made the foUoiving ex-
temporaneous statement at his press con:ference on
July 2:
I think the action of the Senate was simply
magnificent, and with a very encouraging major-
ity. I think it will be very heartening indeed to
the foreign countries which later on have to con-
sider the ratification of the treaty and the protocol.
I think we have set an extremely good example.
' Bulletin of Dec. 3, 1951, p. 908.
" The Senate on July 1 ratified the German Contractual
Agreements by a vote of 77 to 5 and on the same date
ratified the Nato Protocol by a vote of 71 to 5. For test
of the latter document and for summaries of the German
agreements, see Bulletin of June 9, 1952, p. 888 and
p. 896.
Ju/y 14, J 952
67
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Increasing the Safety of the World's Shipping
THE SIXTH INTERNATIONAL HYDROGRAPHIC CONFERENCE
iy Commander Leonard S. Huhhard
V.S. Coast and Geodetic Survey, Department of Commerce
The International Hydrogi-aphic Conference
met at Monte Carlo, Monaco, for its sixth quin-
quennial session from April 29 to May 9, 1952.
Delejiates from 24 of the 28 member states ^ con-
vened at the permanent lieadquarters of the Inter-
national Hydrographic Bureau (Iiib) to resolve
administrative and technical problems relating to
the activities of the Bureau and to review its
achievements and program. The United States
was represented by two delegates, Capt. Earl O.
Heaton, Coast and Geodetic Survey, Department
of Commerce, and Capt. George F. Kennedy,
U.S.N.R., Navy Hydrograi^hic Office, Department
of Defense, and by three technical advisers, H. K.
Edmondson of the Coast and Geodetic Survey,
and Guillermo Medina and William G. Watt, both
of the Navy Hydrographic Office.
At its opening session, the Conference divided
itself into working committees on charts, tides,
nautical documents, revision of resolutions, work
of the Bureau, statutes, eligibility of candidates,
and finance. These eight committees, one of which
was headed by a U.S. delegate and two of which
had a U.S. delegate as vice chairman, considered
technical proposals and problems submitted by
the member states and by the Ihb directing com-
mittee, and also made appropriate recommenda-
' Argentina, Brazil, Canada, Cbile, Cuba, Denmark,
Eg.vpt, France, Germany, Greece, Indonesia, Italy, Japan,
Monaco, the Netherlands, Norway, Portugal, Spain,
Sweden, Thailand, the United States, Uruguay, and Yugo-
slavia : the 24th member represented consists of Great
Britain, Australia, and New Zealand, operating as a unit.
Four members, China, Poland, Turkey, and the Union of
South Africa were not represented. Belgium and Iceland
sent observers.
tions to the Conference in plenary session. The
U.S. delegation believes that most of the technical
proposals adopted are consistent with established
policies and procedures of the United States.^
In 1939, at the invitation of the British Ad-
miralty, the principal maritime states sent dele-
gates to a conference of hydrographers at London.
This conference, in which the United States par-
ticipated, recognizing that maritime nations have
a community interest in the compilation of ac-
curate and standardized information on the coasts
and coastal waters of the world and in the free
exchange of this information, decided to establish
an international bureau of hydrography to func-
tion on a permanent basis, through elected direc-
tors and a secretary general together with a tech-
nical and administrative staff, all financed by the
maritime member states. The Principality of
Monaco donated the headquarters building and
provided utility services. The United States, an
active member since 1921, was instrumental in
keeping the Bureau intact during World War II.
Full activity was resumed after the war, and the
Fifth International Hydrograjshic Conference
was held in 1947 at Monte Carlo.
The Bureau coordinates and encourages stand-
ardization on an international basis of the efforts
of the national hydrographic offices and promotes
the facility and safety of navigation in all the
.seas of the world. It provides a medium for free
exchange of basic information in the form of
^ Details of the work of the various committees and
verbatim reports of the plenary sessions will be printed
in the "Report of the Proceedings of the Sixth Inter-
national Hydrographic Conference" and distributed to
member states by the International Hydrographic Bureau.
68
Deparfment of State Bulletin
hydrographic surveys and up-to-date charts, as
well as of comprehensive descriptions of coasts,
ports, and navigation aids and of improved survey
methods and navigational techniques as developed
by national interest.
Millions of nautical charts are printed in Wash-
ington every year. The U.S. Coast and Geodetic
Survey, Department of Commerce, prepares and
issues charts and related publications on the
coastal waters of the United States and its pos-
sessions (Alaska, the Hawaiian Islands. Puerto
Rico, and the Virgin Islands). The U.S. Navy
Hydrographic Office, Department of Defense, pre-
pares and issues charts and publications on all of
the other coastal waters and oceans of the world.
United States participation in the work of the
Tnternational Hydrographic Bureau is princi-
pally through the services of these two offices.
Nautical charts are used by the fighting ships of
;he Navy and by vessels of the Merchant Marine
olying domestic and foreign waters. The Navy
orotects the national welfare and our foreign com-
nerce ; the merchant fleet transports a large part
)f our foreign commerce, the annual total value
)f which exceeds 12 billion dollars in exports and
) billion dollars in imports. The yachting fleet
)f this country, consisting of approximately 450,-
)00 yachts and small craft, also demands a great
uimber of charts each year. Moreover, some
14 000 fishing craft use charts to aid in locating
ishing banks.
mportance of Nautical Charts
Nautical charts are the navigator's road maps,
3ut they are far more vital to him than road maps
ire to an automobile tourist. No visible sign-
oosts mark the sea lanes. Charts show whaf is
mder the water— the deeps and shoals, the sub-
nerged hills and valleys under the sea. Charts
dso portray the shoreline, the bays and head-
ands. lighthouses, and other aids to the navigator.
Dn a large modern vessel worth millions of dollars
md moving at high speed, the navigator must
vnow at all times exactly where his vessel is and
vhere he must guide it to reach his destination in
he least possible time, consistent with safety.
The navigator on such a ship has certain elec-
ronic devices at his disposal to aid him in know-
ng his position and the depth of water under his
ihip. In coastal waters, he looks at a radar
icreen, which is somewhat like a television screen,
md sees a picture of the coastline and other above-
vater objects. He can also quickly determine the
ustance and direction of any object seen on the
creen. In offshore waters." the navigator can
nanipulate the dials of another electronic device,
ailed loran, to find his distances from shore con-
rol-stations. A glance at a flashing light or at
trace on a graph of a third electronic instru-
laent, called an echo-sounder, shows the depth of
kater under his vessel. Having found the dis-
'«/y 14, 7952
tances from points on shore and the depths under
the vessel from these electronic instruments, the
navigator can spot his position on a chart.
A modern chart is designed to utilize the infor-
mation furnished by radar, loran, and echo-sound-
ers to best advantage. It shows the shapes of
coastal areas with shaded contouring, each succes-
sively darker shade simulating the image seen on
the radar screen at successively greater distances
offshore. A lattice-like grid of fine lines over the
chart, representing the loran-station readings, aids
the navigator in plotting his position. "Depth
curves of the ocean bottom, like the contour lines
of a land map, show the navigator where he must
be to match the depths he reads on his echo-
sounder. Such is a modern chart, but before it
can be printed an enormous amount of informa-
tion must be obtained, both of the land areas and
of the sea areas.
Surveying Water Areas
Land-surveys furnish the basis and the tie-in
points for the surveys of the water areas. Most of
us have seen land-surveyors at work, measuring
distances and angles with tapes and transit-like in-
struments and photographing land areas from the
air. We are not, however, so familiar with the
operations which produce surveys of the water
areas, called hydrography. Hydrography meas-
ures the depths and locates the positions of the
depths. It finds out "how deep" and "where " so
that all features of the bottom and the adjacent
shores may be delineated on the charts. These
operations must naturally be performed by or
from vessels.
The United States maintains 13 survey vessels
each with from 60 to 400 men aboard. A tvpical
survey vessel, which is between 150 and 420 feet
long, has on her boat deck four to six launches
and m addition whaleboats, dinghies, and skiffs!
During the recent conference, survey vessels of
England and France and the U.S. Hydroo-raiihic
fiirvey Group One, consisting of"the'"uSS
Mauri/, the U.S.S. StaUion. and the U.S S 'We-
gheny, called at the port of Monte Carlo and <rave
the delegates an opportunity to observe techniques
and inspect equipment employed by different na-
tions. Great interest was displayed in the ex-
IV Vt°S i'^Jif^ed by the helicopter attached to
the U.h.S. Maury which demonstrated lowering
supplies from the air and hovering. The presi-
dent of the Conference, on behalf of its members
expressed appreciation to the United States for
making its survey vessels available for inspection
by the conference representatives.
When a survey vessel arrives in a new region to
be charted, one of its first tasks is to establish
ground or shore control and to map the shoreline.
Working parties ashore construct beacon-like sig-
nals along the shoreline— conspicuous signals that
men on the launches and the vessel can see when
69
they are measuring the depths under the water.
Other working parties establish electronic control-
stations and erect radio masts that are used to
control the positions of the vessel and the launches
when the beacon-like signals cannot be seen.
Finally, survey parties determine the location ot
the beacon signals and the radio masts, and tie-m
points on the ground that show on aerial photo-
graphs, so tlu-it the shoreline can be mapped in
its true position from the photographs.
With the shore control established and plotted
on work sheets, the survey vessel and the launche|
start actual hydrogi-aphic surveying. Vessel and
launches track back and forth across the water
areas in straight lines, each line parallel to the
preceding, as a farmer plows a field. As the
vessel and the launches travel along the sounding
lines, electronically controlled echo-depth sound-
ers trace a continuous profile on a roll of graph
paper of the ups and downs of the sea bottom
passed over. While sounding, the hydrographers
keei:> track of and guide the path of the vessel and
immediately plot the measured points on work
sheets, called the hydrographic sheets, which be-
come filled with row after row of depth figures.
When the signals on shore cannot be seen, elec-
tronic instruments are used to determine the posi-
tion of the sounding craft. One of the most use-
ful of these is shoran, a special type of radar which
measures the distance to two shore receiving sta-
tions. With shoran controlling, the navigator
knows his exact position at all times, and sound-
ings can be taken both day and night in foggy,
rainy, or clear weather.
Since the surface of the sea rises and falls with
the tide, the height of the tide must be known
continuously in order to correct the depth read-
ino-s to the plane of low water. Automatic, clock-
run instruments are set up near the shore to record
a continuous graph curve of the rise and fall ot
the tide. During the hydrographic operations,
observers also measure the deviation of a compass
needle from true north. This deviation will be
shown on the compass rose printed on the nautical
charts.
Preparing the Chart
When the field work is completed, the hydro-
o-raphic sheets and the accompanying records are
shipped to Washington, where cartographers re-
duce and condense the scale and carefully select
those soundings which will best picture the sea
bottom to the mariner. Depth-curves or bathy-
metric lines, similar to the contour lines on a land
map, are drawn. From the topographic data on
hand, the cartographers also prepare a draft of
the land areas, emphasizing those that best serve
the mariner's needs and eliminating others. The
final chart original is then prepared. Some hy-
drographic services still utilize the classical
method of engraving on copper; some engrave
70
on glass; others draft their charts in their en-
tirety or utilize a combination of drafting and
engraving. , • ,, . f
Nautical charts vary gi'eatly m the amount ot
area covered and in the amount of detail shown.
Harbor charts may show only one harbor, but this
in great detail, including piers, objects on shore,
bottom contouring, channels, and buoys. Coast
charts, with smaller scales, cover great stretches
of the coastline and the bordering ocean bottom
and, although much detail of the ocean bottom is
shown, only such shore objects are charted as can
be seen from a distance off shore. General charts
and sailing charts cover greater areas in much less
detail and are for the use of vessels traveling far
at sea. , , , i •
In addition to nautical charts, the hydrographic
services of the maritime nations must publish
much supplemental information, such as tide
tables, lists of navigational lights, sailing direc-
tions, electronic aids, and dangers to navigation,
all designed to promote safety at sea. In the in-
terest of the mariner and of the offices preparing
such information, it is essential that such details
be prepared as uniformly as possible.
The only way to obtain all this information on
the coasts and coastal waters of foreigii countries
is by freely exchanging such information of our
own coasts for similar information from other
countries. The International Hydrographic Bu- ,
reau contributes much to the safety of vessels ply-
ing the shipping lanes of the world by encouraging
the free exchange of accurate and up-to-date in-
formation and the standardization of the efforts
of the national hydrogi-aphic offices.
U.S. Presents Evidence
of Forced Labor in U.S.S.R.
Folio win ff w the text of a .statement viade jnihlir
on Jvne 30 on hehalf of the Department of Sf'iff
by Walter M. Kot-^chnig, Deputy U. S. Bepre>« n-
tative in the U.N. Economic and Social Covned.
The statement, entitled ''Evidence of the. Exht-
ence of Forced Labor in the U.S.S.R.'' ii^a^s for-
vmrded, with appendia'cs listed, to the U.N. Ad
Hoc Committee on Forced Labor by the U.S.
Mission to the U.N.
n.S./U.N. press release dated June 26
The appendixes to this document contair
abundant material, legal and factual, on forced
labor in the U.S.S.R. Most of it is recent and
lieretofore unpublished. It refers to forced lalioi
in a narrow sense of the concept, namely to com-
pulsory work performed by the inmates of prisons
"labor-colonies," and "corrective labor camps'
(the Soviet terms for concentration camps) in oi
near their place of detention.
Deporfmenf of Sfofe Bo/Jefir
A careful study of the appendixes shows these
features of Soviet forced hibor:
1. It has been continuous throughout the exist-
ence of the Soviet regime. It may be recalled that
the first concentration camps were organized a few
months after the Bolshevik Revolution ; since then
they have grown into a vast institution. One-
third of a century after its inception the Govern-
ment of the U.S.S.R. still relies on forced labor
ind concentration camps.
2. The inmiber of ]:)risonei-s is a Soviet state
secret. Scholarly computations made by Western
}xperts run into many millions. Even tlie most
;onservative calculations are far above what
should be the prison population of tlie U.S.S.R.
f tlie per capita figures of countries outside the
I^onnnunist pale or even of Tsarist Russia were
ised as a yardstick.
3. Common criminals are a small minority
,mong the forced laborers, and the camp admin-
stration allows them to dominate or even terrorize
he other prisoners. These other prisoners are (a)
)olitical offenders, (b) people apprehended not
lecause of any offense but because they were sus-
lected of a lack of sympathy with the regime
such as relatives of political offenders, "bour-
:eois," or "kulaks" and their families), and (c)
jeople who committed minor offenses or derelic-
ions (infractions of factory discipline, petty
ilack market operation, etc.) which in any hu-
aane society would call for disciplinary measures
■r a fine or, at most, a few days in prison.
4. Forced labor in the U.S.S.R. is a punishment
pplied eitlier in judicial proceedings based on
Soviet criminal law (with its vaguely defined
counter-revolutionary crimes") or under admin-
strative procedure. Victims of administrative
ncarceration have no court trial at all because
hey are not necessarily charged with commission
}f any illegal act.
1 5. While in Soviet tlieory penal institutions
lave the purpose to reeduca'te their inmates, in
eality they are places of brutal punishment
iharacterized by an arbitrary camp regime, over-
.'ork, inhumane quarters, a hunger diet, insuffi-
iient clothing, and lack of medical care. These
londitions have continued through the decades.
I 6. Forced labor is a significant feature of the
oviet economy. This is clearly revealed by the
oviet Economic Plan for 1941."
7. It may be assumed that in general forced la-
or lias been used, because the Government had
1 its hands large nimibers of "undesirable" ele-
ments on whom it wished to inflict punishment,
hoin it wanted to "liquidate," but whom it could
^ploit in the meantime for some economic pur-
osp. Even so, the presumption need not be ruled
lit that in practice — if not in principle — people
ave been arrested because of the demand for
need labor. The vast police empire must have
natural inclination to maintain and even expand
s activities. Its leaders are probably eager to
ily 14, 1952
lay their hands on interesting projects and the
next step is to round up or retain the necessary
number of prisoners. There are enough laws and
decrees and their provisions are flexible enough
to increase the number of forced laborers simply
by insisting on a more severe and comprehensive
enforcement policy. In such a case, minor infrac-
tions which might otherwise have gone umioticed
will lead to long forced labor terms, and unscrupu-
lous agents of the judicial and police systems
miglit even frame innocent people in order to curry
favor in the eyes of their superiors. Tlie danger-
ous combination of judicial and police power with
"big business" in one single administration — the
Mvd/Mgb — is one of the reasons for the magnitude
of the Soviet forced labor system.
8. Tliough the materials in the appendixes are
limited to the U.S.S.R., it should be noted that
forced labor as an establishment of great economic
importance has followed the Soviet flag. It is
well known that the countries in the Soviet sphere
of influence are being patterned after the Soviet
model and that the Soviet forced labor system is
one of the institutions which has been copied.
A brief description of the appendixes follows :
Appendix A contains Soviet laws and regula-
tions pertaining to forced labor. Items 1 to 3 are
the Statute on Corrective Labor Camps of 1930,
the Corrective Labor Codes of the Rsfsr of 1933,
and the Law on the Special Conference of the
Nkvd of 1934. These three laws and decrees—
which seem to be still in force— probablv do not
represent the entire legislation of tlie early 1930's
on this subject. The additional decrees from this
period as well as the entire body of rules and reg-
ulations issued since then have' been hidden from
the Soviet peoi^les and the world at large. Items
4 and 5 are authentic Soviet documents which
found their way to countries outside the Soviet
realm. The Regulations for the Supply of the
Ukhta-Pechora Nkvd Corrective Labor Camp, is-
sued in May 1937, establish a starvation diet for
the prisoners and tie rations to output. Thus a
weakened prisoner is drawn into a vicious circle
of declining work fulfillment and steadily reduced
nourishment. It is these regulations which fix
higher rations for guard dogs than for men. The
1941 plan, classified by the Soviet authorities to
prevent disclosure, presents official data on the
contribution of forced labor to economic activities
planned for that year and reveals the enormous
scope of police enterprises. The economic mean-
ing is analyzed in Item 6.
Appendix B contains official Soviet administra-
tive documents pertaining to forced labor as well
as other Soviet admissions of forced labor in the
U.S.S.R. Item 1 is a document concerning a Lat-
vian who in 1942 had been sentenced by Special
Conference to 5 years of exile. The Special Con-
ference {Osoboye Saveskchaniye) is the admin-
istrative body within the police agency which is
authorized to punish people without judicial trial.
71
It existed as early as 1930 {U.S.S.R. Laws, 1930,
22:248) and even earlier under a different name,
but it still functions today. The act of 1934 estab-
lishing the Nkvd included an article (No. 8) giv-
ing the conference the right "to apply in an ad-
ministrative procedure banisliment froni certain
localities, exile, confinement in corrective labor
camps up to five years and banishment from the
U.S.S.E." ( U.S.S.R. Laws, 1934, 36 : 283.) This
decree was supplemented by one of November 5,
1934 {U.S.SM. Laws, 1935, 11:84; see appendix
A-1) defining the composition of the Special Con-
ference and the punishments it can impose on
persons classified as "socially dangerous."
Item 2 is the translation of a statement on
forced labor made on March 8, 1931, by V. M.
Molotov, at that time Chairman of the Council
of Peoples Commissars. "The labor of prisoners,"
Molotov declared, "is being used by us in certain
municipal and road operations. We have done
this in the past, we are doing it now, and we shall
do it in the future. It is in the interests of society."
Item 3 is the photo copy of a Soviet poster ad-
vertising in London a book on the White Sea
Canal and its construction by forced labor in
1931-33.
Appendix C is devoted to hitherto unpublished
materials from the so-called Anders Collection.
In the years 1939-41 the Soviet authorities im-
prisoned large numbers of Polish citizens, civil-
ians as well as military personnel, from the parts
of Poland occupied by the Red army. On July
30, 1941, the Polish Government-in-Exile and the
Soviet Government agreed upon a release of those
prisoners, and subsequently ten thousand of them
joined the Polish Armed Forces figliting in the
JMediterranean theater of war under General
Wladyslav Anders. Written depositions of their
prison experience in the U.S.S.R. together with
official Soviet documents sentencing or releasing
Polish prisoners form the Anders Collection. It
is now kept in the custody of the Hoover Institute
and Library on War, Revolution and Peace, Stan-
ford University, Palo Alto, Calif.
Appendix C contains (1) a memorandum on
Soviet forced labor based on 18,304 statements
and short reports from the Anders Collection,
(2) a list and brief description of forced labor
camps mentioned in the Anders Collection, (3) a
list of ships used to transport prisoners, and (4)
photo copies and translations of a number of
typical depositions from the collection.
Appendix D, item 1, consists of selected official
Soviet documents, dealing with mass arrests and
deportations to forced labor and exile of Baits
during 1941. These police documents include long
lists of people to be deported as enemies of the
Soviet state and, in some cases, the number of
those removed and their destination. Few were
able to escape. Among them were Dr. Michael
Devenis, an American citizen who at the time of
the first Soviet invasion resided in Lithuania, and
the Rev. Julius Juhkental, who in the same period
was a pastor in Tallinn, Estonia. Items 2 and 3
of aiDpendix D are sworn depositions about their
experiences in Soviet imprisonment.
Of the many Soviet citizens who were victims
of the forced labor system, few have had an op-
portunity to escape to the West. Appendix E
consists of depositions made by four Soviet citi-
zens who spent some time in concentration camps
either before or after the war.
Appendix F contains the most recent eyewitness
stories of forced labor conditions in the U.S.S.R.
They were obtained from German prisoners-of-
war who returned to their country in 19.50 under
the so-called Stalin amnesty. Many of them had
been sentenced to forced labor in regular Soviet
concentration camps for alleged or actual viola-
tions of Soviet laws, e. g., for the pilfering of food
in the prisoner-of-war camps. A number of these
interviews are in the form of affidavits (German
original and translations) ; others are translations
of interviews. The latter had to be masked in
order to protect the soui'ces.
Japanese prisoners of war have been used as
forced laborers in the U.S.S.R. and, at the same
time, were able to observe Soviet convicts at work.
Appendix G consists of 10 affidavits sworn to be-
fore the American consular officer in Tokyo by
Japanese who had to work in the Soviet crab-meat
industry. The first of the affidavits is reproduced
in its entirety. The remaining include only the
actual statements of the affiants.
Appendix H consists of a number of affidavits
obtained from former inmates of Soviet forced
labor camps, sworn to by ethnic Germans from
several countries (Czechoslovakia, Hungary, Ru-
mania, Yugoslavia) who were arrested by thf
Soviet authorities as the occupation progressed
during the last stages of the Second World War
These people are now in the United States in ac-
cordance with the Displaced Persons Act and have
freely related of their experiences in forced laboi
camps in the U.S.S.R. Only in cases where it
has been requested, is the detailed information oi
names, places, and dates masked.
Finally, appendix I analyzes the part of forcec
labor in the Soviet economy, its important con-
tributions to total output, and its doubtful pro-
ductivity.
The U.S. in the U.N.
A weekly feature, does not appear in this issue.
72
Department of State Bulleth
U.S. Position on Proposed
International Development Fund
State/nenf hi/ Isador Luhin.
U.S. Representative in ECOSOC ^
I shall not take the time of the Council today
oo repeat in detail the position of the United States
n resi^ect to the proposed international fund for
providing grants-in-aid and low-interest, long-
erm loans for nonbankable projects in the less
ndustrially developed countries. The matter
jefore the Council is a technical matter, a matter
)f constructing a detailed plan in response to a
jeneral Assembly resolution. It does not involve
)asic policy decisions on the desirability or feasi-
)ility of creating a grant fund.
The Government of the United States has con-
dstently and strongly opposed the establishment
)f international machinery for making grants and
ong-term, low-interest loans. Our fundamental
josition on this question of whether an intema-
ional fund should be created for these purposes
vas stated fully at the sixth session of the Gen-
ial Assembly by the U.S. representative in Com-
nittee 11.^ Briefly, he said :
. . It is the view of niy Government that it would be
either practicable nor feasible to establish an interna-
ional agency for the purpose of distributing grants. . . .
fo new organization will l)e a truly international insti-
ution unless a .sufficient number of countries is prepared
o make effective and significant contributions to its
perations. It would seem extremely unlikely that coun-
ries, which in the past have been capital-exporting coun-
ries, would now be in a position to export additional
apital in any large volume. . . .
Unless member countries are in a position to make con-
ributions to the fund which is contemplated by this
esolution, the United Nations cannot possibly give life
0 the blueprints and to the principles of action which
his resolution calls upon the Economic and Social Council
D elaborate. Unless such contributions are forthcoming,
he fund which this resolution speaks of will remain
lerely a piece of paper.
I would be less than frank if I did not at this
arly stage of my statement make it obvi(jus that
hese renuiin the views of the U.S. Government.
Our opposition is based on the grounds that the
ime is not opportune. In addition, the Govern-
lent has re.servations, in principle, to the provi-
ion of grant aid by an international agency.
In reaffirming the position of the United States
a this matter, I trust I have made it unmistakably
lear that it is the proposed machinery to which we
re opposed. We are not opjDosed to the .purpose.
Ve fully recognize the neecl of the less developed
ountries for external assistance. We have pro-
ideil and we will continue to provide aid in the
' ^lade before' the U.N. Economic and Social Council on
ui:c Zi and released to the press by the U.S. Mission to
If r.N. on the same date.
' See statement in Bulletin of Dec. 17, 1951, p. 989, by
like J. Mansfield liefore Committee II (Economic and
linancial) of the General Assembly.
form of grants, loans, technical assistance, and in
other appropriate ways. We are determined to
do our full share toward meeting these needs.
Mr. President, I trust that our opposition to the
proposed special development fund will not give
rise to any misunderstanding of our policy toward
economic development. I am sure that you will
agree that the attitude of the U.S. Government
toward the welfare of the people of the less devel-
oped countries requires no elaboration on my part.
Our support of economic development can be
measured in practical, concrete terms.
During the last 6 years, the U.S. Government
made available over 5 billion dollars in the form
of loans or grants to countries iit underdeveloped
areas. This figure does not include our paid-in
subscription of 635 million dollars to the Inter-
national Bank. Nor does it include the contribu-
tions which we have made to the many U.N.
programs which have directly, and indirectly,
assisted in the improvement of economic and social
conditions in underdeveloped areas.
Although the larger part of the assistance which
we have made available to the underdeveloped
countries has been in the form of loans to Latin
America, the Near East, Africa, and Asia, I should
like to point out that in addition to such loans we
appropriated last year alone over 400 million dol-
lars to support widespread programs of grant
assistance to agriculture and inclustry in these
same areas. Within the past few weeks, the Con-
gress authorized the appropriation of an addi-
tional 460 million dollars to continue these
programs during the coming year.
I doubt whether it is necessary to present fur-
ther proof of the sincerity of our interest in the
welfare of the people of the underdeveloped coun-
tries and our determination to help them improve
their standards of living.
Aside from this, the free countries of the world
have had our technical assistance and our political
support. They will continue to have that support.
They will continue to have our aid.
I can assure you, Mr. President, that the eco-
nomic and social development of the less developed
countries is one of the deepest concerns of Ameri-
can foreign policy. And, Mr. President, I am
confident that provision of financial assistance for
this purpose has the basic approval of the Ameri-
can people. We will continue to meet our re-
sponsibilities in this area in the future as we have
in the past.
Subject to the conditions contained in the Gen-
eral Assembly resolution, namely that "the study
and elaboration of the plans . . . cannot and must
not be regarded as in any way committing the
governments ... in any degree, whether finan-
cially or otherwise," the U.S. delegation is pre-
pared to support the resolution submitted by Cuba,
Egypt, Iran, and the Philippines and concurred
in by Burma, Chile, and Yugo.slavia.''
' U.N. doc. E/L. 363/rev. 1. dated .Tune L'O, 19.52.
<j\y 14, 1952
73
U.S. Delegations to
International Conferences
Latin American Forestry Commission (FAO>
The Department of State on June IG announced
that the fourth session of the Latin American
Forestry Commission of the Food and Agfi'icul-
ture Organization of the United Nations (Fag)
will be held at Buenos Aires, Argentina, from
June 16 to June 21, 1952. The U.S. delegation is
as follows:
Delegate
Frank H. Wadsworth. Chief, Forest Management Re-
search, Tropical Forest Experiment Station, US.
Forest Service, Rio Piedras, Puerto Rico
Advisers
C. A. Boonstra, Agricultural Attach^, American Embassy,
Buenos Aires
Edward B. Hamill, Forestry Consultant, Institute of Inter-
American Affairs, Asuncion, Paraguay
The United States, which has been officially rep-
resented at all sessions of the Commission, believes
that a rational development of Latin American
forest resources and an increased output of forest
products, both for domestic consumption and for
export, will contribute very substantially to the
economic strength and stability of the hemisphere.
Since its establishment in 1948 by the Fao Latin
American Conference on Forestry and Forest
Products, the Commission, a subsidiary body con-
sisting of technical delegates of all Latin Amer-
lean countries, has met at regular intervals to
advise Fao's forestry and forest-products work-
ing group. It also works for the adoption by
Latin American governments of all measures
needed to implement the recommendations of the
Conference.
The forthcoming session will be concerned
mainly with the question of establishing a Latin
American Forest Research and Training Insti-
tute; the problem of production, consumption,
and trade of pulp and paper, on which experts of
Fao and of the U.N. Economic Commission for
Latin America have made a preliminary study ; a
review of the work performed under the U.N.
technical assistance program in forestry which
Fag is carrying on in Latin America ; and prepara-
tion for Latin American participation in the
fourth World Foresti-y Congress, to be held in
19.54. and for a Tropical Forestry Congi-ess.
Northwest Atlantic Fisheries
The Department of State on July 1 announced
that the second annual meeting of the Interna-
tional Commission for the Northwest Atlantic
Fisheries opened on June 30 at St. Andrews, New
Brunswick. Canada, and will continue until July
9, 1952. The U.S. delegation is as follows :
U.S. Commissioners
John L. Kask, Chief, OflBce of Foreign Activities, Fish
and Wildlife Service, Department of the Interior
Bernhard K. Knollenberg, Chester, Conn.
Francis W. Sargent, Director, Division of Marine Fish-
eries, Department of Conservation, Commonwealth
of Massachusetts, Boston
Advisers
Herbert W. Graham, Chief, North Atlantic Fishery InvesJ
tigations, Fish and Wildlife Service, Department ofl
the Interior I
Lionel A. Walford. Ph.D., Chief, Branch of Fisherjl
Biology, Fish and Wildlife Service, Department of
the Interior
Observer From the United States Industry Advisobt
Committee
Patrick McHugh, Secretary-Treasurer, Atlantic Fisher-
man's Union (Afl), Brighton, Mass.
Ill accordance with the terms of the Interna-
tional Convention for the Northwest Atlantic
Fisheries, which entered into force in July 1950.
the Commission provides the machinery for in-
ternational cooperation in the scientific investiga-
tion and development of the fishery resources of
the waters off the west coast of Greenland and the
east coasts of Canada and New England. While
the Commission has no direct regulatory powers,
it may recommend to governments the regulatory
measures that it considers necessary for maintain-
ing, at a maximimi level for sustained production,
the stocks of fish which support the international
fisheries in the Convention area. Upon approval^
by the governments directly concerned, regula-'
tions become applicable to all member countries.
The first meeting of the Commission was held at
Washington in April 1951.
This meeting will serve as an opportunity for '
a review of the first year of the Commission's
operations. The Commission will hear committee
reports on research and statistics, finance and ad-
ministration, permanent headquarters site, rati-
fications of the Convention, staff matters, and
certain panel reports. The 195'2-53 budget iiiaj
be revised, in accordance with decisions concern-
ing a permanent headquarters and secretariat
Membership of the panels, established under the
Convention to exercise primary responsibilitj
concerning each of the five subareas into which
the Convention area is divided, will be reviewed
The Commission will elect a new chairman, whc
will serve for one year, and appoint a permanent
Executive Secretary. It is also expected that tht
Commission will formulate policies on the collec-
tion, compilation, and dissemination of statistical
data; on the development of research program!
for the entire Convention area and its five sub-
areas; and on the Commission's working relation-
ship to other international organizations wit!
related objectives.
The United States and Canada are the memben
of the panel for subarea V, covering that portior
of the total area adjacent to the New England
74
DeparfmenI of State Bulletii
coast. The Commission will consider a report
from this panel, which met in February 1952 to
determine whether measures for the regulation of
fisheries in subarea V should be I'econnnended to
the Commission for adoption. The panel is
recommending that the Commission (1) instruct
its Research and Statistics Committee to make a
detailed study of all fish resources falling within
the purview of the Convention; (2) consider a
proposed regulation for haddock fishing, includ-
ing a proposal to increase the average mesh size
of the nets used in fishing for haddock off the New
England coast; and (3) call the attention of inter-
ested governments to a recommended research
program concerning haddock.
Invitations to participate in this meeting have
been extended to Canada, Denmark, Iceland,
Spain, the United Kingdom, and the United
States, which are parties to the Convention; to
France, Italy, Norway, and Portugal, which have
signed but not yet ratified the Convention ; and to
the Food and Agriculture Organization of the
United Nations and the International Council for
the Exploration of the Sea.
President Directs Continued U.S. Defense Support to Italy
(Vhite House press release dated June 24
The President has sent identical letters regard-
ing continuance of U.S. aid to Italy to Kenneth
Mclvellar, Chairman., Committee on Appropria-
tion.^, U.S. Senate; Richard B. Russell, Chairman,
Committee on Armed Services, U.S. Senate; Tom
Gonnally. Chairman, Committee on Foreign Rela-
tions, U.S. Senate; Clarence Cannon, Chairman,
Oamm.ittee on Appropriations, House of Re.pre-
■ientatives; Carl Vinson, Chairman, Committee on
Armed Serrices, House of Representatives ; and
■James P. Richards, Chairman, Com/miftee on
Foreign Affairs, House of Representatives. The
'c.i-t of the Presidents letter follaios, together with
the text of an attached report by W. A . Harnman,
Director for Mutual Security :
LETTER TO CONGRESSIONAL COMMITTEES
I have been advised that a centerless grinding
nacliine was shipped from Italy to Rumania after
:he effective date of the Mutual Defense Assistance
Control Act of 1951 (The Battle Act). This
grinding machine is an item listed by the Admin-
strator, pursuant to Title I of the Battle Act, as
)iu' embargoed in order to effectuate the purposes
)f the Act. Any shipment of any such items
isted automatically results in all military, eco-
lomic and financial assistance to Italy being cut
)ff, unless I determine, in accordance with the
Dowers granted to me by Section 103 (b) of the
'o/y 74, J 952
Act, that "ceasation of aid would clearly be detri-
mental to the security of the United States". The
Administrator of the Act has advised me that aid
to Italy should be continued. He made this
recommendation after consultation with repre-
sentatives of the Departments of State, Treasury,
Defense, Interior, Agriculture, and Commerce;
the Office of Defense Mobilization, the Mutual
Security Agency, the Atomic Energy Commission,
the Central Intelligence Agency, Export-Import
Bank, and the ISational Security Resources
Board.
For your information, I am attaching a report
of the Administrator of the Battle Act to me.
This report sets forth the facts in this case,
together with his recommendation thereon.
After studying the report of the Administrator,
and in accordance with the provisions of Section
103 (b) of the Battle Act, I have directed that
assi.stance by the United States to Italy be con-
tinued. In reaching this determination, I have
taken into account "the contribution of such
country to the mutual security of the free world,
the importance of such assistance to the security
of the United States, the strategic importance of
imports received from countries of the Soviet
bloc, and the adequacy of .such country's controls
over the export to the Soviet bloc of items of
strategic importance".
Very sincerely yours,
Harry S. Trtjman
75
REPORT TO THE PRESIDENT BY THE DIRECTOR
FOR MUTUAL SECURITY
My Dear Mr. President:
Italy, a country receiving military, economic,
and financial assistance within the meaning of the
Battle Act (Mutual Defense Assistance Control
Act of 1951, Public Law 213, 82nd Congress),
knowingly permitted, after the embargo provi-
sions of Title I of the Act became effective (Jan-
uary 24, 1952), the shipment to Kumania of an
item which I included on the list of "those items
of primary strategic significance used in the pro-
duction of arms, ammunition, and implements of
war" under Title I of that Act. I am accordingly
required by Section 103 (b) either to recommend
to you that all military, economic and financial as-
sistance to Italy be terminated, or to render you
advice on the basis of which you may exercise your
authority to determine that "unusual circum-
stances indicate that the cessation of aid (to Italy)
would clearly be detrimental to the security of the
United States."
The shipment involved one grinding machine
valued at $11,000. This particular machine is a
centerless type that may be used in the production
of innumerable non-strategic as well as strategic
items. It might conceivably be used in Rumania
or elsewhere within the Soviet bloc in manufac-
turing operations for the ultimate production of
agricultural and textile machinery, oil field equip-
ment, locomotive jjarts, automotive vehicles, and
ball and roller bearings.
Although this type of machine could unques-
tionably be used in connection with the manufac-
ture of war materials, in the opinion of U.S. tech-
nical experts one machine of this kind will not add
significantly to the overall Soviet war potential.
The original contract between the Italian ex-
porter and the Rumanian purchaser was entered
into nearly one year ago. This was befoi'e pas-
sage of the Battle Act and several months before
the effective date of the embargo provision of the
Act. An export license for the grinder was is-
sued by the Italian Government in November 1951
as a result of an administrative error. Although
the embargo provisions of the Battle Act were not
in effect at that time, this machine was a mutually
agreed embargo item on the list of the multilateral
body concerned with export controls in Europe.
Delivery was scheduled for February, some weeks
after the cut-off date (January 21, 1952) under the
Battle Act, beyond which any country knowingly
pei-mitting shipments of strategic items to the
Soviet bloc risks termination of United States aid.
Immediately upon learning of the proposed
shipment, the United States took steps to persuade
the Italian Government to cancel the order and to
find an alternative market for the machine. Al-
though the Italians claimed that such action would
be extremely difficult since payment for the
grinder had been 75% completed, and because of
serious legal obstacles involved in cancellation,
they nevertheless agreed to a temporary delay in
shipment, pending further discussions. When
the temporary delay of shipment expired in mid-
JNIarch 1952 the United States requested a further
delay to which the Italians agreed and issued a
staying order. Unfortunately, however, the stay-
ing ordei' reached the customs control at the fron-
tier too late to prevent export. In effect tlie
grinder was licensed and shipped as the result of
two administrative shortcomings for which the
Italian Government has expressed its official re-
grets and agreed to guard against in the future.
Although there appeared to be some question us
to whether or not, as a result of these administra-
tive errors, the Italians "knowingly permitted"
the shipment within the meaning of the Battle
Act, I do not feel that the errors involved in this
case, of themselves, constitute a basis for con-
cluding that the provisions of the Act are
inapplicable.
Section 103 (b) of the Act provides that after
receiving my advice and taking into account cer-
tain stated considerations, you may direct the con-
tinuance of assistance when unusual circumstances
indicate that the cessation of aid would clearly
be detrimental to the security of the United States.
I am listing these considerations below, together
with a statement of facts believed pertinent to
each.
A. Contrihvtion of Italy to the Mvtual Security
of the Free World:
Italy, as a partner in the North Atlantic Treaty
Organization, is of great importance to the defense
of Western Europe by reason of its geographical
position and its rearmament program which, in
combination with end-items to be supplied by the
United States, is designed to supply Italy's armed
forces with the weapons and equipment required
to carry out their Nato defense tasks. The pres-
ent Italian Government is strongly anti-Commu-
nist. In its foreign policy it enthusiastically
supports, as a basic principle, action directed
toward the military and economic integration of
Western Europe.
Italy, more than any other Western European
Nato country, possesses industrial capacity which
is under-utilized. This presently limits in some
degree its contribution of defense materiel to the
mutual defense etlort. However with continued
U.S. aid Italy should be able to increase its pro-
duction and to fulfill the substantial jiledges it
has made for building up its defense forces within
the structure of Nato.
B. The Importance to the Security of the United
States of Assistance to Italy:
Since the war, Italy has effectively promoted in-
dustrial and agricultural recovery, has given jobs
to many, and has relieved some of the strain from
the acute problem of surplus population. This
76
Department of State Bulletin
strengthening of the Italian economy has contrib-
uted substantially to the stability of the present
strongly anti-Communist government. This prog-
ress has been materially helped by virtue of U.S.
assistance.
Any setback, through the withdrawal of defense
support, in the progress which has been made
would undoubtedly be reflected in a weakening of
the democratic forces in Italy, with consequent
prejudice to the interests ancl security of the
United States. With a reduction in the already
very low standard of living, and an increase in
unemployment, the appeal of Communist propa-
ganda would be heightened. In addition, of
course, withdrawal of defense support would have
a serious effect on Italian arms production. These
factors, together with discontinuance at this time
of the supplying of military end-items by the
United States would make it impossible forltaly
to fulfill its pledges under the mutual defense
program.
C. Strategic Importance of Imports from the
Soviet Bloc:
Italian imports from the Soviet bloc during 1951
amounted to $80 million; exports to the bloc
amounted to nearly $66 million, or approximately
4% of Italy's total export trade. The principal
imports from the bloc were coal, wheat, and other
agricultural products, and iron and steel. At-
tempts to procure these commodities from other
sources would involve serious problems of supply
and financing. The principal difficulty would
arise from the need to pay dollars.
D. Adequacy of Italian Export Controls:
The Italian Government cooperates with the
United States and other countries of the free
world to prevent or limit drastically export to the
Soviet bloc of items that are considered by these
countries to be strategic. The Italian controls are
based on a system of export licensing similar to
that used by the other cooperating coimtries and
are supplemented by financial control exercised
through tlie Italian Foreign Exchange Office.
These controls have resulted in an important re-
duction of shipments of strategic items to the
Soviet bloc. The Italian Government has ac-
cepted and recently put into effect the principle of
the Import Certificate-Delivery Verification sys-
tem, the purpose of which is to prevent the di-
version or transshipment to the Soviet bloc of
imports from the West. As for the manner in
which this particular export was handled, the
[United States has expressed its concern and urged
Italy to tighten the administration of its controls
m order to preclude further shipments of this
nature.
Italy is an integral, willing and important com-
ponent of the security system designed to assure
effective protection against aggression through
the mutual efforts of the countries of the Free
World. To terminate assistance to Italy would in
my considered judgment seriously jeopardize
Italian participation in our united effort. The
impact of such a development within the Nato
structure at this time represents a risk to the over-
all security that far outweighs the relative im-
portance of the shipment involved.
I accordingly advise that you direct the con-
tinuance of assistance to Italy since "unusual cir-
cumstances indicate that the cessation of aid would
clearly be detrimental to the security of the United
States". I have reached this conclusion after con-
sultation with the Departments of State, Treasury,
Defense, Interior, Agriculture, Commerce, Office
of Defense IMobilization, Mutual Security Agency,
the Export-Import Bank, the Atomic Energy
Commission, and the Central Intelligence Agency.
Respectfully yours,
W. A. Harriman
Director for Mutual Security
Check List of Department of State
Press Releases: June 30-July 3
Releases may be obtained from the Office of the
Special Assistant for Press Relations, Department
of State, Washington 25, D. C.
No. Date Subject
4H8 <i/16 Latin-American Forestry Commis-
sion
Lake Ontario high-water level
Mesta : International questions
St. Lawrence power development
Pacific Council meeting
Extradition convention with
Canada
Philippine highway rehaliilitation
Aekernian : retirement
Lebanon : Point Four program
ICAO regional meeting
Uruguay: military agreement
International Wheat Council
Afghanistan : Point Four funds
Bombing of Korea power plants
Northwest Atlantic Fisheries
Pakistan : Point Four program
Vietnam: Letter of credence (re-
write)
Cambodia ; Letter of credence ( re-
write)
Jernegan : Deputy Assistant Sec-
retary
Canada : Confederation Day
Exchange of Persons
Telecommunications talks
Bruce : Ratification of treaties
Bruce : North Korean bombing
Finland : Exchange agreement
Andrews : Visit to Indonesia and
Burma
Acheson ; Address in Brazil
Philippines anniversary
U.S. Advisory Commission report
Exchange of persons
Exchange of persons
t Held for a later issue of the Bulletin.
*Not printed.
489
6/24
495
6/24
506
6/30
t507
6/30
508
6/30
509
6/30
*510
6/30
511
6/30
t512
6/30
513
C/30
t514
6/30
515
6/30
516
6/30
517
7/1
518
7/1
519
7/1
520
7/1
t521
7/1
*522
7/1
*523
7/2
t524
7/2
525
7/2
526
7/2
527
7/3
528
7/3
529
7/3
*.530
7/3
t531
7/3
*532
7/3
*533
7/3
Jo/y J 4, 1952
77
Immigration and Nationality Act Vetoed
Message of the Preddent to the House of Representatives '
I return herewith, without my approval, H.K.
5678, the proposed Immigration and Nationality
Act.
In outlining my objections to this bill, I want to
make it clear that it contains certain provisions
that meet with my approval. This is a long and
complex piece of legislation. It has 164 separate
sections, some with more than 40 subdivisions.
It presents a difficult problem of weighing the
good against the bad, and arriving at a judgment
on the whole.
H.R. 5678 is an omnibus bill which would revise
and codify all of our laws relating to immigi-ation,
naturalization, and nationality.
A general revision and modernization of these
laws unquestionably is needed and long overdue,
particularly with respect to immigration. But
this bill would not provide us with an immigration
policy adequate for the present world situation.
Indeed, the bill, taking all its provisions together,
would be a step backward and not a step forward.
In view of the crying need for reform in the field
of immigration, I deeply regret that I am unable
to approve H.R. 5678.
In recent years, our immigration policy has be-
come a matter of major national concern. Long
dormant questions about the effect of our immi-
gration laws now assume first rate importance.
What we do in the field of immigration and nat-
uralization is vital to the continued growth and
internal development of the United States — to the
economic and social strength of our country —
which is the core of the defense of the free world.
Our immigration policy is equally, if not more
important to the conduct of our foreign relations
and to our responsibilities of moral leadership in
the struggle for world peace.
In one respect, this bill recognizes the great in-
ternational significance of our immigration and
natui-alization policy, and takes a step to improve
existing laws. All racial bars to naturalization
would be removed, and at least some mininuun im-
migration quota would be afforded to each of the
free nations of Asia.
I have long urged that racial or national bar-
' H. ddc. ."I'jo. transmitted June 2.'>.
riers to naturalization be abolished. This was one
of the recommendations in my civil rights message
to the Congress on February 2, 1948. On Febru-
ary 19, 1951, the House of Representatives unani-
mously passed a bill to carry it out.
But now this most desirable provision comes be-
fore me embedded in a mass of legislation which
would i^erpetuate injustices of long standing
against many other nations of the world, hamper
the efforts we are making to rally the men of East
and West alike to the cause of freedom, and in-
tensify the repressive and inhumane aspects of our
immigration procedures. The price is too high,
and in good conscience I cannot agree to pay it.
I want all our residents of Japanese ancestry,
and all our friends throughout the Far East, to
understand this point clearly. I cannot take the
step I would like to take, and strike down the bars
that prejudice has erected against them, without,
at the same time, establishing new discriminations
against the peoples of Asia and approving harsh
and repressive measures directed at all who seek
a new life within our boundaries. I am sure that
with a little more time and a little more discussion
in this country the public conscience and the good
sense of the American people will assert them-
selves and we shall be in a position to enact an
immigration and naturalization policy that will
be fair to all.
In addition to removing racial bars to natural-
ization, the bill would permit American women
citizens to bring their alien husbands to this
country as non-quota immigrants, and enable alien
husbands of resident women aliens to come in
under the quota in a preferred status. These pro-
visions would be a step toward preserving the
integrity of the family under our immigration
laws, and are clearly desirable.
The bill would also relieve transportation com-
panies of some of the unjustified burdens and pen-
alties now imposed upon them. In particidar, it
would put an end to the archaic requirement that
carriers pay the expenses of aliens detained at the
Editor's Note. — On .Inne 26 tlie House overrode the
President's veto by a vote of 278 to 113. The Immigra-
tion and Nationality Act became Public Law 414 on June
27, after the Senate voted .'57 to 26 to pass the bill again.
78
Depar/menf of State Bulletin
port of entry, even though such aliens have ar-
rived with proper travel documents.
Improvements Outweighed by Defects
But these few improvements are heavily out-
weighed by other provisions of the bill which re-
tain existing defects in our laws, and add many
undesirable new features.
The bill would continue, practically without
change, the national origins quota system, which
was enacted into law in 19'24, and put into effect
in 1929. This quota system — always based upon
assumptions at variance with o)ir American
ideals — is long since out of date and more than
ever unrealistic in the face of present world con-
ditions.
This system hinders us in dealing with current
immigration problems, and is a constant handicap
in the conduct of our foreign relations. As I
stated in my message to Congress on March 24.
1952, on the need for an emei'gency program of
immigration from Europe, "Our present quota
system is not only inadequate to meet pi'esent
emergency needs, it is also an obstacle to the de-
velopment of an enlightened and satisfactory im-
migration policy for the long-run future."
The inadequacy of the present quota system has
been demonstrated since the end of the war, when
we were compelled to resort to emergency legis-
lation to admit displaced persons. If the quota
system remains unchanged, we shall be compelled
to resort to similar emergency legislation again, in
order to admit any substantial portion of the
refugees from communism or the victims of over-
crowding in Europe.
With the idea of quotas in general there is no
quarrel. Some numerical limitation must be set,
so that immigration will be within our capacity to
absorb. But the overall limitation of numbers
imposed by the national origins quota system is
too small for our needs today, and the country
by country limitations create a pattern that is
insulting to large numbers of our finest citizens,
irritating to our allies abroad, and foreign to our
purposes and ideals.
The overall quota limitation, imder the law of
1924, restricted annual immigration to approxi-
mately 150,000. This was about one-seventh of
one percent of our total population in 1920. Tak-
ing into account the growth in population since
1920, the law now allows us but one-tenth of one
percent of our total population. And since the
largest national quotas are only partly used, the
number actually coming in has been in the neigh-
borhood of one-fifteenth of one percent. This is
far less than we must have in the years ahead to
keep up with the growing needs of our Nation
for manpower to maintain the strength and vigor
of our economy.
Tlie greatest vice of the present quota system,
however, is that it discriminates, deliberately and
intentionally, against many of the peoples of the
world. The purpose behind it was to cut down
and virtually eliminate immigration to this coun-
try from Southern and Eastern Europe. A
theory was invented to rationalize this objective.
The theory was that in order to be readily as-
similable, European immigrants should be ad-
mitted in proportion to the numbers of persons
of their respective national stocks already here as
shown by the census of 1920. Since Americans of
English, Irish and (ierman descent were most
numerous, immigrants of those three nationalities
got the lion's share — more tlian two-thirds — of the
total quota. The remaining third was divided up
among all the other nations given quotas.
Effect of 1924 Quotas
The desired effect was obtained. Immigration
from the newer sources of Southern and Eastern
Europe was reduced to a trickle. The quotas
allotted to England and Ireland remained largely
unused, as was intended. Total quota immigra-
tion fell to a half or a third — and sometimes even
less — of the annual limit of 154,000. People from
such countries as Greece, or Spain, or Latvia were
virtually deprived of any opportunity to come
here at all, simply because Greelvs or Spaniards or
Latvians had not come here before 1920 in any
substantial numbers.
The idea behind this discriminatory policy was,
to put it baldly, that Americans with English or
Irish names were better people and better citizens
than Americans with Italian or Greek or Polish
names. It was thought that people of West
European origin made better citizens than Ruma-
nians or Yugoslavs or Ukrainians or Hungarians
or Baits or Austrians. Such a concept is utterly
unworthy of our traditions and our ideals. It
violates the great political doctrine of the Decla-
ration of Independence that "all men are created
equal." It denies the humanitarian creed in-
scribed beneath the Statue of Liberty proclaiming
to all nations, "Give me your tired, your poor,
your huddled masses yearning to breathe free."
It reiDudiates our basic religious concepts, our
belief in the brotherhood of man, and in the words
of St. Paul that "there is neither Jew nor Greek,
there is neither bond nor free, . . . for ye are all
one in Christ Jesus."
The basis of this quota system was false and
unworthy in 1924. It is even worse now. At the
present time, this quota system keeps out the very
people we want to bring in. It is incredible to
me that, in this year of 1952, we should again be
enacting into law such a slur on the patriotism,
the capacity, and tlie decency of a large part of our
citizenry.
Today, we have entered into an alliance, the
North Atlantic Treaty, with Italy, Greece, and
Turkey against one of the most terrible threats
mankind has ever faced. We are asking them to
July 14, J 952
79
join witli us in protecting the peace of the world.
We are helping them to build their defenses, and
train their men, in the common cause. But,
through this bill we say to their people: You are
less worthy to come to this country than English-
men or Irishmen; you Italians, who need to find
homes abroad in the hundreds of thousands — you
shall have a quota of 5,64.5 ; you Greeks, struggling
to assist the helpless victims of a communist civil
war — you shall have a quota of 308; and you
Turks, you are brave defenders of the Eastern
flank, but you shall have a quota of only 225 !
Today, we are "protecting" ourselves, as we
were in 1924, against being flooded by immigrants
from Eastern Eurojie. This is fantastic. The
countries of Eastern Europe have fallen under the
communist yoke — they are silenced, fenced off by
barbed wire and minefields — no one passes their
borders but at the risk of his life. We do not need
to be protected against immigrants from these
countries — on the contrary we want to stretch out
a helping hand, to save those who have managed
to flee into W^estern Europe, to succor those who
are brave enough to escape from barbarism, to
welcome and restore them against the day when
their countries will, as we hope, be free again.
But this we cannot do, as we would like to do, be-
cause the quota for Poland is only 6,500, as against
the 138,000 exiled Poles, all over Europe, who are
asking to come to these shores ; because the quota
for the now subjugated Baltic countries is little
more tlian 700 — against the 23,000 Baltic refugees
imploring us to admit them to a new life here; be-
cause the quota for Rumania is only 289, and some
30,000 Rumanians, who have managed to escape the
labor camps and the mass deportations of their
Soviet masters, have asked our help. These are
only a few examples of the absurdity, the cruelty
of carrying over into this year of 1952 the isola-
tionist limitations of our 1924 law.
In no other realm of our national life are we so
hampered and stultified by the dead hand of the
past, as we are in this field of immigi-ation. We
do not limit our cities to their 1920 boundaries —
we do not hold our corporations to their 1920 capi-
talizations— we welcome progress and change to
meet changing conditions in every sphere of life,
except in the field of immigration.
The time to shake off tliis dead weight of past
mistakes is now. The time to develop a decent
policy of immigration — a fitting instrument for
our foreign policy and a true reflection of the
ideals we stand for, at home and abroad — is now.
In my earlier message on immigration,- I tried to
explain to the Congress that the situation we face
in innnigration is an emergency — that it must be
met promptly. I have pointed out that in the last
few years, we have blazed a new trail in immigra-
tion, through our Displaced Persons Program.
^ For the President's Message of M:ir. 24, .see Bulletin
of .\pr. 7. 1952, p. 551.
Through the combined efforts of the Government
and private agencies, working together not to keep
people out, but to bring qualified people in, we
summoned our resources of good will and human
feeling to meet the task. In this program, we have
found better techniques to meet the immigration
problems of the 1950's.
None of this fruitful experience of the last three
years is reflected in this bill before me. None of
the crying human needs of this time of trouble is
recognized in this bill. But it is not too late. The
Congress can remedy these defects, and it can
adopt legislation to meet the most critical prob-
lems befoi-e adjournment.
The only consequential change in the 1924 quota
system which the bill would make is to extend a
small quota to each of the countries of Asia. But
most of the beneficial effects of this gesture are off-
set by other provisions of the bill. The countries
of Asia are told in one breath that they shall have
quotas for their nationals, and in the next, that the
nationals of the other countries, if their ancestry
is as much as 50 per cent Asian, shall be charged
to these quotas.
"Invidious Discrimination"
It is only with respect to persons of oriental an-
cestry that this invidious cliscrimination applies.
All other persons are charged to the country of
their birth. But persons with Asian ancestry are
charged to the countries of Asia, wherever they
may have been born, or however long their an-
cestors have made their homes outside the land of
their origin. These provisions are without
justification.
I now wish to turn to the other provisions of the
bill, those dealing with the qualifications of aliens
and immigrants for admission, with the adminis-
tration of the laws, and with problems of natural-
ization and nationality. In these provisions too,
I find objections that preclude my signing this
bill.
The bill would make it even more difficult to
enter our country. Our resident aliens would be
more easily separated from homes and families
under grounds of deportation, both new and old,
which would specifically be made retroactive.
Admission to our citizenship would be made more
difHcult; expulsion from our citizensliip would be
made easier. Certain rights of native born, fii'st
generation Americans would be limited. AU
our citizens returning from abroad would be sub-
jected to serious risk of unreasotiable invasions
of privacy. Seldom has a bill exhibited the dis-
trust evidenced here for citizens and aliens
alike — at a time when we need unity at home, and
the confidence of our friends abroad.
We have adequate and fair provisions in our
present law to protect us against the entry of
criminals. The changes made by the bill in those
provisions would result in empowering minor
80
Deparfmenf of State Bulletin
immigration and consular officials to act as pros-
ecutor, judge and jury in determining whether
acts constituting a crime have been committed.
Worse, we would be compelled to exclude certain
people because they liave been convicted by
"courts" in communist countries that know no
justice. Under this provision, no nuitter how con-
strued, it would not be possible for us to admit
many of the men and women who have stood up
against totalitarian repression and have been pun-
ished for doing so. I do not approve of substi-
tuting totalitarian vengence for democratic justice.
I will not extend full faith and credit to the judg-
ments of the communist secret police.
The realities of a world, only partly free,
would again be ignored in the provision flatly
barring entry to those who have made misrepresen-
tations in securing visas. To save their lives and
the lives of loved ones still imprisoned, refugees
from tyranny sometimes misstate various details
of their lives. We do not want to encourage
fraud. But we must recognize that conditions in
some parts of the world drive our friends to des-
parate steps. An exception restricted to cases
involving misstatement of country of birth is
not sulficient. And to make refugees from oppres-
sion forever deportable on such technical grounds
is shabby treatment indeed.
Some of the new grounds of deportation which
the bill would provide are unnecessarily severe.
Defects and mistakes in admission would serve
to deport at any time because of the bill's elimina-
tion, retroactively as well as prospectively, of the
present humane provision barring deportations on
such grounds five yeare after entry. Narcotic drug
addicts would be deportable at any time, whether
on not the addiction was culpable, and whether
or not cured. The threat of deportation would
drive the addict into hiding beyond the reach of
cure, and the danger to the country from drug
addiction would be increased.
Departure from American Tradition
I am asked to approve the reenactment of highly
objectionable provisions now contained in the
Internal Security Act of 1950 — a measure passed
over my veto shortly after the invasion of South
Korea. Some of these provisions would empower
the Attorney General to deport any alien who has
engaged or has had a purpose to engage in activ-
ities "prejudicial to the public interest" or "sub-
versive to the national security." No standards
or definitions are provided to guide discretion
in the exercise of powers so sweeping. To punish
undefined "activities" departs from traditional
American insistence on established standards of
guilt. To pimish an undefined "purpose" is
thought control.
These provisions are worse than the infamous
Alien Act of 1798, passed in a time of national
fear and distrust of foreigners, which gave the
July M, J 952
President power to deport any alien deemed
"dangerous to the peace and safety of the United
States." Alien residents were thoroughly fright-
ened and citizens much disturbed by that threat to
liberty.
Such powers are inconsistent with our demo-
cratic ideals. Conferring powers like that upon
the Attorney General is unfair to him as well as
to our alien residents. Once fully informed of such
vast discretionary powers vested in the Attorney
General, Americans now would and should be
just as alarmed as Americans were in 1798 over
less drastic powers vested in the President.
Heretofore, for the most part, deportation and
exclusion have rested upon findings of fact made
upon evidence. Under this bill, they would rest in
many instances upon the "opinion" or "satisfac-
tion" of immigration or consular employees. The
change from objective findings to subjective feel-
ings is not compatible with our system of justice.
The result would be to restrict or eliminate judi-
cial review of unlawful administrative action.
The bill would sharply restrict the present op-
portunity of citizens and alien residents to save
family members from deportation. Under the
procedures of present law, the Attorney General
can exercise his discretion to suspend deportation
in meritorious cases. In each such case, at the
present time, the exercise of administrative dis-
cretion is subject to the scrutiny and approval of
the Congi'ess. Nevertheless, the bill would prevent
this discretion fi'om being used in many cases
where it is now available, and would narrow the
circle of those who can obtain relief from the letter
of the law. This is most unfortunate, because the
bill, in its other provisions, would impose hareher
restrictions and greatly increase the number of
cases deserving equitable relief.
Native-born American citizens who are dual
nationals would be subjected to loss of citizenship
on grounds not applicable to other native-born
American citizens. This distinction is a slap at
millions of Americans whose fathers were of alien
birth.
Children would be subjected to additional risk
of loss of citizenship. Naturalized citizens would
be subjected to the risk of denaturalization by any
procedure that can be found to be permitted under
any State law or practice pertaining to minor
civil law suits. Judicial review of administrative
denials of citizenship would be severely limited
and impeded in many cases, and completely elimi-
nated in others. I believe these provisions raise
serious constitutional questions. Constitutional-
ity aside, I see no justification in national policy
for their adoption.
Section 401 of this bill would establish a Joint
Congi-essional Committee on Immigration and
Nationality Policy. This committee would have
the customary powere to hold hearings and to sub-
poena witnesses, books, papers and documents.
But the Committee would also be given powers over
81
the Execiidve branch which are unusual and of a
highly questionable nature. Specifically, section
401 woul.l provide that "The Secretary of Stat«
and the Attorney General shall without delay sub-
mit to the ronin'littee all regulations, instructions,
and all other information as requested by the
Committee relative to the administration of this
Act."
Tliis section appears to be another attempt to re-
quire the Executive branch to make available to
the Congress administrative documents, communi-
cations between the President and his subordinates,
confidential files, and other records of that charac-
ter. It also seems to imply that the Committee
would undertake to supervise or approve regula-
tions. Such proposals are not consistent with the
Constitutional doctrine of the separation of
powers.
In these and many other respects, the bill raises
basic questions as to'our fundamental immigi-ation
and naturalization policy, and the laws and prac-
tices for putting that policy into effect.
Many of the aspects of the bill which have been
most widely criticized in the ]niblic debate are
reaffirmations or elaborations of existing statutes
or administrative procedures. Time and again,
examination discloses that the revisions of exist-
ing law that would be made by the bill are in-
tended to solidify some restrictive practice of our
immigi-ation authorities, or to overrule or modify
some ameliorative decision of the Supreme Court
or other Federal courts. By and large, the
changes that would be made by the bill do not
depart from the basically restrictive spirit of
our existing laws — but intensify and reinforce it.
Need for Reassessment
These conclusions point to an underlying con-
dition which deserves the most careful study.
Should we not undertake a reassessment of our
immigration policies and practices in the liglit of
the conditioiis that face us in the second half of
the twentieth century? The great popular in-
terest which this bill has created, and the criti-
cisms which it has stirred up, demand an affirma-
tive answer. I hope tlie Congress will agree to
a careful reexamination of this entire matter.
To assist in this complex task, I suggest the
creation of a representative commission of out-
standing Americans to examine the basic assump-
tions of our immigration policy, the quota system
and all that goes witli it, the effect of our present
immigration and nationality laws, their admin-
istration, and the ways in which they can be
brought into line with our national ideals and
our foreign policy.
Such a commission should, I believe, be estab-
lished by the Congress. Its memliershiji should
be bi-partisan and divided eqtuilly among persons
from private life and persons from pul)lic life.
I suggest that four members be appointed by the
Piesident, four by the President of the Senate,
and four by the Speaker of the House of Repre-
sentatives. The commission should be given suffi-
cient funds to employ a staff and it should have
adequate powers to hold hearings, take testimony,
and obtain information. It should make a re-
port to the President and to the Congress within-
a year from the time of its creation.
Pending the completion of studies by such a
commission, and the consideration of its recom-
mendations by the Congress, there are certain
steps which I lielieve it is most important for the
Congress to take this year.
First, I urge the Congress to enact legislation
removing racial barriers against Asians from our
laws. Failure to take tliis step profits us nothing
and can only have serious consequences for our
relations with the peoples of the Far East. A
major contribution to this end would be the
prompt enactment by the Senate of H. R. 403.
That bill, already passed by the House of Repre-
sentatives, would remove the racial bars to the
naturalization of Asians.
Second, I strongly urge the Congress to enact
tlie temporary, emergency immigi-ation legisla-
tion which I recommended three months ago. In
my message of March 24, 1952, 1 advised the Con-
gress that one of the gi'avest problems arising
from the present world crisis is created by the
over])opulation in parts of Western Europe. That
condition is aggravated by the flight and expul-
sion of people from behind the iron curtain. In
view of these serious ]irob]ems. I asked the Con-
gress to authorize the admission of 300,000 addi-
tional immigrants to the United States over a
three-year period. These immigi'ants would in-
clude Greek nationals, Dutch nationals, Italians
from Italy and Trieste, Germans and persons of
German ethnic origin, and religious and political
refugees from communism in Eastern Europe.
Tliis temporary program is urgently needed. It
is very important that the Congress act upon it
this year. I urge the Congress to give prompt
and favorable consideration to the bills introduced
by Senator Hendrickson and Representative
Celler (S. 3109 and H. R. 7376),^ which will im-
{)]ement the recommendations contained in my
message of March 24.
I very much hope that the Congress will take
early action on these recommendations. Legisla-
tion to carry them out will correct some of the un-
just provisions of our laws, will strengthen us at
home and abroad, and will serve to relieve a great
deal of the suffering and tension existing in the
world today.
Harry S. Truman
The Whii-e House,
June 25, 1052.
' For testimony by Under Secretary Bruce on H.R.
7376 before the Subcommittee on Immisration of the
House Judiciary Committee, see ihid., June 9, 1952, p. 920.
82
Department of State Bulletin
Determination of Quotas Under
Immigration and Nationality Act
A PROCLAMATION'
Whereas under the provisious of section 201 (b) of the
Immigi-ation and Nationality Act, the Secretary of State,
the Secretary of Comuieree. and tlie Attorney General,
jointly, are required to determine the annual tjuota of any
quota area established pursuant to the provisions of sec-
tion 202 of the said Act, and to report to the President
the quota of each quota area so determined ; and
Whereas the Acting Secretary of State, the Acting
Secretary of Commerce, and the Attorney General have
reported to the President that in accordance with the duty
imposed and the authority conferred upon them by section
201 (b) of the Immigration and Nationality Act, they
jointly have made the determination provided for and
computed under the provisions of section 201 (a) of the
said Act; and have fixed, in accordance therewith, immi-
gration quotas as hereinafter set forth :
Now, THEREFORE, I, HARRY S. TRUMAN, President of
the United States of America, acting under and by virtue
of the authority vested in me by the aforesaid Act of
Congress, do hereby proclaim and make known that the
annual quota of each quota area hereinafter enumerated
has been determined in accordance with the law to be,
and shall be, as follows :
Area
No. Quota area Quota
1 Afghanistan 100
2 Albania 100
3 Andorra 100
4 Arabian Peninsula 100
5 Asia-Pacific triangle 100
6 Australia 100
7 Austria 1,405
8 Belgium 1,297
9 Bhutan 100
10 Bulgaria 100
11 Burma 100
12 Cambodia 100
13 Cameroons (trust territory. United Kingdom) _ 100
14 Cameroons (trust territory, France) 100
15 Ceylon 100
16 China 100
17 Chinese 105
18 Czechoslovakia 2,8.59
19 Danzig, Free City of 100
20 Denmark 1, 175
21 Egypt 100
22 Estonia 115
23 Ethiopia 100
24 Finland 566
25 France 3,069
26 Germany 25,814
27 Great Britain and Northern Ireland 65, 361
28 Greece 308
29 Hungary 865
30 Iceland 100
31 India 100
32 Indonesia 100
33 Iran (Persia) 100
34 Iraq 100
35 Ireland (Eire) 17,756
36 Israel 100
37 Italy 5,645
38 Japan 185
39 Jordan 100
40 Korea 100
41 Laos 100
42 Latvia 235
43 Lebanon 100
44 Liberia 100
Area
No. Quota area ' Quota
45 Libya 100
46 Liechtenstein 100
47 Lithuania 384
48 Luxembourg 100
49 Monaco 100
50 Morocco 100
51 Muscat (Oman) 100
52 Nauru (trust territory, Australia) 100
53 Nepal 100
54 Netherlands 3,136
55 New Guinea (trust territory, Australia) 100
56 New Zealand 100
57 Norway 2,364
58 Pacific Islands (.trust territory, United States
administered) 100
59 Pakistan 100
60 Palestine (Arab Palestine) 100
61 Philippines 100
62 Poland 6,488
63 Portugal 438
64 Ruanda- Urundi (trust territory, Belgium) 100
65 Rumania 289
66 Samoa, Western (tiust territory. New Zea-
land) r 1 00
67 San Marino 100
68 Saudi Arabia 100
69 Somaliland (trust territory, Italy) 100
70 South- West Africa (mandate) 100
71 Spain 2.50
72 Sweden 3,295
73 Switzerland 1,698
74 Syria 100
75 Tanganyika (trust territory. United King-
dom) "_ 100
76 Thailand (Siam) 100
77 Togo (trust territory, France) 100
78 Togoland (trust territory, United Kingdom)-. 100
79 Trieste, Free Territory of 100
80 Turkey . 225
81 Union of South Africa 100
82 U. S. S. R 2,697
83 Vietnam 100
84 Yemen 100
85 Yugoslavia 933
The provision of an immigration quota for any quota
area is designed solely for the purposes of the Immigra-
tion and Nationality Act and shall not constitute recog-
nition by the United States of the political transfer of
territory from one country to another, or recognition of
a government not recognized by the United States.
The following proclamations regarding immigration
quotas are hereby revoked : Proclamation 2283 of April
28, 1938 : Proclamation 2003 of February 8, 1944 ; Procla-
mation 2666 of September 28, 1945; Proclamation 2696
of July 4, 1946 : Proclamation 2846 of July 27, 1949 ; and
Proclamation 2911 of October 31, 1950.
In witness whereof, I have hereunto set my hand
and caused the seal of the United States of America to
be affixed.
Done at the City of Washington this thirtieth day of
June, in the year of our Lord nineteen hun-
[SEAi,] dred and fifty-two, and of the Independence
of the United States of America the one
hundred and seventy-sixth.
'No. 2980 (17 Fed. Reg. 6019).
Jo/y J 4, J 952
By the President :
David Bruce
Acting Secretary of State
Harrt S. Truman
83
July 14, 1952
Ind
ex
Vol. XXVII, No. 681
American Republics
BRAZIL: A review of U.S. -Brazilian relations
(Achesou) 47
DOMINICAN REPUBLIC: Relations with U.S.
reflect trend toward International coopera-
tion 51
URUGUAY: Military assistance agreement with
U.S 53
Asia
AFGHANISTAN, LEBANON, PAKISTAN: Point
Four programs 62
BURMA. INDONESIA; Mr. Andrews to visit . . 61
KOREA: Bombing of power plants in North
Korea (Acheson) 60
PHILIPPINES: U.S. -Philippine cooperation re-
builds highway system 60
Canada
Preliminary steps taken toward construction of
St. Lawrence seaway 65
Supplementary extradition convention with
U.S 67
U.S., Canada refer Lake Ontario complaints to
Joint Commission 67
Congress
CORRESPONDENCE: Letters re materials policy
(Truman) 54
MESSAGES TO CONGRESS: Immigration and
nationality act vetoed 78
Senate ratifies German treaty and Nato
protocol 67
Europe
FINLAND: Educational exchange agreement
signed 53
GERMANY: Senate ratifies German treaty and
NATO protocol 67
ITALY: Continuation of defense support
directed, text of President's letter and
Harriman report 75
U.S.S.R. : U.S. presents evidence of forced labor
(Kotschnlg statement) 70
Voluntary union (Mesta) 64
Fisheries
Northwest Atlantic Fisheries, U.S. delegation . 74
International Information
Educational exchange agreement with Finland . 53
International Meetings
Report on Hydrographic Conference 68
U.S. DELEGATIONS:
Latin American Forestry Commission, Fao,
4th session 74
Northwest Atlantic Fisheries 74
Labor
U.S. presents evidence of forced labor in U.S.S.R.
(Kotschnlg statement) 70
Mutual Aid and Defense
ITALY: Continuation of defense support
directed, text of President's letter and
Harriman report 75
North Atlantic Treaty Organization
Senate ratifies German treaty and Nato
protocol 67
Presidential Documents
CORRESPONDENCE: Continuation of defense
support to Italy directed, text of letter and
Harriman report 75
Excerpts from International Materials Policy
Commission report, letters to congressional
leaders 54
MESSAGES TO CONGRESS: Immigration and
nationality act vetoed 78
PROCLAMATIONS: Determination of quotas
under immigration, nationality act ... 83
Protection of U.S. Nationals and Property
U.S., Canada refer Lake Ontario complaints to
Joint Commission 67
Strategic Materials
A materials policy for the U.S.; statement, letters
(Truman), excerpts from report 54
Technical Cooperation and Development
POINT FOUR: Programs for Afghanistan, Leb-
anon, and Pakistan 62
Treaty Information
FINLAND: Educational exchange agreement
signed 53
GERMANY: Senate ratifies German treaty and
Nato protocol 67
XXRUGUAY: Military assistance agreement
signed 53
United Nations
Bombing of power plants in North Korea
(Acheson) 60
Fao: Latin American Forestry Commission, 4th
session, U.S. delegation 74
U.S. position on proposed international develop-
ment fund (Lubin) 73
U.S. presents evidence of forced labor in
U.S.S.R 70
Name Index
Acheson, Secretary 47, 60
Ackerman, Ralph H 51
Andrews, Stanley 61
Bruce, David K. E 60, 65, 67
Cabot, John M 53
Harriman, W. Averell 75
Hubbard, Leonard S 68
Kask, John L 74
Kha, Tran Van 53
Kimny, Nong 53
KnoUenberg. Bernhard K 74
Lubin, Isador 73
Mesta, Perle 64
Sargent, Francis W 74
Tuomioja, Sakaria 53
Truman, President 54, 75, 78, 83
Wadsworth, Frank H 74
Wrong, Hume 65
U S GOVERNMENT PRINTING OFFICE: 1982
^€/ u)efta/}^tme7ii/ ^ bnaier
Vol. XXVII, No. 682
July 21, 1952
^eNT o^
-^tes o*
SECRETARY ACHESON'S VISIT TO BRAZIL ... 87
U.S. PARTICIPATION IN THE UNITED NATIONS:
President's Message to the Congress 121
U.S. PROBLEMS AND ACCOMPLISHMENTS IN THE
FAR EAST • by John M. Allison 97
PLANNING FOR THE RELIEF OF FAMINE EMER-
GENCIES • Statement by Isador Lubin ...... Ill
UNITED EFFORTS SPEED MIGRATION FROM
EUROPE • Article byjGeorge L. Warren 107
For index see back cover
. ^jMcNTS
riuu Zii 1952
i^Ae ^efict/ylment ^£ t/tate JLy LI V J. \J L 1 JL 1
Vol. XXVII, No. 682 • Publication 4664
July 21, 1952
For sale by the Superintendent of Documents
U.S. Oovernment Printing Office
Washington 25, D.O.
Peice:
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Single copy, 20 cents
The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1962).
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
OK 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
deiwlopments in the field of foreign
relations and on the work of the De-
partment of State and the Foreign
Service. The BULLETIN includes
selected press releases on foreign pol-
icy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as tcell as
special articles on various phases of
interruitional affairs and the func-
tions of the Department. Infornui-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.
Publications of the Department, as
well as legislative material in the field
of interruitional relations, are listed
currently.
Fundamentals of Inter- American Cooperation
SECRETARY ACHESON'S VISIT TO BRAZIL
Secretary Acheson arrived at Recife, Brazil, on
July 2, after visits to London, Berlin, and Vienna.
The following evening he spoke at a banquet given
at Rio de Janeiro hi/ Foreign Minister Joao Neves
da Fontoura (see BULLETIN of July H, 1952, p.
i7) . On July 4 he addressed the Brazilian Senate
and the Chamber of Deputies; on July 7, the last
day of his visit, he spoke ait a banquet at Sao
Paulo, inhere his host was Governor Lucas Garces
of the State of Sao Paido.
Folloioing are the text of his address to the
Seiwte, excerpts from his remarks before the
Chamber of Deputies, and the text of his Sdo
Paulo address.
A FRIENDSHIP DEEPER THAN
SUPERFICIAL DIFFERENCES
Press release 535 dated July 4
Mr. President:'^
I am deeply moved at the reception you have
accorded me here today. The generous words
which have been addressed to me by Your Ex-
cellency and by several members of the Senate are
typical of the cordiality which has been extended
throughout this beautiful capital of Brazil ever
since my arrival here. On all sides I have sensed
a warmth and sincerity which has made me feel
truly that I am among friends. It is needless to
say that I reciprocate this feeling of friendship
toward the people of this great and beautiful land.
It is particularly satisfying to me to recognize
that the cordial hospitality that is being extended
to me comes from the heart of the Brazilian peo-
ple. Friendship between Brazil and my country
rests upon a firm basis of popular feeling. It is
with particular pleasure, therefore, that I take
this opportunity to meet in the Brazilian Senate
with the representatives of the Brazilian people.
I should like to think that through you I may
speak to all the people of this great nation.
' .Joao Cafe Filho, Vice President of Brazil.
To be sure there are many differences between
us — of language and of customs. These differ-
ences, however, merely add flavor and interest to
a friendship that is deeper than superficial dif-
ferences.
What binds our two people together are factors
which are fundamental to both our countries. "We
are both American in the true sense of the word
and cannot fail to express the optimistic and hope-
ful spirit of the New World. We share a belief
in the importance of the common man and in his
great destiny. When we speak of the "people,"
we do not have in mind that impersonal mass
which characterizes Communist and other totali-
tarian concepts of humanity, but a number of in-
dividuals, each endowed with a divine spark and
each worthy of dignity and respect.
It is inevitable, therefore, that in all our under-
takings, both national and international, we start
with the needs and aspirations of the people.
They constitute the basic objective toward which
we strive. Throughout the whole world the word
"America" has stood for the effective realization
of humanity's aspirations for a better life, meas-
ured in both material and spiritual terms.
It follows also from our basic concept of the
dignity of the individual, that respect must be
accorded not only to the majority, but also to the
minority, provided the minority is willing to live
loyally within the general framework of the law.
A legislative body exists so that the views of the
representatives of all the people may be expressed.
It is bound to encounter differences of opinion.
It is a natural human tendency for each of us to
want to do things our own way. But we soon find
that, to get things done at all, we must often com-
promise those opinions in order to accommodate
the interests and desires of others whose coopera-
tion is essential to us, but whose opinions differ.
In our civilization we have learned that differ-
ences based upon local or occupational interests, or
reflecting varied political and philosophical be-
liefs, can be reconciled in an orderly and constnic-
Ju/y 27, 7952
«7
tive fashion, provided all will accept a loyalty to
the higher ideals of our civilization. The recon-
ciliation and accommodation of different views
and interests is another great function of a legis-
lative body.
The fact that we are meeting here today in this
historic hall of the Brazilian Senate symbolizes,
therefore, much of what our two countries are
striving for at home and throughout the world.
Here we find concrete expression of the two great
factors wliich dominate our approach toward the
solution of human problems — the representation
of the interests of the people and the reconcilia-
tion of differing views through debate, reason, and
constructive compromise. These two factors are
the basis of a way of life which the people of
Brazil and of the United States, in company with
those of many other free countries of the world,
are trying to strengthen and to make prosper in
the world.
It is inevitable that these two principles, and the
way of life they represent, should vitally influence
our international relations. They lead us to only
one possible purpose — the maintenance of a peace-
ful order in which each nation may live out its
own destiny free from alien control.
OAS Contribution to Peaceful Solutions
The historic cooperation between Brazil and the
United States throughout more than a century of
peaceful commerce and joint cooperation symbol-
izes this spirit. On a broader scale, we find, for
example, in the Organization of American States,
to which Bi'azil has contributed such great talent
and leadership, a larger projection of these same
ideas. We start in our Organization of American
States with a principle of respect for the individ-
ual, recognizing as basic to our relationship the
sovereign equality of all member states. We ac-
cord to each of them the respect of not interven-
ing in their internal affairs. And when we have
differences of opinion, as is inevitably the case in
any group of individuals or nations, we resolve
them peacefully through debate in the organs of
the Organization of American States, and work
out settlements which give due accord to the just
interests and aspirations of all.
The fact that this is jiossible in our inter- Amer-
ican relations is, no less than on the national scene,
due to the fact that throughout our community of
American States we have reached certain convic-
tions of principle regarding the conduct of our
relations. These principles are set forth in the
Cliarter of the Organization and reflect the same
two basic tenets ; namely, response to the needs of
people and peaceful reconciliation of differences,
to which I have referred.
The Organization of American States forms an
inspiring example of how these principles may be
made to work for the preservation of peace and
for the cooperation among nations even when they
differ in size, race, language, and economic and
military strength. It provides in the American
region a joattern of relations, which in the broader
world scene we are striving to achieve through the
United Nations.
Europe Finding New Unity
Now, I have just come to this beautiful land
from Europe, where new and powerful efforts are
being made to strengthen and advance these same
principles in national and international relations.
Faced with the threat of aggression. Western
Europe is finding a new unity which heretofore
had existed only in dreams of its more enlightened
statesmen and philosophers.
The Schuman Plan for the unification of the
coal and steel industries is a striking example of
progress toward the gradual merger of rival eco-
nomic interests. Military jealousies are being
submerged in the creation of a unified army which,
by its very nature, can have only a defensive pur-
pose. Further steps in direct political association
among the peoples of Europe are soon to be dis-
cusseclin a meeting of ministers which is even now
in course of preparation.
Why do we find these constructive developments
taking place in our Western civilization ? Clearly
it is because today our civilization faces the stark
necessity of strengthening itself or of perishing.
The totalitarian principles which motivate Soviet
communism in its creeping domination of neigh-
boring states strike at all that we believe in — all
that is symbolized in this meeting of the people's
representatives here today.
In the Communist practice there is no respect
for the voice of the people. Wliile we have
learned to settle our international disputes peace-
fully and to live in mutual respect within our
Organization of American States, the others have
pursued the ancient course of conquest among
their neighboring lands.
Grave though the menace is at this time to those
of us who still enjoy our liberties and our oppor-
tunities for the future, it may be that this evil is
not without some beneficial result. Faced with
the awful alternative, we realize more assuredly
now the advantages with which we have been
blessed. We understand more clearly the need
for strengthening the principles which, through
centuries of history, we have learned to be all im-
portant in the achievement of our peaceful ends.
We perceive more readily that those nations which
share this concept of peace must stand together
firmly if that peace is to be preserved.
And so I return to this happy occasion on which
I am honored in the national Senate by repre-
sentatives of the people of Brazil. It is fortunate
that we are able to meet thus. For what your
country, and my country, and the many others
associated with us are striving to defend in our
88
Department of State Bulletin
Collective Responsibility for
Hemisphere Security
Excerpts from Secretary Achesori's Re-
marks Before the Brazilian Cliamher of
Deputies on July Jp
Today, we no longer have a unilateral concept of
hemisphere security but rather we are engaged in
an equal partnership symbolized by the treaty which
bears the name of this beautiful city and which was
signed by all 21 American Republics here in 1947.
The essence of the inter-American system is col-
lective responsibility plus absolute nonintervention
in the affairs of other states. The United States
intends to abide by both the letter and the spirit of
these inter-American commitments.
The essence of the democratic process is the re-
spect that the people of a country have for their
institutions. In the last 10 years witli the tre-
mendous change which has occurred in the national
position of the United States, we have had to devise
new institutions and strengthen our existing ones
to measure up to our responsibilities. Agencies of
our Government, such as the National Security
Council and Mutual Security Agency, are examples
of this liind of institutional progress. Our Con-
gress, likewise, has had to adapt many of its pro-
cedures to meet the crushing burden of worlj which
today falls upon our legislators. In botli the exec-
utive and legislative branches of our Government,
the adaptation of our procedures to the demands of
modern life has often been irksome and difficult.
However, it is proof of the stability of our demo-
cratic institutions that we have met the challenge.
It is interesting that in our international affairs
democracies such as ours can also adjust their in-
stitutional relationships to meet new demands. The
joint Brazil-United States committee for economic
development is to my mind an interesting and his-
toric experiment in international cooperation. Your
Congress and ours have done much to bring into
practical reality the work and plans of this com-
mittee. I sliall continue to follow with deep in-
terest your deliberations here as you put into effect
further measures to effectuate the purposes of our
economic cooperation.
gigantic effort throughout the world today is the
right of people, through their chosen representa-
tives, to determine their own system of govern-
ment and to achieve their aspirations. We are
striving to defend the dignity of each member of
society and respect for all opinions which respect
the law. Our struggle is to demonstrate the
truth that, by honest and sincere reconciliation
of differing opinions — and not by promoting
strife, can we best maintain peace and achieve
the true advancement of human life which we all
seek.
In this effort the people of Brazil and the
United States are inevitably joined. May their
long record of friendly cooperation be crowned
with greater achievement. May they grow in
under,standing and appreciation of each other
through their artists, writers and musicians, their
scholars and statesmen.
And finally, may their friendship serve to
strengthen throughout America and in other con-
tinents the efforts of nations to preserve their
freedom and to secure their opportunity of creat-
ing a better world.
GROWING STRENGTH OF THE FREE WORLD
Press release 5o7 dated July 7
In the few hours since my arrival in Sao Paulo
I have had the pleasure of catching hurried but
tantalizing glimpses of your beautiful and im-
pressive city.
I had heard that Sao Paulo has grown faster
than any city in the hemisphere; that it is the
center of the most rapidly expanding industrial
area in South America. Now I have seen the
reality. My imagination has been aroused by the
dynamic spirit of the citizens of this progressive
city and state.
As I have gone in the last 2 weeks from Wash-
ington to London, to Berlin, to Vienna, on to
Recife, Rio, and now to your beautiful city, there
have been vivid contrasts and important and
marked similarities in the peoples I have seen on
their streets. I started in my own country, whose
roots go back to the Old World. Now coming to
this country, new as it is to me is like coining home.
I come back to a land which also has its origin in
the Old World. It is apparent that Paulistas,
like citizens of the United States, have had fathers
and grandfathers from many countries of Europe.
Each city I visited presented clearly its own
brand of courage, determination, and ways of
meeting the future and the dangers we face to-
gether. In Europe it was the stern determination
and courage to maintain the defense against mani-
fest and close dangers, and the new vision of co-
operation among the free countries there. Here
in Sao Paulo, I feel the surging energy of a new
country, which, like my own, has confidence in its
ability to provide for the future, to provide a great
flow of material goods and the great inspiration
of firm belief in freedom and the dignity of man.
I deeply appreciate the courte.sy of the kind in-
vitation extended to me by your distinguished
Foreign Minister and the warmth of your Ex-
cellency's welcome. Mrs. Acheson and I have al-
most been overwhelmed by the many courtesies
shown us in Recife, Rio de Janeiro, and Sao Paulo.
Calling my brief period among you a courtesy
visit, as the press has frequently done, is an in-
adequate discription. I have come to Brazil with
a much more serious purpose than just to accept
your gracious hospitality, which I deeply appre-
ciate. I am here because I wanted to see Brazil
with my own eyes. I wanted to know firsthand
what it is in your groat country which has des-
tined it to play an exceedingly important role in
the history of our times.
Development such as is occurring here is not
an accident. It is the result of effort, of intelli-
Jo/y 27, 7952
89
gently directed will. All worth-while achieve-
ments mean overcoming obstacles.
What has impressed me most is to realize more
fully than ever before that Brazil, like my own
country, has come of age among the great nations
of the world.
We in the United States know full well what
coming of age means to a country, for it has oc-
curred during the lifetime of my generation. In
the world of yesterday, the world of my youth,
we in the United States were almost exclusively
absorbed in our own domestic problems. We had
many ties with the countries from which our an-
cestors had come. But we were only mildly in-
terested in the ebb and flow of events in those dis-
tant lands. This was because we felt ourselves
secure, protected by two broad oceans. Behind
those great bari-iers we devoted ourselves with in-
dustry to developing the riches that nature has
so generously bestowed upon us.
Shock of World Wars, Depression
That happy feeling of self-sufficiency was
rudely shaken by the outbreak of World War I.
At first we considered it no concern of ours. But
gradually, as the bitterness of the struggle deep-
ened, we realized that something more funda-
mental than dynasties and frontiers was at stake.
Both Brazil and the United States were drawn
into the conflict.
We had not, however, come of age, and when
victory came we withdrew into our own life again,
feeling that we had helped restore conditions
which would permit us to live as we had before.
Tliat illusion did not last long. It was with some-
thing like amazement that my fellow countrymen
woke up to the fact that the failure of a great
bank in Austria in the heart of Europe could set
in motion repercussions which gravely aff'ected all
the world. The great depression respected no
'frontiers. Still we, like most other countries,
souglit purely national solutions to the problems
with which we were faced. We had not yet come
of age.
In ID-'^O there was another tremendous shock.
World War II. No one in my country viewed it
as remotely as at first we had regarded the catas-
trophe of 1914.
Nevertheless, it seemed remote; and we clung
to the illusion that it might, with luck, remain
localized. This was not to be. Again the New
World, with Brazil and the United States in the
\-an, was called upon to play a saving role in the
history of our times.
When victory was finally won at great cost to
all, the democratic world was determined that such
a catastrophe should not occur again. To pre-
vent such a tragedy, the United Nations was cre-
ated, and we and our Allies rapidly demobilized
our great armies, navies, and air forces. We
tliought the world had learned its lesson and that
we could devote the resources which had gone into
armaments to more constructive purposes, pur-
poses near our hearts.
I said that we and our Allies disbanded our
armies. That, unfortunately, was not entirely
true. One great country remained fully mobi-
lized and used the threat of its might to bend one
of its neighbors after another to its will. It pro-
claimed to the world a philosophy of government
which we found repugnant. Nevertheless, we did
not challenge its right to do what it chose witlun
its own frontiers. We were willing to follow a
policy of live and let live.
Free Countries Must Mobilize
It soon became apparent that even this imper-
fect adjustment was impossible and that the free
countries must mobilize their strength.
With that realization we started upon a pro-
gram of strengthening ourselves and other free
nations of the world, in order that, acting together,
we could safeguard our liberties and our civiliza-
tion. Only through the creation of collective
strength could we hope to preserve the peace and
safeguard our liberties and our civilization.
The building of the strength of the free world
is progressing. In my visit to Brazil I have seen
a great country which in the crisis of our century
has joined its strength with that of those who hold
liberty and freedom to be dear.
I am impressed by the elements of strength I
have seen here in Sao Paulo. Your fine buildings,
your forest of factory chimneys, the manhood in
your armed forces are impressive.
But, still more important is the will, the deter-
mination, I find in Brazil to preserve liberty and
freedom as the principal aim in life. Do not
think that I minimize the importance of material
achievement. What you, and we, and our many
partners of the free world have created in fac-
tories, and farms, and mines provides the sinews
of our strength. If we lacked that strength, firm
resolution alone would not avail us.
The leaders of the democratic world have as one
of their first duties the improvement of the living
standards of their peoples. Life must not only be
made tolerable for the common man but it must
be progressively improved. His faith that his
leaders have this as their aim of government is
what gives democracy its vitality. His belief in
democracy is based on the knowledge that only
through such a system of government will a better
life become possible for him and his children.
The achievement of that better life is one of the
bases for our technical cooperation program, com-
monly called Point Four. Cooperation is and
must be the watchword of our democratic world
if it is to survive.
My coming here has given me the opportunity
to see how cooperation between our two countries
is working and how it can be improved. The
90
Department of Stale Bulletin
areas in which we work together to our mutual
benefit, and to the benefit of the world, must con-
tinue to expand.
There are those who are determined to prevent
the democratic world from uniting in cooperative
undertakings for its own security and develop-
ment. A strong and united free woi'ld is a barrier
to their ambition to dominate larger and larger
areas. Where they cannot hope to dominate, they
work steadily to weaken. In the New World their
principal weapon is to sow seeds of discord and
distrust in our inter- American family. They ac-
cuse my country falsely of what they secretly seek
for themselves, domination of others. Specifi-
cally, they do their best to convince you that you
cannot ti'ust the United States. They are equally
strident in their efforts to convince other countries
not to trust you.
We should be simple-minded indeed if we per-
mitted this unremitting campaign of slander and
calumny to achieve its nefarious purpose. We
must not let malicious enemies poison our minds
against one another.
The purposes of your country and mine are
clear. We want peace with fi-eedom and justice.
We do not threaten anyone. We build situations
of strength because we must. We do this because
only strength will permit us the blessings of peace.
Ladies and gentlemen, last week, when I had
breakfast in Africa and lunch in Recife, the small-
ness of today's world was brought home to me.
The contraction of our world must be followed by
a shrinking in all those things that used to sep-
arate us in mind and in spirit. We are more nec-
essary to one another now than ever.
It is in a sense symbolic that the last day of my
visit is spent in Sao Paulo. People from many di-
verse lands have shared in the progress of this
dynamic city and state. I share with you the trust
in your limitless future which you have inspired
in me.
Puerto Rican Constitution Signed
Statement iy the President
White House press release dated July 3
I have today signed H. J. Res. 4.30, approving
the Constitution of the Commonwealth of Puerto
Rico, which was adopted by the people of Puerto
Rico on March 3, 1952.
I welcome this early approval by the Congress
of the Constitution of the Commonwealth of
Puerto Rico, which I recommended in a Special
Message on April 22, 1952.'
'■ Bulletin of May 5, 1952, p. 721.
The adoption of this Constitution was author-
ized by the act of July 3, 1950. It is gratifying to
me to be able to sign the act approving the Con-
stitution of the Commonwealth of Puerto Rico
two years to the day after I approved the enabling
legislation.
The act of July 3, 1950, authorized the people
of Puerto Rico to organize a republican form of
govei'ument pursuant to a constitution of their
own choosing. That act, adopted by the Congi-ess
in the nature of a compact, became effective only
when accepted by the people of Puerto Rico in a
referendum.
On June 4, 1951, the people of Puerto Rico
voted by a large majority to accept the act of
July 3, 1950, thereby reaffirming their union with
the United States on the terms proposed by the
Congress. Following the referendum, the voters
of Puerto Rico elected delegates to a Constitu-
tional Convention. The Convention convened in
San Juan on September 17, 1951, and concluded its
deliberations on February 6, 1952.
The Constitution approved by the Constitu-
tional Convention was submitted to the people of
Puerto Rico in a referendum on March 3, 1952,
and was approved by an overwhelming majority.
On April 22, 1952, I transmitted the Constitution
to the Congress for approval in accordance with
the provisions of the act of July 3, 1950. The
Constitution will now become effective upon the
accei^tance by the Constitutional Convention of
the conditions of approval and the issuance of a
proclamation by the Governor of Puerto Rico.
H. J. Res. 430 is the culmination of a consistent
policy of the United States to confer an ever-
increasing measure of local self-government upon
the people of Puerto Rico. It provides additional
evidence of this nation's adherence to the prin-
ciple of self-determination and to the ideals of
freedom and democracy.
We take special pride in the fact that this Con-
stitution is the product of the people of Puerto
Rico. Wlien the Constitution of the Common-
wealth of Puerto Rico is proclaimed by the Gov-
ernor, Puerto Rico will have a government
fashioned by the people of Puerto Rico to meet
their own needs, requirements and aspirations.
With the approval of H. J. Res. 430, the people
of the United States and the people of Puerto
Rico are about to enter into a relationship based
on mutual consent and esteem. The Constitution
of the Commonwealth of Puerto Rico and the
procedures by which it has come into being are
matters of which every American can be justly
proud. They are in accordance with principles
we proclaim as the right of free peoples every-
where. July 3, 1952, should be a proud and happy
day for all who have been associated in a gi-eat
task.
iuiy 2J, 1952
91
U.S., U.K., France Propose Four Power Meeting
To Discuss Commission on German Elections
The Governments of the United States, the
United Kingdom, and France, through their re-
spective Embassies at Moscow, on July 10 deliv-
ered identical notes to the Soviet Ministry of
Foreign Affairs in reply to the Soviet note of May
24 concerning Germany. Texts of the United
States and Soviet notes follow:
U.S. NOTE OF JULY 10
Press release 543 dated July 10
In its note of May 13 ^ the United States Gov-
ernment made various proposals in tlie hope of
facilitating four power conversations which could
lead to the unification of Germany and to the nego-
tiation with an all-German Government of a Ger-
man peace treaty. It observes with regret that
the Soviet Government in its note of May 24 does
not answer these proposals. The United States
Government fully maintains the views and pro-
posals in its note of May 13. On this basis it
wishes in its present note primarily to concentrate
attention upon the immediate practical problem
of the procedure for setting up, through free elec-
tions, an all-German Government with which a
peace treaty can be negotiated.
In its note the Soviet Government once more
proposes simultaneous discussions on a peace
treaty, the unification of Germany, and the forma-
tion of an all-German Govermnent. For its part,
the United States Government maintains its posi-
tion on this question, namely, that an all-German
Government must participate in the negotiation of
a peace treaty, and that, thei'efoi'e, before under-
taking such negotiations Germany must be unified
and an all-German Government established. Uni-
fication of Germany can be achieved only through
free elections. The essential first step is obviously
the determination that conditions necessary for
such free elections exist. The second step would
be the holding of those elections.
' BuiXETiN of May 26, 1952, p. SI 7.
92
In regard to the first step, the United States
Government proposed in its note of May 13 that
an impartial Commission should cletermine
whether there exist throughout Germany the con-
ditions necessary for the holding of free elections.
While pointing out the great advantages of using
the United Nations Commission, the United States
Government nevertheless otfered to consider any
other practical and precise proposals for an im-
partial Commission which the Soviet Government
might advance. The Soviet Government ad-
vances no such proposals and limits itself to main-
taining its position on the appointment of a
Commission to carry out this verification by agree-
ment among the four Powers. It is not clear to
the United States Government whether the Soviet
Government considers that the Commission should
be composed of representatives of the four Powers
or merely that the four Powers should agree on its
composition, and the United States Government
would be pleased to receive clarification on this
point. The United States Government remains
convinced that a Commission composed solely of
nationals of the four Powers would be nnable to
reach useful decisions since it could only reflect
present differences of opinion among the four
Powers as to conditions existing in tlie Federal
Republic, in the Soviet Zone and in Berlin. The
United States Govermnent considers that if the
Commission is to carry out its work effectively, it
should be composed of impartial members, should
not be subject to veto or control by the four Powers
and should be empowered to go freely into all
parts of Germany and investigate conditions bear-
ing on the possibility of holding free elections.
In I'egard to the second step, the United States
Government similarly proi^osed that as soon as the
Commission's report was ready there should be a
meeting of representatives of the United States,
French, Soviet and United Kingdom Governments
to discuss the early holding of free elections
throughout Germany, including the creation where
necessary of appropriate conditions. The United
States Government maintains this proposal to
which the Soviet Government has not yet replied.
Department of State Bulletin
The United States Government repeats what it has
stated in paragraph 8 of its note of May 13 : "Such
free elections can, however, only be "held if the
necessary conditions exist in all parts of Gei-many
and will be maintained not only on the day of
voting, and prior to it, but also thereafter."
The United States Government further pro-
posed to examine at this same meeting the assur-
ances to be given by the four Powers that the
all-German Government formed as a result of
these free elections will have the necessary free-
dom of action during the period before the peace
treaty comes into effect. It is the understanding
of the United States Government that the only
concrete proposal envisaged by the Soviet Gov-
ernment is that the all-German Government must
be guided by the Potsdam decisions. This would
mean the reestablishment of the quadripartite sys-
tem of control which was originally designed to
cover only "the initial control period." An ar-
rangement of this kind would revive a system of
control which proved to be impracticable and
would, moreover, ignore the whole evolution of
events in Germany in recent years. A German
Government subjected to such control would in
practice enjoy no freedom in its relations with the
four Powers and would not be in a position to
participate freely with the four above-mentioned
Governments in the negotiation of a peace treaty.
The United States Government also observes
with concern that while the Soviet Government
ill its notes repeatedly i-eaffirms its desire for the
unification of Germany, it has recently adopted
without any justification a series of measures in
the Soviet Zone and in Berlin which tend to pre-
vent all contact between the Germans living in
the territory under Soviet occupation and the
50 million Germans in the Federal Republic and in
the Western sectors of Berlin. These measures
aggi'avate the arbitrary division of Germany.
The United States Government wishes to em-
phasize that the agi'eements recently signed with
the Federal Republic open up to Germany a wide
and free association with the other nations of
Europe. The United States Government cannot,
as it has already emphasized in its note of May 13,
admit that Germany should be denied the basic
right of a free and equal nation to associate itself
with other nations for peaceful purposes.
Furthermore, these agreements reafKrm the de-
termination of the three Powers and the Federal
Republic to promote the unification of Germany,
and expressly reserve the rights of the three
Powers relating to a peace settlement — a peace
settlement for the whole of Germany to be freely
negotiated by the four Powers and the all-German
Government.
In order to avoid further delay, the United
States Government, in concert with the French
Government and the United Kingdom Govern-
ment, and after consultation with the German
Federal Government and with the German
authorities in Berlin, proposes that there should
be an early meeting of representatives of the four
Governments, provided it is understood that the
four Governments are in favor of free elections
throughout Germany as described in paragraph
4 of the present note, and of the participation of
a free German Government in the negotiation of
a German peace treaty. The purpose of this meet-
ing would be to reach agreement on the first ques-
tion which must be settled if further progress
is to be made, namely, the composition and fvmc-
tions of the Commission of investigation to de-
termine whether the conditions necessary for free
elections exist. The United States Government
proposes that the representatives discuss :
A. The selection of members of the Commission
in such a way as to insure its impartiality.
B. T'he functions of the Commission with a
view to insuring its complete independence to make
recommendations to the four Powers.
C. The authority of the commission to carry out
its investigation in full freedom and without inter-
ference.
In order that free elections can be held it will
also be necessaiy to reach agreement on the pro-
gram for the formation of an all-German Govern-
ment, as proposed in paragraph 11 (iv) of the
United States Government's note of May 13.
The United States Government therefore repeats
that proposal for the discussion of these further
important issues by representatives of the four
Powers. Wlien such agi'eement is reached it will
then be possible to proceed to the unification of
Germany.
Since the Soviet Government has repeatedly ex-
pressed its desire for an early meeting in pref-
erence to continued exchanges of notes, the
United States Government trusts that the present
proposal will commend itself to the Soviet
Government.
SOVIET NOTE OF MAY 24
[Unofficial Translation]
In connection with the note of the Government
of the United States of America of May 13 of this
year, the Soviet Government finds it necessary to
state the following:
1. Concerning the urgency of a decision of the
German question and the delaying by the Western
Powers of the exchange of written communica-
tions on this question :
In its note of March 10, 1952,= the Soviet Gov-
ernment projDOsed to the Governments of the
United States of America, Great Britain, and
France that they examine together the question
of the conclusion of a treaty of peace with Ger-
many and of the establishment of an all-German
Government. In order to facilitate and expedite
' Ibid., Apr. 7, 1952, p. 531.
July 27, 1952
93
preparation of a treaty of peace with Germany
the Soviet Government put forward its draft of
this treaty, expressing at the same time its readi-
ness to consider other possible proposals on this
question. The Soviet Government considers it
necessary to solve this question immediately, being
guided by the interests of the strengthening of
peace in Europe and the necessity of satisfying
the legitimate national demands of the German
people.
Inasmuch as there was advanced in the reply of
the Government of the United States of America
of March 25 ^ in connection with the question con-
cerning the formation of an all-German Govern-
ment a proposal for the study of conditions exist-
ing for the conduct of general elections in Ger-
many, the Soviet Government in its note of April
9 agreed with this proposal, insisting, however,
that the study in question should be conducted,
not by a commission of the United Nations Or-
ganization, which is not competent to deal with
the question of the making of peace with Ger-
many, but an impartial commission of the Four
Powers exercising the occupational function in
Germany. At the same time, the Soviet Govern-
ment once again proposed to the Government of
the United States of America and likewise to the
Governments of Great Britain and France that
the consideration of a treaty of peace with Ger-
many should no longer be postponed and likewise
the question of unification of Germany and the
creation of an all-German Government.
Notwithstanding the fact that the Soviet Gov-
ernment accepted the proposal of the Government
of the U.S.A. for verification of the presence of
conditions for conducting in Germany free gen-
eral elections and the proposal of the Soviet Gov-
ernment for appointment of a commission for
conducting this verification by agi-eement between
the Four Powers guaranteeing the objectivity and
impartiality of the commission in question, the
decision on the question concerning the peace
treaty with Germany and the unification of Ger-
many as demonstrated by the note of the Govern-
ment of the United Stat;es of America of May 13
is again postponed for an indefinite period." It
is evident from this note that the Govermnent of
the U.S.A. is also unwilling to agree that the Four
Powers proceed to the examination of these ques-
tions without fiuther delays.
In view of tliis tlie Government of the U.S.A.
in its note of May 13 advanced a whole series of
new preliminary conditions wliich it had not ad-
vanced in its note of March 2h and about which it
now proposes to negotiate by means of a continu-
ation of the exchange of notes before proceeding
to direct negotiations. Thus, in its note of May 13
the Government of the U.S.A. proposes before the
beginning of direct negotiations that agreement
be reached "concerning the framework of negotia-
' Ibid., p. .').30.
tions and concerning the basic problems to be
taken under consideration" and likewise to con-
tinue the written exchange of communications
concerning the composition and functions of the
commission for verification of the conditions in
Germany for general elections, etc.
U.S. Blamed for Delays
All these facts make evident that the Govern-
ment of the U.S.A. is continuing to delay the con-
clusion of a treaty of peace with Germany, a
decision on the question of unification, and also
the establishment of an all-German Government.
Only this could explain the fact that in its note of
May 13 the Government of the U.S.A. introduced a
whole new series of questions for the prolongation
of the exchange of notes which, apart from this,
has already dragged on for several months, in-
stead of the Four Powers proceeding to direct
negotiations and beginning the joint consideration
of a peace treaty with Germany and with all the
related questions.
In these circumstances the opinion cannot fail to
be strengthened in Germany as well as beyond its
borders that the Government of the U.S.A. in real-
ity is not aiming at the conclusion of a peace treaty
with Germany and putting an end to the division
of Germany. But without the conclusion of a
peace treaty and the unification of Germany a
fully equal German Government cannot be re-
stored, a German Government both independent
and in full possession of rights and expressing
the genuine will of the entire German people.
Agreements With Bonn Government
2. Regarding separate agreements of the West-
ern Powers with Western Germany and their
attempts to avoid conclusion of a peace treaty
with Germany :
The Soviet Government considers it necessary to
direct special attention to the fact that, simulta-
neously witli the extended exchange of notes, the
Government of the U.vS.A., together with the Gov-
ernments of Great Britain and France, is con-
ducting separate negotiations with the Bonn
Government of Western Germany regarding the
conclusion of the so-called '"general" contract.
Actually this is in no way a "general" contract
but a separate treaty which is falsely called "gen-
eral" in order to deceive the people. Thus the
Potsdam Agreement by which the responsibility
for the preparation of a peace treaty with Ger-
many was placed upon the Four Powers — the
United States of America, Great Britain, France,
and the U.S.S.R. — was flagrantly violated.
Despite the secret character of the negotiations
carried on with the Bonn Government and despite
the fact that the full text of this separate agree-
ment until now has not been published, from the
information which has apjseared in the press the
94
Depariment of State Bulletin
contents of this separate treaty have become
known ah-eady. From these facts it is evident
that the peace treaty prepared by the Govern-
ments of the U.S.A., Great Britain, and France
witli West Germany in no way has as its aim the
extension of freedom and independence of West-
ern Germany. Together with formal abrogation
of the Occupation Statute, this treaty preserves
the regime of factual military occupation, keep-
ing West Germany in a dependent and subservi-
ent status with regard to the Governments of the
U.S.A. and of Great Britain and France.
In addition, by means of the conclusion of this
separate treaty witli West Germany, the Govern-
ments of the U.S.A., Great Britain, and France
legalize the re-establisliment of the German
Army headed by Hitlerite generals, whicli means
that they open the way to the re-establishment of
aggi-essive West German militarism. Actually
this treaty is an open military alliance of the
U.S.A., Great Britain, and France witli the help of
West Germany by means of which the German
people are drawn by the Bonn Government into
preparations of a new war.
Moreover, the Governments of the U.S.A.,
Gi'eat Britain, and France achieve tlie inclusion
of West Germany into the group of powers cre-
ated by them under the name of "European De-
fense Community" : France, West Germany, Italy,
Belgium, Holland, and Luxembourg. This self-
styled "European community" is supposed to be-
come an integral part of the North Atlantic bloc
and the great and so-called "European army"
into which should go the presently created Ger-
man armed forces in West Germany. It is quite
obvious that the aim of the creation of a "Euro-
pean community" and "European army" is not
only to legalize the remilitarization of West Ger-
many, as is taking place in fact, but also to include
West Germany in the aggressive North Atlantic
bloc.
Support for "Revanchists" Charged
It is known to all that in recent times the Gov-
ernment of the U.S.A. has attempted to hasten
by all means the conclusion of a separate treaty
with West Germany as well as the inclusion of
West Germany into the "European community."
Likewise it attempts not only definitively to sepa-
rate from but to oppose one portion of Germany
to the other. Tliis means that the Government of
the U.S.A. is interested not in the unification of
Germany and not in a peace treaty with Ger-
many but, by means of the new separate agree-
ment, more strongly than before to tie Western
Germany and the Western German army now
created witli the North Atlantic bloc of j^owei's,
which is incompatible with the possibilities of
a peaceful development in Europe.
All this shows that at the present time an agi-ee-
ment is taking place between right-wing revanch-
ist circles of Western Germany and the North
Atlantic group of powers. This agreement can
be based only on the support of the revanchist
aspirations of the Bonn Government of Adenauer,
which is preparing to unleash a new war in Eu-
rope. The restoration now of a West German
army under the leadership of Fascist Hitlerite
generals can only serve the aggressive aims of the
German revanchists. On the other hand, the
inclusion of West Germany in the so-called Eu-
ropean army, and consequently in the army of
the North Atlantic bloc, even more underlines the
aggressive character of the whole North Atlantic
group.
In the light of these facts, no one can believe
that the presently created "European community"
and "European army" can represent "a path to
peace" as is stated in the American note of May
13. The real meaning of the agreement of the
North Atlantic bloc with the government of
Adenauer can comprise only the further strength-
ening of the aggressive character of the North
Atlantic group of powers presently striving for
the direct union with the German revanchists who
represent the most aggressive circles in Europe.
The conclusion with the Bonn Government of
West Germany of agreements such as the above-
mentioned separate treaty or agreement regard-
ing the "European community" places upon this
part of Germany new obligations strengthening
its dependence on the Occupying Powei's and
creating new difficulties for unification with the
Eastern part of Germany which is not tied by
such obligations and is developing in conditions
favorable to national unification of Gennany into
a unified independent democratic and peace-loving
state. The desire of the Government of the U.S.A.
to conclude as soon as possible the above-mentioned
separate agreement with West Germany at the
same time that negotiations regarding a peace
treaty and unification of Germany again and again
are postponed means that it intends by means of
the mentioned separate agi'eements to confront
the German people with a fait accompli: The
German people will be confronted with the fact
of the remilitarization of West Germany and the
retention of Occupation troops in West Germany.
And there will presently arise insunnountable
obstacles in the path of the conclusion of a peace
treaty and the unification of Germany.
However, it is not possible on the one hand to
make statements about recognition of the necessity
of a peace treaty and the unification of Germany
and on the other to do everything to make difficult
and to impede the conclusion of a peace treaty
with Germany and the restoration of a unified
German state. This leads to the undermining of
any kind of confidence toward the dual policy of
such powers and places the German people in the
necessity of seeking its own way to a peace treaty
and national unification of Germany.
Jo/y 21, 1952
95
Further Joint Discussions Urged
?). Proposal of the Soviet Government : Despite
the presence of disagreement regarding the peace
treaty with Germany and also the unification of
Germany and the formation of an all-German
Government, the Soviet Government again pro-
poses to the Government of the U.S.A. and also
to the Governments of Great Britain and France
to enter into joint discussion of these questions
and not to permit extended delay in this matter.
Continued review of these questions by means of
further exchange of notes cannot produce the re-
sults which might be achieved by direct negotia-
tions and can only make achievement of agreement
more difficult. Meanwhile, further delay of de-
cision of the question of a peace treaty and unifi-
cation of Germany cannot fail to arouse legitimate
dissatisfaction of the German people, even over-
looking the fact that delay in this matter is contra-
dictory to the interests of the establishment of
normal and permanent relations between Germany
and neighboring states as well as the interests of
strengthening of general peace.
The Soviet Government proceeds on the prin-
ciple that in working out a peace treaty with Ger-
many the Government of the U.S.S.R. as well as
the Governments of the U.S.A.. Gi'eat Britain,
and France will be guided by the provisions of
the Potsdam Agreement, particularly in the ques-
tion of the boundaries of Germany as was men-
tioned by the Soviet Government in its note of
April 9.^
As regards the all-German Government and its
powers, it is understood that this Government also
must be guided by the Potsdam provisions and
also, after conclusion of the peace treaty, by the
provision of the peace treaty which serves the
establishment of a permanent peace in Europe.
Im this connection, the Soviet Government con-
tinues to consider it the inalienable right of the
(^Jerman people to have its own national armed
forces necessary for the defense of the country
without which it is impossible to decide the ques-
tion of the powers of the all-German Government
in a just and proper fashion.
Proposing to enter into direct negotiations
urgently regarding a peace treaty with Germany
and the formation of an all-German Government,
the Soviet Government proceeds also from the
fact tliat no separate agreement of one or another
])art of Germany with governments of other states
can impose any kind of obligations and that the
all-German Government which will have signed
the peace treaty will possess all the rights which
the governments of other independent sovereign
states possess.
• I hid.. May 26, 1952, p. 819.
Prince Abdullah Faisal's Visit to U.S.
Press release 547 dated July 11
Prince Abdullah Faisal, gi'andson of King Ibn
Sand of Saudi Arabia and Minister of Interior
and Public Health of that country, arrived in the
United States July 13 on an unofficial visit to
study American techniques, knowledge, and skills
in the fields of land reclamation, irrigation, police
methods, education, and public health. He will
visit selected areas where projects are in operation
under conditions approximating those in his
homeland.
Abdullah's father is the second son of the Saudi
Arabian King and is Minister of Foreign Affairs
of the country.
The Saudi Arabian Government is interested in
advancing the standards of living of its people to
a level commensurate with the country's recently
increased income from oil production.
After visits to various institutions in the Wash-
ington area where American methods in maternal
and child care will be demonstrated for the bene-
fit of the Prince and his party, the visitors will
inspect the public health system at Carville, La.
From there they will move on to El Paso and
Santa Fe to view activities in the field of public
liealth where the problems in arid areas approxi-
mate those found in Saudi Arabia.
To study projects in the field of natural re-
sources, Prince Abdullah Faisal will visit power
and irrigation operations where emphasis is
placed on the conservation and maximum utiliza-
tion of water resources. These will include the
irrigation and development of the El Paso and
Santa Cruz areas of the Rio Grande and the Salt
River Valley projects at Phoenix. From Phoenix
the Prince and liis party will go to California
where he will be given a brief view of the work
being accomplished in American penal institu-
tions.
Under the Point Four agreement between the
United States and Saudi Arabia, which became
effective January 17, 19.51, technical "know how"
is furnished in the country's effort to improve eco-
nomic and social conditions. Saudi Arabia fur-
nishes housing and travel expenses for the Ameri-
can technicians as well as all other items incident
to each jjroject.
Recently the Technical Cooperation Adminis-
tration finished a study of Saudi Arabia's mone-
tary and fiscal systems. The report from this
study resulted in the establishment by the King
of a Central Fiscal Agency mider the manage-
ment of an American financial expert.
96
Department of State Bulletin
U.S. Problems and Accomplishments in the Far East
hy John M. Allison
Assistant Secretary for Far Eastern Affairs '
Just 100 years ago Commodore Perry was mak-
ing preparations for his eventful voyage to Japan
wlaich resulted in the opening of that great coun-
try to intercourse with the rest of the world. It
was also just about 100 years ago that Seattle
was founded. The developments which have
taken place in the last 100 years in Asia and on
the Pacific Coast of the United States have been
of far-reaching significance, and it is a special
pleasure to talk witli you people who have grown
up with a traditional interest in the Pacific and
the affairs of Asia.
During the past 100 years we have seen the prog-
ress of China to a point where it was accepted
in the councils of the world as one of the five great
powers, and we have then seen the domination
of the mainland of China by Communist hordes,
who have for all pi'actical purposes turned their
back on the jjeoples and governments of the West
who had done so much to help China reach its
high position. We have seen Japan grow from
a small island country, hardly known except to
a few brave sailors, merchants, and missionai'ies,
to one of the great military powers of the world
able to challenge even the strongest, and we have
seen that power abused in such a manner as to
bring disaster to Japan. But we have also seen
the Japanese people rise from defeat and create
with Allied help a new Japan which has recently
signed a treaty of peace with 48 countries and
which is now launched on a new course of peaceful
cooperation with the nations of the free world.
We have seen many new small nations who for
years were under the domination of Western
powers achieve their independence and freedom,
and we have watched them take their places in the
councils of the world.
While these changes have on the whole been
progressive and in a direction which we all have
'Address made before the Institute of International
Affairs at the University of Washington, Seattle, on .Inly
1 and released to the press (no. 503) on the same date.
desired, nevertheless they have created many
problems and have greatly complicated the life
of all of Asia. In mo.st recent years, particularly
since the end of the late war, these profound
changes in Asia have proceeded almost at a gallop,
and they have naturally resulted in a certain politi-
cal and economic instability. The older patterns
of economic life have often been disrupted, and
the influence of an alien, but usually efficient
bureaucracy, has given way to governments ad-
ministered to be sure by Asians themselves but
who in many cases have not had the experience and
training usually deemed necessary to carry out
such respomsibilities. This lack of political and
economic stability, complicated by the ravages
of the recent war which destroyed much of the
economic potential of many of these countries,
could perhaps have been surmounted with rela-
tive ease if it had not been for the introduction
of another complicating factor — the influence of
militant communism. "Wliile the interest of world
Communist leaders in Asia is of long standing,
it has taken its most aggressive form in recent
years. Almost 30 years ago, in his lectures on the
foundations of Leninism, Stalin pointed out that
"the road to victory of the revolution in the West
lies through the revolutionary alliance with the
liberation movement of the colonies and depend-
ent countries against imperialism." And as early
as 1918 he wrote an article, the title of which makes
clear his interest— it was "Do Not Forget the
East." And you will all recall that soon after the
Kussian revolution one of the first acts of the
Connnunist leaders was to set up in Moscow, for
students from all over Asia, the University of
Toilers of the East and the Sun Yat Sen Univer-
sity. These two specialist institutions have been
constant reservoirs of Communists trained for
work in Asia.
This early interest has received renewed stimu-
lation in recent years. The Communist leaders
have made no secret of their interest or their plan.
My 21, ?952
97
As recently as the 9tli of last December in an
article on China and the lessons of China for
revolution in colonial territories which appeared
in the Moscow University Herald of that date,
the blueprint of revolution was set out.
Here it is :
First, incite nationalism, which is inherent in all races.
Second, promote a national "united front" including if
necessary vacillating bourgeois political parties.
Third, let the working class and its political party, the
Communist Party, seize leadership of the United Front.
Fourth, form an alliance of the working class and the
peasantry, led by the Communist Party.
Fifth, the Communist Party takes complete control,
ousting the others.
Sixth, remember that time national independence can
be achieved only in unity with the Soviet Union. There
is no third, middle, or neutral road. The choice is between
the camp of imperialism on the one hand and the camp
of .s<icialism and democracy [in the Communist sense]
on the other hand.
Seventh, form powerful "Peoples' Liberation Armies"
under the leadership of the Communist Party. Identify
the struggle of the masses with the armed struggle which
is the chief activity in "colonial" national liberation
movements.
The wars which result from the implementa-
tion of this Communist program are claimed by
the Communist leaders to be either civil wars or
"just" wars and therefore this incitement to war
is not considered as being against the teachings of
the Soviet "peace campaign." It should be
pointed out that when the Communists speak of
"colonial countries" they do not only mean
colonies in the normal sense but all Asian coun-
tries, independent or not, which are on friendly
terms with the West and therefore regarded by
the Kremlin as "puppets of the West." Point
six in the above program is especially important.
It says specifically that "there is no third,
middle, or neutral road." It is the Communists
themselves who say that there is no room for
"coexistence" of neutralism.
Meeting the Situation
In meeting this situation in Asia, the United
States is proceeding by means of three ap-
proaches— military, economic, and political. We
are convinced that no single one or these three
approaches is sufficient. All must go together.
In some places it is necessary to emphasize the
military, in others the political, and in still others
the economic. But in every case our objective is
the same — to help in the creation in the free
countries of Asia of strong, stable governments
whieli can play their part in cooperation with the
rest of the free world in building for peace.
Let us look fir.st at what we are doing in the mili-
tary field, and this, of course, brings us first of
all to Korea. Some short-sighted persons have
called our action in Korea "useless," and there is
considerable understandable impatience at the
long-drawn-out struggle going on in that penin-
sula. But, before we make up our minds that
the sacrifices made in Korea by many brave men
have been useless, let us consider what they have
accomijlished. We must remember that it was
not the Kepublic of Korea, it was not the United
States, nor was it the United Nations which
started the fighting; but it was the Republic of
Korea, the United States, and the United Nations
which stood up to aggression and beat it back.
Today, the aggressors have been thrown back
beyond the point from which they started. It is
the Communists who have utterly "failed in achiev-
ing their objectives in Korea. They have lost
well over a million trained soldiers and enormous
quantities of materiel. North Korea has been
devastated and for years to come will be an eco-
nomic liability with nothing to compensate for
this destruction. One of the most important re-
sults of the Communist aggression in Korea has
been the action of the United Nations. For the
first time in modern history, an international or-
ganization has shown that not only can it be effec-
tive in times of peace but that it can and will
resist aggression. The League of Nations was
never able to accomplish this. A real forward
step has been made in development of a world
organization determined that aggression shall not
prosper.
In addition to meeting the aggression itself, the
United States is helping to create a strong Re-
public of Korea Army which, when the present
fighting is over, will eventually be able to insure
that the leaders of the Republic of Korea have
the opportunity to carry out the constructive tasks
of peace.
Steps for Reconstruction of Japan
In Japan we face a situation of extreme diffi-
culty. The end of the war saw Japan's former
great empire torn from her, its military machine
dismantled, and its people, disillusioned by the
former domination of the military, reluctant, even
in their own defense, to see the re-creation of any
sort of military machine. With the coming into
force of the peace treaty and the disappearance of
Occupation rights and duties the people of Japan
would, for all practical purposes, have been left
defenseless if some special measures had not been
taken to meet this problem.
Any consideration of the future of Japan must
take into consideration its strategic situation and
its relationship to the present power situation in
Asia. As I have said before in other talks on this
subject, it would be pleasant to ignore the question
of power relationships and to consider only what
would be wise and desirable from the moral, politi-
cal, and economic viewpoints. Unfortunately, we
cannot ignore the problem created by a change in
the balance of power in the Far East any more
than elsewhere in the world. An astute scholar
has recently said that statesmen who profess not
to believe in the "balance of power" are like scien-
tists who do not believe in the law of gravity.
98
Department of State Bulletin
So if we are to consider the future of Japan and
our policy toward it as it emerges from a disas-
trous war and 6 years of Occupation, we must
consider tlie effect of the present power situation
in Asia. This is particularly acute because of the
comiiletely unarmed position in which Japan
finds itself off the coast of Asia where Communist
aggression has been most active. In fact, there is
reason to believe that the outbreak of this Com-
munist aggression was at least partially due to the
unarmed condition of Japan and the belief of the
aggi'essors that domination of the Korean penin-
sula would make more easy the ultimate domina-
tion of Japan with its great industrial base and
industrially trained poiDulation.
In an effort to help in meeting this situation,
the United States concluded with Japan a mutual
security treaty providing for the retention in
Japan of American forces for the defense of Japan
from external aggression. It was made clear to
the Japanese Government and people that it was
their choice as to whether or not they wished to
continue this association with the United States.
It was not an easy choice for Japan. It is never
easy for a proud and vigorous people to rely on
others for their defense or to welcome into their
country troops of an alien power.
At some point Japan must decide in what man-
ner she wishes to contribute to her own self-de-
fense, but, until such time as this decision is made
and means are found to implement it, the United
States will have to carry the major burden of the
defense provided for in the treaty which it is
believed will contribute to the true long-term good
of both countries and the peace of the whole
Pacific area. Whether this association will suc-
ceed, only time can tell. It will be most difficult
for all. Not only is this an association between
peoples who have recently been at war with each
other but it is an association between ]3eoples of
different races, different cultures and backgrounds.
If we can succeed, as we mean to do, in making this
pact between a Western and an Asiatic country a
real and living force for peace, on a basis of part-
nership and equality, we shall have done as much
as any other single thing toward cutting the
ground from under Communist propaganda,
which only sees in such a relationship an effort
by the West to reassert its domination over the
East.
Military Problem of Indochina
There is another area in Asia which is faced
with an acute, immediate military problem and
that is Indochina, where the three Associated
States of Vietnam, Laos, and Cambodia are, in
cooperation with France, fighting in another sec-
tor of the war against Communist aggression.
This war has been going on for 6 years, during
most of which France stood alone. But now we
are helping on a substantial scale. Only a short
time ago there arrived in Saigon the 150th Amer-
ican ship loaded with materials for the defense
effort in Indochina. The main effort of the United
States and France in recent months has been to
develop national armies in the three Associated
States, and, since this decision was taken in No-
vember of 1950, there has been created a total
of 52 battalions for the three states. As indica-
tion of the gi-eat progress which the people of
the Associated States are making and the gi'eat
interest they have in developing their own na-
tional armies, it is interesting to note that 20 out
of 52 battalions have either none or not more
than five French officers attached to them. All
of the other officers are Vietnamese. The Chief
of Staff of Vietnam's national army is a Vietna-
mese, and in the past year approximately 1,000
new Vietnamese officers were graduated from
training schools in addition to substantial num-
bers of technicians and noncommissioned officers.
A further indication of the increasing share of
the responsibility for their own defense which
is being borne by the Associated States is the fact
that whereas in 1946, 88 percent of the casualties
were French and only 9 percent local troops, to
date in 1952 the French casualties have been only
17 percent as compared with 52 percent casualties
for the troops of Vietnam, Laos, and Cambodia.
The other losses have been sustained by supple-
mentary troops from other areas of the French
Union not parts of either the French forces or the
forces of the national armies of the three states.
Just recently I participated in discussions in
Washington with Jean Letourneau, Minister of
State in the French Cabinet and responsible for
relations with the Associated States of Indochina.^
There was definite agreement that the United
States would not only continue but would increase
the amount of aid it was giving to France and
the Associated States for the special purpose of
assisting in building up these national armies.
The United States maintains in Indochina a mil-
itary advisory group which cooperates with the
French and the officials of the Associated States
in creating a sound military defense effort.
Indochina has been said to be the key to all of
Southeast Asia. It faces a constant pressure not
only from the rebels of Viet-Minh but also a
threat from some 200,000 Chinese Communist
troops poised on its borders who could at any time
repeat what Communist troops have done in
Korea. The United States has recognized that
the struggle in Indochina in which the forces of
the Associated States and France are engaged is
an integral part of the world-wide resistance to
Communist attempts at conquest and subversion
and that while the primary role in Indochina rests
with the French Union, just as the United States
assumes the largest share of the Korean burden,
each has an obligation to help the other.
' Bulletin of June 30, 1952, p. 1009.
Jvly 21, 1952
99
Defense of Other Asian Areas
The other areas of Asia where definite military
help is being given both in the form of advice and
training through military advisory groups and
in the supply of military equipment are Formosa,
the Philippine Islands, and Thailand. In none
of these areas are we doing as much as we would
like to do, but the first priorities have had to go
to Korea and Indochina where actual fighting on
a large scale is taking place. However, the pro-
grams in these other areas are being kept con-
stantly under review, and every effort is being
made "to speed up the quantity of materiel going
forward. In addition to the help in building up
the Chinese Government's military defense efforts,
we all know that the United States is committed
by the terms of President Truman's statement of
June 27, 1950, to prevent Formosa from falling
into Comnninist hands. This continues to be our
policy. With the Philippines, in addition to
agreements on military bases and for a military
advisory group, we have recently signed a mutual
defense treaty making clear publicly that the
United States and the Philippines stand side by
side in the defense of peace and freedom in Asia.
Our military program in Thailand is much
smaller, but we are working in close cooperation
with the officials of this small but important
nation, which has a long tradition of independence
and is firmly committed against communism, to
strengthen its forces so that it can continue to
play a significant role.
Through economic measures the United States
is seeking to build the strength and unity of the
free world in an effort to deter aggression and
strengthen the fabric of peace. These economic
measures have two aspects, positive and negative.
Through the Mutual Security Agency we have
provided essential economic aid, and through the
imposition of a program of export control by the
free nations we are attempting to limit shipments
of strategic goods to countries which might be
tempted to use them against us. Since 1949 the
United States, Canada, and the major trading
counti'ies in Western Europe have been cooperat-
ing closely in the export control field. This co-
operation has developed voluntarily because each
has recognized the danger to free-world security
of unrestricted exports to the Soviet bloc. With
respect to the Far East, controls on the move-
ment of strategic goods from the United States
to Communist China have been progressively
strengthened since January 19-1:9. The attack on
the Republic of Korea resulted in much more
stringent trade controls against both North Korea
and Communist China. When the Chinese Com-
munists openly intervened in Korea, the United
States immediately stopped all exports to Com-
munist China and banned American ships and
aircraft from trading operations with the China
mainland. A short while later all Communist
Chinese and North Korean dollar assets under
U.S. jurisdiction were frozen.
Western European nations likewise instituted
controls over trade with Communist China more
severe than those over trade with other parts of
the Soviet bloc. These controls also apply in the
dependent overseas territories of the Western
European countries, such as Hong Kong.
In May 1951, the U.N. General Assembly rec-
onnnended that every nation embargo shipments
of arms, atomic energy materials, petroleum, and
related strategic items to areas under control of
the Chinese Comnumist and North Korean re-
gimes. As of May 1952 a total of 45 countries
had notified the United Nations that they had ac-
cepted and were applying the resolution. This
has helped to make even more complete the con-
trols over strategic trade with Communist China.
Economic Measures To Aid Japan
It is important to note that in spite of the
formerly great dependence of Japan upon its
trade with the mainland of China, Japan has
been carrying out a near embargo on exports to
that area since the end of 1950.
Many of the basic economic measures necessary
to build a strong, stable government in Japan were
taken initially during the Occupation. Such
measures as land i-eform, the establishment of
proper labor standards, and the dissolution of the
largest concentrations of economic control all took
place prior to Japan's regaining its freedom under
the peace treaty. As Japan resumes responsi-
bility for the conduct of its own affairs, it may be
that certain aspects of the measures taken during
the Occupation will be found inappropriate or
not in keeping with Japan's traditional customs.
However, it is believed the Japanese Government
and people have demonstrated a real appreciation
of the worth of many of these Occupation meas-
ures and that they will not lightly alter them, but
rather will consider, if necessary, how their spirit
and true objectives can be assimilated by the new
Japan. At the present time Japan's economic
position looks extremely favorable. As compared
with a rating of 100 for the base period 1932-
.36, Japan's industrial production at the end of
March 1952 was 145. Japan's foreign-exchange
balances reached a postwar high in April 1952 of
1*^1,106,000,000, more than twice the foreign-ex-
change balance for the same period a year ago.
In sjiite of these favorable omens the future of
Japan's economy is not secure. Much of the for-
eign-exchange balance has been due to special
procurement in Japan by the United States for
goods and services in connection with the fighting
in Korea. While such expenditures averaged ap-
proximately 30 million dollars a month from July
1950 to February 1952, they have now declined
to an average of only 8V2 million dollars in the
period from March to May this year. A more
100
Deparfmenf of State Bulletin
accurate picture of Japan's economic situation is
obtained by looking at Japan's foreign-trade fig-
ures, particularly those regarding trade with the
United States. During 1951 Japan's imports from
the United States reached a value of 698 million
dollars whereas the value of her exports to the
United States was only 184 million dollars, leav-
ing an adverse balance of over 500 million dollars.
While Japan will continue for a time to earn
dollars from the sale of goods and services for
use in Korea and as a result of the stationing of
U.S. forces in Japan, nevertheless these special
sources of income will gradually decrease and
eventually come to an end. It is therefore not at
all certain that Japan will continue over the years
to be in the good position it is today. The Jap-
anese Government is fully aware of this and is
studying what measures can be taken to meet this
situation.
Trade Assistance Necessary
It should also be remembered in considering
Japan's economic situation that many of her
industries, because of the destruction of the war
and the lack of contact with technological develop-
ments in the West over the past 10 years, are not
in a favorable competitive position with similar
industries elsewhere. One of the ways in which
it is hoped the United States will be able to con-
tribute to the economic prosperity of Japan is
through arrangements, both private and govern-
mental, for the exchange of technical assistance
and information by which advanced American
techniques will be made available to the Japanese.
Several such arrangements have already been con-
cluded between various Japanese and American
concerns, and it is expected that more will be con-
cluded as time goes by.
As indicated above, Japan is imposing controls
on its trade with Communist China. There is
considerable agitation in Japan at the present time
for the removal of such controls. It is believed,
however, that the recent decision by British trade
firms to withdraw from Communist China has
impressed the Japanese with the great difficulties
of maintaining any profitable trade with Com-
munist regimes. Japan must trade to live. It is
in the highest interest of the United States that
Japan be given an opportunity to sell her products
to the rest of the world in order that she may
develop a strong stable economy to support her
position as a constructive member of the free
world. The Japanese people can be assured that
the American people are conscious of Japan's
problems and that the American Government will
take all appropriate steps to assist Japan in re-
suming its rightful place as one of the great trad-
ing nations of the world.
In other areas in the Far East we are equally
concerned with doing what we can to develop
sound economiop. Even in the midst of the fight-
Ju/y 21, 1952
215258—52 3
ing in Korea we have not lost sight of the economic
necessities, and an American mission has recently
concluded an agreement with the Government of
the Republic of Korea looking toward the stabili-
zation of the economic situation there with par-
ticular reference to what can be done to combat a
dangerous inflation. We have learned through
sad experience that inflation can do as much dam-
age to a country as enemy shells, and we have done
what we can to meet this danger in Korea.
In Formosa the Mutual Security Agency has a
flourishing operation looking toward the develop-
ment of the natural resources of that rich island in
order to make it more nearly self-supporting. It
is receiving the close cooperation of the Chinese
Government, and reports of progress during the
past year have been most encouraging.
In the Philippines, you will recall that a special
economic mission was sent from the United States
to that country a little over a year ago, and, as a
result of the vigorous action taken by the Philip-
pine Government in carrying out the recommenda-
tions of this mission, we have seen surprising
economic progress. The Government's deficit
dropped to less than 1 million pesos from 154 mil-
lion pesos the year before. The production of
export crops was greatly increased, and while
much remains to be done we have reason to have
confidence that the Philippines are on the road to
the establishment of a stable economic society ._
In Indochina we hear usually about the fighting
but not about the constructive measures which
have been taken. Even in the midst of a war there
has been an expansion in production of rubber and
rice, and while the export of these commodities is
still far below the prewar level, last year they
were the highest they have been since V-J Day.
Seven Nations Attain Independence
It is in the political field that perhaps the most
conspicuous progress has been made. If there is
one matter upon which all of the nations of the
Far East are united, it is their desire for national
freedom and independence. We still hear crit-
icism of Western imperialism and colonialism,
and there are many who would have the United
States take a strong stand against its European
allies in order to remove such vestiges of colonial-
ism as still remain. But, before we agree whole-
heartedly with this stand, it may be helpful to
think for a moment of what has happened in the
Far East in the few years since the end of World
War II. Seven nations with a population of over
600 million have attained independence. These
nations were formerly members of the colonial
systems of the United Kingdom, France, the
Netherlands, Japan, and the United States. This
is by no means a negligible achievement. Much
remains to be done, but in our impatience let us
not forget that much has already been done.
Perhaps the single most constructive acliieve-
ilOl
ment in the political field in the past year has been
the negotiation and conclusion of the Treaty of
Peace with Japan. After 6 years of Occupation
a nation of almost 85 million vigorous, intelligent
people has been freed from outside control and
allowed to take its place as an equal member of
the family of nations. This treaty broke new
ground in international relations. We insisted
that it should be a liberal treaty— one which would
contain promise for the future and not the seeds
for future wars. We negotiated this treaty with
Japan on the basis of equality — there was mutual
give and take. This was not a treaty drawn up
in secret by one or two large powers and then
presented for the acquiescence of the smaller
powers. Kather, over a period of 11 months,
through diplomatic negotiations and through
trips which took the U.S. negotiators to the cap-
itals of eight countries, all of the powers prin-
cipally concerned in tlie settlement of the war with
Japan were able to make their contribution to the
final settlement. The importance of this treaty
to relations between Asia and the West was made
clear by Sir Zafrullah lOian, the distinguished
Foreign Minister of Pakistan, when at the peace
conference in San Francisco he said of the treaty :
It opens to Japan the door passing through which it
may take up among its fellow sovereign nations a posi-
tion of dignity, honor, and eqiiality. ... It is evidence
of a new departure in the relations of the East and the
West as they have subsisted during the last few
centuries.
In Korea our political aim remains what it al-
ways has been — the achievement of an independ-
ent, united, and free Korea. I have already told
how in cooperation with our friends in the United
Nations we have repelled the aggression from
North Korea and have thrown the aggressors back
beyond the point from which they started. We
are now engaged in armistice talks which we hope
will put an end to the fighting. If we succeed
we shall then proceed to the political stage where
we will discuss how to bring about an independent,
united, and free Korea, which is our objective.
If the armistice talks fail we shall be confronted
with a most serious situation, and what we would
do in that unhappy event can only be decided
when we know all the circumstances which will
attend such a failure. There is no profit in spec-
ulating at this time as to what the exact nature
of our action might be. While the hostilities are
still going on in Korea and while we are in the
midst of these talks, we have received reports
which have given us great concern regarding the
dispute now going on between the President of
the Republic of Korea and its National Assembly.
It is our earnest hope that a mutually satisfactory
solution of this dispute will soon be reached
through the use of normal constitutional processes.
It would be a great tragedy if this dispute should
be magnified to the point where it would adversely
affect the great effort being made by the United
Nations to bring about a free and independent
Korea.
In China we are confronted with perhaps our
most serious political problem. There is much
dispute but there is also considerable agreement.
W^e know that Communist China is an aggressor,
declared so by the United Nations, and that mil-
lions of Chinese on the mainland are suffering
under the dictatorial and ruthless rule of a group
which has turned its back on the finest traditions
of China. I believe that in spite of tlie ruthless
regime which now dominates them, the Chinese
people do not forget the great feeling of friend-
ship which the American people have historically
held — and still hold — for them. This friendship
at present can only be shown through the Chinese
Government on Formosa. As I have said, the
United States is committed to the defense of For-
mosa from aggression from the mainland, and it
is our continuing policy that Formosa not fall into
Communist hands. The U.S. Government re-
mains of the opinion that the National Govern-
ment still represents China. In 96 votes on this
question in more than 45 international organiza-
tions and meetings under the general auspices of
the United Nations and elsewhere, this opinion has
been reinforced by the majority of the other free
nations, and the National Government continues to
occupy the Chinese seat in all these organizations.
The United States believes this should continue to
be the case. A real effort is being made at present
by the Chinese Government to create conditions
on Formosa, political, economic, and social, which
will demonstrate to the world that it is deserving
of world support. In this task we shall continue
to help.
Exchange of Ideas With Two Area Visitors
Within recent weeks we have had two visitors
from Asia, who have not only been an inspiration
but who have reinforced our belief that there is
hope for success in our objective of encouraging
the establishment of free and independent nations
in Asia which will be able to stand on their own
feet and not become the tools of foreign "isms."
The Defense Secretary of the Philippines, Ramon
Magsaysay, and Jean Letourneau from Indochina
have both demonstrated an awareness of the real
problems of their areas and have told us of the
constructive measures they are taking to solve
these problems.
Defense Secretary Magsaysay has given us con-
crete examples of how, in his approach to the Huk
problem, he has adopted the twin measures of
punishment and rehabilitation — the former, stern
when needed, the latter, a genuine and sincere at-
tempt to get at the root cause of the trouble.
While the Huk movement is dominated at the top
by a small group of Moscow-trained leaders, many
of the rank and file are people who have in one
way or another an honest grievance. Through an
enlightened policy of resettlement where neces-
102
Department of State Bulletin
sary, of creating jobs, these people may have been
given a cliance to earn an honest and a decent liv-
ing. The back of the Huk rebellion has been
broken, and in the past year there has been re-
markable improvement in general security con-
ditions throughout the Philippines.
Mr. Letourneau talked with us for several days
about the steps which have been taken in the three
Associated States of Indochina to consolidate the
independence of those states which was estab-
lished in the accords of 1949. He told ns how
those accords had been liberally interpreted and
supplemented by other agreements and pointed
out that the Governments of the Associated States
now exercise full authority within their terri-
tories except for a strictly limited number of
services related to the necessities of the war now
going on which temporarily remain in French
hands. It was noted that 33 foreign governments
have recognized the independence of these states.
A vivid demonstration of this independence was
given at the Japanese peace conference last Sep-
tember where the Associated States were individ-
ually represented and where they signed as repre-
sentatives of independent powers rather than as
part of the French delegation. Bonds between
our country and the Associated States have re-
cently been strengthened by the elevation of our
missions in those countries to Embassies and the
appointment of Cambodian and Vietnamese Am-
bassadors to Washington. At a public luncheon
given by the press correspondents in Washington
and in the presence of the Ambassadors from
Cambodia and Vietnam, Mr. Letourneau pointed
out that when the fighting ceases it will be for the
Associated States to determine what their future
relationships with France will be. He expressed
the strong hope that they would wish to stay as
members of the French Union, but in this connec-
tion he said, and I quote him : "The French Union
is not a prison."
Patience Required To Maintain Asian Security
A year ago there was not even an embryonic
security system embracing any part of the Far
East, whereas today we have a series of mutual
security and defense pacts with Japan, the Philip-
pines, Australia, and New Zealand. The Presi-
dent has said that these pacts are "initial steps"
in the development of an over-all security system
for the Pacific area. "Wliether such an over-all
system will be soon consummated depends in
large part upon the attitudes and wishes of the
peoples of the Pacific area. This is not a field in
which the United States can dictate the course of
events, but we have made clear that we will look
with sympathy on the efforts of the free peoples
of Asia to develop a system of collective security.
The present treaties have two purposes. They
made possible the acquiescence of the governments
of those areas in the terms of a peace treaty with
Japan which was not punitive and which was
based on trust and a spirit of reconciliation. The
United States believed it was not possible to seek
certainty about Japan's future actions by impos-
ing restrictions in a treaty which would deny free-
dom to Japan. However, because they had been
much closer to Japanese aggression than we had,
there was a natural reluctance on the part of these
other countries to agree to such a treaty unless
they were able to give their people the assurances
they needed about their future security, and this
was made possible by the conclusion of these
mutual security and defense pacts. However,
these treaties do not look only or even primarily
to the past. They are a basis for hope in the
future and set forth our sense of common destiny
with these Pacific peoples. John Foster Dulles,
the man most responsible for the great construc-
tive elfort which culminated in the Japanese peace
treaty and thes6 security pacts, had this to say
about these treaties in his testimony before the
Senate Foreign Relations Committee:
It is highly appropriate that not only our friends, but
our potential enemies, should learn that our concern
with Europe, evidenced by the North Atlantic Treaty,
and our concern with Japan, in no sen.se imply any lack
of concern for our Pacific allies of World War II or lack
of desire to preserve and deepen our solidarity with them
for security. The security treaties with these three coun-
tries are a logical part of the effort not merely to liquidate
the old war, but to strengthen the fabric of peace in the
Pacific as against the hazard of new war.
This rather rapid survey of our Pacific problems
and the manner in which we are trying to meet
them has omitted much. You may believe it is
on too optimistic a note, but I assure you there is
no illusion in Washington that our problems are
near solution or that there are no real dangers
ahead. Even should we obtain an armistice in
Korea in the near future it would not mean that
our troubles are over. There is the continuing
threat I have spoken of to Indochina and also to
Formosa. I am afraid the United States and the
other nations of the free world must learn to live
for some time to come with crisis. We shall need
all the resolution, firmness, and patience we can
summon if the tremendous sacrifices we have al-
ready made are not to be in vain. Of the above
qualities, if any one can be more important than
the others, I stress patience. We must not be-
come, as we are all tempted to at times, so dis-
maj'ed at what is going on that we rush into new
adventures which might create more problems
than they solve. We must not, on the other hand,
at any sign of good news, give way to our natural
desire to relax and turn our thoughts and efforts
to more pleasant things.
As has recently been said :
The central objective has to be somehow to keep the
threat of civilization alive — to avert war, if possible,
because war is the second greatest threat to civilized
survival ; but to be prepared for war, if necessary, because
the greatest threat of all is totalitarian victory.
July 27, 1952
103
Carl Schurz Centennial Award
Press release 541 dated July 9
The St. Louis Post Dispatch has selected 26-
year-old Heinrich Koerner of Niirnberg, Gei'many,
to receive the Carl Schurz Centennial Award
which will enable him to spend the next 6 months
as a regular reporter and special feature writer
for that newspaper. The award is financed jointly
by the International Information Administration
of the Department of State and the St. Louis Post
Dispatch.
Mr. Koerner, who is due to arrive in this country
within a month, is employed as state and national
political affairs editor of the Niiriiberger Zeitimg,
the second largest newspaper in northern Bavaria,
which has a cii'culation of more than 100,000. One
of Mr. Koerner's assignments with the Post Dis-
patch will be to cover the various events planned
in honor of Cai'l Schurz during this centennial
celebration of his arrival in the United States.
President Requests Special Survey
of U.S. Trade Policies
White House press release dated July 13
The President has sent identical letters to the
members of the Public Advisory Board for Mu-
tual Security., ashing them to undertake a special
survey of U.S. trade policies. This Board was
established by the Mutual Security Act of 1951
as the successor to the Public Advisory Board
created in the European Recovery Act of 19 IS-
Tinder the terms of these acts the members of the
Board have been appointed with the advice and
consent of the Senate.^ Folloioing is the text of
the President's letter;
I am writing you and the other members of the
Public Advisory Board for Mutual Security to
ask that the Board undertake an investigation of
the foreign trade policies of the United States,
' The Board's membership includes Miss Sarah G. Bland-
ing, president, Vassar College ; Orin Lehman, New Yorli ;
James B. Carey, secretary-treasurer. Congress of Indus-
trial Organizations ; A. E. Lyon, executive secretary,
Railway Labor Executives Association ; Jonathan W.
Daniels, editor, Raleigh, N. C, News and Ohscrver; George
H. Mead, chairman of the Board, the Mead Corporation,
Dayton ; Robert H. Hincliley, v. president, American
Broadcasting Co. ; George Meany, secretary-treasurer,
American Federation of Labor ; Ei'ic A. Johnston, presi-
dent, Motion Picture Association of America, Inc. ; Her-
shel D. Newsom, master. National Grange ; Allan B. Kline,
president, American Farm Bureau Federation ; and James
G. Patton, president. National Farmers' Union. The
Director for Mutual Security, Averell Harriman, is ex-
offlcio cliairman of the Public Advisory Board, but for pur-
poses of this special study it is expected that the Board
win name an acting chairman who is not connected with
the Government service
particularly as they affect our efforts under the
Mutual Security Program to achieve economic
strength and solvency among the free nations.
I am asking the Board to undertake this assign-
ment because I fear that recent developments
affecting our trade policy may work at cross pur-
poses with the basic objectives of the Mutual
Security Program.
We are working night and day to help build up
the military and economic strength of friends and
allies throughout the free world. We are spend-
ing very substantial sums of money to do this, to
the end that our friends can grow strong enough
to carry on without special aid from us. This is
why we have urged upon them programs of in-
creased production, trade expansion and tariff
reduction, so that tlirougli world trade they can
expand their dollar earnings and progressively
reduce their dependence on our aid.
Yet, at the same time, we find growing up in this
country an increasing body of restrictive laws
attempting to further the interests of particular
American producers by cutting down the imports
of various foreign goods which can offer com-
petition in American markets. The so-called
"cheese" amendment to the Defense Production
Act — enacted despite a number of existing safe-
guards— is a striking example of this trend. On
the one hand we are insisting that our friends
expand their own world trade ; on the other hand
we seem to be raising new barriers against imports
from abroad. This poses a very real dilemma for
our whole foreign policy.
In my judgment, the first step toward clarifying
this situation is for a responsible public gi'oup to
study this problem and recommend to the Presi-
dent and the Congress the course we should follow
in our trade policy. I can think of no group better
qualified to do this than the Public Advisory
Board for Mutual Security. Representatives of
business, labor, agriculture, education, and the
public at large make up your membership. Both
major political parties are represented. Many of
you have held other higli positions of public trust.
From long association with the Marshall Plan and
now the Mutual Security Program, you are
familiar with the foreign policy of this country
and the problems of international relations.
I want you to consider all aspects of our foreign
trade policy as coming within the scope of your
investigation. In particular, I think you should
examine our tariff policy, with special reference
to the expiration of the Reciprocal Trade Agree-
ments Act in 1953 ; import restrictions, including
quotas and customs procedures ; agricultural pol-
icies affecting foreign trade; maritime laws and
regulations concerning carriage of American
goods ; and what to do about the problems of do-
mestic producers who may be injured by certain
types of foreign commerce. I would also like to
have your views on the role of international agen-
cies in the trade field.
104
DeparfmenI of State Bulletin
It is extremely important that the whole prob-
lem be examined. The effect of raising a tariff
to protect a domestic industry, for example, should
be evaluated in terms of the counter-restrictions
■which are raised against American exports abroad.
Our tobacco producers know what this kind of
discrimination can mean, but I am sure that there
are many others who are not fully aware of it.
Neither, I feel, have we really thought through the
full implications of our efforts to prevent the rest
of the free world from trading with the Iron
Curtain bloc. Having insisted that these coun-
tries severely restrict their trade in one direction,
what can we suggest to replace it ?
These are the kinds of problems which I want
you to consider. Mr. Gordon Gray made a signifi-
cant contribution in his study of foreign economic
policies in 1950. More recently, the President's
Materials Policy Commission, under the leader-
ship of Mr. William S. Paley, has emphasized our
national dependence on overseas sources of raw
materials.- Both of these studies, however, were
concerned primarily with other problems and
touched rather inciclentally upon trade policy.
In order that your recommendations may have
the widest possible influence, I believe that you
should proceed on an independent basis, not sub-
ordinated in any way to the Government agencies
concerned. I i-ecognize that the Director for Mu-
tual Security is, by statute, Chairman of your
Board. However, Mr. Harrinian has suggested,
and I agree, that he not sit with the Board for
the purposes of this undertaking.
I am asking all the departments and agencies
concerned with trade matters to give you full co-
operation and whatever assistance you may desire
in carrying this work forward.
Very sincerely yours,
Harry S. Truman
Export- Import Bank Loans
South Africa
The Board of Directors of the Export-Import
Bank of Washington announced on July 11 its
authorization of a credit of $19.6 million to the
Electricity Supply Commission of South Africa
for the expansion of steam electric-power facili-
ties. The credit will bear interest at the rate of
4 percent and is repayable over a period of I8I/2
years. "This is a strategic materials loan," Her-
bert E. Gaston, chairman of the Board of Direc-
tors of the Bank explained. "Its purpose is to
enable the Electricity Supply Commission to pro-
vide the additional electric power needed to op-
erate uranium-separation plants in connection
with South African gold mines. The Commis-
sion's electric power grid is already fully loaded
' For excerpts from a digest of volnme I prepared by
the commission, see Bulletin of July 14, 1952, p. 55.
with normal demands for domestic and industrial
power and is unable to take on service to the
uranium plants without additional generating
capacity."
The uranium plants were financed earlier by
Export-Import Bank loans in the amount of $35
million.
France
The Export-Import Bank of Washington an-
nounced on June 25 the extension of a 200-million-
dollar credit to the Republic of France in order
that France may receive immediately dollar pro-
ceeds of contracts now being placed in France
under the Mutual Security Program for military
supplies and materials to be delivered and paid for
at later dates. The credit is a general obligation
of the Republic of France and is further secured
by contracts being placed by the Department of
Defense.
Disbursements under the credit will be limited
to the dollar amount of contracts placed under the
Mutual Security Program for the year ending
June 30, 1952. The credit will bear interest at
2% percent. Payments to the bank will be made
as deliveries are accepted by the Defense Depart-
ment and the credit will have a final maturity of
June 30, 1954.
Logistical Support Agreement
With Union of South Africa
Press release 491 dated June 24
Acting Secretary Bruce and Ambassador G. P.
Jooste of the Union of South Africa on June 24
signed an agreement under which the Government
of the Union of South Africa agrees to pay in dol-
lars for the logistical support furnished by the
United States to the South African Air Force
squadron participating in the United Nations
collective action in Korea.
The South African fighter-bomber imit has been
in combat in Korea since November 1950. The ex-
ploits of its personnel have resulted in the award
by the United States Air Force of 28 Distinguished
Flyinp: Crosses, 126 Air Medals, 137 clusters to the
Air Medal, 2 Silver Stars, 12 Bronze Stars, and 1
Soldier's Medal. Their F-51 Mustang strikes
against the Communist transportation system and
their front-line close support have been heralded
by Lt. Gen. O. P. Weyland, Commanding General
of the Far East Air Force, as "classic examples of
outstanding airmanship and courage." General
Weyland also stated that "Members of Squadron
No. 2 of the South African Air Force have served
gallantly and valuably in the cause of the United
Nations action against the Communists in Ko-
rea . . . Members of the Far East Air Force are
proud to have this South African Air Force unit
on the team. Their motto 'Upwards and On-
Jo/y 27, J 952
105
wards' is most descriptive of this outstanding
squndrnn."
The United States has been providing the South
African Air Force squadron with materials, facil-
ities, and services required in Korea. The pres-
ent agreement fornuilizes the arrangement under
■which South Africa has already paid the United
States about 9 million dollars for logistical sup-
port. Additional payments will be made as
statements of account are presented by the United
States.
At the time arrangements are made for the par-
ticipation of the forces of the United Nations in
Korea, it has been the practice of the United States
to reach an understanding in principle that the
United States would be reimbursed for the logis-
tical support provided. Under this procedure,
the task of working out the detailed agreements
has not delayed the movement of personnel to
Korea. The "United States is now in the process
of negotiating agreements with other nations with
whom agreements have not yet been concluded.
The text of the agreement with the Government
of the Union of South Africa follows :
Agreement Betvcen the Government of the Vnited Sfnfea
of Anicricd (mil tlic Corrnimnit of the Union of Sovth
Africa Coveerning Participation of tlie Forces of the
Union of South Africa in United Nations Operations
in Korea
This agreement between the Government of the United
Stntes of America {the executive agent of the United
Nations Forces in Korea) and tlie Government of tlie
Union of SoiUh Africa sliall govern relationships in
matters specified lierein for forces furnislied hy the Union
of South .Africa for tlie operations under the Commanding
General of the Armed Forces of tlie Member States of the
United Nations in Korea (hereinafter referred to as
"Commander") designated by the Government of the
United States of .'America pursuant to resolutions of the
United Nations Security Council of June 25, 1050, June
27, 1950 and July 7, 1050.
Article 1. The Government of the United States of
America agrees to furnish the forces of the Union of
South .Africa with avallalile materials, supplies, services,
and equipment whicli the forces of the Union of South
Africa will require for these operations, and which the
Government of the Union of South Africa is unable to
furnish. The Government of the United States of Amer-
ica and the Government of the Union of South Africa will
maintain accounts of material, supplies, services, and
equipment furnished by tlie Government of the I'nited
States of America to the Government of the Union of
South Africa, its forces, or its agencies. Reimbursement
for such materials, supplies, services, and equipment will
be accomplished liy the Government of tlie Unicm of South
Africa upon presentation of statements of account by the
Government of the United States of .America. Such
payment will be effected by the Government of the Union
of South Africa in United States dollars.
Article 2. Pursuant to Article 1, appropriate technical
and administrative nrranL'ements will he concluded
between authorized representatives of the Government of
the United States of .'\merlca and authorized representa-
tives of the Government of tlie Union of South Africa.
Article 3. Classified Items, specialized Items, or Items
in short supply furnished to the Government of the Union
of South Africa by the Government of the United States
of America will be returned to the Government of the
10&
United States of America upon request, as a credit
against the cost of materials, supplies, and services pre-
viously furnished. If the Government of the Union of
South Africa determines at the time of redeployment of
its forces that materials or supplies received from the
Government of the United States of America hereunder
are not desired for retention, such materials or supplies
may lie offered to the Government of tlie United States
of America, and, if accepted, their residual value as
determined by the Government of the United States of
America will be used as a credit against reimbursement
for materials, supplies, and services previously furnished.
Article i. Each of the parties to this agreement agrees
not to assert any claim against the other party for injury
or death of members of its armed forces or for loss,
damage, or destruction of its property or property of
members of its armed forces caused in Korea by members
of the armed forces of the other party. Claims of any
other government or its nationals against the Government
or nationals of the Government of the Union of South
Africa or vice versa shall be a matter for disposition
between the Government of the Union of South Africa
and such third government or its nationals.
Article .5. The Government of the Union of South Africa
will maintain accounts of materials, supplies, services,
and equipment furnished by other governments to person-
nel or agencies of the Union of South Africa, either di-
rectly or through the Commander. Settlement of any
claims arising as a result of the furnishing of such ma-
terials, supplies, services, and equipment to the Union of
South Africa by such third governments, whether directly
or through the Commander, shall be a matter for consider-
ation between such third governments and the Government
of the Union of South Africa.
Article 0. If, with the approval of the Commander, per-
sonnel and agencies of the Government of the Union of
South Africa use media of exchange other than Korean
currency in Korea, obligations arising therefrom will be
a matter for consideration and settlement between the
Government of the Union of South Africa and the other
concerned governments.
Article 7. The Government of the Union of South Africa
agrees that all orders, directives, and policies of the Com-
mander issued to the forces of the Union of South Africa
or Its personnel shall be accepted and carried out by them
as given and that, in the event of disagreement with such
orders, directives, or policies, formal protest may be pre-
sented subsequently.
Article S. Nothing in this agreement shall be construed
to affect existing agreements or arrangements between the
parties for the furnishing of materials, supplies, services,
or equipment.
Article 9. This agreement shall come into force upon
the date of signature thereof, and shall apply to all ma-
terials, supplies, services, and equipment furnished or
rendered before, on, or after that date, to all claims
referred to in Article 4 arising before, on, or after that
date, and to all technical and administrative arrange-
ments concluded pursuant to Article 2 before, on, or after
that date. This agreement shall be deemed to have ter-
minated when each party has notified the other party
thereto that financial claims made by the one or the other
have been adjusted and that no further claims are to be
made.
In witness whereof, the undersigned, being duly au-
thorized hy their respective Governments, have signed
this agreement.
Done at Wasliington in duplicate, this twenty-fourth
day of June, 1052.
FOR THF GOVERNMENT OF THE UNITED STATES
OF AMERICA :
DAvin Brtjce
FOR THE GOVERNMENT OF THE UNION OF SOUTH
AFRICA :
G. P. JOOSTE
Department of State Bulletin
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
United Efforts Speed Migration From Europe
THIRD SESSION OF THE INTERGOVERNMENTAL COMMITTEE
FOR THE MOVEMENT OF MIGRANTS FROM EUROPE
l>y George L. Warren
The third session of the Provisional Intergov-
ernmental Committee for the Movement of Mi-
grants from Europe was held at Washington from
June 10 through June 13. The representatives of
the participating governments and international
organizations were welcomed at the first meeting
by Jolm D. Hickerson, Assistant Secretary for
U.N. Affairs. The election of a director, review
of operations to date, and consideration of plans
for the balance of 1952 were the important items
on the agenda. The Committee also agreed to
consider a Brazilian proposal to explore the pos-
sibilities of technical assistance and international
financing with a view to securing a larger volume
of migration.
The Migration Committee was established by 15
governments at Brussels in December 1951 imme-
diately following the Conference on Migration,
convened by the Belgian Government at the sug-
gestion of the United States. The Committee held
its second session at Geneva in February 1952,
with 17 governments represented as full mem-
bers.^
At the third session, 19 governments were repre-
sented as members : Australia, Austria, Belgium,
Bolivia, Brazil, Canada, Chile, Denmark, France,
Germany, Greece, Israel, Italy, Luxembourg, the
Netherlands, Paraguay, Switzerland, the United
States, and Venezuela. The following additional
governments participated as observers: Argen-
tina, Colombia, New Zealand, Norway, Peru,
' For articles by Mr. Warren on the Brussels Conference
on Migration and the first and second sessions of the
Committee for the Movement of Migrants from Europe,
see Bulletin of Feb. 4, 1952, p. 169, and ibid., Apr. 21,
1952, p. 638.
Ju/y 21, 1952
Sweden, and the United Kingdom. There were
indications at the session that New Zealand, Nor-
way, Peru, and Sweden will join the Committee
soon. The Holy See was represented, and ob-
servers were jjresent from the United Nations, the
Office of the U.N. High Commissioner for Refu-
gees, the Food and Agriculture Organization, the
International Labor Organization, tlie U.N. Edu-
cational, Scientific and Cultural Organization,
the Council of Europe, and the Organization for
European Economic Cooperation. Voluntary
agencies interested in migration also participated
in the session.
The Executive Committee of the Migration
Committee, consisting of Belgium, Brazil, Canada,
France, Germany, Italy, and the United States,
had originally been convened to meet at Washing-
ton on June 3. After the notices of the meeting
had been dispatched from Geneva, the U.S. Gov-
ernment advised the chairman of the Committee
that it would be prepared to nominate a candidate
for the post of director at the next session of the
Committee. In consequence, the full Committee
was convened for its third session at Washington
on June 10. Dr. J. Roberts (Netherlands) \yas
elected chairman; Count Giusti del Giardino
(Italy), first vice-chairman; Fernando Nilo cle
Alvarenga (Brazil), second vice-chairman; H. von
TrutzscMer (Germany), rapporteur.
Hugh Gibson Elected Director
At the second meeting of the third session, the
U.S. representative nominated former U.S. Am-
bassador Hugh Gibson for election as director of
the Committee. Mr. Gibson has previously served
107
as American Ambassador to Belgium, as Minister
to Luxembourg, and as Ambassador to Brazil. He
has represented the U.S. Government at many
international conferences and collaborated with
Herbert Hoover in important relief activities
abroad. The nomination was immediately sec-
onded by the representatives of Belgium, Brazil,
Canada, France, Germany, and Greece. Mr. Gib-
son was elected unanimously and accepted the post.
The deputy director reported that during the
period February 1 to May 31 — 38,942 migrants and
refugees had been moved out of Europe to coun-
tries of resettlement. Of these 25,326 had come
from Germany, 7,555 from Austria, 2,228 from the
Netherlands, and 1,716 from Italy and Trieste.
The receiving countries were the United States,
28,423; Australia, 4,621; Canada, 2,068; and
certain areas of Latin America, 1,559. The
movement of approximately 12,000 refugees, re-
sponsibility for which was turned over to the
Committee on Feliruary 1 by the International
Refugee Organization (Ieo), had been virtually
completed by May 31. Included in this group
were 300 refugees from Shanghai and Hong Kong,
whose transport was paid for out of a special
trust fund established with the Committee by Iko.
Toward the total cost, $2,737,096, of movement of
these refugees, the Iro has paid $2,284,255 and has
undertaken to pay the balance of approximately
$450,000 from further funds to be received during
its period of liquidation. The Committee has also
been reimbursed by the U.S. Dis])laced Persons
Commission for the movement of German ethnics
to the United States under the Displaced Persons
Act.
In making his report, the deputy director
warned that the high rate of movement in the
first 4 months of the Committee's operations should
not be expected to be maintained in the succeeding
months because anticipated movements from
Germany to Canada and Australia would not
reach their peaks until late summer. These
movements have been delayed because of condi-
tions in the receiving countries beyond the con-
trol of the Committee. It was anticipated that
there would be insufficient passengers to utilize
the ships available to the Committee to the full in
the succeeding 2 months, whereas the Committee
might face a shortage of ships to move all the
traffic available later in the year. This possibility
may develop also from the fact that tlie organiza-
tion of processing services for migrants in Greece
and Italy has not been completed, and plans of
the Latin American countries for recruitment in
1952 in Greece and Italy await finalization.
Optimism Prevails in Session
In spite of these observations of the deputy di-
rector, the Committee remained optimistic that
the interrujotion in movement would prove tempo-
rary, particularly as preparation for future move-
ments is already well advanced. The keen
interest of the emigration and immigration coun-
tries in the work of the Committee, frequently
expressed in the discussions, justified the spirit of
optimism which prevailed throughout the session.
In this connection, the report that the Netherlands
would require three full ships from the Committee
by midsummer for the movement of additional
migrants to Canada and Australia was reassuring.
However, the deputy director expressed his judg-
ment that the total movement for 1952 would be
nearer to 121,000 than to 137,000, the estimate
made at the second session of the Committee in
February.
Ways and Means Considered
The financial statements presented for the
period from February 1 to May 31 showed that
more than half of the obligatory contributions of
member governments to the administrative ex-
penditures had been received in the total of $1,-
132,328. $5,818,716 had been contributed to the
operating fund, and $8,295,721 had already been
received from difl'erent governments and organi-
zations in reimbursement for movements or cred-
ited to governments for services rendered to the
Committee. The Mutual Security Act of 1952 au-
thorizes an appropriation of $9,240,500 to cover
the U.S. contribution to the Committee for its
second year.
On examining the financial statements the Com-
mittee did not consider that they were presented
in a form that would be most useful to the member
governments. To secure improvement in the fu-
ture presentation of such statements and other-
wise to advise the Committee and the director on
financial and budgetary matters, the Committee
established a Sub-Committee on Finance, com-
posed of the Goveriunents of Australia, Canada,
France, Germany, Italy, the Netherlands, and the
United States. The Sub-Committee was also di-
rected to prepare a revised scale of contributions
to the administrative expenditures for the second
year of operation to be presented for the consid-
eration of the Committee at its fourth session.
The Sub-Committee held one meeting during the
third session and made recommendations to the
full Committee concerning the future presentation
of financial statements, which were accepted.
Responding to the initiative of the Brazilian
representative, the Committee adopted a resolu-
tion requesting the director to confer with other
international organizations active in the field
of migration ancl to report to the Committee at
its next session the findings and conclusions of
these organizations with respect to ways and
means of facilitating migration through technical
assistance and international financing, which
might be of significance to the Committee in its
efforts to achieve greater movement out of Europe.
On June 11, at the White House, the President
108
Department of State BuHetin
welcomed the chiefs of delegations of the member
governments, the representatives of governments
participating as observers, and the representatives
of international and voluntary agencies. The
President expressed his personal interest in the
Committee and extended his best wishes for the
success of the Committee's efforts.
George L. "Warren, Adviser on Eefugees and
Displaced Persons in the Department of State,
was chief of the U.S. delegation. Sen. Pat Mc-
Carran of Nevada and Rep. Francis E. Walter
of Pennsylvania were alternate U.S. representa-
tives. Representative Walter addressed the Com-
mittee briefly on June 12. The U.S. delegation
entertained the representatives of the governments
and organizations participating in the session at
a reception on June 10.
The Committee decided to convene the fourth
session at Geneva early in October 1952.
Soviet Propaganda, Not U.S. Press, Is
Threat to World Peace
Statement hy Walter Kotschnig
Deputy U.S. Representative in ECOSOC
U.S. /U.N. press release dated June 12
I have no intention of participating in a gen-
eral discussion on freedom of information, and
that for the simple reason that we have had a veiy
full discussion of that problem of the report of
the Subcommission on Freedom of Information
and a number of related questions in the Social
Committee. Several days were spent on these
subjects in the Committee.
However, since my country has been singled so
often for special attack, I hope you will allow me
to say a few words. I will be very much briefer
than the representative of the Union of Soviet
Socialist Republics.
The first conclusion that I think all of us must
have drawn from his speech is that he was ob-
viously not interested in the work of the Council.
He is not interested in whether or not this Coun-
cil achieves anything in the field of freedom of
information. What he really wants is a gallery
to which he can speak; otherwise, why wasn't his
speech made in the Committee in order to save the
time of the Council ? What he really has in mind,
what he is interested in, above all else, is propa-
ganda and nothing but propaganda. And, we are
getting tired of it. That is my first conclusion.
As to the speech itself, the recipe for preparing
these speeches on the part of the Union of Soviet
Socialist Republics and their friends here in this
Council is very simple. It is like preparing a
salad. Toss well a heap of assorted clippings
from Western newspapers, add a dash of Marxist
dialectics, and serve with plenty of Russian
dressing !
I am not going to answer in detail. I can as-
sure the members of the Council of that. I would
just like to pick out one or two of the more obvious
untruths that have been inflicted upon this
Council.
The American press, for the hundred thou-
sandth time, has been accused of being a press of
warmongers, a press that is poisoning the minds
of millions of people. Everyone knows that in a
free press like ours, statements may appear which
might better have been left unpublished, state-
ments that are irresponsible. However, anyone
who looks at the tens of thousands of newspapers
and magazines published in this country will see
reflected in them one thing above all— and that is
the passionate desire of the American people for
peace. No quotations taken from here and there,
and tossed together into this kind of Russian salad,
is going to change that fact.
One publication was quoted — the name was not
given but it is a publication that I think was en-
titled "We Charge Genocide"— which talks about
alleged conditions in the southern part of this
country. This publication was described by some
of the most outstanding Negro leaders in this
country as a piece of out-and-out Communist
propaganda and nothing else.
I am not going to talk about the question of
newspaper monopolies in the United States, an-
other pet subject of the Communist representa-
tives. If we turn around and look at the Soviet
press, the Soviet media of information, we are
told, of course, that they have got complete free-
dom— complete freedom I take it to repeat what-
ever Stalin and the Politburo tells them to say.
Far from being free, you have here a press that is
completely controlled. The Soviet representative
referred with approval to a New York paper, I
believe it was the Daily Compass., but there is not
a paper in the whole of the U.S.S.R. like the
Daily Compass or other papers that may disagree
with governmental policies in his country. Not
a one. You just try and start one of those papers
and see how quickly you will find yourself in a
forced labor camp in Siberia.
We are told their press is full of sweetness and
light. We are told there is a law against war-
mongers and that there is no warmongering any-
where in the Soviet world. Fine! — but what is
the truth? Gentlemen, whether you read the
Soviet newspapers, or hear their radio broadcasts,
or look at their history books you will find that
the whole world's history has been rewritten to
suit the purposes of the Communists in Russia.
And, it has been rewritten not with the idea of
spreading sweetness and light but to create mis-
trust, fear and hatred against the countries of
the Western World.
July 27, J 952
109
We also can read. We do not have as easy ac-
cess to Soviet papers as the Soviets have to our
papers. They are very careful in controlling what
may be let out of the country. However, let me
give a few examples to show you what the Com-
munist rulers mean by peaceful propaganda in
the Soviet Union designed to spread truth and to
create friendly relations among nations.
Here is one from the New Times of 1946, written
by a great Russian journalist, Ilya Ehi'enburg,
after his visit to the United States. He says that
he saw a large billboard in Times Square on which
was depicted the crucifixion scene, and beneath
the cross was the caption, "If Christ had been
crucified today, he would not have asked for water
but for coca-cola." Is that truthful reporting
about the United States? I suppose that it was
intended to give an idea of the depth of religious
life in the United States.
Take another one — "The overwhelming major-
ity of Negro schools in America consist of one
room. The majority of all these schools have
only one female school teacher who lectures in all
the classes. The native Negro language has heen
eJhmnated from all these schools in America.''''
The italics are mine.
Or take another one from Pravda, October 21,
1951. "A specialist has been found to tag all
Ajnerican school children. The tags are to state
the name and address of the child and the number
of his school. All children are to be luunbered
and registered as if they were already in a con-
centration camp." We shall next hear that these
concentration camps are just outside of New York
City. "Having terrified the children and poisoned
infant minds with the thought of death, the in-
famous warmongers are now trying to create panic
among adults. A panic which is needed to empty
the people's pockets. The whole loathsomeness
of the American way of life can be judged from
this example alone."
Now, I submit, this is the kind of writing that
goes on day after day in the Soviet press. It is
the kind of writing to which, I take it, the dis-
tinguished representative of the Soviet Union re-
ferred when he spoke of news designed to create
better relations among peoples.
The Soviet Home Radio Service on May 30,
1952, broadcast that "Up to 111,000 infants, less
than one year old, die yearly in the United States."
It happens we have one of the lowest infant death
rates in the world, but of course it would not make
for friendly relations if that kind of fact were
mentioned in tlie Soviet press. And then the
broadcast continued : "Many working people in
order to save their children from starvation are
selling them as slaves."
I have a few more quotations, Mr. President,
that are so filthy, so evidently the ravings of
warped minds, that I do not want to put them
before the Council. Yet, that kind of sinister
falsehood is served up to the Soviet people,
intrinsically a friendly people, day in and day out,
year after year.
For what purpose? In order to create peace,
in order to create understanding among us?
Obviously not !
Mr. President, we see the results of that kind of
propaganda, insistent, pernicious propaganda,
destructive of any basis for peace. We see the
results in this very room here. We see the results
of this at this very table, Mr. President. We see
the results in the persons of the representatives
of the Communist countries. Their own thoughts,
their own ideas of the United States, of the whole
free world have become completely warped and
perverted. They have become victims of their
own propaganda and the very arguments which
they are putting before this Council are twisted
and full of lies, and are dripping with hatred.
I do not think I have to add anything else, Mr.
President. I am speaking in sorrow rather than
in anger when I say that it is Soviet propaganda
which is the real threat to the peace we want so
desperately to maintain.
First Meeting of Pacific Council
Press release 507 dated June 30
The Department of State on June 30 announced
that the Governments of Australia, New Zealand,
and the United States have agreed that the first
meeting of the Council, created by the security
treaty which came into effect on April 29, 1952,
will be held in Honolulu during the first week of
August.
The treaty established a Council, consisting of
the three Foreign Ministers of the Governments
concerned, or their deputies, to consider matters
concerning the implementation of the treaty. It
is expected that Secretary Acheson, the Australian
Minister for External Affaii'S, Richard G. Casey,
and the New Zealand Minister for External Af-
fairs, T. Clifton AVebb, will attend the first meet-
ing.
A simultaneous announcement is being made in
Canberra and Wellington.
110
Department of State Bulletin
Planning for the Relief of Famine Emergencies
Statement hy Isador Lvhin
U.S. Representative in the U.N. Economic and Social Coimcil
U.S. /D.N. press release dated .June 27
It is a matter to which all of us can point with
some pride that tlie United Nations and the spe-
cialized agencies, in cooperation with govern-
ments and with the various voluntary relief or-
ganizations, are making progress toward the
establishment of arrangements by which they can
come promptly to the aid of populations which
may suffer famine as a consequence of natural
catastrophe. We, at this session of the Council,
have an opportunity to take an important new
step in this direction.
A number of actions taken thus far have pre-
pared the ground. For example, the General
Assembly, in resolution 202 (III) of December 8,
1948, in connection with the problem of food
wastage, called attention to the need for increasino;
the world's available supply of food, and called
for action by governments and by intergovern-
mental organizations looking to the increase in
food supply not only througli the elimination of
wastage but also through increased production.
This Council subsequently put the problem for-
ward at its thirteenth session, taking note of the
increasing effectiveness of the woi-k of the Fao
[Food and Agriculture Organization] toward im-
proving agricultural production and recommend-
ing that the Fao keep the food-shortage situation
under surveillance with a view to making emer-
gency reports in instances of critical food short-
ages or famine. The Fao, from the time that it
was established, has been working at this problem.
The Sixth Annual Conference of the Fao adopted
three resolutions. The first imposed on the Di-
rector General of the Fao the responsibility of
keeping watch for emergency food shortages and
famine, investigating the nature of the emer-
gency, and reporting on the extent of international
assistance needed. The second provided for the
convening of a meeting of the Council of the Fao
and of interested governments in the case of a
famine emergency. The third provided for the
exjDloration of suitable ways and means of estab-
lishing an emergency food reserve. In February
1952 the General Assembly adopted a resolution
on food and famine, calling upon governments and
intergovernmental organizations to attack the
problem in a variety of ways.^ And, now we have
before us the excellent study of the Secretary-
General (E/2220), prepared in response to that
resolution, discussing procedures for bringing
about promptly concerted and effective interna-
tional action in the event of a famine emergency.
As a background for discussing the appropri-
ate action for the Council to take in the light of
that report, it seems useful to make a distinction
between, on the one hand, the general problem of
food shortage and undernourishment in the world
as a whole and, on the other, the particular prob-
lem of meeting extreme famine emergencies caused
by natural catastrophes of an unpredictable
nature.
The General Problem of Food Shortages
As concerns the general problem, all of our
governments — at least all of them cooperating in
the work of the Fao — are engaged in an all-out
struggle which must be progressively increased
in intensity if enough food for all of the people
of the world is to be produced. Many countries
have been finding ways of stimulating their agi'i-
cultural production. We in the United States
have been pai-ticularly fortunate in recent years
because nature has cooperated with us in our ef-
forts in this direction. But other factors have also
been imiDortant in our success. We have main-
tained price supports as an inducement to pro-
duction. We have stepped up our research and
extension work so that our farmers can know of
'U.N. doc. A/L. 60.
Jo/y 21, 1952
111
the more advanced techniques for maximizing
agricultural production. We have called upon
our producers to make a maximum effort to in-
crease their output. As a result, we have been
able to increase our agricultural production as a
whole from 40 percent above its level prior to the
war. In the same period, in the face of rising
standards of living and a rapid increase in popu-
lation, we increased the quantities of food avail-
able for export. In the year 1951 we exported
about four times as much food as we did on the
average during the 5 years just prior to the war.
Some of this food has been used to respond to the
needs of populations suffering from famine emer-
gencies. AVe hope always to be able to spare some
of our food when such emergencies arise.
Under present prospects, given normal weather
conditions and a sustained market, we may see
an increase of as much as another 15 or 20 percent
by 1960. Such an increase would be substantially
larger than the probable rise in our population
and would, therefore, provide larger food sup-
jjlies for export to the other parts of the world.
But these favorable figures do not mean that
victory is in sight in the battle to provide enough
food for the peoples of the world. On the con-
trary, most countries have not had as good fortune
in this matter as we have. As the representa-
tive of the F.\o in this Council informed us, the
population of the world as a whole is growing
faster than the food supply. Morover, the pro-
gress of industrialization in a number of im-
portant food-exporting countries has increased
domestic utilization of food and decreased the
quantity available for export. The campaign to
increase world food production must go on and
must gain greater and greater momentum if the
general problem of providing enough food is to
be solved.
Factors Limiting Relief Efforts
But even if we assume its solution, even if our
food production efforts succeed beyond present
hopes, the famine emergency problem will still be
with us.
At some time, in some places, there will be
drought or pestilence, or other natural causes of
crop failure. And when such disaster strikes, the
peoples of the world will wish to come to the help
of their suffering fellowmen as far as they can.
They expect vis, who are forging the instruments
of intergovernmental collaboration in common
purposes, to establish institutions that will facili-
tate the relief of populations suffering from
famine.
In this connection it might be appropriate if I
were to say a word more about the Fad action to
investigate the possibilities of creating an emer-
gency famine reserve. The Secretariat of the Fao
was called upon to initiate the study of this prob-
lem and responded with an admirable paper which
draws few conclusions but presents a penetrating
analysis of many of the important problems in-
volved and suggests a few among many possible
alternative solutions. A study of the Fao report
brings out that the problem is greatly aggravated
by the general world-food-shortage situation to
which I have just referred at some length. At a
time when, as the Fao has told us, many people in
the world are receiving less than enough food to
maintain strength and health and when some
people are, in fact, starving, it is a matter of some
question at least whether it is justifiable to with-
hold food from current consumption in order to
build up a reserve to be held against the possibility
of future emergency need. Even if it is decided
to create such a reserve, the Fao report raises the
question as to how severe the famine circumstances
must be in order to bring about the release of por-
tions of the reserve. Unless there is a definite
answer to this question, the holders of the reserve
food would find it rapidly disappearing to meet
the current real needs of undernourished popula-
tions. In addition, there are many other problems
raised by the Fao report, as for example: Where
and how to hold the reserve food so that it is most
readily available; what commodities to use —
whether to use surpluses that may appear or to
make a reserve of a certain ideal composition from
the point of view of maximum nutritive effective-
ness in relieving famine conditions — and so on.
The Council of the Fao, at its session 2 weeks
ago, decided on the establishment of a working
party of experts to be provided by five govern-
ments— two of exporting countries, two of import-
ing countries, and one of a country havinof an
approximate balance in its food trade. This
working party is to continue the work begun by
the Fao Secretariat with the idea of producing a
recommendation as to how best to meet the vari-
ous problems brought out in the Secretariat study.
One thing that appeal's from the Fao discussion,
as far as it has proceeded, is the need for a care-
ful review of the circumstances associated with
efforts to relieve notable famines of recent times.
It is important that we know what factors have
limited those efforts. Has it been the lack of food
supplies available in the world? Has it been the
lack of international purchasing power available
to the famine country ? Or have some other con-
ditions limited the provision of adequate relief?
There is some noteworthy opinion that the im-
portant limiting factor has been the failure of
governments and agencies to make the necessary
advance preparations to act promptly when fam-
ine conditions become known.
The fact of the matter is that, to an extraor-
dinary degree, the people and governments of
the world- — certainly of the free world — are gen-
erous when disaster strikes a population in an-
other country. They are more generous after the
disaster has hit than they are when it is still only
a future probability. Planning for the relief of
112
Department of State BuUetin
U.S., Iranian, Uruguayan Draft Resolution
U.N. doc. E/L.S73/Rev. 2
Dated June 27, 1952
The Economic and Social Council,
Being deeply conscious of tlie wish of the peo-
ples of the United Nations, as expressed in resolu-
tions of the General Assemljly and the Conference
of the Fao, to be prepared to come to the aid of
people in any country whenever the vagaries of
nature may visit upon them famine emergencies
with which their governments are uiialjle to cope,
Recognizing that such famine emergencies may
sometimes occur despite every effort to solve the
continuing problem of world food shortages through
increases in food production,
Having before it the report (E/2220) prepared
by the Secretary-General on procedures for inter-
national action in the event of emergency famines
arising from natural causes.
Recommends :
1. That governments, inter-governmental organ-
izations, and voluntary agencies prepare themselves
to act in concert promptly and effectively in the
event of such famine emergencies, and, in particular,
2. That governments malie appropriate advance
aiTangements for the designation of ministries or
agencies to be responsible for carrying out famine
relief activities in their territories ; this should
include: (a) the mobilization of local resources,
(b) liaison with other governments and organiza-
tions, (c) the co-OTdlnation of the activities of na-
tional voluntary agencies, (d) the provision of
transport, direct distribution mechanisms and other
facilities for delivering available food to famine
areas, (e) suitable publicity to assure fullest puWic
co-operation in local and international relief ac-
tivities, and (f ) the preparation of reports to the
United Nations,
3. That governments obtain authority for the
suspension of customs duties and other Ijarriers to
the emergency importation of food,
4. That, in these arrangements, the famine relief
activities of local and international voluntary
agencies be given fullest opportunity and encourage-
ment, and support be given for the establishment
and co-operation of duly organized voluntary or-
ganizations such as the national Red Cross and
Red Crescent Societies noted in General Assembly
resolution 55 (I),
5. That the Fao continue to develop and perfect
its arrangements to detect famine emergencies as
early as possible, ascertain their scope and probable
duration, and advise the Secretary-General
promptly when international action is needed, and
6. That the Secretary-General, as circumstances
may require, arrange for co-ordination of the famine
emergency relief activities of, and seeli the co-op-
eration of, inter-governmental organizations, gov-
ernments and voluntary agencies through consulta-
tion and other appropriate mechanisms, and report
to the Economic and Social Council on action under
this resolution, and
Commends the Fao for the study, begun by the
Pao Secretariat and being carried forward by a
committee of experts set up by the Fao Council, to
determine whether suitable ways and means can
be found for establishing an emergency food reserve
which would increase the ability of the United Na-
tions to come to the aid of peoples threatened by
famine emergencies.
future disaster is an intellectual process based
upon hypothetical situations. But acting together
in an existing emergency is an essentially emo-
tional process. We respond with our hearts to a
need that is real and actual. But when every-
body wants to do something about something at
the same time, without previous arrangement as to
wlio is to do what, the very promptness and inten-
sity of the response may cause confusion and delay
and inefficiency.
Such lack of organization sometimes contributes
to despair in the famine area. A panic situation
may greatly aggravate the sufferings of the
affected population. Hence the proposal before
us that we organize so that the international
organizations and the governments of the world
will be ready to work together promptly in a con-
certed fashion with maximum effectiveness is an
important step in preparing to deal with famine
emergencies. There must not only be a ready
response but there must be pre-arranged channels
for coordination and liaison and pre-arranged
mechanisms for alerting the world in time. It is
to this problem that the Secretary-General ad-
dressed himself in the paper before ns. That
paper shows a very good understanding of the pro-
July 27, 7952
cedural problems involved. In particular it
stresses the need for flexibility in the methods
used under differing circumstances for coordinat-
ing assistance from governments, intergovern-
mental organizations, and voluntary agencies. At
the same time, it makes clear the importance of
advance arrangements for the assignment of re-
sponsibility and for coordination and liaison.
The delegations of Iran and Uruguay and my
delegation have put before you a resolution (E/L.
373/Ilev. 2) which calls upon governments, inter-
national organizations, voluntary agencies, and
the Secretary-General to make the necessary
arrangements in a flexible but coordinated way.
In conclusion, I should like to mention one inci-
dental but not unimportant byproduct of our
taking this action. Through cooperation in the
necessary advance arrangements, the agencies in-
volved— and people everywhere — will have a
present sense of participation in the world's
arrangements for dealing with this age-old prob-
lem of famine. As one can do only by participa-
tion, they will realize that the United Nations is
aware of this famine danger and has taken the
lead in putting the world in a position to meet
the danger.
113
Report of U.N. Command Operations in Korea
FORTY-SECOND REPORT: FOR THE PERIOD
MARCH 16-31, 1952 '
U.N. doc. S/2662
Transmitted June 13. 1952
I herewith submit report number 42 of the United
Nations Command Operations in Korea for the period
16-31 March 1952, inclusive. United Nations Command
communiques numbers 1205-1220, provide detailed ac-
counts of these operations.
Substantive progress was made on agenda item 3, con-
crete arrangements, through the persistent efforts of
United Nations Command staff officers.
The subject of ports of entry was finall.y resolved when
the United Nations Command reduced its requirement
for these complexes from six to five and the Communists
agreed to the following United Nations Command provi-
sions :
A. A port of entr.v shall Include the railheads, airheads
and seaport facilities associated with and supporting a
city, and
13. Rotation and replenishment shall be conducted only
in the mutually agreed ports of entry.
Detailed maps of the ports of entry were prepared b.v
each side and were exchanged. The following specific
ports of entry have been prepared :
A. By the Communists : Sinuiju, Chong.1in, Manpojin,
Hunguam and Sinanju.
B. By the United Nations Command : Pusan, Inchon,
Kangnung, Kunsan and Taegu.
Slight progress was made on the sul:)ject of the neutral
nations in.spection teams when the Communists agreed,
on the staff officers level, that these teams will not be
authorized to inspect or examine secret designs or char-
acteristics of combat aircraft, armored vehicles, weapons
or ammuuitiiin.
The United Nations Command Representatives have
brought up repeatedly the problem of neutral nations and
the previously agreed to principle which stated that the
neutral nations would be selected on the basis of being
mutually acceptable to both sides, reiterating their stand
'Transmitted to the Security Council by Ambassador
Warren R. Austin, U.S. representative in the Security
Council, on June 13. Texts of the 30th, 31st, and 32d re-
ports appear in the Bulletin of Feb. 18, 1952, p. 266 ; the
33d report, ibid.. Mar. 10, 19.52, p. 305 ; the 34th report,
iliii.. Mar. 17, 1952, p. 4.30; tlie 35th report, ihid.. Mar. 31.
19.52, p. 512 : the 36th and 37th reports, ibid., Apr. 14, 1952,
p. 594; the .3Stli report, ibid.. May 5, 19.52. p. 715; the .39th
report, ibid.. May 19, 19.52, p. 7SS ; the 40th report, ibid.,
June 23. 1052, p. 998; and the 41st report, ibid., June 30,
1952, p. 1038.
that the Union of Soviet Socialist Republics is not accept-
able to the United Nations Command as a neutral nation.
In each instance the Communist side answered with
vague generalities.
There are only two important issues remaining to be
settled under agenda Item 3. United Nations Command
reports numbers thirty-seven, thirty-eight and forty have
explained the United Nations Command position on these
issues, which are :
A. Agreement to limit airfield construction and
rehabilitation.
B. Agreement on the composition of the neutral nation
inspection teams.
In discussions on agenda item 4 the United Nations
Command delegation, realizing that discussions at sub-
delegation level had reached a point at which progress
was extremely slow, proposed to the Communists that
talks revert to staff officer level. It was emphasized by
the United Nations Command that the respective staffs
might be able to better explore and clarify the stated
positions of each side, provided the Communists were sin-
cerely Interested in seeking a fair and honest solution to
a problem to which they had added unnecessary compli-
cations. The Communists agreed, and on 10 March staff
officers' meetings were convened.
The initial meetings at the lower level started with
characteristic Communist stubbornness and ambiguity.
United Nations Command efforts to crystallize the exact
meaning of a Communist proposal made In early March,
on which they apparently place<l much importance, pro-
duced little result. No firm commitments could be secured
on what they termed a reasonable proposal — that both
sides should establish the principle of release and re-
patriation of all Prisoners of War after an armistice is
realized on the basis of data which have already been
exchanged concerning the prisoners In the custody of
both sides.
The Communists indicated they would negotiate more
freely and informally if the dally developments of dis-
cussions were witliheld from the press. While the United
Nations Command had favored prompt and accurate
reporting of negotiations to all news media in the belief
that such information was of vital and material interest
to the world, it accepted the suggestion of a news blackout
in the Interest of eventual agreement. Accordingly, dis-
cussions were moved to executive sessions, but only after
it was clearly explained to the press that reports of the
day-to-day discussions were to be withheld to permit the
representatives of both sides to express them.selves frankly
witliout any implication of a commitment prior to the full
development of their respective views. The United Na-
tions Command gave its assurance to all news reporters
114
Deparfment of Sfafe Bulletin
that any substantive agreement reached would be an-
nounced promptly.
The Communists alleged that, on 16 March at 0135
hours, a United Nations Command aircraft strafed a
Prisoner of War camp in the vicinity of Chang-Song,
wounding at least one British prisoner. An immediate
investigation by United Nations Command indicated that
while night intruder aircraft were operating in the area
at that time, it was impossible to verify the Communist
claim since no Prisoner of War camp had ever been lo-
cated in thi.s vicinity, marked or unmarked.
The United Nations Command made another strong pro-
test to the Communists over their failure to carry out the
agreement they made on 24 January to mark every camp
so as to be identifiable from the air. Further, it appears
that the locations of war prisoners camps and even their
total number have been purpo.sely obscured by failure to
mark them properly and by contradiction as to location so
as to establish a semi-sanctuary for military installations
in the immediate area. Of those camps reported by the
Communists, nine are on or very near main routes vital to
the Communist supply system. In addition, three im-
marked camps reported as being in the vicinity of
Pyong>ang have served to deter the United Nations Com-
mand from normal air action in that area, even though it
is fully realized the Communists are using this opportunity
for establishment of a strategic supply point. The Com-
munists avoided direct queries by the United Nations
Command as to the marking and adequate night lighting
of their camps, claiming only that they had marked such
installations and that the agreement reached by both sides
did not specifically require camps or their markings to be
lighted at night. After strong pressure from the United
Nations Command, the Communists agreed to another
meeting of representatives of both sides to resolve defi-
nitely the exact locations of war prisoner camps and the
identifying markings of each.
Of those national Red Cross Societies previously invited
to participate in the joint Red Cross operation to assist
in the exchange of Prisoners of War. all have replied
except Greece. Some representatives have already arrived
in the Far East and notification has been received that
others will be enroute soon. Detailed planning for the
training, logistical and administrative support, and for
field operations of the Red Cross teams is now being
prepared in co-ordination with United Nations Command
military agencies which will be Involved in the over-all
use of the joint teams. The enthusiastic support and high
degree of interest which this project has received has been
extremely gratifying and holds high promise for its
success.
The status of agenda item 5 remains unchanged. The
United Nations Command delegation is prepared to meet
with the Communists at staff officer's level to incorporate
the agreed article, as quoted in United Nations Command
report number 40, into the armistice agreement. The
Communists have not yet requested this meeting.
Combat action along the battle line continued to be
minor in nature. Hostile units on the front again directed
their principal efforts towards turning back United Na-
tions Command patrols. The majority of the patrols were
used to provide security for United Nations Command
main battle positions. Other patrols maintained a con-
tinuous reconnais.sance of enemy positions and activities,
while patrols of still another category were dispatched
with tlie mission of seeking combat with specific enemy
elements or positions. These latter patrols, through the
capture of prisoners and by accurately ascertaining enemy
strengths and dispositions, continued to constitute a pri-
mary source of front line intelligence. For this same
purpose, hostile units launched scattered exploratory at-
tacks against United Nations Command forward positions,
usually during the hours of darkness, employing small
units, normally of squad strength. A single unsuccessful
battalion-size assault constituted the only deviation from
this pattern of action. Enemy armor failed to participate
July 21, 1952
in the battle action, but hostile units continued to expend
relatively liberal amounts of artillery and mortar am-
munition. This expenditure continued to reflect the
enemy's strong logistical position, but it failed even to
approximate the much larger quantities expended by
United Nations Command elements against hostile targets.
Front lines, enemy capabilities and enemy dispositions
along the battle front remained unchanged during the
period.
Scattered patrol clashes and enemy probing actions oc-
curred along the length of the fifty-mile western front
extending from Hungwang to the vicinity of Chingdong.
However, enemy interest was centered on the six-mile area
east of Punji. In addition to numerous patrol clashes,
the enemy conducted more probing attacks against United
Nations Command positions in the Punji area than else-
where on the western front. The Punji area was also
the site of the enemy's most aggressive attack, when a
hostile battalion launched a limited objective thrust
against forward United Nations Command positions on
18 March. Although vigorous, the enemy failed to make
any gains and was forced to retire after three hours of
fighting. Hostile armor, although not engaging in battle
action, was evident in the enemy's rear areas on the west-
ern front. The enemy thus far has shown little inclina-
tion to employ his armor in any manner which would ex-
pose it to United Nations Command fires.
A similar pattern of patrol clashes and scattered enemy
probing action typified hostilities on the central and east-
ern fronts during the period. The majority of the action
consisted of United Nations Command-initiated patrol
clashes, the greatest number of which took place in the
Talchon and Mulguji areas. Enemy artillery and mortar
fires were heaviest on the eastern front, and again in-
cluded a sprinkling of propaganda leaflets. Weather did
not adversely affect ground operations along the battle
line during the period, although poor visibility occasion-
ally hami)ered the effectiveness of light aircraft.
The enemy's capability for waging offensive action was
undiminished during the period. Despite the enemy's pre-
paredness there is little evidence to suggest any early
hostile offensive. The preponderance of hostile activity
and statements of Prisoners of War continued to reflect
a defensive attitude without disclosing when this attitude
may terminate.
United Nations Command carrier-based aircraft, operat-
ing in the Sea of .Japan, concentrated their attacks on
vulnerable rail lines along the Korean east coast. .Tet and
conventional flahters and bombers successfully cut rail
lines in many strategic places and destroyed or damaged
transportation and supply installations, facilities and
material.
United Nations Command carrier aircraft operating in
the Yellow Sea provided cover and air spot for surface
units on blockade and anti-invasion stations. They also
flew offensive strikes and reconnaissance missions as far
North as Yongyu and Hanchon, into the Chinnampo area
and Hwanghai Province, and along the North bank of the
Han River.
Patrol planes conducted daylight reconnaissance mis-
sions over the Sea of Japan, the Yellow Sea and the
Formosa Straits. Day and night patrols and weather
reconnaissance missions were also conducted for the sur-
face units.
United Nations Command fire support vessels operating
in support of the United Nations Command ground forces
successfully attacked many enemy positions, destroying
or damaging bunkers, gun positions and inflicting casual-
ties on enemy personnel.
The Naval blockade continued along the East coast from
the line of contact to Chongjin. The ports of Wonsan,
Hungnam and Songjin were kept under siege. Enemy
shipping was reduced to a minimum and enemy positions
and tran,sportation facilities were damaged or destroyed.
A friendly unit, occupying a small island South of Kojo,
was attacked by an enemy force supported by artillery.
One enemy junk was captured, another sunk, and two more
115
probably sunk before friendly forces evacuated the island.
Enemy shore batteries were active on eight clays in the
Wonsan and Hungnam areas. One hit was made on a
United Nations Command vessel but damage was negligi-
ble. Return fire from United Nations Command vessels
succeeded in destroying or damaging several bunkers and
gun positions.
United Nations Command surface units manned anti-
invasion stations along the West coast, from Chinnamix)
to the Han River estuary, in support of the friendly is-
lands north of the battle lines. During darkness, enemy
positions and invasion approaches were illuminated and
signs of enemy activity taken under fire. Daylight mis-
sions started many fires and inflicted troop casualties.
Enemy shore batteries were active against friendly islands
and United Nations Command ships, particularly the mine
sweepers. The enemy launched an attack against Yong-
mae-Do b.y crossing the mud flats at low tide. The attack
was successfully repulsed by United Nations Command
vessels which illuminated and fired into the attacking
force.
Mine sweepers continued to conduct day and night ex-
ploratoi-y. clearance and check .sweeps. These operations
were conducted along the East coast to Songjln, and on the
AVest Coast to the waters off Chinnampo. The sweepers
were taken under fire on several occasions but suffered
no damage or casiialties.
Ships of the amphibious forces lifted personnel, mate-
rial and supplies to Koje-Do in connection with Prisoners
of War operations. Naval auxiliai-y. Military Sea Trans-
port Service, and Jlerchant vessels under contract pro-
vided logistic support to the United Nations Command
ground, air and naval forces oix'rating in Korea.
United Nations Command Air Forces, operating In bet-
ter than noraial weather conditions, maintained high
sortie rates. Minor changes In operations, both b.v the
enemy and the TTnited Nations Command, were effected.
The systematic attacks on the rail lines in northwestern
Korea were successfully continued during daylight hours.
The principal rail lines were cut in many places and rolling
stock was subjected to destruction and damage.
The identification of two Communist supply installa-
tions in the forward areas provided the targets for a heavy
attack by United Nations Command fighter bombers. The
first installation, near Mulgae-Ri, was continuously at-
tacked b.v fighter bombers throughout one day. The sec-
ond installation, near Hoeyang, was subjected to a similar
attack. Detailed evaluation of the resultant damage to
these two installations was impractical because of the
clever camouflage and wide di.spersal of supplies. I\Iany
secondary explosions were noted by pilots during the at-
tacks. Photographs, taken after the attacks were com-
pleted, revealed craters and fire scars where supply dumps
and buildings had previousl.v been.
The close air support effort of the United Nations Com-
mand fighter bombers continued to be effective in support-
ing United Nations Command groimd operations. Many
bunkers, gim positions and supply buildings were de-
stroyed or damaged.
The air-to-air combat between the United Nations Com-
mand and Communist air forces continued at a high
rate with a heavy advantage being attained by the United
Nations Command pilots. A total of 1,009 MIG-l.^'s
were sighted on the nine days the Communists were
active. United Nations Command Interceptors succeeded
in destroying thirteen MIG-15's and damaging forty-three
more while suffering the loss of one interceptor and dam-
age to four more. Of the fort.v-three MIG-1.5's damaged,
six were probably destroyed. United Nations Command
fighter bombers, in conducting their attacks against the
enemy's rail lines, damaged an additional three MIG-15's
while defending themselves from air attacks. The MIG-
15's which have excellent performance characteristics at
high altitudes, were observed on several occasions to be
flying at lower than nonnal altitudes, as well as flying in
smaller formations than previously reported. On three
occasions the MIG's were able to evade United Nations
Command escort aircraft and attack friendly fighter
bombers.
Night intinider aircraft continued to patrol the main
supply routes throughout North Korea and to attack
motor vehicles and locomotives when observed.
United Nations Command medium bombers continued
to execute night leaflet drops, close air support missions
and reconnaissance and surveillance flights. In addition,
missions were conducted against the enemy's communica-
tion systems with emphasis being placed on key river
crossings.
Aerial reconnaissance units continued to secure infor-
mation on enemy dispositions, weather, target damage
and the status of enemy airfields. Special emphasis was
placed on securing aerial photographs of the Communist
Prisoners of War camps. In several instances, these mis-
sions directed friendly aircraft or Naval gun fire against
transient targets.
Combat cargo aircraft provided for the aerial resupply
of many forward installations as well as for the evacua-
tion to Japan of wounded United Nations Command per-
sonnel. Air rescue operations continued to provide life
saving services to all United Nations Command forces and
personnel.
The United Nations Command intensified its efforts to
disseminate news as widely as possible among enemy sol-
diers and civilians in North Korea. Although less than
a third of the Korean people remain under Communist
occupation, this minority continues to be subjected to
every Communist device for distortion and suppression
of tlie truth. In recent false propaganda allegations that
the United Nations Command has used bacteriological
weapons, the Communists, both in and out of Korea, have
demonstrated once again their characteristic unscrupu-
lousness by resorting to absolute falsehoods in order to
hide their own crimes or absolve themselves of responsi-
bility. United Nations Command radio broadcasts and
news leaflets are vigorously exi^osing the Communists
incompetence and negligence in failing to provide effec-
tive medical facilities in North Korea.
The dollar value of supplies and equipment actually
delivered to Korea in support of the Korea economic aid
program from 1 July 1950 to 15 March 1952 by the United
States Government agencies is $227,000,000. This figure
includes the following:
A. Supplies and equipment for direct relief and short
term economic aid under the United Nations Command
program from United States funds in the amount of ap-
proximately $101,000,000.
B. Supplies and equipment procured by Economic Con-
struction Agency during the period 1 July 1950 to 7 April
1951 for economic rehabilitation in the amount of
$26,000,000.
C. Civilian type supplies and equipment provided by the
United Nations Command for cnniraon military-civilian
pui^poses in the approximate amount of $6.j,000,000. This
category of supplies is provided as a military necessity, but
is considered within the framework of Korean economic
aid since the Korean economy derives considerable benefit
therefrom. Included in this category are such projects as
construction and reconstruction of roads and bridges ;
rehabilitation and improvement of ports and harbors ;
rehabilitation of railroads, including construction and
reconnaissance of bridges and tunnels ; provision of rail-
road rolling stock, coal and operation supplies for the rail-
road : rehabilitation and improvement of communication
facilities ; and rehabilitation of public utilities such as
water works, ice plants, electric power system and coal
mines.
D. Raw materials provided for support of the Republic
of Korea Army as a military requirement. These sup-
plies are considered within the sphere of the Korean eco-
nomic aid program since the manufacture of end items in
Korea affects the Korean economy by sustaining industry,
providing a livelihood for a portion of the civilian popula-
tion, and reduces the withdrawal of similar items from
116
Department of State Bulletin
civilian supplies. It is conservatively estimated that ai>
proximately $35,000,000 worth of raw materials have been
delivered to Korea for this purpose.
The figure of $227,000,000 does not include the dollar
cost of the following : Purchase of supplies and ser\'ices in
Korea ; services of United States senice troops in re-
habilitation projects such as are enumerated in paragraph
C above ; power furnished from floating power barges and
destroyer escorts ; movements of refugees by ship, air-
plane, rail and truck; salaries of all personnel solely en-
gaged in Korean Economic Aid at all levels. The cost of
such services is conservatively estimated to be over
$225,000,000.
Contributions of supplies and equipment delivered to
Korea from other United Nations member nations and non-
governmental agencies are estimated at $19,5(X),000.
In summary, the tinancial statement for civilian relief
and economic aid to Korea may be stated as follows : Sup-
plies and equipment from United States Government
sources : $227,000,000. Services from United States gov-
ernmental sources: $225,000,000. Total $452,000,000.
Contributions from United Nations member nations and
non-governmental agencies: $19,500,000. Total: 1 July
1950-15 March 1952, $471,500,000.
Cotton-Cotton Linters Committee
of EMC To Disband
On June 24 the Cotton-Cotton Linters Com-
mittee of the International Materials Conference
announced that it has decided unanimously to
recommend to member governments that the Com-
mittee should automatically terminate its activi-
ties on September 15, 1952, unless the supply situ-
ation in cotton or cotton linters had deteriorated
materially by then.
The Committee, which held its first meeting
on March 5. 1951, has had the situation in cotton
and cotton linters imder continuous review since
that date. It has, however, never found it neces-
sary to recommend allocation of either of these
commodities. In March of this year the Com-
mittee agreed to suspend its activities until Au-
gust, when the prospects for the next season could
be appraised. However, reports in May indicated
that the situation has improved so that supply and
demand for cotton and cotton linters appear to
be approximately in balance. The Committee,
therefore, felt it advisable to review the situation
now instead of waiting until August.
In the light of this improved situation the Com-
mittee decided that it could safely take a decision
now to end its activities, subject only to the condi-
tion that, if there were a marked change for the
worse by the middle of September, the position
could then be reviewed. Unless this change takes
place, which is not at the moment expected, there
will be no more meetings of this Committee.
Thirteen countries are represented on the Com-
mittee. They are Belgium (representing Bene-
lux), Brazil, Canada. France, the Federal Re-
public of Germany, India, Italy, Japan, Mexico,
Peru, Turkey, the United Kingdom, and the
United States.
IIVIC Allocations Announced
for Third Quarter of 1952
Tungsten and Molybdenum
The Tungsten-Molybdenum Committee of the
International Materials Conference announced on
July 11 its recommended distribution of tungsten
and molybdenum for the third calendar quarter
of 1952.1 ^i^g Governments of all 13 countries
represented on the Committee have accepted the
recommendations. These countries are Australia,
Bolivia, Brazil, Canada, Chile, France, the Fed-
eral Republic of Germany, Japan, Portugal,
Spain, Sweden, the United Kingdom, and the
United States.
In accepting the recommendations, the Govern-
ment of the United States made the condition that
domestic users of tungsten and molybdenum in
the United States should be authorized to pur-
chase the quantity of such materials allocated to
other countries participating in the International
Materials Conference and not used by any such
participating country. In view of this, the Com-
mittee agreed to make arrangements whereby such
domestic users in the United States or other
countries would have the o]:)portunity to purchase
tungsten or molybdenum allocated to other coun-
tries participating in the International Materials
Conference but not used by any such participating
country.
Tungsten and molybdenum have been under in-
ternational plans of distribution since July 1,
1951. Although availabilities of the two metals
have been increasing, both continue to be in short
supply as compared with the requirements of the
consuming countries. This is especially so when
the stockpiling requirements of these countries
are taken into consideration.
The total free world production of tungsten in
the third quarter of 1952 is estimated by the Com-
mittee at 4,690 metric tons metal content, and the
free world production of molybdenum at 5,650
metric tons metal content. The above estimate
of tungsten production shows an increase of about
30 percent as compared with the actual rate of
production in the second half of 1951 and more
than double the rate of production in 1950.
Molybdenum production as above estimated shows
an increase of nearly 15 percent as compared with
actual production in the second half of 1951 and
over 50 percent above the rate of production in
1950. On the other hand, the defense and stock-
piling requirements of the free world are still in
excess of the production in the case of both metals.
It is necessary, therefore, that all countries of
the free world should do their utmost to imple-
ment the present recommendations for the dis-
tribution of the metals and give every attention
' The recommended plans of distribution, labeled tables
I, II, and III are not printed here. See Imc press re-
lease dated July 10.
Ju/y 27, J 952
117
to tlie measures recommended by the Committee
for conservation and substitution.
The phxns recommended provide for the dis-
tribution of the whole free world production of
tungsten and molybdenum, both in the form of
ores and concentrates and primary products. Pri-
mary products are defined, as in the case of pre-
vious distributions by the Committee, as ferro-
tungsten, tungsten powder, tungstic acid and
tungsten salts, and ferro-molybdenum, molybdic
acid and molybdenum salts, including calcium-
niolybdate and molybdic oxide. Roasted molyb-
denum concentrates are regarded by the Commit-
tee as being included in ores and concentrates, as
in the case of previous distribution plans.
In framing the recommended plans of distribu-
tion, the needs of all countries, whether members
of the Tungsten-Molybdenum Committee or not,
were carefully considered. The distribution plans
are now transmitted to all governments, including
those not represented on the Committee, wherever
the countries concerned are interested in the ex-
port or import of tungsten or molybdenum in the
form of ores and concentrates or primary prod-
ucts. All governments are being requested to
carry out the plans of distribution recommended.
Of the quuTitity of 4,690 metric tons metal con-
tent of tungsten estimated to be produced in the
third calendar quarter of 1952, the distribution
plan provides that 4,470.7 metric tons is to be dis-
tributed in the form of ores and concentrates and
219.3 metric tons in the form of primary products.
This latter quantity is distributed, in the first
instance, in the form of ores and concentrates to
countries manufacturing this material into the
primary products. Similarly, of the total esti-
mated production of 5,650 metric tons metal con-
tent of molybdenum to be produced in the third
calendar quarter of 1952, the distribution plan
provides that 5,391.25 metric tons be distributed in
the form of ores and concentrates and 258.75 metric
tons as primary products, this latter cjuantity also
being distributed, in the first instance, to coun-
tries manufacturing primary products from ores
and concentrates.
The distribution proposed is set forth in tables
I and II, showing the distribution of tungsten
and molybdenum, respectively. These tables ap-
ply as follows :
A. The quantities set forth are the share of
total production in the free world which it is rec-
ommended that each consuming country named
shall retain either (a) out of its own domestic pro-
duction, and/or (b) out of imports in the period
July 1 to September 30, 1952.
B. The figures of quantities set forth in the
columns headed "Export of Primary Products"
are the additional quantities of ores and concen-
trates which are assigned to certain countries for
processing ores and concentrates into primary
products, on the understanding that these addi-
tional quantities will, after processing, be re-
exported to the countries requiring such products,
as shown in the column headed "Distribution of
Primai-y Products."
Table III shows the export and import quotas
of the two metals derived from the distribu-
tion shown in tables I and II. The quantities
shown in table III are the export and import
quotas of tungsten and molybdenum (ores and
concentrates only) for the period July 1 to Sep-
tember 30. These quotas correspond with the
quantities set forth in tables I and 11. The import
quotas include the quantities to be impoi'ted for
processing and reexport as primary products.
In issuing the above-described plans of distri-
bution, the Committee recommends that existing
contracts be resfiected as far as possible. If such
contracts provide for the supply of tungsten or
molybdenum to any one importing country in
excess of the amounts allocated, it is recommended
that the importing country should divert ship-
ments to other importing countries which have not
yet filled their import quotas so far as possible
without upsetting the original contractual
arrangements.
The Committee has also given consideration to
distribution arrangements for the fourth calen-
dar quarter of 1952. For the fourth quarter the
estimated production of tungsten is 4,940 metric
tons metal content and of molybdenum 5,751 met-
ric tons. The distribution arrangements for these
quantities are at present in a formative stage, and
a further announcement relating to them will
be made at a later date.
Primary Copper
The Copper-Zinc-Lead Committee of the In-
ternational Materials Conference on July 11 an-
nounced that its member governments have ac-
cepted its proposals for the allocation of copper
for the thii'd quarter of 1952.^ Twelve countries
are represented on the Committee. They are Aus-
tralia, Belgium (repi'esenting Benelux), Canada,
Chile, France, the Federal Republic of Germany,
Italy. Mexico, Norway, Peru, the United King-
dom, and the United Stiites.
The Committee agi'eed to make arrangements
wherebj' domestic users in the United States or
in other countries would have the opportunity to
purchase any copper allocated to other countries
participating in the International Materials Con-
ference and not used by any such participating
country. In accepting the Committee's recom-
mendations, the Chilean Government made a res-
ervation by which, without reference to the
distribution plan, it may dispose of a limited ton-
nage of its copper. Notwithstanding this reser-
vation, the Chilean Government has stated its
desire to take into account the recommendations
10.
' For distribution plan, see Imo press release dated July
118
Deparfment of Sfofe Bulletin
of the Committee and to duly consider tliem when-
ever possible.
The plan of distribution has been forwarded
also to the governments of 27 other countries not
represented on the Committee for which alloca-
tions have been recommended.
As in the previous quarter, primary copper only
(blister and refined) is included in the plan.
While semifabricated products have not been al-
located, all exporting countries are asked to con-
tinue to maintain their exports of such products
at a level commensurate with their allocation of
primary metal for civilian consumption, in ac-
cordance with normal patterns of trade. Also,
as in previous quarters, all countries are requested
to continue measures for conservation and end-use
control.
The Committee has recommended a plan of dis-
tribution of 744,290 metric tons of copper in the
third quarter, as compared to 723,680 metric tons
for the second quarter. Direct defense needs have
been given priority. Provision has also been made
for sti-ategic stock piling by tlie United States.
NicJcel and Cobalt
The Manganese-Nickel-Cobalt Committee of the
International Materials Conference announced on
Jidy 14 its recommended distribution of nickel and
cobalt for the third quarter of 1952.^ The coun-
tries represented on the Committee are Belgium
(for Benelux), Brazil, Canada, Cuba, France, the
Federal Republic of Germany, India, Norway,
the Union of South Africa, the United Kingdom,
and the United States.
All of the 11 member governments have accepted
the plan of distribution for cobalt. The plan for
nickel has been accepted, with reservations on the
part of India and under protest by the Federal
Republic of Germany.
The Connnittee agreed to make arrangements
\\ hereby domestic users in the United States or in
otlier countries would have the opportunity to
purchase any nickel or cobalt allocated to coun-
tries participating in the International Materials
Conference and not used by any such participating
countiT.
The plans of distribution have been forwarded
to all intei'estecl governments for implementation.
As in the first half of 1952, the distribution of
nickel covers all primary forms of metal and
oxides. Nickel salts have not been included in
recommended plans of distribution since Decem-
ber .31, 1951.
Estimated total availabilities of primary nickel
and oxides for the third quarter amount to 3G,580
metric tons, in terms of metal content, as against
35,195 in the second quarter.
As in the previous allocation period, the Com-
mittee has accepted a U.S. pi'oposal that the
^ For distribution plan, see Imc press release dated
July 11.
amount of production represented by the Nicaro
(Cuba) output should be distributed among
various countries in jDroportion to their direct de-
fense programs.
France has agreed to make available for export
155 tons of New Caledonian fonte, in terms of
nickel content, of which 30 tons represent import
quotas granted in the second quarter which have
been cancelled by the Committee. Fonte is a di-
rectly smelted nickel cast iron of about 30 percent
nickel content.
The total quantity of cobalt available for dis-
tribution in the third quarter, in the form of
primary metal, oxides, and salts, is estimated at
2,475 metric tons of cobalt content, including a
carry-over of 100 tons from previous production.
This compares with 4,413 tons distributed in the
first half of 1952.
The Committee is unable to foresee when it will
be possible to dispense with international distribu-
tion plans for nickel and cobalt, since increased
availabilities are inadequate to meet continu-
ing heavy demands for essential rearmament
production.
U.S. Delegations to
International Conferences
International Wheat Council
On June 30 the Department of State announced
that the International Wheat Council will con-
vene its tenth session at London on July 1. Each
of the 46 member countries may be represented at
Council sessions by a delegate, an alternate dele-
gate, and such technical advisers as are necessary.
The U.S. delegation is as follows:
Detegaie
Elmer F. Kruse, Assistant Administrator for Commodity
Operations, Production and Marketing Administra-
tion, Department of Agriculture
Menibers
Anthony R. DeFelice, Office of the Solicitor, Department
of Agriculture
Eric Englund, Agricultural Attach^, American Embassy,
London
Robert L. Gastineau, Head, Grain Division, Office of For-
eign Agricultural Relations, Department of Agricul-
ture
Earl O. Pollock, Assistant Agricultural Attach^, American
Embassy, London
L. Ingemann Highby, Chief, Food Branch, Agricultural
Products Staff, Office of International Materials
I'olicy, Department of State
The Council was created by an International
Wheat Agreement signed at Washington on
March 23, 1949. The purpose of the agreement,
which expires in 1953, is to overcome the hardship
resulting from surpluses and shortages of wheat
by assuring supplies to importing countries and
Ju/y 27, 7952
119
markets to exporting countries at fair and stable
prices.
At its forthcoming session, the Council will give
detailed consideration to amendments required to
make renewal of the agi'eement generally accept-
able to all the member countries. In this connec-
tion the Council will review a progress report by
its Recommendations Committee, established at
the eighth session (London, May 1952), on the
study of questions related to price structures and
drafting problems. The Council will also decide
on the site for its eleventh session, tentatively
scheduled for January 1953, which will be con-
vened for the primary purpose of considering
further the extension of the wheat agreement.
Rules of the Air and Air Traffic
Services Committee (ICAO)
On June 30 the Department of State announced
that the fourth special meeting of the Rules of
the Air and Air Traffic Services Committee, Euro-
pean-Mediterranean Region, of the International
Civil Aviation Organization (Icao) will convene
at the IcAO regional office at Paris on June 30, 1952.
The United States is included in the list of Icao
member states invited since it operates extensive
air services in this region. The U.S. delegation is
as follows:
Chairman
Hugh H. McFarlane, Regional Icao Representative, Civil
Aeronautics Administration, Department of Com-
merce
Advisers
G. C. Jolinson, Lt. Col., U.S.A.F., Flight Division, Director
of Operations, Headquarters U.S.A.F.
James L. Kinney, Representative Flight Operations Icao,
Civil Aeronautics Administration, Department of
Commerce
The third European-Mediterranean Regional
Air Navigation Meeting recommended tltat this
conference be convened to complete the develop-
ment of an airways system for the European-
Mediterranean region. The conference will there-
fore review the jDrogress in the implementation
of an integrated, controlled airways plan for the
region as developed by the Icao Rules of the Air
and Air Traffic Services Committee, which recom-
mended that the plan be put into effect not later
than September 1, 1952. The plan includes pro-
vision for the development of a uniform system
of control over military and civilian air traffic.
Delegates to the conference will also discuss
common air-traffic-control instructions and in-
flight procedures for use in the European-Med-
iterranean region; the development of an airways
designator system: and simplified air-traffic-serv-
ices procedures for aircraft over-flying the region
at levels higher than those dealt with in the con-
trolled airways plan.
Renegotiation of Telegraphic
and ExcFiange Rates
Press release 524 dated July 2
On July 9, 1952, representatives of the United
States, Australia, Canada, Ceylon, India, New
Zealand, Pakistan, Southern Rhodesia, the Union
of South Africa, and the United Kingdom will
convene at London to discuss a renegotiation of
the telegraphic rates and exchange rates estab-
lished by a telecommunications agreement signed
at London in 1949 which superseded a similar
agreement signed at Bermuda in 1945. The
United States will be rejaresented by:
Chair7nan
Edward M. Webster, Commissioner, Federal Communi-
cations Commission
Vice Chairman
T. H. E. Nesbitt, Assistant Chief, Telecommunications
Policy Staff, Department of State
Members
William H. J. Mclntyre, Telecommunications Attach^,
American Embassy, London
Jack Werner, Chief, Common Carrier Branch, Federal
Communications Commission
Marion W^oodward, Chief, International Division, Com-
mon Carrier Branch, Federal Communications
Commission
It is also anticipated tliat Ronald Egan, Euro-
pean representative of "Western Union; John
Hartman, assistant vice president, American Cable
and Radio Cor]ioration ; Albert Alfred Hennings,
superintendent of tariffs, American Cable and
Radio Corporation ; K. Bruce Mitchell, vice presi-
dent, Western Union Telegraph Company; and
Edwin Peterson, manager, Traffic Bureau, RCA
Communications, Inc., will be present in the in-
terests of their several operating companies.
The Bermuda Agreement of 1945 placed ceil-
ings on certain rates to be charged between the
United States and the Commonwealth countries
and fixed the rate of exchange for the settlement
of accounts. In addition, it provided for certain
direct radio circuits, to the great advantage of
the United States communications industry as a
whole, and set certain terminal transit and press
rates. This agreement was revised at London in
1949 at the request of the LTnited States, which
had found that the ceiling rates originally agi'eed
to were too low to permit charges that would
bring U.S. carriers a fair return. Following the
London revision, which equalized the effects of the
rate structure, the devaluation of the pound ster-
ling adversely affected a number of American
companies. It is hoped that the negotiations dur-
ing the forthcoming conference will remove the
penalties on American companies resulting fi'om
the i^resent rates of exchange.
120
Departmenf of Stafe Bulletin
U.S. Participation in the United Nations
PRESIDENT'S MESSAGE TO THE CONGRESSi
I transmit herewith, pursuant to the United
Nations Participation Act, a report on the worlc of
the United States in the United Nations during
1951.
This will be my last report, as President, to the
Congress on our participation in the United
Nations.
I have dedicated my seven years as President of
the United States to working for world peace.
That has been my paramount aim since becoming
President. The first order I issued after being
sworn into office on April 12, 1915, was that the
United States should carry out its plan to partici-
pate in the United Nations Conference, which met
on April 25 in San Francisco. Since that time
the United Nations has been the mainstay of our
work to build a peaceful and decent world.
During these years the United Nations has faced
many trials and difficulties. In 1915 there were
high hopes that this partnership of nations would
quickly lead to permanent peace and the advance-
ment of the general welfare of the nations. But
these hopes have been dimmed by the conflicts of
the succeeding years and by the hostile attitude of
the Soviet Union. As a result, voices have been
raised, questioning the value for us of the United
Nations and the need for maintaining it.
Nevertheless, in spite of all these difficulties and
discouragements, the United Nations remains the
best means available to our generation for achiev-
ing peace for the community of nations. The
United Nations, in this respect, is vital to our fu-
ture as a free people. In this message I want to
explain why this is true and to sum up a few of the
reasons why we should continue to support the
United Nations in this dangerous period in the
history of mankind.
'Included in Department of State publication 45S3,
United States Partieipatinn in the United Nations, Re-
port bv the President to the Congress for the Tear 1951,
for sale by the Superintendent of Documents, U.S. Gov-
ernment Printing Office, Washington 25. D. C. Price 650
(paper) . Also contained in H. doc. 449, 82d Cong., 2d sess.
July 21, 7952
The need for a world organization of nations
should have been made clear to us by the First
World War. But President Wilson's pioneering
efforts to organize world peace through the League
of Nations were thwarted by some Americans who
still thought we could turn back the clock of his-
tory. We had to pay a terrible price for that kind
of narrow thinking in the Second World War.
Our victory over the Axis gave us another
chance to work with the other nations in a united
effort to prevent war. This time we assumed our
responsibilities and took part in launching a far
stronger world organization for peace.
In the United Nations we have pledged our sup-
port to the basic principles of sovereign equality,
mutual respect among nations, and justice and
morality in international affairs. By the Charter
all United Nations members are bound to settle
their disputes peacefully rather than by the use
of force. They pledge themselves to take common
action against root causes of unrest and war, and
to promote the common interests of the nations
in peace, security, and general well-being.
These principles are not new in the world, but
they are the only sure foundation for lasting
peace. Centuries of history have made it clear
that peace cannot be maintained for long unless
there is an international organization to embody
these principles and put them into effect.
The United Nations provides a world-wide
forum in which those principles can be applied
to international affairs. In the General Assembly
all member nations have to stand up and be
counted on issues which dii'ectly involve the peace
of the world. In the United Nations no country
can escape the judgment of mankind. This is
the first and greatest weapon against aggression
and international immorality. It is the greatest
strength of the United Nations. And because we,
as a Nation, sincerely desire to establish the rule
of international justice, this is a precious instru-
ment, a great asset, that we should constantly seek
121
to reinforce, that we should never ignore or cast
away.
This great moral value of the United Nations
has been clearly demonstrated with respect to the
conduct of the Soviet Union.
The Soviet leaders have been dominated by their
doctrines of communism, by the concept of the
use of force, unchecked by ethical considerations.
This concept has led the Kremlin into a course
of international conduct, which threatens the
peace of the world. By stirring up class warfare,
subverting free governments, and employing lies,
intimidation, and conquest, the Soviet Union has
pursued a policy of extending its control without
regard to the sovereignty of other nations or re-
spect for their rights.
This policy might have been irresistible if it
had not been clearly and decisively brought to the
bar of world opinion in the United Nations.
The proceedings of the United Nations, time
and time again, liave proclaimed to the woi'ld that
the Soviets have not lived up to the principles of
liberty, morality, justice, and peace to which they
profess to subscribe. Through the United Na-
tions the international conscience has relentlessly
exposed and sternly resisted the attempts of the
Kremlin to impose a rule of force upon the peace-
loving nations of the world.
This process has strengthened freedom. It has
given courage to the faint-hearted, who might
otherwise have yielded to the forces of commu-
nism. It has presented the truth to those who
might have been deceived by Communist propa-
ganda. And, as a result, the principles of inter-
national justice, of freedom and mutual respect,
still exercise a far greater sway over the minds of
men than the false beliefs of communism.
By itself, of course, this moral function of the
United Nations would not be enough. The collec-
tive conscience of the world is not enough to repel
aggression and establish order. We have learned
that moral judgments must be supported by force
to be effective. This is why we went into Korea.
We wei'e right in what we did in Korea in June
1950; we are right in holding firm against ag-
gression there now.
Korea might have been the end of the United
Nations. When the aggression began, the free
nations might have yielded their principles and
followed the dreary road of appeasement that, in
the past, had led from Manchuria to Munich and
then to World War II. But Korea had the op-
posite effect. When the Communist aggi-essors
brutally violated the Republic of Korea, the
United Nations acted with unprecedented speed
and rallied the international conscience to meet
the challenge. And, with our country proudly in
the lead, the free nations went into the conflict
against aggression.
It is profoundly heartening to remember that
far-off Ethiopia, whicli had been one of the first
victims of the fatal policy of the 1930's, sent troops
to fight in Korea. The free nations now under-
stand that nobody can be safe anywhere unless
all free nations band together to resist aggression
the first time it occurs.
In Korea the United Nations forces have re-
pelled Communist aggi'ession, they have forced
the aggi-essors to abandon their objectives and
negotiate for an armistice, and they have demon-
strated that the course of conquest is mortally
dangerous. The success of the United Nations in
repelling the attack in Korea has given the free
world time to build its defensive strength against
Communist aggression.
We are working to strengthen the United Na-
tions by building up a security system in accord-
ance with the purposes of the Charter that will
protect the community of nations against aggres-
sion from any source. We are working, in im-
portant regions of the world, to build the pillars
of this collective strength tlirough the North At-
lantic Treaty Organization, the Rio treaty, and the
security treaties in the Pacific. All this is being
done under the Charter as a means of fulfilling the
United Nations purpose of maintaining world
peace. The progress we have made since the
Korean aggression started has now begun to tip
the scales toward real security for ourselves and
all othpr peace-loving peoples.
Such measures are necessary to meet the present
threat of aggi-ession. But we cannot admit that
mankind must suffer forever under the burden of
armaments and the tensions of greatly enlarged
defense programs. We must try in every way not
only to settle differences peaceably but also to
lighten the load of defense preparations. In this
task the United Nations is the most important if
not the only avenue of progress.
On October 24, 1950, in an address to the Gen-
eral Assembly of the United Nations, I outlined
the principles whicli must guide disarmament.
This was followed up by concrete proposals, which
were presented at the 1951 session of the Genei-al
Assembly in Paris. These proposals involved a
world census of armaments, a reduction of arma-
ments and armed forces, and the elimination of
weapons of mass destruction, all under a foolproof
system of inspection. The Disarmament Com-
mission of the United Nations is now discussing
these proposals, and if they are adopted they will
not only enhance world security but also free vast
energies and resources of the world for construc-
tive ends. This program of disarmament offers a
way out of the conflict of our times. If the Soviet
Union will accept it in good faith, it will be pos-
sible to go forward at the same time to reconcile
other conflicting national interests under the
principles of international morality.
These disarmament proposals emphasize anew
that our objective is world peace. We hope that
the day will come when tlie Soviet Union, seeing
that it cannot make aggi'ession and subversion
work, will modify its policies so that all nations
122
Department of State Bulletin
can live together peacefully in the same world.
Therefore we must continue to test Soviet willing-
ness to take tangible steps toward easing interna-
tional tensions. We must continue to keep the
door open in the United Nations for the Soviet
Union to join the great majority of countries on
the road to peace.
Among the nations of the f I'ee world, the United
Nations performs the valuable function of settling
disputes and terminating conflict. It has been
notably successful in localizing and diminishing
dangerous situations which might otherwise have
torn the free world apart and paved the way for
Communist expansion. In Indonesia, Palestine,
and Kashmir the United Nations stopped serious
fighting and persuaded the combatants to take
steps toward a peaceful settlement of their differ-
ences. In many other cases the United Nations
has prevented disputes from erupting into
violence.
We must remember that the challenge of inter-
national lawlessness is not only military but also
political and economic. The United Nations is
helping dependent peoples to move toward gi-eater
freedom. The United Nations is taking measures
to promote extensive international progress in
such fields as agi'iculture, communication and
transportation, education, health, and living
standards. Its technical assistance programs and
our own Point Four activities are providing
dramatic examples of tangible accomplishments
at relatively little cost. The United Nations in
this way is helping to build healthier societies,
which in the long run are the best defense against
communism and the best guaranty of peace.
During the jjast seven years our work in United
Nations has been carried out on a strictly nonpar-
tisan basis. Able men and women from both po-
litical parties and both Houses of Congress have
represented this country in the General Assembly.
Nevertheless partisan attacks have been made on
the United Nations. Some of these attacks are
made in a spirit of impatience that can only lead
to the holocaust of world-wide war. Most of those
who urge us to "go it alone" are blind to the fact
that such a course would destroy the solid progi-ess
toward world peace which the United Nations has
made in the past seven years. I am confident that
the American people will reject these voices of
despair. We can win peace, but we cannot win it
alone. And, above all, we cannot win it by force
alone. We can win the peace only by continuing
to work for international justice and morality
through the United Nations.
STATEMENT BY THE PRESIDENT
White House press release dated July 3
I have sent up to Congress today a report on this
country's activities in the United Nations during
the last year.
As I said in my letter of transmittal, I believe
the United Nations is the mainstay of our work
to build a peaceful and decent world. I think
the United Nations is vital to our future as a free
nation. I am sure that the great majority of the
people of the United States, regardless of political
party, support the United Nations.
I have asked Mrs. Roosevelt to talk about the
United Nations at the Democratic National Con-
vention, and she has kindly consented to do so.
I made this request because Mrs. Roosevelt has
rendered a great service to her country in her
work at the United Nations and because I want
everyone to appreciate clearly what the United
Nations means to us.
THE DEPARTMENT
Appointment of Officers
John Diirnford Jernegan as Deputy Assistant Secretary
for the Bureau of Near Eastern, South Asian and African
Affairs, effective July 1, 1952.
The White House,
July 3, 1952.
Check List of Department of State
Press Releases: July 4-12, 1952
Releases may be obtained from the Office of the
Special Assistant for Press Relations, Department
of State, Washington 2.5, D.C.
Subject
8. Africiin air force agreement
Allixon: U.S. and the Far East
Pacific Council meeting
IcAo regional meeting
International Wheat Council
Jernegan: Deputy Assistant Secretary
Telecommunications talks
Aeheson : Democratic process (ex-
cerpts)
Acheson : U.S.-Brazllian principles
VOA coverage of conventions
Acheson : Creation of collective
strength
"Clinicar" on exhibit
Development in Paraguayan town
Hayes to Afghanistan (rewrite)
Carl Schurz award
American studies conference
Reply to Soviet note of May 24
Australian letter on Coral Sea Battle
VOA Inaugurates digest report
Exchange of persons
Visit to U.S. of Prince Faisal
Pan Am. geography consultation
+Held for a later issue of the Bclletin.
*Not printed.
No.
Date
491
6/24
503
6/27
507
6/30
.512
6/30
514
6/30
521
7/1
524
7/2
534
7/4
535
7/4
*536
7/5
537
7/7
*538
7/7
*539
7/8
t540
7/9
541
7/9
t542
7/10
543
7/10
*544
7/11
*545
7/11
*546
7/11
547
7/11
t548
7/12
July 21, 1952
123
July 21, 1952
Index
Vol. XXVII, No. 682
Africa
UNION OF SOUTH AFRICA:
Agreement to pay U.S. for logistical support
In Korea ^°^
Export-Import Bank loans 105
American Republics
Fundamentals of Inter-Amerlcan cooperation
(Acheson) ^'^
Asia
KOREA: Command operations, 42d report . . 114
SAUDI ARABIA: Prince Abdullah Faisal's visit
to U.S 96
U.S. problems and accomplishments In Far East
(Allison) 9''
Aviation
Rules of the Air and Air Traffic Services Com-
mittee (ICAO) ^^°
Communism
Soviet propaganda, threat to world peace . . 109
Congress
MESSAGES TO CONGRESS: U.S. participation
In the United Nations 121
Europe
FRANCE: Export-Import Bank loans .... 105
United efforts speed migration from Europe
(Warren) •^°'^
U.S., U.K., France propose four power meeting to
discuss Commission on German Elections . 92
U.S.S.R.: Soviet propaganda, threat to world
peace 10^
Finance
FRANCE: Export-Import Bank loans .... 105
UNION OF SOUTH AFRICA: Export-Import
Bank loans 105
International Information
Carl Schurz Centennial Award 104
International Meetings
First meeting of Pacific Council 110
IMC: Allocations for third quarter of 1952
announced 117
International Wheat Council 119
Picmme: United efforts speed migration from
Europe 107
Renegotiation of telegraphic and exchange
rates 120
Rules of the Air and Air Traffic Services Com-
mittee (IcAo) 120
Mutual Aid and Defense
First meeting of Pacific Coimcil 110
President requests special survey of U.S. trade
policies 104
U.S. problems and accomplishments In Far East
(Allison) 97
Presidential Documents
President requests special survey of U.S. trade
policies 104
Puerto Rican Constitution signed 91
Puerto Rico
Puerto Rican Constitution signed 91
State, Department of
Appointment of officers 123
Strategic Materials
Cotton-Cotton Llnters Committee of Imc to
disband 117
Imc allocations, third quarter of 1952 an-
nounced 117
Telecommunications
Renegotiation of telegraphic and exchange
rates 120
Trade
President requests special survey of U.S. trade
policies 104
Treaty Information
UNION OF SOUTH AFRICA: Agreement to pay
U.S. for logistical support in Korea . . . 105
United Nations
Command operations In Korea, 42d report . . 114
Planning for the relief of famine emergencies;
text of draft resolution Ill
Soviet propaganda, threat to world peace . . 109
United efforts speed migration from Europe
(Warren) 107
U.S. participation in the U.N 121
Name Index
Acheson, Secretary 87
Allison, John M. 97
Bruce, David 105
Faisal, Prince Abdullah 96
Gibson, Hugh 107
Hairiman, W. Averell 104
Jernegan. John D 123
Jooste, G. P 105
Kotschnig, Walter 109
Kruse, Elmer P 119
Lubin, Isador Ill
McFarlane, Hugh H 120
Saud, King Ibn 96
Truifian. President 91, 104, 121
Warren, George L 107
Webster, Edward M 120
U. S. GOVERNMENT PRINTING OFFICE) I9B2
-^
<yA^ ^e^€f/y/h7ze7il/ /C^ Crtaie^
^ol. XXVII, No. 683
July 28, 1952
W
'ates o*
SECRETARY ACHESON'S IMPRESSIONS OF HIS
RECENT VISIT ABROAD • 132
HUMAN WELFARE: A PRACTICAL OBJECTIVE •
Statement by Walter M. Kotschnig 142
U.S. SUSPENDS PUBLICATION OF "AMERIKA" . . 127
PROGRESS TOWARD EUROPEAN INTEGRATION—
10th Quarterly Report of the U.S. High Commis-
sioner^for Germany 134
THE SOVIET GERM WARFARE CAMPAIGN • State-
ments by Ernest A. Gross •••.•....«, 153
For index see back cover
<tj/ie zl^eha/y^me^t jo£^ tyCate
bulletin
Vol. XXVII, No. 683 • Publication 4666
July 28, 1952
For sale by the Superintendent of Documents
U.S. Government Printing OiSce
Washington 25, D.C.
Price:
C2 Issues, domestic $7.50, foreign $10.25
Single copy, 20 cents
The printing of this publication has
beeii approved by the Director of the
Bureau of the Budget (January 22, 1952).
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
or State Buixetin 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
selected press releases on foreign pol-
icy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.
Publications of the Department, as
well as legislative material in the field
of internatioTuil relations, are listed
currently.
U.S. Suspends Publication of Russian-Language Magazine ''Amerika''
Toward the end of World War II the Depart-
ment of State, in an effort to improve Russo-
American understanding, made an unprecedented
proposal to the Soviet Government. It proposed
tliat an official U.S. Government magazine be cir-
culated in the Soviet Union. Five months of
negotiations in 1943-44 finally resulted in ap-
proval of the magazine Amerika by the Soviet
Government. The U.S.S.R. agreed to handle cir-
culation of 10,000 copies through its own distrib-
uting agency, Soyuzpechat.
Amerika, as a magazine telling of American
life, never attacked or even discussed Soviet in-
stitutions or policy. However, it soon became
evident that the Soviet Government was disturbed
at the existence of a publication permitting its
citizens easy and frequent comparison between
life in the United States and in the U.S.S.R. The
Kremlin's efforts to curtail effectiveness of
Amerika by restricting its circulation became in-
creasingly drastic.
The story falls into three phases: (1) Early
flourishing: tolerance by the Soviet Government
(1945^7) ; (2) indirect attack by intimidation
of readers : the mounting anti-American campaign
(1947-52) ; and (3) direct attack by cutting dis-
tribution (1950-52).
After 7 years and 53 issues of publication, the
Department of State has reluctantly decided that
mounting Soviet obstructions to Amerika''s dis-
tribution has made its continued publication
undesirable.
Tolerance by the Soviet Government (1945-47)
The first issue of Amerika appeared in January
1945. Its size and format were similar to that of
Life magazine. Since it was designed with a
"people to people" approach — to bring the United
States as close as possible to Russians who could
never go there — it contained many pictures, in-
cliKling color photographs on the cover and inside.
Paper and printing typified the best American
typographical standards. On first seeing the
magazine, a professional Soviet writer commented
enthusiastically :
Text of U. S. Note
Press release 553 dated July 14
The Department of State on July 15 announced
the suspension of Amerika, Russian-languaye maga-
zine produced hj/ its International Information Ad-
ministration for circulation in the Soviet Union,
and at the saine time directed the U.S.S.R. to sus-
pend Soviet Embassy publications in the United
States. Soviet publications suspended in retaliation
are the U.S.S.R. Information Bulletin, supplements
to the Bulletin, and pamphlets distributed by the
Soviet Embassy. The text of the U.S. note follows:
The Embassy of the United States of America
pre.sents its compliments to the Ministry of Foreign
Affairs of the Union of Soviet Socialist Republics
and has the honor to state that it has been instructed
to inform the Soviet Government that publication
of the magazine "Amerilia" is being suspended
immediately.
Since the beginning of 1949 it has become in-
creasingly apparent that the Soviet Government,
through its agencies, has been engaged in progres-
sive restriction of the full distribution and free
sale of the magazine. As a result of this obstruc-
tion the number of copies which can be presumed
to reach the Soviet public lias become so small as
not to justify a continuation of this effort of the
Government of the United States to supply Soviet
readers with a true picture of American life and
thus to promote understanding between the two
peoples.
In view of the evident unwillingness of the Soviet
Government to reciprocate the privileges granted
by the Government of the United States to Soviet
publications, the Soviet Government is requested to
suspend immediately the publication and distribu-
tion in the United States of the U.S.S.R. Information
Bulletin and supplements tliereto. The distribution
in the United States by the Soviet Embassy in Wash-
ington of pamphlets published at the expense of the
Soviet Government or its organs should also be
suspended.
The Government of the United States will con-
sider resumption of the publication of "Amerika" at
such time as the Soviet Government is willing to
grant the magazine the same freedom of publica-
tion, distribution and sales which bas been accorded
Soviet publications in the United States and to
grant to representatives of the United States Gov-
ernment facilities which would make it possible
for them to verify the extent of distribution actually
made.
inly 28, 1952
127
The paper must come from the United States, because
there is nothing lilce it in the Soviet Union. In fact, we
cannot match this magazine at all. We have Ogonyek,^
but it is nothing compared to Amerika.
The Moscow correspondent of the New York
T'hyies, catching the flavor of Amerika' s early days
in Moscow, reported on October 25, 1945:
Sudden quivers of excitement shot through American
offices in Moscow yesterday. Succession of visitors
opened doors and made anxious inquiries. Telephones
kept buzzing. What had happened was very simple.
Word had leaked out that advance copies were being
distributed of the third issue of Amerika. . . . Naturally,
everyone wanted a copy at once. . . . No advertising and
no editorials. Just information about America. . . .
When Amerika appears it is a great day in Moscow. . . .
And the correspondent of TiTne magazine cabled
(issue of March 4, 1946) :
Amerika was hot .stuff. Russians liked its eye-filling pic-
tures of Arizona deserts, Tva dams, the white steeples of
a Connecticut town, Radio City, the Bluegrass country,
the Senate in session, Manhattan's garment district.
Evidences of Popularity
In content, Amerika's only "formula"' was to
present the truth about life in the United States
as vividly as possible. It featured profiles of
average Americans — an Iowa farmer; a steel-
worker in Gary, Ind. ; a white-collar girl in Chi-
cago; an Oklahoma oil worker; a country doctor
in Colorado. Advances in American industry,
science, and medicine were described for the in-
creasingly important professional groups in the
U.S.S.R. Art, music, theater, and movies were
treated regularly for culture-conscious Soviet
readers. The operation of the American Govern-
ment, its labor unions, its schools and colleges
were explained. No direct comment on the Soviet
system was ever made.
Signs of Amerika's popularity soon appeared.
Newsstands sold out their copies a few hours after
it went on sale. Would-be readers unable to ob-
tain the magazine telephoned the American Em-
bassy for copies. Second-hand copies began to
be privately sold on the street above the original
price of 10 rubles ; sometimes single pages entered
the market. The magazine even came to be used
as a medium of exchange. On one occasion, the
promise of a copy was the only lure by which an
American official could persuade a reluctant Soviet
plumber to fix his bathtub. A woman reader
stated that a doctor refused to treat her unless she
could supply him with a new issue of the
magazine.
Despite the general restrictions imposed by the
Soviet Government on contacts between Russians
and Americans, many comments from readers
were gathered by Russian-speaking members of
the American Embassy staff in the course of con-
versations with Russians on trains, in parks, be-
tween acts at the theater, and in other public
^ Offcmi/ek ("Little Flame") is the largest and most
elaborate plcture-and-text magazine in the U.S.S.R.
places. For example, an article on commercial
transoceanic flying elicited approval of a Soviet
Air Force lieutenant colonel, who particularly
commented on safety factors. A surgeon was fas-
cinated by the pictures of operations in an article
on anesthesia and was amazed by the equipment
shown. An engineer was "astounded" at the "im-
possible" things being done with plywood in
America, as reported in an article on wood prod-
ucts. A university jirofessor, when asked which
picture of the United States Russians believe —
that presented by the Soviet press or as portrayed
in Ainerika — replied that they distrust their own
press and believe Amerika.
Reports from Americans on the Embassy staff
also contained these observations on the maga-
zine's circulation :
I was passing the newsstand on the corner of Gertzen
and Nikit-ski Streets in downtown Moscow as i-ssue No. 19
went on sale. In the course of 15 minutes, almost every
person who pas.sed the stand commented, 'Ah, Amerika
est" (Amerika has cornel. All copies were bought.
Sunday afternoon, at the newsstand near the Maly
Theater, there was a line of 15 people waiting to buy the
magazine.
A spectator at a football match between the Dynamo
and Spartak teams read a copy of Amerika between the
halves. His neighbors craned their necks to look over
his shoulder.
A conversation was overheard in a post office between
the clerk and a man who was mailing a copy of Amerika
to his brother in Alma Ata (Soviet Central Asia). The
man impressed on the clerk that this was a copy of
Amerika which he had wrapped carefully, and he asked
that she give it special handling.
A tour through the center of the city the day No. 27
went on sale showed that many persons were buying copies
and that some were reading it on streets and in
restaurants.
A Russian was seen near a second-hand book shop
offering several old issues for sale.
Increase from 10,000 to 50,000 Copies
On tlie basis of the broad popularity which
Amerika quickly achieved with Soviet readers, it
was obvious that the circulation of 10,000 copies
allowed by the Soviet Government under the origi-
nal 1944 agreement was far short of satisfying
the demand. Therefore, in 1946, an authorization
to increase circulation to 50,000 copies was re-
quested from the Soviet Govermnent.
After the sending of three notes and an oral
request by Ambassador Walter Bedell Smith, au-
thorization was granted in a note, dated April
23, 1946, from S. A. Lozovski, then Deputy Min-
ister for Foreign Affairs, to Ambassador Smith.
The note stated that the distributing agency could
"undertake the distribution of 50,000 copies of
Amerika, starting June 1, 1946."
After this increase to 50,000 copies, distribution
of the magazine was, until 1949, reasonably satis-
factory. Although the Soviet Government never
complied with the Embassy's requests for a nation-
wide breakdown of circulation figures, there was
evidence that Amerika was distributed outside
128
Deparfment of State Bulletin
Moscow. The Embassy received reports in 1947
and 1948 that the magazine was being sold in over
20 cities and towns, inchiding Leningrad (north-
ern Russia) ; Tiflis and Baku (Caucasus) ; Kliar-
kov (Ukraine) ; and Saratov and Stalingi-ad
(Volga River) .
Tlie situation in 1947 was summed up by Neal
Stanford, correspondent of the Christian Science
Monitor, as follows :
Each month fifty thousand copies are put on sale at
go%-iet newsstands for 10 rubles. . . . They are said to
disappear, however, quicker than such scarce commodi-
ties as butter and bananas during the war. If the Krem-
lin would permit the United States to ship more copies
into Russia it could sell five or ten times the ijresent
number. The scarcity puts a real premium on them, so
that second-, third-, fourth-, and even 0fth-hand copies
sell on the "black market" at several times the original
price.
Intimidation of Readers (1947-52>
During the spring of 1947, Soviet propaganda
launched a virulent attack on all things American,
which has continued ever since with mounting in-
tensity. Amerika's popularity with Soviet read-
ers was obviously hampering this attack. The
first step taken to combat its effect was a series of
bitter criticisms in the press, aimed at deterring
Soviet citizens from buying or reading the maga-
zine. The first of these appeared on August 10,
1947, in the journal Culture and Life. The article,
"A Catalog of Noisy Advertisement" set the pace
for tactics used throughout the campaign. The
article stridently and contemptuously dismissed
Amerika as vulgar, false, and wicked ; it admitted
to no virtues in the magazine.
It is significant that the Embassy received sev-
eral anonjTiious telephone calls after publication
of this first Culture and Life article. The callers
expressed the hope that the article would not be
accepted as reflecting "general opinion" of
Amerika.
Since that time, over 35 separate press attacks
have appeared, in the guise of "reviews" of single
articles or diatribes against the magazine as a
whole. The usual line was that the magazine
was "lying," "decadent," and "rotten bourgeois
journalism."
The technique was to use an Amerika article as
a springboard for a polemic against some phase of
American life, rather than to make any specific
refutation of the article in question. For exam-
ple, Pravda of June 4, 1951, attacked an Amerika
article entitled "Wages and Prices in the United
States," which, by pointing out that the average
living standard in the United States had improved
40 percent since 1940, directly contradicted Soviet
propaganda about inevitable depressions and pov-
erty-stricken workers. The Pravda article stated
flatly : "Almost three-quarters of the population
of the U.S. constitute indigent masses who are
starving or under threat of starvation." Accus-
ing the magazine of giving Soviet readers "Amer-
Ju/y 28, 7952
ica in saccharine syrup," the author, David Zaslov-
sky, leading Soviet "critic," accused Amerika of
"telling fairy tales on wages and prices" to the
Soviet people, who, he said, "know no poverty or
unemployment, but only grandiose peaceful
construction."
There was evidence that the Soviet Government
feared Amerika's competition in relation to Soviet
magazines. In 1948 the Central Committee of the
Communist Party gave a severe dressing-down to
Ogonyek., AmeriJca's nearest counterpart in the
Soviet Union, charging it with publishing "sec-
ond-rate articles," saying that it "suffered from
monotony and lack of imagination," and contained
"too many small photographs and few colored
photographs." Ogonyek was ordered to "dras-
tically improve its production," especially in
printing more and better color pictures.
In addition to attempts at intimidation through
the press, direct pressure was applied to readers.
Cases were reported of purchasers of Amerika
being questioned by the police and having their
copies confiscated. Readers who had formerly
called at the Amsrika office, located in a building
separate from the Embassy to obtain copies, now
ceased to do so since a policeman was stationed at
the door. In 1949 telephone inquiries about the
magazine, formerly averaging 10 or 20 a week,
abruptly dropped off to 1 or 2 a month. Russians
to whom copies were offered on trains read avidly
as in the past but were more careful about being
seen and refused to carry the copies home with
them.
On the whole, however, the intimidation cam-
paign was a failure. For one thing, the planners
of the press attacks failed to realize that this press
attention helped to publicize the magazine and
increased demand for it. Wlien they realized
this, the frequency of the attacks diminished.
Basically, however, intimidation failed because
there were too many enthusiastic readers willing
to take some risk to obtain Amerika. These "reg-
ulars" had come to depend upon the magazine.
Although the press attacks and other methods
of attempted intimidation continued, stronger
measures were needed to cut off Amerika al the
source.
Distribution Cut (1950-52)
In December 1949 the Soviet distributing
agency abruptly informed the Embassy that "un-
sold copies" of Amerika would henceforth be re-
turned. This was the first intimation of any
sort from the Soviet Government that the maga-
zine had been anything other than a complete
sell-out ; during the previous 5 years, every issue
had been paid for in full. The Embassy, there-
fore, replied by asking the distributor to supply
details as to national distribution and number of
copies sold, citing extreme inadequacies in distri-
bution which had developed outside of Moscow,
specifically in the city of Vladivostok, where offi-
129
cials of the American consulate (since closed, but
then the only center of U.S. personnel in the
U.S.S.R. outside of Moscow) had never been able
to observe the magazine on sale. The distributor's
answer, dated February 11, 1950, stated that
Amerika was sold in "70 cities of the Soviet Union,
including all the largest centers'' and that "in
every one of these cities Amerika magazine is on
sale at from 3 to 50 newsstands, depending on the
size of the city." No information was given as to
which cities were involved, or how many copies
went to each.
Regarding the number of copies sold, the dis-
tributor cited figures purporting to show a pro-
gressive decline in circulation during the year
1949 of almost 50 percent. Throughout this
period, when sales were alleged to have "declined,"
the distributor had continued to pay in full for
each issue.
Such a sudden "drop in sales" of a magazine
which had an established readership and popu-
larity over a 5-year period seemed quite implau-
sible to Embassy officials, especially since they con-
tinued to receive enthusiastic comments from
readers; vendors were still to be observed selling
second-hand copies on the streets of Moscow, and
during 1949 the Soviet authorities issued nine
separate attacks on the magazine in their press
and radio.
Embassy Protests to Foreign Ministry
In a note to the Foreign Ministry dated March
21, 1950, Ambassador Alan Kirk said that the dis-
tributor's reply was unsatisfactory, that distribu-
tion methods were inadequate, and that "all in-
formation at the Embassy's disposal indicates that
well over 50,000 copies could be sold in the Soviet
Union if distribution were made in a satisfactory
manner." The note also referred to the absence
of copies at Vladivostok, and reminded the Min-
istry that the Soviet Government was "distribut-
ing freely in the United States an official publica-
tion of the Soviet Embassy in Washington and
other information media."
The Ministry's reply, dated March 31, 1950, re-
peated the distributor's statement that A7n-erika
was distributed in 70 cities but named only Vladi-
vostok; denied that any deterioration of distri-
bution had occurred; referred to a "fall in
demand" for the magazine; and stated that "the
Ministry cannot have influence for increasing de-
mand on the part of Soviet citizens for the maga-
zine Amerika.'''' Allegations were also made that
the distribution of the Soviet Embassy's Informa-
tion Bulletin was not free and that "U.S. officials
systematically put obstacles in the path of dis-
tribution of the Informatiori Bulletin.'''' (This
latter charge may have been based on the fact that
certain schools and libraries in the United States,
entirely of their own volition, had removed the
Soviet Bulletin from their shelves and asked that
their names be stricken from the distribution list.)
In its reply, dated May 26, 1950, the United '
States Government expressed regret that the
Soviet Government appeared unwilling to con-
tinue to carry out the 1946 arrangement to dis-
tribute 50,000 copies. It stated that it was "im-
possible to accept" the Ministry's statements on
lack of reader interest in Amerika. This Govern-
ment also amiounced a price cut from 10 to 5
rubles as a measure to give the magazine maxi-
mum availability. Ambassador Kirk's note
summed up the situation, as follows : I
My government, which in the present Instance as in
the past, desires to make every possible effort to develop
and increase exchange of ideas between our countries,
sincerely hopes that the Soviet government wilt show
itself more cooperative regarding this magazine than it
has with regard to other suggestions for cultural ex-
change in recent years.
A reply from the Foreign Ministry on June 20,
1950, denied that an agreement ever existed to
distribute 50,000 copies. It stated that questions
regarding the magazine's circulation were matters
"having a commercial character" and hence were
not in the province of the Ministry but should
be taken up with the distributor. The note closed
with the statement that "on the part of the Soviet
government there has not been and is no prohibi-
tion or limitation whatever of the free sale of the
magazine Amerika in the U.S.S. R."
The U.S. reply, dated August 25, 1950, stated
that the U.S. Government could not agree that
there had never been any prohibition or limitation
on free sale of Amerika in the past but expressed
the hope that Moscow would speedily validate its
claim to that effect. Furthermore, in view of the
statement that questions of circulation were in the
province of the distributor, the Ministry was in-
formed that the Embassy "is presenting a series of
suggestions for improving and extending the dis-
trihution of the magazine Amerika^'' The note
concluded :
My government understands that, in the light of the
statement that there is no limitation on the free sale of
A7nerika, the Soviet government will place no obstacles in
the path of this further American attempt to increase
understanding and the exchange of ideas between the
American people and the peoples of the U.S.S.R.
Negotiations With Distributor
On August 2, 1950, a series of proposals for
better distribution of the magazine was made to
the distributing agent, Soyuzpechat. These
included :
1. Distribution at more than the 20 newsstands
in Moscow then being supplied and increasing the
distribution outside of Moscow.
2. Advertising the magazine both in AmeriJca
itself and in the Soviet press.
3. Use of posters and placards at newsstands.
4. Institution of subscriptions in addition to
newsstand sale.
In a conversation during which a memorandum
containing these proposals was submitted, the
130
Deparfment of State Bulletin
head of Soyrizpechat requested that the Embassy
report details of unsatisfactory distribution as
they arose. On September 29, 1950, and February
17, 1951, the Embassy gave detailed reports to
Soyuzpechat of declining distribution both in and
outside of Moscow. The reports showed that over
a period of more than a year the magazine had
been offered at fewer and fewer Moscow news-
stands, dropping from 20 to an average of 3 or 4 ;
travelers saw none in other cities.
On April 17, 1951, the Embassy summarized the
evidence :
The Embassy can only conclude that the distributor
has deliberately embarked on a campaign of dilatoriness
In handling the magazine, and of limiting its distribution.
The Embassy would welcome your assurances that you
are prepared to distribute the magazine properly for
sale in the Soviet Union.
On May 15, 1951, the Embassy received a belated
reply from the distributor to its three letters.
The letter read in full :
I received your letter of April 17. Measures have been
taken by Soyuzpechat to remove existing technical defects
in the distribution of the magazine through our retail
network.
This brief and somewhat vague reply was, not-
withstanding, the first admission that the maldis-
tribution charged by the Embassy existed.
On June 14, 1951, the Embassy protested to
Soyuzpechat that issue 46 of Am.erika, which con-
tained the article on "Wages and Prices in the
United States," attacked in Pravda, had been
removed from circulation by the Soviets shortly
after the attack appeared.
On July 10, 1951, the Embassy protested the
delay in reporting on sales. Reports on the last
six issues had been delayed from 100 to 300 days
after receipt of the issue by Soyuzpechat. Nor-
mally they should have been available the follow-
ing month. On July 18, Soyuzpechat reported
on sales of five of the six issues in the following
letter :
Figures were not reported to you previously, since this
question is connected with the receipt of reports from
local agencies ; i.e., from 70 cities in which the magazine
is distributed.
On August 3, 1951, the Embassy again requested
an answer to its proposals for improving distribu-
tion, submitted almost a year before. In an at-
tempt to elicit some sort of answer from Soyuz-
pechat on national distribution more explicit than
the oft-repeated "70 cities," Soyuzpechat was
asked to supply details on distribution in the fol-
lowing 15 cities, including the largest centers in
the U.S.S.R. :
Moscow
Kiev
Leningrad
Odessa
Gorki
Dnepropetrovsk
Rostov
Minsk
Stalingi'ad
Baku
Sverdlovsk
Tbilisi
Novosibirsk
Erivan
Kharkov
uly 28, 1952
A reply to this letter was received on August
17. Soyuzpechat again offered its standard reply :
"The magazine Amerika is distributed in more
than 70 cities in the U.S.S.R. . . ." No further
details were given. However, after a year's delay,
the letter gave replies to the Embassy's proposals
for improvement of distribution. These were as
follows :
On subscriptions: "Distribution by subscrip-
tion was not agreed on." (This was interpreted
to mean: "Since there was no mention of sub-
scriptions in the original agreement, we can never
discuss the question".)
On advertising : "In regard to the hundreds of
magazines published in Moscow, the practice of
advertising them does not exist." This statement
simply is not true. Advertisements of forth-
coming publications are frequently carried in
Soviet periodicals and newspapers.
On November 20, 1951, the Embassy made a
last attempt to obtain information on Ameriha's
distribution. Soyuzpechat was reminded that it
had ignored the Embassy's request of August 3
for a breakdown of circulation for 15 of the major
cities of the U.S.S.R., and the request was repeated.
In Soyuzpechat's reply dated December 6, 1951,
this query again was ignored completely.
Further "Decline in Sales"
Wliile the above-described negotiations were
going on, sales figures, as belatedly reported by
Soyuzpechat, had been steadily declining. From
27,000 in December 1949, alleged "sales" decreased
to a low of 14,000 as of March 1952 and 13,000 in
June 1952. During the same period, unofficial re-
ports received by the Embassy showed that not
a single copy was on sale in cities other than
Moscow. Thus, it appeared questionable whether
even 13,000 copies were being distributed by
Soyuzpechat as claimed in statements to the
Embassy.
Meanwhile, the "unsold" copies returned by the
Soviets have been used in countries outside the
U.S.S.R to reach emigres and escapees from the
Soviet Union and satellites. During the first ne-
gotiations with the Soviets in the spring of 1950,
a world-wide survey was made to determine the
most useful outlets for returned copies. This dis-
closed a potential audience of at least 200,000 Rus-
sian and other Slavic peoples who could read
Russian. Returned copies, ranging from 25,000
to 35,000 an issue, have been distributed to these
groups in such countries as Germany, Iran, Israel,
Brazil, Greece, Sweden, and Argentina.
Censorship
As an absolute condition to the admission of
any such publication from America, the Krenilin
had insisted that all copy for Amerika be subject
to precensorship in Moscow. Vyacheslav M.
Molotov explained that this censorship was "purely
131
a wartime emergency measure." For 6 years,
however, censorship was not a problem, since the
censor's cuts were rare and consisted of only a
sentence or two at a time. In 1951, howevei', the
censor started on a new policy of rejecting entire
articles. One of these, "The World's Conscience,"
consisted of the full text of the United Nations
Declaration on Human Rights. Another was a
comparison of the operation of public opinion in
democracy and dictatorship, using Nazi Germany
as the example of the latter. The third was a
biographical article on William Saroyan.
The method of rejection used by the censor was
simply failure to return the texts of these articles.
When the Embassy requested their return with
written notation of rejection, the censor refused.
Wlien the Embassy repeatedly telephoned to ask
him the reason for rejection, he refused to come
to the telephone and callers were referred to a
clerk. The clerk finally stated, still over the tele-
phone and not in writing, that the articles were
rejected because they were "not objective."
Conclusion
Despite the Soviet Government's reports of de-
clining circulation over the past 6 months, De-
partment of State officials believed that it might
still be reaching some Russians and were reluctant
to suspend publication. However, the mounting
restrictions placed on distribution and the lack
of evidence that it was reaching any Russian
readers led to the decision that suspension would
be in the best interests of the United States at this
time. The Department is ready to resume publi-
cation as soon as the Soviet Government is pre-
jjared to permit free circulation in the U.S.S.R.
Secretary's Impressions of
His Recent Visit Abroad
Press release 559 dated July 16
At his press conference on July 16, Secretary
Acheson made the following extemporaneous re-
marks concerning the impressions he gained dur-
ing his recent visit to the United Kingdom, Berlin,
Vienna, and Brazil:
I suppose what is useful to talk about is not so
much an itinerary but outstanding impressions.
The meetings that I had, the discussions that I
had in England, were primarily business dis-
cussions. Those are pretty well covei'ed by the
note which has come out in answer to the Russian
note on Germany so I won't dwell on those.' It
is the sort of meeting which we have had many
times before.
The visits to Berlin, Vienna, and Brazil were
not for the purpose of conducting business. They
were for the purpose of having a Cabinet officer,
the Secretary of State of the United States, go to
these various countries because they wished me to
come, and invited me to come, as an expression
in my presence of the great interests of the Gov-
ernment of the United States in the peoples of
Berlin, the peoples of Vienna, and in our great
sister Republic of Brazil.
Now the impression that I get from that is the
tremendous confidence, certainly in these three
parts of the world, and the tremendous friendship
which exists there for the United States — the be-
lief in the power of the United States, the disin-
terestedness of the United States, our desire to be
helpful and friendly and not to impose ourself
upon others. That stood out in all three of these
places.
There is gi-eat trust and great confidence in us,
and I wish everybody in the United States could
realize that fully, because it brings to us a correl-
ative responsibility that we should perform in a
way which is worthy of that confidence and that
trust.
The atmosphere in all of these places was dif-
ferent. I don't think that I have ever been in
the presence of such an impressive assembly as
there was in the great square in Berlin when we
laid the cornerstone of the American Library."
It was estimated that upwards of 90,000 Germans
were standing in the sun through quite a long
ceremony on a hot day, while the mayor, various
other dignitaries of the city, the High Commis-
sioner, John J. McCloy, and I made speeches. The
stone was laid and for over an hour in the hot sun
90,000 people stood there warmly applauding on
certain occasions.
After this was all over, there were crowds of
people that gathered around McCloy and me,
many of them coming from the Soviet areas of
Germany — people pushing at me their passports,
or their travel papers to indicate that they lived in
the eastern sector of Berlin, or in the Soviet
sector somewhere, and asking for a word or some-
thing, some expression, some chance to talk with
me for a moment or two. One old lady said that
this was something that she was going to cherish
for months and months and months — this would
be the thing that she would think over to give her-
self hope; that she had spoken to me and that I
represented America.
It was very impressive : the gi'im determination
of those Berliners to stay with it, to hold on to
their freedom. It was a great experience, a great
tiling to see. I had an opportunity to meet and
' For text of the .l\ilv 1(1 trioiirtite note on Germany, see
BuiMTiN of July 21, 1952, p. 92.
^ For text of the Secretary's remarks on this occasion,
see ibii., July 7, 1952, p. 3.
132
Department of State Bulletin
talk with the mayor and most of the submayors
of the western sectors of Berlin at dinner the night
before. We did not attempt to transact any busi-
ness but we talked, got an understanding of one
another's point of view. From there we went to
Vienna.
In Vienna one had the same feeling of determi-
nation. The situation was not as exposed in
Vienna because the Government of Austria is
operating in the Soviet parts of Austria, but there
was the same determination to maintain their free-
dom, and the same attitude that the Russian oc-
cupation was a passing thing, that it was not
accejited as anything permanent.
I met with the President of Austria, who is a
most distinguished and fine gentleman indeed, and
talked with Chancellor Leopold Figl, the Vice
Chancellor, the Foreign Minister, and many mem-
bers of the party. I was there only two nights
and one day, but I saw a vast number of people.
Perhaps one of the most striking things to me
was coming into Vienna. We landed at our air-
port, which is in the Soviet area — it's 20 miles out
of Vienna. And we came in on the railroad. The
train consisted of a locomotive, a baggage car, and
one sort of observation coach at the back with
large glass windows. It was a Sunday and people
were out, either bathing or boating on the Danube
or playing games in a sort of park area between
the railway track and the Danube. There were
great crowds of people and as our train came
along — sometimes just along the railroad track,
at other times at crossroads or little stations or
where the train would go through a small village —
in all the backyards and up on the roofs of the
houses there were masses of people waving hand-
kerchiefs, towels, flags, everything at this train
as it went by.
In some little jilaces, signs woven out of flowers
that said "Welcome" were put up. You would
see in the background some Russian soldiers walk-
ing about. But nobody paid any attention to
that. These crowds were expressing a cordial,
warm, friendly attitude toward us.
The Chancellor kept saying at our meetings in
Austria that I was the first Cabinet officer in the
whole history of the United States who had ever
visited Austria ; that he was the first head of the
Government of Austria who had ever visited the
United States. This was a symbolic thing which
brought comfort and reassurance to the Austrian
officials and the Austrian people. It was some-
thing which I was profoundly happy that I had
done — this visit to Austria.
After that day and two evenings, we left on
our long journey to Brazil. The evenings were
typically Viennese, very charming. The first
evening we were there the Chancellor had a per-
formance of The Marriage of Figaro in the little
theater in the Winter Palace which had been built
by the Emperor for the performance of Mozart.
This performance was beautifully done, exquisitely
July 28, 1952
done. And afterwards we met the artists and had
supper with them.
The next evening he had a dinner for us, and
after the dinner some artists from the opera sang
and then he had a surprise for us, and the surprise
was a performance by the children who were in the
Ballet School in the Vienna Opera, the Children's
Ballet. These little girls who I suppose were 6,
7, or 8 years old put on a most charming and
delightful ballet, which was beautifully done.
From Vienna we had two hard days of flying,
one long day across the Alps, through the Mediter-
ranean, along the coast of Africa, leaving at about
nine in the morning and getting into Dakar at
about ten at night. We had a very brief look at
Dakar, which is a most impressive city. Tlie
French are doing gi-eat things in Dakar. A
beautiful city is arising on this hot West Coast
of Africa. All sorts of housing developments are
going on for the people. You see on one side of
the road what is left of some primitive sort of
Innish and straw shacks which are being removed
while on the other side of the road the French
are building very neat, fine, little cement houses,
and as they clear away one of these old shacks
they replace it with the new, clean, painted cement
structures. Great school buildings are going up
all the way out from Dakar to the airport. It was
very interesting to me. We stayed with, and I
had most interesting talks with, a most able and
energetic French High Commissioner.
We then flew to Brazil, and again, without going
into details, what struck me so forcefully in
Brazil was the warmth, the cordiality, the friendli-
ness, with which I was received by all the Govern-
ment people — President Getulio Vargas; the
Foreign Minister, Nevas da Fontoura ; the Finance
Minister, Horacio Lafer; the head of the Banco
do Brasil, Mr. Ricardo Jaffet.' All these people
were warm and friendly and cordial, but every-
where on the streets there were crowds of people
who were equally warm and cordial. And that
is one outstanding impression. There is afi'ection,
regard, for the United States and a complete lack
of any worry about our attempting to dominate
or impose.
The other great impressions I received were of
the vigor and vitality and growth of Brazil. One
knows this, one looks at the maj), one reads re-
ports. But to fly over it all day long from early
morning until it gets dark — every ditferent kind
of country — to see and hear the reports of the
Joint Commission as to the colossal resources
which are being discovered ; to see the energy and
beauty of Rio, and then go to Sao Paulo and see a
city which is now 2.5 million, which has grown a
million in the last few years, and which has almost
any industry that you can think of located thei-e;
this just boiling ahead with terrific power and
" For texts of addresses made by Secretary Aeheson at
Rio de Janeiro and at Sao Paulo, see ibid., July 14, 1952,
p. 47, and July 21, 1952. p. 87.
133
terrific energy — what yon see here is a country
already great, which is entering upon a period of
development to which you can see no end. There
are no limits to the possibilities of this country.
I met with the Joint Commission made up half
of Americans and half of Brazilians, who are
working out projects for the consideration of the
Export-Import Bank and the International Bank
and others here in the United States. Here I was
struck by the gi'eat competence of everybody in-
volved. We have under the leadership of Eddie
Miller* here sent down competent men to work
on the United States side, and they are certainly
matched and pushed hard by the competent people
which the Brazilians have put on the Brazilian
side — engineers, economists, sociologists of the
greatest ability. And they have gone about this
thing in a most intelligent way.
You can be utterly flummoxed by the vastness
of the problem if you start sitting down and
deciding everything that should be done to de-
velop Brazil. In the first place, you would be
wrong — you couldn't, your mind couldn't encom-
pass it ; it's too vast a problem. So what the Joint
Commission undertook to do was to concentrate
on those things which must be done in order to
permit the gi-eat development which will come
fi'om private effort and private initiative; and
those tilings which have to be done are tlie creation
of power, creation of transport, and the creation
of harbors. If you can do those things, none of
which are for the best opportunities for private
investment, then you have laid a foundation where
anything can happen through private effort and
that's where the Joint Commission is concentrat-
ing its effort, and that is where the two banks are
concentrating their effort. And it's already
having tremendous results.
Well, as I say, the outstanding impressions of
my trip to Brazil were the great friendliness of
the Brazilian people, officials, and private citi-
zens— the belief that we have a gi"eat friend and
a great ally in Brazil, and the terrifi^c possibilities
of that country, both in the present and in the
future.
That is a brief resume of impressions.
Progress Toward European Integration
TENTH QUARTERLY REPORT OF THE U.S. HIGH COMMISSIONER FOR GERMANY
On March 31 John J. McCloy, U.S. High Com-
missioner for Germany^ subinitted to Secretary
Acheson and to Mutual Security Director W.
Averell Harriman his 10th Quarterly Report on
Germany for the period January 1-March 3U
1952. The report was released to the press in
Washington on July 11. It contains sections en-
titled Decisive Steps Toward European Unity,
The Contractual Agreements, Negotiating a West
Get^ian Financial Contribution to Western De-
fense, Southwest State Elections, Berlin Guards
Its Heritage, The American Houses^ in Germany,
and West Germany^ Stranded People. The last-
named section, lohich summarizes the postwar
refugee problem, is reprinted here, together with
Mr. McCloy\s letter of transmittal to Secretary
Acheson and Mr. Harriman.
LETTER OF TRANSMITTAL
I have the honor of transmitting my Tenth
Quarterly Re^Dort covering the period from Jan-
uary 1 to March 31, 1952.
Notwithstanding its tensions and dramatic de-
* The Assistant Secretary for Inter-Ameriean Affairs,
Edward G. Miller, Jr.
134
velopments of international scope, this period
marked significant progress and again demon-
strated that the idea of integration was beginning
to take roots in Western Europe. The fact that
attempts, though still undeveloped, were again
made to remove the Saar question as a constant
irritant in Franco-German relations was a hope-
ful sign, particularly as many of the proposed
solutions involved a so-called European dealing
with the issue; the Nato Council at its Lisbon
meeting settled a series of difficult problems in-
cluding the relationship between Nato and Edc;
the German financial contribution to defense was
subsequently agreed upon; and both the Federal
Lower House and the French National Assembly,
although with reservations, empowered their gov-
ernments to proceed with tlie already far-ad-
vanced negotiations on the establishment of the
European Defense Force. The rather enticing
Soviet offer for German unity of March 10,^ ob-
viously calculated to disrupt the progress of con-
tractual negotiations with the Federal Republic,
thus far failed to produce the effect desired by the
Communist worm, though it did prompt serious
Allied reexamination of the terms upon which
' Bulletin of Apr. 7, 19.52, p. .531.
Department of Sfo/e Bulletin
unification could be safely advanced. The con-
tractual arrangements were moving steadily to-
ward conclusion. The economic situation looked
bright; production indices continued to be high,
while unemployment was on the downgrade.
The Saar question has long been a serious ob-
stacle to the building of harmonious relations be-
tween France and the German Federal Republic.
Since close Franco-German cooperation is the key-
stone in the development of such supra-national
agencies as the Schuman Plan and the Edc on
which European integration hinges, the obstacle
inherent in a disturbed Saar issue remains ap-
parent. Wlien the elevation of the French High
Commissioner in the Saar to the rank of Ambas-
sador caused a commotion in Western Germany,
counter-reactions in France were immediately set
up and together they contributed to prejudices to
solid progress in building the emerging European
Community. Yet the determination of the West-
ern Foreign Ministers and Chancellor Adenauer
to prevent the Saar, located in the heart of Europe,
from becoming a stumbling block in the realization
of the century-old dream of European unity, and
the understanding of the situation demonstrated
in the German and French Parliaments, were evi-
dence that this concept of European solidarity
has transcended the debating stage.
By mid-February, the negotiations on the con-
tractual arrangements had reached a stage where
important decisions had to be made in order to
permit further progress leading to the substitution
of a series of contracts for the Occupation Statute
and to Germany's participation in Western de-
fense. At their February 18-19 meeting in Lon-
don, the Foreign Ministers and Chancellor
Adenauer reached agreement on many fundamen-
tal questions up to then unresolved, among them
the subsequent treatment of war criminals and
the approach to be taken for the determination of
Germany's contribution to Western defense. In
the Lisbon meeting held on February 20-25 by
the Nato Council, a solution was found for the
difficult question of the relationship between the
Edc, of which Germany is a member, and the Nato,
in which Germany is not a member. These sig-
nificant developments permitted the negotiations
both of the contractual arrangements and the
European Defense Community Treaty to enter
into their final phase.
There still remained important problems to be
solved. One of them concerned the division of
Germany's defense contribution between Edc
forces stationed in Gei-many, including the Ger-
man contingents, and the non-Eoc- forces (the
U. K. and U. S. contingents) . The problem of an
arbitration court to consider disputes between the
Western Allies and Germany was not yet resolved.
But solutions for these and other difficult questions
were in the offing.
These successes of Western policies were certain
to draw a reaction from the Communist world.
It came in the form of another Soviet proposal for
German unification. The Soviet note of March 10
was the most far-reaching bid so far made to lure
West Germany away from the West and eventually
into the Communist orbit. On the surface, the
note appeared to contain considerable concessions,
but an analysis of its provisions indicated again
that the Soviet objective was a solution which
would leave Germany either under continued Four
Power controls or in a suspended state where the
possibilities of Soviet domination would be greatly
advanced.
German unity continues to be a major objective
of Allied postwar policy in Europe; repeated
earnest attempts of the three Western Allies to
obtain Soviet cooperation for Germany's unifica-
tion on a free society basis have remained unan-
swered. At the close of the period which this
report covers, the doors of the Soviet Zone and of
East Berlin had not been opened to the UN Com-
mission charged to investigate whether conditions
exist for free elections in the Four Zones and
Bei'lin. The tripartite reply to the Soviets of
March 25 • made it clear that the Western Powers
would continue to exert their efforts to achieve
German unity in freedom and dignity. At the
end of this period, the Soviet rulers still gave no
assurances that they were prepared to give a truly
free opportunity to East Germans to select their
own government. Meanwhile the Soviet propa-
ganda machine thundered on with Peace and
Unity themes strongly interspersed with germ
warfare charges strongly reminiscent of the "po-
tato bug" line of other years.
The overall economic developments in Western
Germany continued to be favorable. The produc-
tion indices continued to be high, achieving 136,
the highest figure ever recorded for this season of
the year. Unemployment was again diminishing,
notwithstanding the continuing influx of refugees
from the East, and in the month of March there
was the greatest decrease in unemployment in any
month since the ciu-rency reform in June 1948.
The German financial structure appeared healthy
and capable of absorbing West Germany's contri-
bution to defense without causing any negative
ramifications; on the contraiy, it appeared that
as the only nation with a great untapped reservoir
of manpower and technical facilities, the Federal
Republic's participation in the defense effort of
the West was likely to ensure a steadily rising
standard of living in Western Germany, notwith-
standing defense expenditures.
Gei-man coal production, a vital factor in the
economic life and defense program of the whole
of free Europe, showed a noteworthy increase and
reached a daily average of 411 thousand metric
tons in the month of March.
In the elections for a Constituent Assembly,
held on March 9 in the three states of Wuerttem-
berg-Baden (U. S. Zone), Baden and Wuert-
= Ibid., p. 530.
July 28, ?952
135
temberg-Hohenzollern (French Zone), strong
national issues were injected. Notwithstanding
an intensive campaign by the government opposi-
tion, the elections confirmed rather than censored
the government policy. Chancellor Adenauer's
Cdtj, despite some losses, came out again as the
strongest party. The composition of the govern-
ment for the new Southwest State, which at the
end of this period had not yet been formed, could
considerably affect the efficient operation of the
Federal Govermnent, since each state sends to the
Upper House a delegation voting in bloc.
During these elections, the neo-Nazi Srp, which
participated actively only in Wuerttemberg-
Baden, where it could campaign for one week
only, succeeded in obtaining 3.9 percent of the
vote. Since Wuerttemberg-Baden's economy is
relatively healthy and jjrosperous, and therefore
not conducive to the development of radical ele-
ments, this fact should not be lightly overlooked.
The neo-Nazi movement in Germany, still unim-
portant, remained a factor to be watched.
Although gaining a slight foothold in Wnert-
temberg-Baden, the Srp ran afoul of German jus-
tice in Lower Saxony, its original stronghold.
The Court, considering the case of one of the
Srp's leaders who was accused of making deroga-
tory remarks against the participants of the July
20 plot on Hitler, found him guilty and pro-
nounced a sentence of three months' imprison-
ment. The trial was conducted by the Court with
great earnestness in an obvious endeavor to arrive
at a morally and legally sound decision.
Berlin took a firm stand against radical
nationalism of which there were sporadic indica-
tions. It appeared very unlikely, however, that
this outpost of freedom would provide a fertile
ground for any radical movement. Berlin's eco-
nomic position showed little change owing to the
continuation of Communist harassment of Berlin's
trade.
The time is approaching for the transformation
of the Office of the United States High Commis-
sioner into an Embassy. With this change of
status, the Quarterly Keport will no longer ap-
pear; judging by the present stage of negotiations,
this 10th Report may well be the last regular issue.
A summary "Report on Germany'' covering the
whole period of my tenure of office will mark the
change-over.
That events have justified this transformation
is demonstrated by the growing maturity of the
Federal German Government and its increasing
stature in international affairs.
Some may and do say we have proceeded too
rapidly to this stage — others too slowly. All but
a few demagogues will concede that the occupa-
tion is far from oppressive. Indeed, Germany has
received a full measure of aid from those western
countries which first met and defeated the Nazi
attack. With this help, and behind the shield of
the forces of those countries. Western Germany
has greatly prospered economically, politically,
and socially since the dark days of 1945. But to
continue even this concept of occupation will not
reduce the risks of totalitarian revival. The exer-
cise of her own rights and the honest fulfillment of
her obligations as a partner in a free world is the
best help for Germany's democratic future. Upon
conclusion of the contractual arrangements the
Federal Republic rather than the High Commis-
sion will have the responsibility for that future.
Bonn/Mehlem
Oermany
March 31, 1952
.ToHN J. McClot
U. S. High Commissioner for Oermany
WEST GERMANY'S STRANDED PEOPLE
One of the most serious problems in postwar
Germany is posed by "the refugees"^ who form
one fifth of the Federal Republic's population.
While the presence of a vast unused manpower
reservoir could be a great asset to the West German
economy, their concentration in predominantly
agricultural areas and the slow pace of their re-
settlement to industrial regions causes grave
concern.
Since November 1951, there have been increas-
ing indications that large numbers of refugees
now concentrated in Schleswig-Holstein and
Bavaria were organizing "treks" to more prosper-
ous areas of the Federal Republic. The public
announcement of this move came as a stark re-
minder that the problem of West Germany's
"stranded people" had by no means been solved.
At the same time it served to point up a problem
of even broader scope : the virtual immobility of
important segments of the German population
resulting from the great housing shortage and
from the prohibitive cost of building construction.
Much publicity has been given to the trek plans.
In a full-scale Lower House debate the govern-
ments of the Federal Republic and of some of the
states drew heavy fire for their alleged failure
to push the refugee resettlement scheme which has
been lagging far behind schedule. At the same
time efforts were made to persuade the trek or-
ganizers of the hopelessness of their endeavor.
Nevertheless these leaders adhered to their plans
and agreed to postpone their venture only after
receiving assurance from Federal Expellee Min-
ister Hans Lukaschek that renewed efforts to re-
settle an increased number of refugees would be
' The groups of persons generally known as "refugees,"
and so referred to in tins article, include the following
groups :
1 ) the "expellees" who were forced to leave their homes
in the prewar German territory east of the Oder-Neisse
rivers, or ethnic Germans formerly living in countries now
behind the iron curtain ;
2) those German "refugees," who have fled from the
Soviet Zone of Occupation because of political or other
pressures.
136
Department of State Bulletin
immediately attempted. In fulfillment of this
pledge the Federal Cabinet completed on March
14 the draft of a new law providing for the re-
settlement of 200,000 refugees during the current
year and announced that sufficient funds were
now available to build housing for another 100,000
refugees to be resettled by June 1953. Should
the redistribution of refugees not be resumed in
the very near future, some kind of trek movement
may be expected by the summer of 1952. If it
occurs, the situation will be one of potential dan-
ger with which it will be difficult to cope.
About 9.8 million people who now reside in
the Federal Republic lived outside the Federal
Kepublic's boundaries at the outbreak of World
War 11.^ The bulk of these people, some 8 million
strong, consists of Gennans who came from Ger-
man areas east of the Oder-Neisse Line or from
countries such as Czechoslovakia, Poland, Hun-
gary, and Rumania. In addition there are some
1,700,000 persons from the Soviet Zone or from
East Berlin who have sought refuge in the Federal
Republic for political or other reasons. One of
the chief causes of the present plight of these new
citizens is their uneven distribution over the eleven
states of the Federal Republic.
Expellees and refugees began arriving during
the last stages of the war and after the conclusion
of the Potsdam Agi'eement in August 1945. Al-
though plans had been carefully made by inter-
national agreement to assure the humane and or-
derly transfer of certain groups of Germans to the
Zones of Occupation, the precipitate manner in
which excessively large ninnbers of pei'sons were
expelled by the east European governments made
it extremely difficult to transfer and resettle these
groups in accordance with the plans agreed on.
It proved necessary to provide immediate emer-
gency housing, food and medical care for millions
of people in the U. S. and U. K. controlled areas.
With the German economy in a state of near
collapse, little attention could then be given to the
long-range aspects of the problem.
Housing was not available in regions of indus-
trial concentration where the worst destruction
had been wrought during the war. Only pre-
dominantly agricultural areas had remained fairly
intact and thus were the only source of immediate,
albeit primitive, accommodations for the homeless
millions. Available space was further restricted
by the fact that France, not a party to the Pots-
dam Agreement, for a long time denied its Zone
of Occupation to refugees. In April 1950 the
French first began to accept small numbers of
expellees repatriated to Germany.
Thus today's refugee population is still mainly
concentrated in the agricultural states of Schles-
wig-Holstein, Lower Saxony (both in the U. K.
Zone), and Bavaria (U. S. Zone), although their
' This figure does not include displaced persons of non-
German nationality. See "Assimilation of Displaced
Populations," 5th Quarterly Report, p. 56 ff.
July 28, 1952
vH
presence in such states as Wuerttemberg-Baden
or Hesse also poses serious problems. While the
three first-mentioned states account for only 38
percent of the total West German population,
they harbor within their borders 54 percent of all
expellees and refugees now living in the Federal
area. The two extremes are to be found in
Schleswig-Holstein, where 37 percent of the popu-
lation are refugees, and Rhineland-Palatinate
(Fr. Zone), where only 8.5 percent are refugees.
This obvious maldistribution did not become the
burning problem it is today until the currency re-
form of 1948. Up to that point industrial pro-
duction had been at a virtual standstill. Since
consumer goods were all but unobtainable, agri-
cultural workers, many of them refugees, were
in a better position to obtain food than were city
dwellers, but with the sudden rise of industrial
production following the reform, and as payment
in kind lost some of its premium value, agricul-
tural jobs became less desirable. At the same time
the demand for industrial employment and for
money wages increased sharply while employment
generally went up. Refugee employment, on the
other hand, declined at first. Wlien it later showed
some signs of improvement it did not rise suffi-
ciently to reflect the true ratio of refugees to the
total German population. At the same time
refugee unemployment far exceeded unemploy-
ment among the native population. This dis-
crepancy diminished slightly as enterprises were
established in areas of heavy refugee concentration
and as the slow process of relocation got under
way. Nonetheless, in February 1952 there were
still 568,000 unemployed refugees in the Federal
Republic, a number roughly equal to one third
of all jobless while the refugees still constitute one
fifth of the population. In Schleswig-Holstein
more than half of all unemployed are refugees.
Wliile the agricultural areas are still over-
crowded by job seekers, a shortage of labor has
been reported from industrial regions of Western
Germany. Skilled workers are needed in many
industries and the shortage of miners in the coal
districts of the Ruhr has long plagued German
authorities. This state of affairs led to the obvi-
ous decision to transplant the unused pool of man-
power to the available job opportunities, and
thus to serve both the displaced populations and
the German economy. This plan, simple in its
conception, has proved to be a difficult one to carry
out.
In November 1949, a Federal Ordinance based
on an agreement concluded earlier by the various
states decreed that in the course of 1950, 300,000
refugees would be removed on a voluntary basis
from Schleswig-Holstein, Bavaria, and Lower
Saxony and distributed according to a set plan
among the other states of the Federation, the larg-
est number to go to the industrial state of North
Rhine-Westphalia and to the French Zone. By
the end of 1950 a total of 226,000 had actually
137
moved, either by organized transports or on their
own initiative.
The results achieved in 1951 were much less
gratifying. In accordance with a law passed by
both Houses of the Federal Parliament in May
1951 another 200,000 were scheduled to leave the
overcrowded areas during this year. By the end
of tlie year, however, only 94,000 people had been
accepted by the receiving states. Of this number
only 43,000 had been included in organized
transports.
It is the comparative failure of this program
which has led to the present wave of discontent
among refugees who have spent nearly seven
years waiting for a chance to move out of their
emergency dwellings. By the terms of the Basic
Law they are free to move anywhere within the
confines of the Federal Republic. Many of them
have done so and not a few have found employ-
ment and housing elsewhere. But because only
those moved in organized transports are reason-
ably sure to find a job and a home in their place
of destination, uncertainty about the future has
been a strong deterrent, so far, to individual
migration.
With the large bulk of the refugee population
definitely dependent on organized transports, the
failure of such resettlement to continue on a large
scale takes on serious aspects. Federal authorities
have countered refugee criticism by pointing out
that there is little they can do to enforce a Federal
law which depends so much on the whole-hearted
cooperation of the several states. Tlie states, on
their part, reject these charges and state that the
redistribution scheme for 1951 simply could not
be carried out in the time allotted.
The situation is particularly acute in North
Rhine- Westphalia. This, the largest industrial
state of Western Germany, had been assigned the
greatest quota of refugees in 1951 but showed the
poorest record of fulfillment. State authorities
point out that acceptance of the refugees implies
much more than permission for them to enter the
state. Unless they are to continue to exist in con-
ditions as bad or worse than in their present habi-
tat, new jobs and satisfactory housing must be pro-
vided for them in the receiving state. Jobs can
undoubtedly be obtained, but the question of hous-
ing is much more difficult. The density of popu-
lation in North Rhine-Westphalia is the greatest
in the Federal Republic, save for that of the city-
states of Hamburg and Bremen. Despite a great
amount of construction, housing is still at a pre-
mium and many of the present residents are f oi-ced
to commute long distances to get to work. Thus
the State Government insists that it must be given
more time to prepare for the arrival of over
150,000 people. Such arguments are being ad-
vanced by almost all of the "receiving states."
Overcrowding, it must be noted, is not a prob-
lem for the refugee alone. Germans, in general,
live in much more crowded conditions today than
they did in 1938. More than 2 million dwelling
units were destroyed during the war. Some
800,000 new ones have been constructed since then.
Owing to the influx of expellees and refugees, how-
ever, it is estimated that a total shortage of 3.75
million units still exists if prewar housing stand-
ards are to be applied. The average number of
persons occupying one unit (consisting of two
small rooms and a kitchen) has risen from 3.5
to 5.3.
The housing problem is seriously complicated
by prohibitive building costs which in 1951 alone
increased by about 25 percent. Private building
consequently is out of reach for people in the low
and even medium income brackets. No rent ceil-
ings apply to housing constructed with private
funds. House owners building at their own ex-
pense usually demand from the lessee, in addition
to the high rent, payment of a sizable sum as a
means of recovering their investment or in order to
finance the building (the so-called "Baukosten-
zuschuss"). As a result large sections of the pop-
ulation, including the refugees, are totally
dependent on housing constructed, at least par-
tially, with public funds since the rents for such
units are substantially lower.
Construction of housing with non-private capi-
tal is mainly financed from three sources: 1) com-
pulsory investment by insurance companies and
certain banks, 2) loans from employers who stand
to benefit from the fact that any dwellings so
constructed will be reserved for their employees,
and 3) public funds granted as loans. Since
building costs are on the upswing and investments
of the first two types are limited, a much higher
proportion than before must now come from public
funds, which in view of other drains on the public
treasury are also limited. Erp funds especially
earmarked for housing construction have been of
considerable help in eliminating this bottleneck.'
A2)proximately 37 percent of all newly constructed
public housing is now going to refugees. This
quota varies in the several states, reaching a high
in Lower Saxony of 85 percent.
Wliile resettlement is being retarded by lack of
housing, manpower, including considerable skilled
labor, is going to waste. Owing to their peculiar
position, most refugees have found it impossible
to make full use of their previous training and ex-
perience. Many of those who were formerly
professionals or self-employed have been forced to
accept jobs, as far as jobs were to be had, as manual
laborers. This is illustrated by the fact that only
8 percent of todays refugee population consists
of self-employed or family helpers as compared
to 37 percent before their expulsion or flight. At
the same time, the proportion of refugee workers
and salaried employees has risen from 59 to 89
percent.
In the course of time many of these people have
' See "More Coal from the Ruhr", 9th Quarterly Report,
p. ?,i fC.
138
Department of Stale Bulletin
come to think of themselves as second-class citi-
zens.* Their living conditions are, for the most
l^art, sub-standard. At the end of 1951, some
300,000 refugees were still living in camps and an
estimated two thirds of the remainder in dwellings
which frequently offer worse accommodations
than the camps. Cases of several families living
in one room are frecjuent, and sufficient space is
the exception rather than the rule. Employment
prospects are particularly limited for children and
adolescents who have little if any hope of finding
apprenticeships or jobs when leaving school.
A special problem for West Berlin is the arrival
of refugees at an average rate of over 1,200 per
week, seeking haven from oppression in the East
Zone. Although only about one third are ac-
cepted as political refugees and entitled to employ-
ment, housing, and social insurance benefits, most
of the newcomers remain in West Berlin and re-
ceive public assistance. The Federal Emergency
Admission Law which became applicable to Berlin
on February 4, 1952, provided for the transfer of
80% of the accepted refugees to Western Ger-
many; West Berlin, however, continues to be re-
sponsible for the remaining 20% of the accepted
refugees (estimated to be 40% of those arriving)
plus all of those who are unrecognized. About
200,000 persons have applied in West Berlin for
recognition as political refugees since the begin-
ning of 1949 ; and an additional number estimated
to be at least 100,000 persons, reside in West Berlin
"black" or illegally.
Attempts to solve the refugee problem have not
been restricted to redistribution plans. While a
more equitable redistribution has been the primary
goal of authorities dealing with the refugee ques-
tion, serious attention was also paid to plans for
the improvement of conditions in the present
refugee areas. Even before the establishment of
the Federal Republic, the states most concerned,
singly and together, had worked out large-scale
plans. In this endeavor they received active sup-
port, first from Military Government and later
from HicoG and the Eca-Msa Mission. Another
decided boost to these efforts was the establishment
by the Federal Republic of the Expellee Ministry
as central coordinating agency of refugee affairs.
Mucli has already been accomplished on the local,
state and federal levels and more can still be
expected.
Four different lines of action have, so far, been
pursued: 1) social welfare, 2) investment aid,
3) farm resettlement and 4) housing construction.
Social welfare services have been of primary
importance, especially in the early days when it
was simply a question of keeping the new arrivals
alive. The refugees had lost relatively more
during the war and its aftermath than local resi-
dents; they placed a heavy burden, therefore,
on German public funds. To aid them and other
'Tlie largest political refugee organization calls itself
the "Bloc of Expellees and Victims of Injustice."
war victims, the Federal Government in 1949 in-
troduced a Law for the "Equalization of Burdens"
(Lastenausgleich) geared to tax for the benefit
of the war victims those best able to afford it.
This law, not yet enacted, is the subject of an
extensive political debate. In the meantime most
of the refugee expenditures have come from an
Immediate Aid Tax (Soforthilfe), initially in-
troduced by the Bizonal Economic Administration
in 1949.
Steps were also taken to put the refugees back
on their own feet by making capital available to
them for investment in new enterprises. It is
the aim of this program not only to utilize the
managerial skill and the business experience to be
found among the new citizens, but also to create
job openings, most of which are likely to be filled
by refugees. To assure easy credit to these enter-
prises, the Federal Government in 1950 established
the Expellee Bank ( Vertriebenenbank) , capital-
ized with Erp counterpart funds, which has the
functions of guaranteeing loans issued by local
banks and of refinancing investment loans. The
initially slow operation of the refugee credit sys-
tem was improved considerably during 1951.
Great emphasis was also placed on the so-called
"Point-of -Main-Effort Program" (Schwerpunkt-
programm). Adopted in March 1950 as the core
of a general Federal labor procurement scheme,
this plan provides for the investment of DM 300
million in the areas of chief refugee concentration.
The money is to be spent for the creation of the
largest possible number of permanent jobs and
special attention is to be paid to refugee enter-
prises. The funds, almost all of which have al-
ready been distributed to the recipient states
(Schleswig-Holstein, Lower Saxony, Bavaria and
the northern part of Hesse) are allocated by these
states to various sectors of the economy. Accord-
ing to estimates of the Federal Erp Ministry, this
progi'am is chiefly responsible for the reduction
of refugee unemployment by 120,000 during 1950
and 1951. By the end of 1951 employment in
refugee enterprises stood at about 200,000.
Considerable progress has also been made in
resettling refugees on farms. By the end of 1951
some 20,000 farms had been taken over by expellee
families under a law, enacted in 1948, giving them
priority in the acquisition or lease of idle, heirless,
or reclaimed farms. The rate of settlement is
now estimated at 10,000 per year and it is unlikely
therefore, that all of the estimated 100,000 refu-
gee families now waiting for farmland can be
accommodated before 1962. An additional diffi-
culty is presented by the size of these farms.
While the minimum economical size of a farm is
considered in Western Germany to be 10 to 15
hectares, the average refugee farm is much smaller
and may not be viable in the long run.
Action that has already been taken to solve the
question of the displaced jjopulations should not
be underestimated. Many of them have been re-
Ju/y 28, 1952
139
established on farms or in businesses, jobs have
been created, and refugee employment is on the
increase. Housing has been continually improv-
ing since 1945.
On the other hand, it must be realized that all
these programs are of necessity limited in their
effect. The farm program, even should it be com-
pletely successful, assists only a segment of the
refugee population, and the payment of social
benefits will not solve the question in the long
run. Nor can an unlimited number of refugee
enterprises be founded in areas where most of
these people are now located. Industry and, to a
lesser extent, handicrafts are dependent on a fa-
vorable environment where raw materials, power
resources, and markets are easily accessible. These
conditions do not obtain in Schleswig-Holstein,
Lower Saxony, and northeastern Bavaria. As far
as construction of housing is concerned, it seems
pointless, in the long run, to spend vast amounts
of money for housing projects in regions where
the refugees are concentrated today, and where
the majority of them have little chance of obtain-
ing employment and making a living.
The great importance attached to the resettle-
ment plan is therefore quite evident. There is
hope that housing construction, the lack of which
has been the determining factor in the reluctance
of the "receiving states," will be stepped up con-
siderably during the spring season, since Federal
funds have now been guaranteed. If this is the
case, refugee movements may start rolling again ;
it remains to be seen, however, whether there will
be enough tangible evidence of progress to per-
suade Germany's stranded people to wait for or-
derly relocation and to maintain their sorely tried
patience. There is no doubt, moreover, that an
adequate solution of the problem requires not
only the forbearance of the refugees, but also
determined action and a tremendous amount of
good will on the part of the authorities and of
the German people as a whole.
International Bank Makes
$50 Million Loan to Australia
The International Bank for Reconstruction and
Development on July 9 announced that it has
made a loan of 50 million dollars to the Common-
wealth of Australia. The loan will be used for
the import of capital goods and equipment needed
for development programs in the following fields :
agriculture and land settlement, coal mining, iron
and steel production, electric power, railways,
road transport, the production of nonferrous
metals and industrial minerals, and manufacturing
industries. Commonwealth and State authorities,
business enterprises, and individual farmers will
benefit from the loan.
About one-third of the Bank's loan will aid
agricultural development. In spite of Australia's
rapid industrial growth, her exports still consist
almost entirely of farm products. If she is to
raise her foreign-exchange earnings and at the
same time grow enough to feed her increasing pop-
ulation, she will have to produce more wool and
food. The agricultural program consists of im-
proving production on existing farms through in-
creased mechanization, the use of fertilizers and
the adoption of more scientific methods of cultiva-
tion and animal husbandry, and the creation of
new farms through land reclamation and irri-
gation. By 1958, farm production is expected to
increase by 10 percent.
Nearly half of the Bank's loan will be used for
coal mining, the iron and steel industry, railways,
road transport, and electric power. Coal mining
is basic to every sector of the Australian economy
and especially important to the iron and steel in-
dustry, electric power, and transportation. Be-
fore and during World War II, Australia was able
to meet her own needs for coal and had a surplus
for export. Now, however, because of the rapid
growth of industry and population, demand ex-
ceeds supply and coal must be imported at high
cost. The program for which Bank-financed
equipment will be used aims at enabling Australia
to dispense with coal imports. As a short-term
measure, coal deposits lying near the surface are
being mined by open-cut methods, and at the same
time underground mines are being modernized
and improved. Extensive open-cut brown-coal
deposits are also being exploited. The Bank's
loan will finance the import of tractors and earth-
moving equipment for open-cut workings and
machinery and equipment for underground
operations.
About one-fifth of the loan will be spent on in-
creasing the production of nonferrous metals and
industrial minerals and for other industrial de-
velopment. In recent years, production of lead
and zinc, Australia's most important metal ex-
ports, has not been expanding. The production
of other important nonferrous metals has been
insufficient to meet domestic needs. The program
for which the Bank's loan will be used includes
expansion in the production of lead and zinc, cop-
per, tin, aluminum, tungsten, and pyrites. The
loan will pay for tractors and earth-moving equip-
ment, mining equipment and machinery, and plant
and equipment for concentrating, smelting, and
refining.
The Bank's loan will provide the Common-
wealth with foreign exchange with which to pay
for some of the imports of capital goods needed
for these development programs. The programs
themselves will be financed in Australian pounds,
partly out of public funds and partly out of the
capital resources of business enterprises and
individuals.
The Bank's loan of 50 million dollars is for a
term of 20 years and bears interest at the rate of
140
Department of State Bulletin
434 percent per annum, including the 1 percent
commission whieli, under the Bunk's Articles of
Agreement, is allocated to a special reserve.
Amortization payments will begin in June 1957.
This is the second loan the International Bank
has made to Australia. In August 1950 a loan
of 100 million dollars was made for the purchase
of capital goods and equipment needed for
Australia's development. About two-thirds of
that loan ha.s been disbursed, and it is expected
that the remainder will have been entirely dis-
bursed early in 1953. Today's loan will help carry
forward development in 1954.
After having been approved by the Bank's Ex-
ecutive Directors, the Loan Agreement was signed
on July 8, 1952, by Sir Percy Spender, Australian
Ambassaclor to the United States, on behalf of the
Commonwealth of Australia, and by Eugene R.
Black, president, on behalf of the International
Bank for Reconstruction and Development.
Export- Import Bank to Finance
Agricultural Equipment for Brazil
Financing of the importation by the State of
Minas Gerais, Brazil, of American agricultural
equipment in the amount of $5,000,000 was an-
nounced on July 3 by Herbert E. Gaston, chair-
man of the Export-Import Bank of Washington.
This financing will make possible the resale of
tractors and implements to the farmers of the
State on terms comparable with those tradition-
ally enjoyed by farmers in the United States. The
distribution of this amount of equipment through-
out the State will constitute a large scale demon-
stration of mechanized farming in those areas
which should greatly stimulate the introduction of
modern methods.
This modernization program is sponsored by
the State administration headed by Governor Jus-
celino Kubitschek. The State government ranks
high in Brazil in activities in aid of the farmer and
stock gi'ower and maintains one of the best agri-
cultural schools of that country.
This financing has the support of the Brazilian
Government and is one of the projects endorsed
by the Joint Brazil-U.S. Economic Development
Commission, of which the Brazilian head is Dr.
Ary Torres and the American head is Burke
Knapp.
Minas Gerais, while renowned for its great min-
eral resources, is also the second State of Brazil in
agricultural production. It is comparable in area
and population with the State of Texas in this
country.
The terms of the credit call for repayment in 10
semiannual installments with interest at the rate
of 4 percent per annum.
July 28, 1952
215876—52 3
ANZUS Council Meeting
Press Conference Statement by Secretary Acheson
Press release 558 dated July 16
I should like to mention again the meeting
which is being held in Honolulu the first week in
August and which I plan to attend. This will be
the first meeting of the Council created by the
treaty ratified by Australia, New Zealand, and
the United States on April 29, 1952. It is ex-
pected that Richard G. Casey, Australian Minister
for External Affairs, and T. C. Webb, New Zea-
land Minister for External Affairs, will attend the
first meeting.
The reason for my repeating this information,
which is already familiar to you here, is that there
still appears to be some misunderstanding about
the nature of this meeting, especially outside this
country.
The treaty signed by Australia, New Zealand,
and the United States recognizes that armed at-
tack in the Pacific area on the territories, armed
forces, public vessels, or aircraft of any of these
three countries would be dangerous to the peace
and security of all. Each country is pledged to
take action in accordance with its constitutional
processes should such an attack take place.^
The Council is meeting in the words of the
treaty "to consider matters concerning the im-
plementation of this treaty." The agenda is now
being drafted by representatives of the three
Governments. Since this is the first meeting, the
Council will naturally have to devote a consider-
able amount of its energies to problems relating
to its own organization and functions. In addi-
tion, its members will wish to review matters af-
fecting their common relationships in the Pacific
area.
This treaty is one of three which we have
recently negotiated with nations in the Pacific,
the other two being with the Philippines and
Japan. The United States has a deep and con-
tinuing interest in the peace, security, and wel-
fare of all the free nations of the Pacific area in-
cluding those not parties to these treaties. We
hope to continue to work with them as they may
desire to work with each other and with us.
Parenthetically I should like to add that in
reading press comments from various parts of the
world, I have noticed the wide variety of names
by which the treaty and the Council are called.
Unofficially here in the Department, we are using
the term Anzus Treaty and Anzus Council, be-
cause we think it is the most convenient way of
referring to the treaty and the Council established
by it.
' For text of the treaty, see Bulletin of July 23, 1951,
p. 148. An announcement of the first meeting of the
Council appeared in the Bulletin of July 21, 1952, ij. 110.
141
Human Welfare: A Practical Objective
Statement by Walter M. Kotschnig
Deputy U.S. Representative to V.N. Economic and Social Govmcil
U.S. /U.N. press release dated July 14
For the first time in its history, this Council is
engaged in a comprehensive review of world-wide
social conditions. This week, after many and
important debates on the world economic situa-
tion, we are for the first time attempting to com-
prehend the full impact of economic factors, of
technological development, and of ideas and as-
pirations upon the lives of individuals everywhere,
and upon their communities and their nations.
We have embarked on this review because we
realize that the final test of our work and achieve-
ment is to be found in human contentment, in
higher standards of living, in gi-eater freedom.
Improved agricultural and industrial techniques,
larger investments, bigger industries, increased
trade — they all have but one purpose. And that
purpose is a fuller life for the millions inhabiting
this earth — a life which will allow them to grow
to the full attainment of human stature. This is
the realm in which the foundations of peace are
laid — the peace which the United Nations is in-
tended to secure.
The Report Before the Council
As background for our review, we have before
us a remarkable document — the Secretary-Gen-
eral's Preliminary Report on tlie World Social
Situation.^ This document is remarkable because
it presents — also for the first time, and in one
monumental volume — a composite picture of the
global social scene by the world's leading interna-
tional organization. It is, to be sure, a preliminary
picture. As such — and on the basis of knowledge
already available to the United Nations and the
specialized agencies — it concentrates on actual
human needs rather than on programs to alleviate
them. Still, by the very assemblage of so vast an
array of facts on human beings and how they live,
' U.N. doc. E/CN.5/2(57.
the report makes a central contribution to the
interrelated social and economic work of this
Council. The Secretary-General and his staff, to-
gether with the specialized agencies, are to be
congratulated on so able and fair-minded an ac-
complishment. It is an historic and dramatically
impelling work.
Of course, as in any report of such proportions,
points are made and inferences are drawn with
which my delegation might disagree. But, with
one or two exceptions these points are minor.
There is, though, one serious deficiency to which
I must refer at the outset. And that is the dearth
of information about social conditions in some of
the most important areas of the world. Un-
happily, information is least available where the
jDroblems seem most acute. For example, many of
the less developed countries had very few facts to
offer. This is understandable. Economic poverty
and poverty of information go hand m hand.
But information on a wide range of subjects
is also unavailable from areas of the world where
statistics is a flourishing science and where poverty
is said to have disappeared. I refer to the vast
areas under Soviet domination. As far as this
report is concerned, these areas might very well
lie on the other side of the moon. This darkness,
this lack of information about Soviet-controlled
territory, is apparent chapter after chapter, be-
ginning with the very facts of life itself.
On births and deaths and morbidity — on the
whole of the population problem — the record of
the U.S.S.R. is a blank. On food production and
consumption it is almost equally blank. And so
it goes, with some few exceptions, throughout the
entire report. This dearth of Soviet information
is most unfortunate, for it deprives the Council
of the type of analysis which is truly global. And
it reinforces suspicions that all is not well in the
Soviet world.
Still, and despite this, the report is remarkable
for what it does show : namely, that the achieve-
142
Departmenf of Sfate Bulletin
ments of a hundred years of science and technol-
ogy have been such as to spread far and wide the
conviction that neither poverty nor disease is
inevitable; that fatalism is an outmoded ethic;
and that life, liberty, and the achievement of
happiness are within the reach of all. As the re-
port states in one of its most telling passages :
. . . there has spread among impoverished peoples of the
world an awareness — heightened by modern communica-
tions and movements of men — that higher standards of
living not only exist for others but are possible for them-
selves. Fatalistic resignation to poverty and disease is
giving way to the demand for a better life. The demand
is groping and uncertain in direction, charged with con-
flicting emotions regarding the old and the new, but it
is nontheless a force that is establishing an irreversible
trend in history.
Thus, two revolutions are being fused in one : The
revolution in the thought and institutions of man
that has resulted from the consistent application
of free inquiry and social intelligence to natural
and human problems ; and the revolution of rising
expectations of man everywhere. New tools for
human betterment have been created and a new
ethic has been born, dynamic and affirmative,
which make it possible, in the words of the report,
"to think of the welfare of the whole human race
as a practicable objective."
This is a challenging objective but there is
a long road ahead of us before it can be attained.
It is paradoxical, but true, that by comparison
with the more developed countries the conditions
of the people in the economically underdeveloped
countries seem in many respects worse today than
they were 100 or even 50 years ago. New tensions
have thus been created in the world which demand
our undivided attention.
Areas of Danger
Let us look at some of the jiroblems of the
peoples of the less developed countries as they are
brought out in this report.
Population Increase — There is wide disparity in
standards of living among the world's 21/2 billion
persons. The ai^plication of practical measures
to raise these standards in underdeveloped areas
is made the more difficult because these are the
very places on the globe where population is in-
creasing most rapidly, infant mortality is highest,
and mass disease most prevalent.
Disparity in Income Levels — Associated with
this population problem are wide differences in
income. At a time when the social distance be-
tween the world's people is narrowing with each
technological advance, any widening of the eco-
nomic distance between the different peoples of
the world is especially poignant.
Of course, no statistics can measure the varying
contributions of environment — climate, culture,
economic institutions, community services — to
real incomes and standards of living. Still, and
with all their limitations, the summary of per
capita income figures given in the report show
sliockingly low incomes in much of Asia, Africa,
and Latin America. It shows, too, little relative
l^rogress in some of these areas in comparison with
prewar years.
In the matter of income distribution within
communities, there are sharp contrasts between
the economically developed and the less developed
countries. In the more developed countries there
has been a general leveling-up process by which
the lower income groups have progressively had
a larger share of the national income.
In the less developed countries, by contrast, as
the report — perhaps with too great moderation —
puts it, "the wealthj' few . . . enjoy a larger pro-
portion of the total income" than in the indus-
trialized countries. And these disparities are
widening rather than narrowing.
Inadequate Food Production — World food pro-
duction as a whole is still too small to feed its
growing population even as well as in prewar
days. There is tragically low food production
in many of the less developed countries of the
Far East, the Near and Middle East, and even in
parts of Latin America. Europe has made an
impressive recovery from its war devastation but
it, too, is still below its prewar standard.
Over most of the Far East, where nearly half of
the world's population lives, food supplies per
capita are lower than in the prewar period by
about 10 percent. Average calorie supplies, in
general, are short of minimum requirements in
all regions except Europe, large parts of the
Americas, and Oceania. Malnutrition is an ever-
present ijroblem for the vast majority of the
world's people. They look to, but have not yet
received, the positive advantages of the revolution
in food ijroduction techniques.
Housing Needs — As regards housing, no coun-
try, as the report says, is without its housing
problem. There may be as many as 150 million
families in the less developed areas in need of
better shelter and as many as 30 million families
in the more developed countries. Even before the
last war, there was a long-standing housing defi-
cit in the industrialized countries. Now obsoles-
cent and unhealthy homes need to be replaced and
new ones must be built for an ever-growing popu-
lation— at costs people can afford.
In the less developed countries, however, hous-
ing is an even more serious problem. We
scarcely know its dimensions, either in the cities
or on the farms. But, by and large, we do know
that such housing is incredibly poor by any mod-
ern standard.
Conditions of Work — Next, let us look at con-
ditions under which people work to earn their
living. These conditions — while generally much
improved in the past half century in the indus-
trialized countries — give no cause for compla-
cency. The report high lights the fact that three-
fifths of the world's people make their living from
Jul/ 28, 1952
143
agriculture. And agriculture, as we all know, is
not only beset by natural hazards of flood,
drought, and pests. And all too common in the
very countries where the largest part of the popu-
lation lives on the land are such problems as in-
security of tenure, uneconomic land holdings, un-
deremployment, and low returns that give bare
subsistence from the land. In general, agricul-
ture is best off in the very countries where indus-
try, too, is most prosperous and best organized.
It must also be noted that the small-scale handi-
craft industries which prevail in vast areas of
the world have not shared in the progress of the
industrialized countries toward social better-
ment— in the progress toward the 8-hour day, the
shorter workweek, the vacations with pay, the
social security and minimum-wage legislation, and
other elements of the good life in all their striking
improvements since the turn of the century.
I have noted five of the major problems which
beset the people of the less developed countries.
They are diversities in levels of living, housing,
and conditions of work; and underproduction of
food in the very areas where population is rising
most rapidly.
Encouraging Developments
Health — Taken alone, these facts add up to a
dismal picture. But hand in hand with them
there are a few encouraging developments. There
is, in the first place, a world-wide improvement in
health. Modern methods of medicine, environ-
mental sanitation, and communicable-disease con-
trol have contributed to a lowering of death rates.
DDT has eliminated malaria from Italj', Brazil,
and Ceylon. These are actual accomplislunents.
Yet 300 million people still continue to suffer from
malaria, and, of these, 3 million die annually. The
discovery of penicillin has enabled attacks on
other mass diseases. Yaws, which once was ramp-
ant over most of the land between the two tropics,
can now be stamped out.
It is true that developments such as these have
the effect of increasing total population. But, and
this is the hopeful side, such developments can
at the same time be a factor in increasing the food
supply. A farmer free of malaria is better able
physically to attend his crops.
Increase in Literacy — And there is another
hopeful development: the recent world-wide in-
crease in literacy. Of course, literacy is not a sole
measure of the educated man — witness the vast
areas where most of the people may be illiterate
but by no means uneducated. These areas have
thousands of years of civilized history behind
them. They have created great strengths and
great cultural institutions; they possess rich oral
traditions and provide a moral texture which
make many of the traditions of so-called developed
countries seem thin by comparison. Still, in so-
cieties moving from handicraft to industry.
literacy is prized if only as insurance that the in-
dustrial signs will be read and that the new
methods of work will be widely communicated
and understood.
Hence, the recent progress in adult education
and in mass literacy campaigns is providing the
ground work for a highly practical transitional
form of training called fundamental education.
It is "fundamental" in the sense that it provides
the minimum knowledge and skills needed to at-
tain a better life. And it is "education" in that
it helps people understand the problems of their
immediate environment and their rights and duties
as citizens and individuals so that they can partici-
pate more effectively in the social and economic
life of their communities.
I have gone to some length to review the social
conditions of the world as the report gives them
to us. Review is necessary as a starting point
for concerted action. The fact that we have this
picture before us as a basis for practical action is
itself an indication of progress. Fifty years ago,
the very putting together of such a picture would
have been impossible. Now we have both a chal-
lenge and an opportunity in this Council to con-
sider in an over-all way what can be done to realize
"the welfare of the whole human race as a practi-
cable objective."
There is another reason for taking encourage-
ment. It is apparent to my delegation, as it must
also be to you, that the less developed countries
are now in a situation from which the West only
recently emerged. In this very fact there is a
tremendous advantage. The report puts this very
aptly when it states that the progress of the less
developed countries must necessarily differ from
ours
if only for the reason that Western development has al-
ready taken place and the present end-products of this
development are clearly evident. Improvements in sani-
tation, education, communications, labor policy, social
services, etc., that developed in a slow or more or less
experimental fashion in Western countries, are being
deliberately taken over in their end-form . . . while
there is at the same time a conscious effort to avoid the
mistakes.
The Choice Before the Contemporary World
At this point we posit the most fundamental
question before the contemporary world. The
end-products, as of 19.52, of a long and painful
process in scientific and technological develop-
ment are here, for everyone to see, for everj'one
to take over and to adapt to their conditions. The
question is: "Will they be taken over imbedded in
the spirit which created them and which makes
them cajiable of continuous change and improve-
ment? Or, will thej' be taken over in terms of a
political creed which is at fundamental variance
with the spirit that created and continues to ex-
pand them?
This question has been forced upon all of us by
the vociferous prophets of communism. It is of
144
Department of State Bulletin
particular relevance to tlie underJeveloped coun-
tries, especially those \Yhich have only recently
freed themselves from external domination. The
Soviets have usurped the fruits of Western in-
ventiveness and free inquiry to the point of deny-
ing their Western origin. And, having done so,
they now pose as the saviors of the downtrodden
and the oppressed.
They hold out a mirage of the perfect society,
free of poverty and disease — a society run by
leaders free of error and possessed of final and
total wisdom. So great is their alleged wisdom
that disgrace, imprisonment, or even death is
the fate of those who dare to deviate. Whether
it is a question of the physiology of plants, or the
laws of physics, of political "lines" or social con-
cepts, the ultimate in achievement has been
reached.
These claims cannot be rejected out of hand.
The very fact that they have sown confusion in
the mincis of many who are striving to improve
their own conditions makes it necessary to ana-
lyze them. The propaganda directed by the Com-
munists against the free world — against the cra-
dle of the gi-eat advances — calls for a reply.
There can be no intelligent choice between the free
society and the totalitarian state, unless there is
a clear understanding of their differences in social
achievement and organization.
And this obliges me to probe more deeply into
what might be called the difference between the
way of the free and the way of the controlled^-
between the social achievements of a democratic
society and the achievements of the totalitarian
state. I hope I shall be forgiven if I use illus-
trations primarily taken from the social evolution
of the United States. It is the evolution I know
best, and it is the evolution which is the prime
target of Soviet propaganda.
The Way of the Free
Freedom, though its origins reach well beyond
its Western orbit, is the greatest heritage of the
Western World, whether we think of the intellec-
tual history of Europe or of the Western Hemi-
sphere. In the United States it found expression
in our Declaration of Independence which pro-
claims that all men are created equal, and are en-
dowed by their Creator with an unalienable right
to life, liberty, and the pursuit of happiness, and
that the sole purpose of government is to secure
these rights.
This is the creed which has been and continues
to be the origin of whatever strength we may have,
whatever progi-ess we have achieved in social and
political organization. It is the source of ever
new initiative and inventiveness, and of devia-
tions from common practices which mean new dis-
coveries.
It is the beginning of the continuing revolution
which has brought the United States to its present
state of living and achievement. It is the basis
July 28, 1952
from which the people of the United States started
out in their search for gi-eater equality among
men, not only as a philosophical concept but as
an economic and political reality. The road has
been long and arduous and the end is not in sight,
but there can be no doubt about the dynamics
which are driving us forward. Fundamental
changes have been wrought even within the last
two generations, a fact deliberately overlooked
by our critics.
Gains Spread Throughout Population
The extraordinary rise in production, in in-
come, and in the standard of living in the United
States in the last half century is well known.
Equally important, but less well known, is the way
in which these economic and social gains have been
spread throughout the entire population, and
especially in the lower income groups.
In this connection, I would like to quote from a
forthcoming book by Frederick Lewis Allen, the
disinguished editor of Harpers magazine. In
this book, entitled The Big C'ha7ige, Mr. Allen
points out that in 1900, Andrew Carnegie's an-
nual income was at least 20 thousand times gi-eater
than that of the average American. Since then,
however, the change in the U.S. scene has been
such as to be described by the Director of Research
of the National Bureau of Economic Research as
"one of the great social revolutions in history."
This revolution, however, has not been well un-
derstood. To quote Mr. Allen again :
When Vishinsky, or Gromyko, or Malik berates the
United States, talking for instance, about "lackeys of
Wall Street", what he is doins is berating, exaggeratedly,
the United States of 1900 rather than that of today.
If what he says makes an impression among many
non-Communists in other countries, this is at least partly
because a large number of non-Americans, aware of the
importance of business and of businessmen in the Ameri-
can scene, imagine that these, today, closely resemble
their counterparts of a generation or two ago.
The mental picture of the United States that the
average non-American carries about with him is lamen-
tably irrelevant to the real United States of today.
"Leveling Up" of Income Distribution
I wish to correct this erroneous picture. Take
income redistribution first. Over the past 20
years the evolution in the United States — an evo-
lution which has so greatly increased the size of
our national income — has been accompanied by a
vast leveling up in the distribution of income.
In 1929 the national income was less than 90
billion dollars. By 1951 it had risen to nearly 280
billion dollars. In 1929 the 5 percent of our citi-
zens in the top income brackets got 34 percent of
the national income. By 1946, after paying the
higher income taxes imposed during the war
years, this group received only 18 percent of the
national income. This same general distribution
has continued, with minor variations, since 1946.
Or, to put it another way : In 1929, 66 percent of
145
the national income was shared by the 95 percent
of the population in the lower income brackets;
in 1951, their share of this much larger income had
risen to 82 percent.
Thus, the average income of families in the
lower and middle income groups has risen very
sharply. In 1951, one in every three families had
an income of $3,000 to $5,000 ; another one in every
five between $5,000 and $10,000. Thus, millions
and millions of families have climbed an income
bracket or two. They are industrial workers, of-
fice workers, farmers — millions of whom, in the
past two decades, have moved up the income scale
to a position where they can enjoy what has been
traditionally considered a middle-class way of
life.
Take factory workers. Their average weekly
earnings increased from less than $10 a week in
1909 to about $60 in 1951 or sixfold. Real earn-
ings, after allowance for rising prices, more than
doubled. All this time, the length of the working
week was gradually reduced from 60 hours to 40
hours. This gave everyone very much more leis-
ure in which to enjoy the fruits of his earnings.
Underlying this increase in real income are not
merely our large natural resources but a continu-
ing rise in the country's productivity — in indus-
try, in agriculture, and in transportation. In the
20 years from 1929 to 1950, and after allowing for
the rise in prices which took place during the
period, there was an increase in total output of all
private industry in this country of 75 percent.
At the same time, of course, the population was
increasing. But, taking that into account, the
average increase in production in private industry
per person was 1% percent per person per year —
again in real terms, after allowing for the price
rise.
This phenomenal increase was the result, as I
have said, of inci-easing productivity in agricul-
ture, mining, transportation, and manufacturing.
And I might point out that this productivity in-
crease represents not only the application by man-
agement of technological progress in industrial
production. It also represents gi'owing coopera-
tion between labor unions and management. As
these years have gone by there have been increased
profits for management, higher wages for labor,
and more goods for everyone to buy.
The doctrine of low profit mai'gins in a mass
market, at moderate prices, is but one phase of this
picture — the consumer's side. The rapid rise in
the share of the national income going to wage
and salaried workers has given strength to that
mass market. And the rise in wages has been
assisted by the growth of free trade-unions in
membership and in bargaining strength.
A Day's Work Buys More
Tlie very real increase in the buying power of
the worker's dollar can be shown by a simple
example — namely, and as compared to the years
before World War I, liow many hours must an
American factory employee work today to get
some of the common, everyday necessities of life.
In 1914 it took 21/^ ten-hour workdays to buy a
ton of coal to heat the house. Now it takes less
than half as long — 10 hours and 20 minutes. In
1914 it took 17 minutes to buy a pound of bread.
Now it takes 6 minutes. It took 24 minutes' work,
then, to buy one quart of milk; now it takes 9
minutes — about one-third as long.
Another indicator of the rise in standards of
living of the industrial workers is the share of
the worker's earnings which must be spent for the
first necessities of life — food, shelter, fuel, and
light — as compared with what is left for clothing,
home furnishings, and all the other things that
make life more enjoyable.
By this standard, progress in this half century
has been most striking. At the turn of the cen-
tury, a typical city worker's family averaged
about five persons and its income in those days of
cheap dollars was about $750 a year. At that
time, after paying for food and shelter alone, a
typical family had left only 37 percent of its earn-
ings, or $277.
Fifty years later, at the half century, the typi-
cal worker's family was much smaller, averaging
3.4 persons, and its income had multiplied over
fivefold to $3,870. After paying for food and
shelter, these families now have more than half
of their income left. Moreover, there is freedom
to choose what they will buy and an adequate sup-
ply of goods and services from which to select.
Among other things, they have chosen — indeed,
have learned — to buy better food, especially such
protective foods as milk, fruits, and vegetables.
The nutritional content of food consumption per
person in the United States in 1909 as compared
with the current year shows marked increases in
such important food elements as calcium and iron
and the most important vitamins. Per capita
consumption of milk — so important for the health
and growth of children — has increased more than
10 percent. And this has happened despite the
great population shift from the farms to the
cities in this more than 40-year period.
The rise in food ]iroduction, which has made
better nutrition possible, has been the result of a
variety of factors — more mechanization, soil-im-
provement programs, improved seed, price incen-
tives, and so on. Not the least important are the
social factors. The great spread in rural elec-
trification has brought better farm living, better
roads in farm areas, and better technical educa-
tion for the fanners themselves.
Second only to food in importance in the stand-
ard of living is housing. The United States be-
lieves in home-ownership. Over half of America's
families own their homes. Outside this island of
Manhattan, where building must go up and not
out, and except for one or two other very large
146
Department of State Bulletin
cities, postwar home building has largely been
single-family homes for purchase by owners.
Between i940 and 1950, single-family, owner-
occupied homes increased by more than 6 million.
As before the war, building has been stimulated by
providing families with Federal mortgage insur-
ance for loans, with a relatively small initial pay-
ment and monthly payments like rent.
Despite the progress achieved, and despite the
added fact that 85 percent of American homes
have one person or less per room, there is much
that remains to be done. There are still slums to
be cleared in our large older cities. Our neighbors
to the south — in Montevideo and Buenos Aires —
are in a better position than we in the United
States to speak of their slumless cities.
More housing must be built for very low income
groups. This has been part of our Federal, State,
and local programs for some years. Altogether,
housing experts estimate that an average of one
million new dwellings should be built per year
for a number of years to come. This figure has
been equaled or exceeded for several years, and
this year it seems likely that at least another mil-
lion will be built.
I now turn to the problem of health. One of the
basic sources of national strength is the health
and well-being of the people. The vital and health
statistics over the last 50 years describe progress
in this field more vividly than almost anything
I might say.
Back in 1915, when we first took stock of infant
mortality on a Nation-wide basis, we were losing
10 percent of our babies before they were a year
old. Now, the rate is less tlian 3 percent. Side by
side with lowered infant mortality has come re-
duction in the loss of mothers from childbirth,
until today there is less than one such loss per 1,000
childbirths.
The crude death rate, despite the growing pro-
portion of older people in the total population, is
less than 10 per 1,000 population for 1950. Since
the beginning of the current century, life expect-
ancy has increased 20 years. This means that the
average American now lives to nearly 68 years —
or more than twice the life expectancy in two-
thirds of the world.
Mass diseases which beset the United States at
the turn of the century today are under control.
Some diseases listed in the report, such as typhoid
fever, have reached the vanishing point. In fact,
the only one named which even appears in the list
of leading causes of death in the United States is
tuberculosis. And it has dropped in incidence
from 194 deaths per 100,000 people to 22. As a
result, we now are concentratmg on such diseases
as heart trouble and cancer which are more apt to
occur in later life.
How Did It Happen?
Initiative of Citizens — Now, what is the story
behind this improvement? How did it happen?
We started in what has become a typical pattern
in this country. The initiative came first from
a few interested and enlightened citizens uniting
to attack immediate health problems in their own
communities.
From such tiny beginnings in voluntary as-
sumption of responsibility, there have grown up
in the United States vast medical and public-
health services. Gradually, local and State gov-
ernments and, finally, the Federal Government
began to supply health services, medical care, and
widespread sanitation programs — all of these sup-
plementing what the pioneering private agencies
were doing.
In 1915 only 14 out of more than 3,000 counties
had full-time public health services. Today, such
services are operating in nearly 2,000 counties.
The program still is expanding. In the last 5
years, the Federal Government has provided
nearly half a billion dollars in aid to State hospi-
tal construction — to take but one example — and
the States themselves have provided a billion dol-
lars more for this purpose.
Even so, 70 percent of our hospitals were estab-
lished by voluntary efforts, another 25 percent by
local and State governments, and only 5 percent
by the Federal Government. These private and
public agencies work together with the medical
profession to provide coordinated local medical
services.
Along with these developments has gi'own a
group of medical schools and colleges, most of
which are privately financed. They train doctors,
dentists, and nurses, and conduct extensive medi-
cal research. Currently some 25,000 doctors and
over 100,000 nurses are in training. Wlaile more
are needed, we now have 211,000 doctors — or one
for every 717 people in the population.
Thus, through the combined efforts of private
practitioners, voluntary organizations, private
industry, public and private institutions, and all
levels of government — local. State and Federal —
the many facets of our democratic society have
been brought into close collaboration in the quest
for better and better health.
Care for the Disadvantaged — What has been
done to care for the disadvantaged — the old, the
poor, the needy mothers with young children, the
disabled? The picture is much the same as in
the case of health: first, privately financed local
institutions ; then, growing responsibility by gov-
ernmental agencies to supplement voluntary
efforts.
Again, these programs are administered by local
or State bodies close to where the people live, with
grants of funds and guidance on standards com-
ing from Federal sources. The great exception is
the Federally administered system of old-age and
survivors' insurance.
To look back a bit. As late as in 1929, li/^ bil-
lion dollars in private benefactions accounted for
nearly three-fifths of the total spent for welfare
Jw/y 28, 7952
147
projects. Twenty years later, private giving had
more tlian doubled, but it represented less than
one-fifth of the total. The stake of private agen-
cies had grown. But, because there was a much
bigger job to be done, the Federal Government had
expanded public expenditures for welfare nine-
fold.
In 1935 a system of Federal grants to States
began to supplement the work already being done
to aid dependent children, the blind, the disabled,
and the indigent aged. Last year, more than 5
million people were receiving help from Federally
aided public assistance, and another three-fifths
of a million from State and local public funds, in
addition to those helped by private agencies.
Social Insurance — But this is not all. The past
two decades have brought to the United States
the system of social insurance which European
countries had begun to adopt even before World
War I. We learned from them and made adapta-
tions to our own peculiar set of circumstances.
The social-insurance system, adopted on a
Nation-wide basis by the United States in 1935,
is financed by contributions of employers and
employees. Today, nearly 9 in every 10 paid
workers are covered by this and other retirement
programs. Dependents and survivors of benefici-
aries also receive benefits. Since its inception,
over-all benefit payments have increased by 75
percent and only this month — July 1952 — the
Congress voted another increase to help keep up
with rising living costs.
Since life expectancy has been extended and a
growing share of the U.S. population is over 65
years of age, old-age insurance is of great present
significance. It provides by right of contrilni-
tions a means for living out one's life with dignity
and independence — a right so important in an
urbanized, industrializecl society where families
are often scattered and do not and cannot assume
the same responsibilities as in an agrarian society.
Mininnvm Wages; Injury and Vnemployment
Compensation — Finally, there are the number of
social programs instituted in the past three dec-
ades to assure equitable pay and greater security
on the job : minimum-wage legislation for women
and, later, for men ; workmen's compensation for
those injured on the job; and, in the early
1930"s, unemployment compensation — adminis-
tered jointly by the Federal Government and State
governments and financed by contributions from
employers. This unemployment compensation
system has been a great factor in maintaining
stability in the economic scene and removing the
fear of total loss of income in periods of un-
employment.
Growth in Education
The same multilateral and cooperative tech-
niques are apparent in the way we educate our-
selves. The goal of free and compulsory education
dates back to our early development. Yet, as
recently as 1870 only a little over half of our chil-
dren, aged 5 to 17 years, were enrolled in school
and the average attendance was less than 80 days
a year.
Consider the contrast today. According to an
advance release f I'om the 1949-50 Biennial Survey
of Education publislied by the U.S. Office of Edu-
cation, practically all of our school-age children
actually are now in school and for exactly twice
as much time each year. Compulsory education
ranges from age 8 up to age 12. Over 19 million
children are in elementary schools and nearly 6
million more are in secondary schools — for an av-
erage of nearly 160 days out of a 178-day session.
In addition, 38 oiit of each 100 secondary-school
graduates are going on to college or university.
Over 214 million students are enrolled in regular
sessions — to say nothing of summer sessions and
evening and part-time enrollments. Today there
are more Negroes enrolled in institutions of higher
learning thxm were enrolled- in high schools in
1920.
According to the same Biennial Survey., nearly
9 billion dollars — over 4 percent of the national in-
come— was spent on public and private education.
Of this, only a small portion — less than 3 per-
cent— came from Federal sources in support of
public education. Over half was supplied by local
communities and the i-est by counties and States.
Education, in fact, has become the biggest public
enterprise within the States.
This system of education represents a gradual
refining and application of beliefs rooted in the
tradition of tlie country. With us, education is
the responsibility of the people, with legal control
resting in local and State authorities — not the Fed-
eral Government. Education, as conceived in the
United States, assures the survival of individual
freedom. Everyone has the inherent right to edu-
cational opportunities consistent with individual
requirements and ability to become a productive
citizen.
Practically every child now has the opportunity
for vocational, technical, or professional education
beyond the secondary school. This better educa-
tion has meant higher skills, more efi'ective work
and higher income. These in turn mean still bet-
ter education in the future.
Progress Springs From Freedom
I have gone to some pains to show the extent to
which the United States has transformed itself
in a relatively short time from an underdeveloped
country to a high state of industrial and social de-
velopment. But, in detailing our high levels of
living, I have not meant to boast. Instead, I have
used these details of living and housing and health
to show how problems which affect all countries
are being dealt with here.
I have attempted to bring out some of the mate-
148
Department of State Bulletin
rial and intangible reasons which have made for
progress in the United States. I have mentioned
the logic of our mass production, the contributions
of free labor unions, the value of cooperative tech-
niques, and others.
But there is more. We have, of course, been
helped by our location which has protected us
from the ravages of war and invasion. But again,
it is far more than that.
As I said earlier, freedom is the fundamental
ethic of the people of the United States. As a
result of this freedom, there is initiative and in-
ventiveness, a basic belief in growth and progi'ess.
There is a lack of class consciousness which
springs from our faith in the dignity of the indi-
vidual and the mobility — as much social as geo-
graphic— of the American, who does not hesitate
to abandon one job and seek another that gives
him greater satisfaction.
And, speaking of mobility, we cannot forget
that we are a Nation of immigrants from scores
of countries. These immigrants liave brouglit
with them their ideas and aspirations, which have
become fused in the powerful dynamic which dom-
inates American life. And if, in our present state,
we are able to contribute ideas and methods to
other countries, it is but one form of "the native's
return."
The Totalitarian Way
By contrast, let us now look at the promise and
reality of the Communist world.
The Soviet system, as I said earlier, has taken
over the end products of Western technology and
some of its momentum. By introducing Western
techniques and applying the fruits of scientific re-
search, the Soviet Union has made progi'ess in its
agricultural, industrial, and above all, in its mili-
tary equipment. I shall have more to say on that
later on.
At the same time, the political philosophy and
the social organization of the Soviets constitute
a complete denial of those human values and con-
cepts which have made for freedom and for prog-
ress in other parts of the world. This trend has
become particularly marked during the last 20
years. These are the years which saw in Russia a
resurgence of its traditional forms of despotism.
And, in connection with this, there was brought
about a marriage of shopworn and badly under-
stood nineteenth century social theories with a
militant anti-Western nationalism.
The result is a society with no understanding,
let alone respect for the dignity and the rights of
the individual. He, an unhappy man, is a tool of
the all-powerful state. He has no political rights.
True, there are the trappings of Western democ-
racy; a constitution stipulating popular repre-
sentation, the rights of man, and limits to
governmental power. But, as Andrei Vyshinsky,
the authoritative interpreter of Soviet law, has put
it: "The dictatorship of the proletariat is un-
limited by any statutes whatsoever."
Thus we have before us the pathetic picture of a
great nation which, having cast off the yoke of an
inefficient and corrupt monarchy, has fallen victim
to an even worse despotism. All decisions on its
political, social, cultural, and economic develop-
ment are made by a few men in the Politburo of
the Communist Party.
Distortions of Propaganda
The individual is not allowed to conduct his own
affairs, and he must even be careful about think-
ing his own thoughts. Completely shut-off from
outside contacts, he is subjected day-in and day-out
to an unrelenting propaganda which uses per-
version and distortion as effectively as it uses the
Big Lie, both as regards conditions at home and
elsewhere in the world. This propaganda never
fails to extol the wisdom of the leader and to
expound the latest edition of the Marxist dogma.
Woe to the heretic who sticks to the orthodox
view of yesterday. He is fortunate, if let off
after an abject recantation.
Wliere the propaganda of the dictatorship does
not achieve its goals, terrorization does. Every
totalitarian regime apparently needs and has its
concentration camps. In the Soviet Union the
victims of forced labor are not only political of-
fenders who dared to speak out or act against the
regime; they are also ordinary citizens who were
suspected of a lack of sympathy with the
Government.
I shall not enlarge upon these camps, even
though they are an integral part of the socio-
economic system prevailing in that country.
There will be other opportunities to tui'n the
searchlight of public inquiry and opinion on these
camps when the report of the Ad Hoc Committee
on Forced Labor becomes available.-
Subservience of Trade-Unions
Instead let us consider the conditions of the
ordinary worker in the Soviet Union. There was
a time, in the early 192U's, when trade-unions in
the U.S.S.R. tried to act as defenders of the
workers' interests against the Government as the
almighty employer. This interpretation of the
trade-union's role in a socialist state was short-
lived; in fact, its jiroponents were equally
short-lived.
Since they perished, the organizations which
call themselves trade-unions in the U.S.S.R. have
chiefly one function : To increase, in the interest
of the State, the volume and quality of production
while lowering the cost of production. Collective
bargaining is not among their functions and the
strike not among their weapons.
' For a statement by Mr. Kotschnig on evidence of forced
later in the U.S.S.R., see Bulletin of July 14, 1952, p. 70.
July 28, 1952
149
The speed-up, as we know, is common and the
norms ai'e continually being raised. Soviet work-
ers have to put up with whatever labor conditions
their one and only employer dictates. Wages are
fixed by the Govermnent ; so are prices, and work-
ing hours. Labor discipline is strict and any
breach of its numberless provisions is severely
punished. All jobs are frozen. Leaving the
pLice of employment without the express permis-
sion of the management is punishable in court by
imprisonment for from 2 to 4 months or, in defense
industries, up to 8 years.
Since 1938 every worker has been required to
have a labor book with detailed data on his em-
ployment history; this internal passport enables
the boss to control the worker effectively at all
times. To sum up : Labor is defenseless against
the monopolistic em/ployer — the omnipotent State.
It is hedged in hy punitive legislation. It is
under constant pressure to increase output.
It is a question whether the main purpose of
the rulers of the Kremlin is really the economic
and social progress of their country, and the hap-
piness of their people ; or whether they are driven
by an unlimited lust for power which knows no
frontiers, be it the sacred preserves of the indi-
vidual or the borders of other nations.
One thing, of course, is evident : The Soviet re-
gime, at the cost of developing consumers indus-
tries, has built up a gigantic military machine and
heavy and engineering industries able to support
a prolonged war effort.
There is another question to ask : Has the Soviet
system of complete regimentation paid off in
terms of social dividends? Has the sweat and
toil of the Soviet worker, not to mention his loss
of freedom, been compensated by a better life for
the people and by higher standards of living?
Or has this regimentation resulted in a lack of
individual initiative, a lack of productivity, a
lack of social inventiveness, and hence a lack of
achievement in terms of better living?
As I stated earlier, Russia has made progress in
certain fields during the past third of a century.
I am the last to deny that. The education of the
masses, once woefully neglected, has gi'eatly im-
proved; you cannot build a modern industrial
society with illiterate people. Besides, the writ-
ten word is one of the most powerful means of
pro]iaganda.
Women in the Soviet Union are, by and large,
on an equal footing with men. This means, for
all practical purposes, that they have as much or
more work and as little to say. At the cost of a
loss of all freedom, full employment is said to
have been secured, even though f I'ictional and sea-
sonal unemi^loyment continues. Facilities for
leisure time activities have been created. But,
here again, leisure has been made to serve the
interests of the almighty party-state rather than
the enhancement of the individual.
To Earn a Loaf of Bread
But what of the basic elements which enter into
what is commonly called the standard of living?
An approach to this question can be found by
comparing the time it takes a worker in Moscow
and in some of the free countries to earn the neces-
sities of life. Take food, for example. A recent
study shows that it requires 4I/2 hours of working
time for a typical factory worker to buy a pound
of butter in Moscow as compared with a little
under 2 hours in Germany, three-quarters of an
hour in Denmark, and half an hour in the United
States.
It takes 9 minutes of work in a factory to earn
a pound of potatoes in Moscow. Throughout
Western Europe and North America it requires
not more than 5 minutes, and as few as 2 minutes,
whether it be in Italy or Denmark or Germany or
the United States. The cost of a pound of bread
varies from about 14 minutes of work in Moscow
to 6 to 10 in the United States, Switzerland, Ire-
land, Denmark.
It takes nearly twice as long to earn the money
to buy a pound of poi'k in Russia as in Italy and
three and a half times as long as in Norway.
For a pound of sugar it takes a little under 2
hours work in Moscow as compared with 37 min-
utes in Itiily, 21 minutes in France and Germany,
and 4 minutes in the United States.
In part, of course, these great variations are the
result of governmental policies with reference to
food prices and production. But they are quite
as much a reflection of greater productivity of
workers in real terms in the free countries of the
world.
This picture can be supplemented by a few
figures regarding that part of the national income
in the U.S.S.R. which enters the consumers mar-
ket. It may be recalled that as a result of Lenin's
New Economic Policy, which meant a return to a
limited free-market economy, Russia recovered
from war and revolution and doctrinaire experi-
ments and by 19'28 had roughly regained its 1913
level of national income. According to a careful
and objective paper recently submitted to the
Conference on Soviet Economic Growth sponsored
by Columbia University, total consumption in 1928
amounted to 21 billion rubles.
There followed the introduction of economic
planning a la Stalin. The result was that by 1937,
i.e., before the conversion to a full war economy
once again reduced the standard of living, Soviet
consumption — expressed in rubles of the same pur-
chasing power — had increased to 23.3 billion. In
the meantime, however, the population had risen
from 149 to 168 million people. Thus consump-
tion per capita in 1937, the peak before the Second
World War, remained as low as in 1928, the peak
before the period of socialist planning, and as low
as 1913, the last year of peace in Tsarist Russia.
There is every evidence that since then per
capita consumption has increased only slightly
150
Department of State Bulletin
if at all. To illustrate this startling statement I
wish to introduce a few unpublished figures from
the 1951 houseliold budget of a Moscow family —
figures which, incidentally, have been carefully
checked.
How a Moscow Family Lives
The family consists of three people, a couple
and their only child, who enjoy an income far
above the average. The average monthly Moscow
wage is approximately 600 rubles, but our man,
a white-collar worker, earns almost twice as much,
i.e., nearly 1,200 rubles a month. His take-home
income is about 1,000 rubles, since approximately
200 rubles are deducted for taxes and for sub-
scriptions to the governmental lottery loan. These
subscriptions are, for all practical purposes, com-
pulsory, and vary with the income. They are,
therefore, but a form of taxation.
The rent amounts to 60 rubles with 9 rubles
added for gas, between 10 and 20 rubles for elec-
tricity, anct 25 rubles for private telephone. This
comes to 104 to 114 rubles in all. The telephone,
of course, is a luxury for Moscovites, but the man
needs it for his job. The rent seems to be cheap
but you have to consider Soviet housing condi-
tiojis.
This family shares its 3i/^-room apartment with
two other families. Our white-collar worker,
having a relatively high income, lives with his
wife and child in li/o rooms. The two other fami-
lies are crowded into one room each, altliough one
consists of four, the other of seven persons. Al-
together, there are 14 people in the Si^-room apart-
ment and they all share one toilet and one kitchen.
With such crowding, the rent is high enough.
It should be said in parenthesis that Soviet
housing necessarily continues to be poor despite
crying needs which have been accelerated by war
damage. This is because the military establish-
ment and heavy industry have first claim on in-
vestment funds. I quote from the Ece (Eco-
nomic Commission for Europe) Economic Survey
of Europe in 1951 (page 80) :
The extent of over-crowding in [Soviet] cities is indi-
cated by the fact that in 1939, urban dwelling space
averaged only about five square meters per person, or
about % to % as much as in most Western European
countries.
Since then, housing conditions have deterio-
rated. In recent years the average Soviet urban
dweller had slightly more than 3.5 square meters
of dwelling sjsace or about 38 square feet. May I
mention in this connection that in the United
States the inmates of Federal prisons are allotted
54 to 65 square feet per person?
To go back to our white-collar worker. After
paying his taxes, his rent and utilities, and about
30 rubles for subway fares, he is left with a little
over 800 rubles, all of which go for the purchase
of food. And this, in fact, is barely enough to
feed the entire family, let alone to provide ade-
quate clothing.
His wife has to work in order to help meet the
family bills for the bare necessities of life. This
is not surprising, considering that even after the
jjrice cut of March 31, 1952, a liter of milk costs
about 3 rubles, a kilogram of butter almost 32
rubles, and a kilogram of pork or fresh fish about
24 rubles. With such prices, 800 rubles are
quickly spent. It should be remembered that 800
rubles are more than the average wage earner's
total monthly income.
An Ideal Place for Millionaires
I said earlier that over the past two decades in-
come distribution in the United States has been
substantially leveled up. In the U.S.S.R. the op-
posite development can be observed in the same
period. There is a growing diversification in in-
comes and with it there has emerged a new class
structure.
The Soviet Union has developed several upper
classes. These are formed, at the toj), by the lead-
ers of the party and government, the managers of
large enterprises, and well known intellectuals;
and, on the next level, by minor dignitaries and
luminaries, while the toilers are left behind. The
upper class may not own enterprises but they run
them ; they have large incomes and endow their
children with an expensive education, valuable
contacts and, at their death, with a considerable
inheritance. For not only are income taxes in
the U.S.S.R. low on high incomes but there ap-
pears to be no inheritance tax. From a fiscal point
of ^^ew the Soviet Union is an ideal place for
millionaires.
These are telling facts. The student of Soviet
affairs, as he puts together the bits and pieces of
information which penetrate the Iron Curtain,
cannot help feeling that there is something funda-
mentally wrong in the Soviet system.
There appears little, if anything, left of the
revolutionai-y fervor of the early years of the
regime. And there is none of the drive for change
and individual improvement and a better society
which characterizes the world of the free.
All that appears to remain is an eager expec-
tancy, a make-belief that the free countries of the
world will collapse, and that their people too will
be pulled down to the levels of the i^roletarian
state.
Experience in Satellite States
We have examples of that kind of "leveling"
in the satellite states which embraced the Stalin-
ist creed not because they wanted it, but because a
Communist minority under the protection of the
Soviet flag established a ''dictatorship of the pro-
letariat" in accordance with the Soviet pattern.
There is nothing missing: Purges and forced
labor camps, the same system of exploitation, the
Jo/y 28, 1952
151
same policy of militarization, including the forced
construction of armament factories at the expense
of consumer industries. There is only one basic
difference. Some of these countries once enjoyed
not only model democratic institutions but also a
high standard of living. All that is gone.
Czechoslovakia, for instance, was a prosperous
country before the war and was on its way to re-
covery in 1947, but living standards have steadily
deteriorated there since the Stalinist seizure. The
President of Czechoslovakia himself, in his New
Year's message of 1952, had to refer to "the diffi-
culties we experienced during the past year, es-
pecially in the general consumer market, and
which admittedly caused a good deal of irritation,
particularly to our housewives."
This statement is not unexpected when it is re-
called that Communist Czechoslovakia, 7 years
after the war, had to maintain or reintroduce
strict rationing of bread and other foodstuffs,
soap, and textiles. At that, the rationing system
does not even work. In the words of Commis-
sioner of Trade Jan Busniak, as broadcast on
January 18, 1952 :
We have witnessed frequent defects in our rationing
system. . . . Often not enough commodities were avail-
able to honor valid ration cards. . . . The free market
■was not supplied with enough commodities to cover the
justified requirements of the working people.
The reintroduction of bread rationing in March
1951, incidentally, was due to Soviet withholding
of promised grain deliveries. This fact seems
strangely at variance with what the Czech dele-
gate called the U.S.S.R.'s "brotherly aid" to his
country.
General Conclusions
I wish now to draw a few conclusions from all
that has gone before. The first is that the socio-
economic problems of the world, although formi-
dable, are not insoluble. Anyone reading the re-
port on the world social situation must be im-
pressed and encouraged by the striking advances
in standards of living and social organization
which have been achieved within a few genera-
tions in large parts of the world. There is hope
for the poor and the oppressed, the sick and the
illiterate everywhere. It has indeed become pos-
sible to think of "the welfare of the whole human
race as a practical objective."
Second, these advances are the direct result of
scientific discoveries and technological progress
which are in turn based on free inquiry and the
application of social intelligence. They are at-
tributes of evolving democratic societies which
derive their dynamic qualities from a recognition
of the dignity of the individual and his ability to
think and act for himself.
Third, the claim of international communism to
be able to meet the needs and the rising expecta-
tions of people, particularly in the underdeveloped
countries, appears to be hollow. Its methods are
at complete variance with the values and concepts
which have made for progress elsewhere.
Still, and to test the Communist claim, I have
made an analysis of their society as it exists today.
The result, I believe, has been to show that mere
technology cannot solve human problems. Hu-
man values and human rights — the rights of indi-
viduals— these are all important. In spite of the
fact that the Soviet people have been driven to
ever greater production their living standards con-
tinue to appear pitiably low. And, having con-
tributed so little to the welfare of its own people,
one wonders what the Kremlin can contribute to
the welfare of others.
If there is any further proof needed of the
soundness of these conclusions we only need to
look for a moment at the United Nations and the
specialized agencies. They are a signal expression
and a confirmation of one further conclusion
reached in the report. This states
Governments have accepted the principle that in the
interests not only of their ovm communities but of the
world in which these communities exist, they mu.st or-
ganize and undertake mutual aid.
Yes, we have organized for purposes of mutual
aid. We have ci-eated a technical assistance pro-
gram which is perhaps the best means of making
available, wherever it may be most needed, the
end-products of 100 years of progress in technical
knowledge and social organization.
Through the World Health Organization we
are combating the great killers of mankind such as
malaria, tuberculosis, and the endemic diseases
that are the scourge of tropical countries, and we
are laying the foundations for health services
which will mean greater productivity and happier
lives for untold millions of people. Through
Unicef (United Nations International Children's
Emergency Fund), millions of children have been
helped to survive and to grow into useful citizens
of tomorrow.
Through the International Labor Organization
we are assisting in the training of manpower and
the improvement of wages and working condi-
tions. We are aiding in the establishment of sys-
tems of social security and other guarantees to
assure those who need it most a proper share of
any economic advance their countries can achieve.
And through the United Nations itself, in coop-
eration with the specialized agencies, we are help-
ing in the development of community service and
welfare centers as part of the drive for higher
standai-ds of living.
In formulating all these programs and in build-
ing up the organizations to carry them out, the
nations of the world have shown real social in-
ventiveness. They have shown that the days of
fatalism are indeed over. They are — in the words
of the report — inspired by a new ethic and are
carried forward by new dynamics which augur
well for their future and the future of the world.
It is significant, however, that one group of
152
Department of Stale Bulletin
countries refuses to have any share whatsoever in
that heroic drive for a better world whicli is within
our reach. Tliese are the countries under Com-
munist controh Tliey have refused to liave any
part in such organizations as the World Health
Organization, the United Nations Educational,
Scientific and Cultural Organization, or the Food
and Agriculture Organization. They have not
made a single expert available to advance the ex-
panded program of technical assistance. They
have contributed neither funds nor supplies.
They have offered nothing but obstruction and
sterile criticism.
Since these are the countries in which freedom
has died, we have in our very midst a striking
confirmation of my thesis that freedom is not just
a philosophical concept but a most powerful force
for human advance.
Still, and despite the abstention and the obstruc-
tionism of the Communist countries within the
United Nations, our efforts to advance the eco-
nomic and social standards in the world by mutual
effort are becoming increasingly effective. We
feel certain that when another edition of the Re-
port on the World Social Situation appears a few
years hence it will reflect these efforts.
Of course, more, much more, needs to be done.
I shall not enter into any details at this point. I
shall have more to say when we discuss the report
of the Social Commission. I would like, though,
to emphasize certain points as matters of im-
mediate concern.
My delegation, together with the Government
and people of the United States, is looking for-
ward to the publication in 1954 of a companion
volume to the present report — a volume which will
offer us a survey of national and international
measures taken to improve the world social con-
ditions outlined here. My delegation believes that
such a companion volume will help us to dis-
cover and to refine the most effective methods that
can be used nationally and internationally to im-
prove world social conditions. . . .
Second, we hope that the present report and
our discussions of it, as well as the consideration
of the report of the Social Commission, will lead
to greater concentration of efforts in advancing
those social objectives which can most effec-
tively be attained by way of international co-
operation. . . .
In the demand by the underdeveloped coun-
tries for higher living standards there lies a great
challenge to the United Nations. As one of the
United Nations, the Government and people of the
United States have deeply committed themselves
to the gi'eat effort of mutual aid in which we are
here engaged. We shall continue to cooperate in
this effort through the United Nations and the
specialized agencies for a social advance beyond
today's achievements. And we fervently hope
that some day the bells of freedom will ring
throughout every land of this world. For it is
or.l}' in freedom that ever greater progress can be
attained and secured for all.
The Soviet Germ Warfare Campaign: The Strategy of the Big Lie
Statements iy Ernest A. Gross
Deputy U.S. Representative to the United Nations
SECURITY COUNCIL STATEMENT OF JULY 1
U.S./U.N. press release dated July 1
I should like to explain to the Security Council
why the U.S. Government felt impelled to request
on June 20 the addition to our agenda of a new
item entitled "Question of request for in-
vestigation of the alleged use of bacteriologi-
cal warfare."^
The draft resolution circulated by the U.S. dele-
gation on the same date, document S/2671,- refers
to the concerted spreading of grave charges by
Communist governments and authorities, includ-
ing charges made in the United Nations by repre-
sentatives of the Soviet Union, that U.N. Forces
' For text of statement made on June 20 by Ambassador
Gross, see Bulletin of July 7, 1952, p. 35.
'Ibid., p. 37.
fighting against Communist aggi-ession in Korea
have resorted to the use of bacteriological
weapons.
For many months the world has been exposed
to a campaign, both false and malicious, the tar-
get of which is nothing less than the United Na-
tions itself. Few people are deceived. The very
methods employed to fabricate evidence and to
propagate the charge have revealed the lie for
what it is.
However, the campaign should not be shrugged
off or ignored as merely another example of the
evil nature of international communism. The
venom which is being injected into the minds of
men is intended to confuse, to divide, and to
paralyze.
Another objective clearly is to isolate the free
world from the United States. They try to do
July 28, J 952
153
this by singling us out for special condemnation.
This is why the people of the free wox'ld should,
for their own security, take a cold, hard look at
the facts.
It must be remembered that the germ warfare
charges, as such, are but a part of a still larger
campaign of hatred now in progress in the Soviet
Union and areas under its control and influence.
The United Nations will do well to watch this
development closely in all of its manifestations.
Wliatever the basic motivations behind it, how-
ever, one fact stands out clearly : They are utterly
contradictory to any claim by the Soviet regime,
the self-styled leader of the international Com-
munist movement, that it is interested only in
world peace and the improvement of international
relations. The campaign of hatred is the very
contradiction of an expression of peaceful
intentions.
Origins and Nature of the Campaign of Hate
Now, what are the facts concerning the origins
and nature of the campaign of false charges con-
cerning the use of germ warfare in Korea by the
Unified Command?
In 1951, during the period of Communist mili-
tai'y set-backs in Korea, there was a minor cam-
paign alleging the use of bacteriological weapons
by the U.N. Forces in Korea. The 1951 campaign
was launched on March 22— by a brief item on the
Peiping radio, immediately picked up by Pravda.
The Peiping item reporting that the U.N. Com-
mand was engaged in the production of bacteri-
ological weapons for Korea was allegedly drawn
from Japanese sources. The actual source of the
report was a Soviet publication, reviewed in Red
Star on April 4 and titled : "Bacteriological War-
fare Is a Criminal Weapon of the Imperialist
Aggressore." In March and April there were
other brief mentions preparatory to a major
charge on April 30. Pravda repeated the false
charge on INIay 5, and on May S the North Koreans
dutifully sent an official protest to the United
Nations. But this campaign soon died out except
in North Korea, which had to justify a break-
down of sanitation and medical facilities and a
smallpox epidemic. It was not until the present
1952 cam])aign that tlie heavy guns of Soviet
propaganda blasted out on germ warfare.
The present campaign has been gaining mo-
mentum since February 23, when the official Mos-
cow press repeated a brief Peiping radio broad-
cast alleging that U.N. aircraft had dropped
germs on North Korea. There followed protests
by the North Korean and Chinese Communist
Foreign Ministers, a sliarp increase in Soviet
press and radio comment, denunciations by the
Soviet-controlled World Peace Council, and
staged mass meetings of protest in the Soviet
Union.
My Govermnent and the U.N. Command real-
ized that the charges aired in February 1952 por-
tended a world-wide campaign of far greater
scope than the sniping character of previous germ
warfare charges.
On March 4 the Secretary of State of the United
States thei'efore said :
I would . . . like to state categorically and un-
equivocally that these charges are entirely false; the
United Nations Forces have not used, and are not using,
any sort of bacteriological warfare.^
I now repeat and reaffirm this denial.
Similar flat denials were made by the Secre-
tary-General of the United Nations, by the U.N.
Commander in Chief, by the Secretary of Defense
of the United States, and by numerous other re-
sponsible officials of other U.N. members, includ-
ing those contributing forces to the repulsion of
aggression in Korea. All of tliese persons were
in a position to know what they were talking
about.
My Government took further steps in an attempt
to forestall this campaign of hate before it de-
veloped to dangerous proportions. As soon as
the campaign was launched, the Secretary of
State challenged the Communists to submit their
charges to the test of truth by allowing an im-
partial investigation. On March 11 he requested
the International Committee of the Red Cross
(IcRc), as a disinterested, international body, to
determine the facts.'* This investigation, the Sec-
retary said, would determine the extent of the
epidemic then apparently in progress in North
Korea and would provide additional evidence of
the falsity of the biological warfare charge.
To these ends, the Secretary emphasized the
need for an investigation on both sides of the bat-
tle lines in Korea. A specific invitation was
issued to the Red Cross investigators to cover the
areas behind the U.N. lines.
The International Committee of the Red Cross
agreed to set up a committee to make such an
investigation, provided both parties agreed to it
and offered their cooperation. The committee was
to consist of "persons who will offer every guar-
antee of moral and scientific independence which
could be offered by experts who have the highest
qualifications, especially in epidemiology," and
would include scientific experts proposed by Far
Eastern countries "not taking part in the conflict."
The Secretary of State accepted the offer of the
International Committee of the Red Cross at once.^
Communist Reversal of Attitude Toward the ICRC
The Communists have yet to give the Inter-
national Committee of the Red Cross an official
and definite answer. However, the Soviet-con-
trolled propaganda machines all over the world
' Ihid., Mar. 17, 1952, p. 427.
' Piid., Mar. 24, 1952, p. 452.
•/6id., p. 453.
154i
Department of State Bulletin
at once began a drive to blacken the character of
tlie IcRC.
The attacks on the Icrc have not diminished
the respect in whicli it has long been held by the
world for its impartiality and its works of mercy.
My Government still believes that it is pre-emi-
nently the logical choice to conduct an investiga-
tion into these charges, with the aid of such
scientists of international reputation and other
experts as it may select.
The Kremlin has often tried to divert public
attention from its own wrongful acts by seeking
to destroy confidence in fair methods of learning
the truth. There is no excuse for their attacks
upon the Ickc. They should not be permitted to
destroy so valuable and important a servant of
the international community.
Only 5 days before Soviet propaganda de-
nounced the Icrc as a tool of the "imperialists,"
Humanite, the Communist newspaper in Paris,
itself suggested the possibility of a Red Cross
investigation. The Icrc was not "imperialist"
then, because the Communists had not yet labeled
it so.
Moreover, Red Cross societies in a number of
the Soviet satellite countries had themselves shown
their respect for the Icrc. On March 6, 1952, the
Rumanian Red Cross asked the Icec and the
League of Red Cross Societies "to make urgent
approaches to the United States Government and
the United Nations to the end that immediate
measures would be taken" to end the use of germ
weapons in Korea. The Soviet-controlled Polish
and Hungarian Red Cross societies in Februai-y
of this year made similar appeals to the Inter-
national Committee of the Red Cross. The Red
Cross of Communist China itself, in 19.51, ad-
dressed appeals to the Icrc — the very organization
it now began to assault and seek to undermine.
The rapid reversal of attitude on the part of the
international Communist movement toward the
Red Cross is in itself an exposure of the falsity of
the germ warfare campaign. We see that Com-
munist parties around the world actually appealed
to the Red Cross up until that moment when a
real investigation became possible. Then, sud-
denly, the Soviet propaganda apparatus went hur-
riedly into reverse gear, and the International
Committee of the Red Cross became overnight an
alleged "tool" of Wall Street.
Soviet propaganda, on the heels of the United
Nations denials and the request for impartial
investigation, at once began to push the campaign
of hate and lies with intense vigor.
On March 13, the day after the IcRC communica-
tion to the Communists, the Soviet authorities
launched in Moscow an organized mass meeting
of "workers" — a meeting characterized by par-
roting of the charges in a manner designed to
create a bitter and burning hatred against the
United States and the U.N. effort in Korea.
Typically, Pravda on March 14 reported the
following statement from the Moscow meeting :
Their barbarous activities threaten the spread of terrible
epidemics of fatal illness in countries of Asia and Europe.
The peoples' conscience cannot reconcile itself to inhu-
mane and savage crimes of these misanthropists who
defy elementary laws of general morality.
The venom was being injected. The Moscow meet-
ing formed the pattern for similarly staged ses-
sions throughout the controlled world of inter-
national communism.
The Moscow newspapers, Pravda and Isvestia,
both devoted full pages on March 14 to the Moscow
"hate" session and the Soviet radio gave far
greater attention to the germ warfare charges than
to any other item.
On March 13 Peiping announced the formation
of a so-called "investigation commission" care-
fully selected from among Chinese Communists to
insure its partiality. Before it began its work,
its chairman announced that its purpose was "to
gather the various criminal facts on bacteriologi-
cal warfare waged by the American imperialists."
On March 14 the Soviet representative made a fur-
ther move to enlarge the scope of the camiDaigii by
introducing the charges of germ warfare into the
Disarmament Commission. On March 15 the
satellite Hungarian Government loyally echoed
the Soviet "Fatherland" protest campaign. And
on March 16 the French Communist paper,
Ewnanite, came forth with its first big spread on
germ warfare. The major Communist papers of
India, Brazil, and Canada took up the chai-ges.
Thus, within 4 days of the United Nations accept-
ance of the Icrc otter of investigation, the heavy
guns of Soviet world-wide propaganda had begun
to blast.
Another so-called investigation was staged by
a committee of the International Association of
Democratic Jurists, another of the many Soviet-
front organizations. This group was sent out, ac-
cording to Pravda, on March 4 "in order to
investigate and establish the crimes committed by
the interventionists in Korea, in violation of all
international agreements." ^ Indeed, it received
directives while in Soviet Siberia on its way to
Korea to prove other so-called crimes against the
U.N. Command. The commission was made up of
currently faithful followers of the party line, al-
though its chairman, Brandweiner, was a former
Nazi, as was another member. Dr. Melsheimer.
Brandweiner was not merely a Nazi party mem-
ber— he was a member of the Rechtswahreriund
of Berlin.
In short, all the familiar elements of Soviet
propaganda are present in this campaign: The
linking of alleged Japanese bacteriological war-
fare experiments with the United States, the
charges of "war criminals" and the demand for
° U.N. doc. S/2684/add. 1, dated June 30, 1952, contains
the "findings" of this association.
Jo/y 28, 1952
155
trials, the accusations of violating the Geneva pro-
tocol and Eed Cross conventions, the so-called
"eye-witness accounts," the so-called "confessions"
of American prisoners of war who suddenly begin
talking in Marxist cliches, the so-called "scientific"
evidence revealing the unnatural appearance of
bugs out of season in unusual places, the allegedly
"impartial" investigations by puppet groups, the
hollow i^rotests by Communist-front organi-
zations.
Moscow's Planning and Coordination
These devices became increasingly apparent as
the campaign gained momentum. In the last
weeks of March, the Soviet propagandists con-
centrated their fire primarily on the captive audi-
ence behind the Iron Curtain. It can be assumed
that there was some degree of corrosion of the
minds of men and women behind the Iron Cur-
tain, who have so little opportunity for access to
the truth. A most ominous aspect of the cam-
paign is its intensity within the Soviet Union
itself.
During Marcli, Moscow was preparing the Com-
munist press and other organs outside the Curtain
for their major effort. At the meeting of the
Soviet-controlled World Peace Council Executive
Committee at Oslo on March 29 to April 1, Moscow
gave the signal to open the major phase of the
germ warfare campaign throughout the non-Com-
munist world. The basic propaganda material
was passed out either at Oslo or the World Peace
Council headquarters at Prague. To take one ex-
ample, the Uruguayan "i^eace" leader, Jose Laris
Mas,sera, was summoned to Prague on April 4
and was given instructions by Soviet agents to
wage an intensive germ warfare campaign back
home.
From April to the present time, the so-called
"peace partisans" have danced to the Kremlin
tune. In each country, they have gone through
virtually the same act : A national meeting, a series
of local meetings, pamphlets, posters, petitions,
lumors, statements by other front organizations,
doctors, scientists, lawyers, and so forth; all the
familiar Communist fronts, stooges, and war-
horses have been dragged out to support the germ
warfare campaign. In a few countries there have
been added flourishes: In Brazil, a traveling ex-
hibit, modeled after a Peiping sjiow, attempts to
introduce the charges into parliamentary bodies
in Israel, India, Denmark, Brazil, and Sweden;
a "word of mouth" campaign in Iraq. At the
same time, the Communist press in these countries
has continued to blare forth.
The parallel tactics of the so-called "peace parti-
sans," and the repetition by Communist news-
papers throughout the world of stories and
propaganda material first emanating from Mos-
cow and Peiping, make clear the high degree of
coordination and planning exercised by Moscow
in the germ warfare campaign.
The official Soviet press and radio organs set
the tone for the world-wide campaign of venom
and hate. Typical of Moscow's words of hate are
three recent statements in Pravda and Izvestia, the
official organs of the Soviet Communist Party and
the Supreme Soviet of the Soviet Union. From
Pravda, June 7, 1952:
The ideologies of American Imperialism call for a halt in
the growth of population in all countries, except the USA,
and more killing of the living by wars, hunger and epi-
demics. And this isn't just a "theory" of the cannibals.
Their whole practice corresponds entirely to the can-
nibalistic ideology.
The American cannibals are walking in tJie footsteps of
the Hitlerite plunderers. In Korea they have killed
luindreds of thousands of the peaceful inhabitants, in-
cluding 300,000 children. Unleashing germ and chemical
war, the American interventionists have the wicked aim
of making Korea a desert land, uninhabited.
Again in Pravda on June 25, 1952 :
The American Invaders are using the most inhuman,
barbaric means of warfare on a large scale . . .
Trampling on generally recognized international usages,
the American military used criminal, large-scale bac-
teriological and chemical warfare . . . bombs.
Again in Izvestia on June 25, 1952 :
But . . . this is a trifle compared with the atrocities to
which the United States interventionists resorted later —
the U.S. interventionists who beat their predecessors in
international brigandage, the Hitlerite fascists. In Korea
and Northeast China, the U.S. imperialists used the
barliarous bacterial weapon which is condemned by the
entire mankind and prohibited by the Geneva Protocol
of 1925.
Such accusations have been reiterated by the Soviet
representative in the Disarmament Commission.
Typical is the following statement by Mr. Malik,
U.S.S.R. representative in Committee 1 of the Dis-
armament Commission, on April 9, 1952 :
Having launched a bloody war against the heroic free-
dom-loving Korean people, the United States aggressors
in the very first days of their murderous adventure in
Korea became guilty of atrocities and unheard-of savagery
towards that country's unarmed and peaceful popula-
tion. After all their attempts to break that heroic
population's fighting spirit had failed, the United States
aggressors committed a horrible crime against peace and
against mankind. They resorted to the use, in Korea
and China, of the bacterial weapon, which has long been
condemned by all civilized countries and nations as shame-
ful and criminal.
Moscow's direction and control of the enter-
prise is illustrated by an event at the beginning of
May. The Kremlin's propagandists realized tliat
a very poor reception had been given the so-called
"report" of the hand-picked "Democratic Jurists
Committee." Soviet agents in Korea reprimanded
the Chinese Communists and North Koreans for
not having produced enough so-called "evidence"
for these jurists. The jurists had been provided
only with the standard tours of bombed-out areas
in Pyongyang and a few photographs, which were
obviously meaningless. The Soviet agents re-
quested their Chinese and North Korean stooges
to get busy and jjrovide a higher quality of propa-
156
Department of Stale Bulletin
janda evidence for the summer phase of the germ
ivarfare campaign.
It was only a few days later that Peiping an-
lounced the so-called "confessions" of two Ameri-
can fliers. The so-called "confessions" were dic-
tated, if not written, by someone unfamiliar with
:he English language. For example, a photostat
)f a handwritten document called a "confession"
ivas published in the Paris newspaper Ce tSoir on
Fune 13. The title of the letter reads: "How I
ivas forced to take part in bacteriological warfare
)y the US Wall Street." The last line of the photo-
stat letter reads : "I was blamed by my conscience
md good will for the crimes." There are other
expressions typical of the Communist propaganda
line, which we have heard so often from the
■loviet representative in the Security Council,
riiese phrases would be as unfamiliar to the two
iviators as the Russian language itself.''
Such Soviet cynicism about "evidence" is not
musual. The Communists have always had a
■epugnance for open legal inquiry and proceed-
ngs. The glare of open publicity has had the
iifect of wilting the "evidence" so carefully manu-
factured by Soviet propagandists. The extraordi-
larily clumsy nature of the attempts to fabricate
evidence reveals the Soviet contempt for the com-
non sense of free men.
Sugs Out of Season in Unusual Places
In the original Communist broadcasts, each
alleged incident was described in detail. Putting
them together, the charge is tliat germs were
5pread by a variety of germ-carriers which would
surely enrich any museum of natural history.
Independent scientists, including at least 10
Nobel prize winners, have publiclj^ expi'essed com-
plete skepticism of the charges. They have ridi-
culed the tales of spreading typhus and plague
through the medium of infected fleas and lice in
the freezing winter temperature of Korea. They
liave pointed to the established pattern of epi-
demics in that part of the world, where diseases
such as typhus and plague may be expected to
assume epidemic proportions unless the authori-
ties are tireless in controlling their natural car-
riers. Dr. Feisal Sheikh El-Ard, of Syria, chief
Q.N. public health officer in Korea, has recalled
he task the United Nations faced in combating
disease in the Republic of Korea. He said :
Eighteen million people were vaccinated against typhoid,
16 million against typhus, 15 million against smallpox,
and 2 million against cholera.
All this resulted in the decrease of victims of these epi-
iemics from 15 thousand or 30 thousand a month to -10
to 70 a month.
Dr. Feisal pointed out that the only North
' For a press conference statement by Secretary Acheson
m these "confessions," see Bulletin of May 19, 1952,
3. 777.
Korean comment on this life-saving work was a
radio broadcast saying that the U.N. Forces were
spreading germs in South Korea and that we
were trying to kill the greatest number possible
of its i^opulation.
It is typical of the real U.N. attitude toward
epidemic and disease that, when the charges of
bacteriological warfare were first made, the World
Health Organization oifered to provide technical
assistance in controlling the reported epidemics
in North Korea.** This offer was transmitted to
the North Korean and Chinese Communist au-
thorities in three successive cablegrams by the
U.N. Secretary-General. After one month of
silence, this offer of assistance was rejected.
If the Soviet Government had any regard for
the truth, recourse to the Security Council was
always open to it.
Instead, the Soviet representative brought the
charges to the Disarmament Commission, which
was not competent to discuss them under its terms
of reference. In the Security Council, in con-
trast, he insisted with a straight face that his
Government saw no connection whatever between
their germ warfare charges and their resolution
on the Geneva protocol. The distinction was not
as apparent to Soviet authorities on June 15. The
June 15 issue of Pravda stated that the United
States "began to apply the criminal methods of
mass homicide condemned by all honest men and
banned by international conventions on poisonous
substances, bacterial weapons, and napalm."
Also on the Moscow radio on June 23, 1952 :
The American militarists, as is known, have already
brought barbaric germ weapons into use against the
civilian population of Korea and China. It is impossible
not to link these facts with the refusal of the United
States Government to ratify the Geneva Protocol of 1925.
The Soviet pretense that its request for Security
Council action on the Geneva protocol has noth-
ing to do with its germ warfare charges is also
shown up by a request of its puppet organization,
the International Association of Democratic Jur-
ists. At the Vienna session of the association's
council meeting April 16 to 18, 1952, it passed a
resolution, including the following appeal to the
U.N. Security Council : "We propose that the Se-
curity Council immediately consider the findings
of our commission as well as other proofs per-
taining to bacteriological warfare."
Soviet Charges Seen as Direct Assault on U.N.
In asking for an investigation of these charges^
we believe that much more is at stake than the
establishment of their falsity. We are not asking
mere vindication of the honor and good name of
the people of the states which compose the Unified
Command in Korea. The history of the states re-
' For a statement by Secretary Acheson relating to
Who's offer, see ibid.. Mar. 31, 1952, p. 495.
luly 28, 1952
157
sisting aggression in Korea, tlie character of their
people, and the nature of their governments can
withstand this type of attack.
The strategy of aggi-ession by lie demonstrates
what can happen when a tyrannical state, pos-
sessed of modern means of mass communication,
chooses to whip up hostility against freedom-
loving peoples. Here is a case study of a means
that is being used to a clearly defined end. It is
apparently necessary to the security of the totali-
tarian state that its people fear and hate the
peoples of other countries. Chronic hate cam-
paigns are, therefore, essential to the perpetuation
of the authority of the regime in power.
The charges are a direct assault by the Soviet
Government upon the members of the United
Nations who have sent their sons to protect the
independence of Korea from Connnunist aggi-es-
sion. It is part of the campaign of lies which the
Kremlin leaders have waged ever since the un-
provoked Communist attack of June 25, 1950—
a campaign which centers upon the Big Lie that
the United States and the United Nations were
the aggressors in Korea. It is a part of the cam-
paign which pretends that the Soviet Union has
taken an inituitive for peace in Korea when the
truth is that at each step and at every turn it is
the United Nations which has taken the initiative
for peace, whereas the Soviet leaders have aided
in the aggression and have refused to say the word
which could bring it to a halt.
This is why, up to now, at least, the Soviet Gov-
ernment has conducted this campaign, while using
its power to stave off an impartial investigation
into the facts. If what I say is not true, then the
Soviet Government must allow the investigation
to proceed. If it is true, then we will witness
here, as we have witnessed elsewhere, a calculated
attempt to prevent the world from determining
the real nature and purpose of these baseless
accusations.
The methods used to spread these charges are
not unknown to modern history. In the past,
both Hitler and the Soviet authorities resorted
to the deliberate lie as an instrument of national
policy — both at home and abroad. Tliere is an
ominous similarity between the tactics used by
the Nazis and those of the Kremlin leaders.
The resolution which I have submitted to the
Council is an honest challenge to the Soviet Gov-
ernment. Having been caught in a lie, it may
be difficult for that Government to accept an im-
partial body which exposes their conspiracy.
When I make this prediction of exposure, it is
because the United Nations is charged with germ
warfare and we know as a stark fact that iio sucli
weapon has been used by the United Nations in
Korea or anywhere else.
The former U.N. Commander, General Ridg-
way, said in Rome on June 17 :
I know of no better iUustration of the deliberate use
of deliberately fabricated falsehoods by Commuuist lead-
ers than their charses that the United Nations Command
employed germ warfare in Korea.
As former Commander-iu-Chief of United Nations forces
in Korea, and as God is my witness, I tell you that no
element of that Command employed any form of germ
warfare at any time, and that all of the so-called "proof,"
including photographs, was manufactured by the Com-
munists themselves.
Any truly impartial body will verify these
facts.
But if I may repeat in different words a state-
ment I made a few moments ago, tliere is a much
larger issue involved here.
Recently, in the official newspaper of the Presid-
ium of the Supreme Soviet, Izvestla^ there was a
front page editorial which carried a message of
hatred to the peoples of the Soviet Union. The
very violence of the language is almost incredible.
The U.N. Command in Korea — in Moscow they
call it the American Command — is accused of
"utilizing the most fantastic and revolting means
for achieving their criminal purposes."
Speaking on behalf of the Soviet Government,
Izvestia tells the Russian people that the U.N.
Forces in Korea have tortured prisonere with red
hot irons and forced them to sign so-called
"treasonable" statements in their own blood.
It is sinister indeed that a modern government,
of the size and power of the Soviet Union, should
be feeding its citizens on such raw poison. In
this campaign, truth is the first casualty of a
calculated policy of state. Nor is this campaign
confined to the Soviet Union. As the source of
lies that go out by conveyor belt to Communist
Parties around the world, the Soviet regime
spreads this message of hate far beyond its own
frontiers.
We do not know where this policy of hate will
lead the Soviet Government. We do know that
the United Nations and the world as a whole must
be vigilant and alert to its effects. For it is a
revolt against the fundamental purpose of the
Charter to develop friendly relations among
nations.
But the United Nations can deal with this threat
to international peace and security — a threat
which is made in Moscow. The charges have been
sponsored and spread by the Soviet Government.
That Government has made allegations as to dates
and places of so-called germ raids. The Soviet
Government has conspired in fabricating and
publicizing so-called "evidence" in support of
these charges.
An impartial commission of investigation is the
only means of getting to the bottom of these
charges. If what we say about the campaign of
hate is not true, the Soviet Government can show
us up. What we propose is an impartial investi-
gation into the facts. We are confident that any
such investigation will wreck their germ warfare
campaign. But if they reject the investigation,
they wreck the campaign just as surely, for then
158
Department of State Bulletin
they confess to the world that they know the
bharges will not bear the light of day.
There is the challenge. Let them accept it in
the name of the truth.
SECURITY COUNCIL STATEMENT OF JULY 3
U.S. /U.N. press release dated July 3 — Excerpts
The U.S. Government voted in favor of an im-
partial investigation of the charges made against
the United Nations, which charges were sponsored,
pread, publicized, repeated here by the Soviet rep-
resentative and by his government elsewhere. The
Security Council itself has voted to investigate
these charges. The Soviet representative has
frustrated by his veto the effectiveness of the vote
(•ast by the other 10 members of the Security
Council.
We feel and we believe that all members of the
United Nations who are loyal to the Charter feel
that the Soviet Union by its action here today
has revealed its true purpose in the campaign of
lies and of hate which it has sponsored and which
it has disseminated.
By his vote the Soviet representative has told the
Security Council that the Soviet Government in-
sists on preventing an investigation of these
charges through an impartial agency, and yet the
Soviet Government has sponsored, has published,
has disseminated these lies as a systematic part
of its foreign policy and of its domestic policy of
lying to its own people.
Before we leave the consideration of this sub-
ject, my delegation feels that the record should be
entirely clear. The record should show the con-
certed dissemination by certain governments and
authorities of grave accusations, as grave as they
are unfounded, charging the use of germ warfare
by U.N. Forces.
The record should show that when the charges
were first made, when the accusations were first
brought before the world, that the U.N. Command
denied the charges and requested an impartial in-
vestigation, that the Chinese Communists and the
North Korean authorities failed and refused to
accept an offer of investigation by the Interna-
tional Committee of the Red Cross, that in the face
of such a refusal these authorities — and this fact
is not only admitted by the Soviet representative
but boasted of by him — these authorities continued
to circulate, to publicize, to disseminate these false
charges.
The record should show that when the World
Health Organization offered to assist in combat-
ing any epidemics in North Korea and China, any
epidemics which might exist regardless of the
source, and the Unified Command agi'eed to do its
share and to cooperate fully, the Chinese Com-
munists and the North Korean authorities re-
jected the offer of the World Health Organization
and refused to permit its entry into territories
under their control.
We should also note, and the record should
show, that the Government of the Soviet Union
in the United Nations has repeated these charges
against U.N. Forces and that it is the Soviet nega-
tive vote on the U.S. draft resolution which is
supported by all other members of the Security
Council, that it is the Soviet negative vote that
has prevented the Council from arranging an im-
partial investigation.
From these facts, which are all on our record,
there is only one conclusion that can be drawn:
That the charges of germ warfare against the
U.N. Forces must be jDresumed to be utterly false.
The Security Council in our judgment should
condemn the fabrication and the dissemination of
these false charges which involve no less than an
attempt to undermine the efforts of the United
Nations to combat aggression in Korea and the
support of the people of the world for these ef-
forts, and which have the effect of increasing ten-
sion among nations.
Text of Draft Resolution '
The Security Council,
Noting the concerted disisemination by certain Govern-
ments and authorities of grave accusations charging the
use of bacteriological warfare by United Nations Forces,
Recalling that when the charges were first made the
Unified Command for Korea immediately denied the
charges and requested that an impartial investigation
be made of them.
Noting that the Chinese Communist and North Korean
authorities failed to accept an offer by the International
Committee of the Red Cross to carry out such an investi-
gation but continued to give circulation to the charges.
Noting that the World Health Organization offered to
assist in combating any epidemics in North Korea and
China, and that the Unified Command for Korea agreed
to co-operate.
Noting with regret that the Chinese Communist and
North Korean authorities rejected the offer and refused
to permit the entry of the World Health Organization
teams into territories controlled by these authorities.
Noting that the Government of the Union of Soviet
Socialist Republics has, in the United Nations, repeated
the charges that United Nations Forces were engaging
in bacteriological warfare.
Noting that the draft resolution submitted by the Gov-
ernment of the United States proposing an impartial in-
vestigation of these charges by the International Com-
mittee of the Red Cross was rejected by the Union of
Soviet Socialist Republics, and that by reason of the nega-
tive vote of the Union of Soviet Socialist Republics the
Security Council was prevented from arran.ging for such
an Impartial investigation.
Concludes, from the refusal of those Governments and
authorities making the charges to permit impartial inves-
tigation, that these charges must be presumed to be with-
out substance and false.
Condemns the practice of fabricating and disseminat-
ing such false charges, which increases tension among
nations and which is designed to undermine the efforts
of the United Nations to combat aggression in Korea
and the support of the people of the world for these
efforts.
'U.N. doc. S/2688, dated July 3, 1952. On July 9 the
Soviet Union, casting its iiOth veto, defeated the resolu-
tion. The vote was 9-1-1 (Pakistan).
July 28, J 952
159
The United States in the United Nations
[July 4-July 24, 1952]
General Assembly
The seventh regular session of the General
Assembly will be convened at United Nations
Headquarters on October 14, 1952.
Timuia — The United Nations Headquarters an-
nounced on July 21 that the request of the 13
Arab-Asian States for a special session of the Gen-
eral Assembly to take up the question of Tunisia
failed of adoption. The favorable replies from
member governments totaled 8 less than the re-
quired majority of 31 needed to hold the special
session.
Security Council
Investigation of alleged hacteriological ivar-
fare charges — The Council was compelled to reject,
July 9, the United States draft resolution con-
demning "the practice of fabricating and dis-
seminating" false charges of the use of germ war-
fare by the United Nations Unified Command in
Korea because of the fiftieth veto exercised by the
Soviet Union.
Ambassador Ernest A. Gross stated :
We thought it right to put the resolution to a vote for
the reason that we consicler, and I thinls that it is clear
that the majority of the members of the Council consider
that the campaign of hate and of lies which is being
carried on by the Soviet Government, which is being spon-
sored by that government, disseminated by that govern-
ment, and which that government continues to carry on
with unabated vigor, that this campaign Is directed
against no less than the United Nations itself. ... A
campaign of lies and of hate has been exposed for what
it is, but unless the Soviet government withdraws and
abandons its campaign, we surely cannot forget our
responsibilities as custodians and trustees of the Charter
of the United Nations, and we will have to take, it seems
to me, action that is requisite and appropriate to meet
this challenge to the standards of decency and of civil-
ization which we all of us had agreed to when we signed
the Charter of the United Nations.
Admission of New Members — On the same date,
the Council approved (8-1 (U.S.S.R.)-2 (Paki-
stan, Chile) ) the Greek proposal to postpone fur-
ther discussion of the question of the admission
of new members to the United Nations until Sep-
tember 2, 1952.
Economic and Social Council
During the past few weeks the Economic and
Social Council, among other things, adopted the
following resolutions :
1. It adopted three resolutions relating to full
employment :
(a) A resolution submitted by Mexico and
Uruguay (15-0-3 (Sov. bloc)) takes note of the
replies received from governments to the Secre-
tary-General's questionnaire on full employment
and urges all governments in the future to submit i
adequate replies as promptly as possible in order
that "the Secretary-General may prepare an
analysis of such a nature as to facilitate the Coun-
cil's consideration of the full employment prob-
lem."
(&) Resolution submitted by Sweden (11-3
(Sov. bloc)-3 (Iran, Pakistan, Philippines)),
which requests the Secretary-General to prepare
a report on national and international measures H
designed to attain and maintain full employment
while avoiding the harmful effects of inflation.
During the discussion of this resolution Mr. Lubin
(U.S.) pointed out that the Soviet Union's replies
to the questionnaire on full employment indicated
that that Government continued to conceal "mean-
ingful data" from the United Nations and "infor-
mation which has been refuted continues to be
presented as incontrovertible fact. The kind of
statistical deception practiced by the U.S.S.R.
provides its spokesmen with pood experience for
distorting the truth about other nations as well
as their own."
(c) A joint resolution submitted by Belgium,
Canada, Cuba, France, United Kingdom, and the
United States, and amended by Cuba and Paki-
stan (13-3 (Sov. bloc)-2 (U.S., France)), invites
the International Bank, in assessing the credit
wortliiness of a country, not to be unduly affected
by the economic situation of the latter in time of
temporary recession; invites governments to pre-
pare programs for additional investments in the
case of a recession ; and urges the Monetary Fund
to apply its rules flexibly and to kec]) under con-
tinuing review the adequacy of monetary reserves
for the purpose of helping countries to meet tempo-
rary disequilibria in their balances of international
1«0
Department of State Bulletin
ayments. Joseph Coppock (U.S.) explained
lat his Government had abstained on this resoki-
on mainly because of the deletion of what it con-
dered the key operative part of the original reso-
ition which referred to the negotiation of inter-
overnmental commodity agreements as a means
f reducing instability in the world markets — a
oint upon which, Mr. Coppock said, the experts'
jport to the Council had laid primary emphasis.
2. The Council adopted (15-0-3 (Sov. bloc)) a
)int 7-power resolution on increasing productiv-
y in underdeveloped countries. It recommends
lat governments of undei-developed countries
insider the problems of raising productivity as
11 integral part of their efforts to promote their
jonomic development; reconunends regional
,udies of the problem; and recommends to gov-
;-nments the promotion of economic integration
f international markets through the extension of
>reign trade.
3. It adopted (15-0-3 (Sov. bloc)) a joint
Argentina, Pakistan, Sweden, U.K. resolution on
itegrated economic development of underde-
eloped countries which requests the Secretary-
reneral to prepare a working paper regarding
oncrete proposals referred to in the General
Lssembly resolution 521 (VI) for the rapid indus-
rialization of the underdeveloped countries.
4. The Council adopted a Canadian-United
itates resolution (14^ (Argentina, Sov. bloc)-3
Iran, Egypt, Mexico) ) requesting the Secretary-
Jeneral to again invite the Governments of
lumania, Spain, and the U.S.S.R. to reply to pre-
ious requests regarding allegations of infringe-
iients of trade-union rights in those countries, and
o bring to the attention of the proper authorities
he allegations regarding infringement of trade-
mion rights in Trieste and the Saar, and to invite
ubmission of their observations on the matter.
5. The Council concluded a 2-day general dis-
ussion of the United Nations report on the world
ocial situation and will take up in plenary the
•arious draft resolutions introduced after discus-
ion of the Social Committees reports. In com-
nenting on the report, Walter Kotschnig (U.S.)
^ave a full factual and statistical picture of the
locial situation in the United States, including
ncome distribution, living standai'ds, housing,
lealth, and education, and describing the exten-
live nongovernmental efforts which are part of
he United States social system. He stated :
. . . The government and the people of the United
States are deeply committed to the great eft'ort of mutual
id in which we are here engaged. We shall continue
o cooperate in this effort through the United Nations
nd the specialized agencies for a social advance beyond
oday's achievements. . . . We fervently hope that
;ome day the bells of freedom will ring throughout every
and of this world. For it is only in freedom that ever
.reater progress can be attained and secured.
6. The Council deferred until 1953 discussion
of assistance to Libya, and postponed this session
consideration of Korean relief and rehabilitation,
by votes of 11-1 (Egypt) -6 (Iran, Pakistan,
Philippines, Sov. bloc) and 13-0^ (Egypt, Sov.
bloc), respectively.
7. The Coimcil approved unanimously the Sec-
retary-General's report on the United Nations
regular Technical Assistance Program, and
adopted, by a vote of 13-0-5 (Sov. bloc, Mexico,
Argentina) , the report of the Technical Assistance
Committee on the United Nations Expanded Tech-
nical Assistance Program, including the recom-
mendation that member governments contribute
a 25-million-dollar fund for 1953, and urging that
members delinquent in meeting their obligations
for the first and second financial periods to the
expanded program make early payment into the
special account.
Both Sir Gladwynn Jebb (U.K.) and Isador
Lubin (U.S.) expressed concern that 12 govern-
ments were still in arrears on their pledges for
1950 and 1951, and only 19 had made any pay-
ments this year. Mr. Lubin pointed out that un-
less these pledges were fulfilled, some current
projects could not be completed and other requests
could not be undertaken. He also emphasized
the importance of implementing the reorganiza-
tion plan for the Technical Assistance Board at
the earliest moment, hoping that in the next 60
days tangible results would be seen.
8. The Council approved, 15-0-3 (Sov. bloc),
a revised Cuba-Mexico-U.S. resolution on teach-
ing about the United Nations and the specialized
agencies. It requests the Secretary-General and
UNESCO to cooperate in concentrating on teaching
materials for use in primary-elementary, adult,
and teacher education through reviewing and re-
vising basic material and publications in the light
of information newly available and the experience
of neighbors, and in encouraging its widest pos-
sible dissemination.
The Council expects to complete its fourteenth
session by August 1.
Specialized Agencies
International Lobar Organization {ILO) — At
its Thirty-fifth Conference, held in Geneva from
June 4 to June 28, the Ilo approved three new
conventions and three new reconnnendations. The
conventions cover social security, maternity pro-
tection, and holidays with pay for workers in agri-
culture. One of the recommendations is designed
to promote cooperation between employers and
'workers in the world's industrial establishments.
The others supplemented the conventions on ma-
ternity protection and agricultural holidays.
lu// 28, 1952
161
PUBLICATIONS
New Foreign Relations Volume
Deals With Rise of Nazism
Press release 554 dated July 15
The processes by which a totalitarian regime
extends and strengthens its control over the life of
a country are illustrated in documentation on Nazi
Germany presented in Foreign Relations of the
United States, 1935, volume 11 : The British Com-
monioealth; Europe, released by the Department
of State on July 19. This volume deals with bilat-
eral relations of the United States with the coun-
tries of the areas covered as well as with domestic
developments in Germany which were of signifi-
cance in the rise of Nazi power threatening the
maintenance of peace. The largest section is that
dealing with Germany.
The Department was kept well informed of
developments as the Hitler government was con-
solidating its political power, seeking to dominate
the Evangelical and Roman Catliolic Chui'ches
from which the most significant opposition to
nazification came, making educational institutions
serve its j^urposes and tightening restrictions on
the Jews. Along with these disturbing domestic
developments came the open rearming of Germany
with rejiudiation of the disarmament provisions
of the Treaty of Versailles.
The Secretary of State manifested increasing
concern over the current situation and expressed
a desire for an alleviation of the existing tension
(page 311). The Department also solicited esti-
mates of the situation from leading American
diplomatic missions in Europe. The most pro-
phetic analysis came from the Embassy in Moscow
which asserted (page 326) : "Wliile Germany may
not be deliberately planning a war of aggi-ession
German aims and aspirations are such that in the
final analysis they can be satisfied only by war."
On September 23, 1935, Ambassador Dodd ar-
ranged for S. R. Fuller, Jr., to meet at the Em-
bassy with Hjalmar Schacht, at that time Minister
of Economics in Hitler's cabinet and president of
the Reichsbank. Apparently this meeting was at
the suggestion of President Roosevelt or at least
with his approval. Fuller sounded out Schacht as
to the future course of Germany. In reply
Schacht was strong in his praise of Hitler as a
great, conservative leader, told of the laws "pro-
tecting" the Jews, said he had told Felix Warburg
of the American Jewish Committee "to have his
people stop making a noise and accept this protec-
tion," declared colonies necessary to Germany and
that they would be obtained by negotiation iJE pos-
sible but if not "we shall take them," asserted
Germany must "create a German world of the
mark," but favored currency stabilization and re-
newal of a commercial treaty with the United
States (pages 282-286).
Unsatisfactory financial and trade relations as
well as unsettled claims arising in World War I
were subjects of negotiations between the United
States and Germany in 1935, and on its part Ger-
many complained of anti-Nazi activities in the
United States.
Negotiations with other countries treated in this
volume related largely to commercial relations, es-
pecially the promotion of Secretary of State Hull's
trade-agreement program. Reciprocal trade
agreements were signed with Canada, the Belgo-
Luxemburg Union, the Netherlands, and Sweden.
Preliminary discussions or negotiations regarding
such agreements were carried on with the United
Kingdom, Australia, Ireland, New Zealand, Aus-
tria, Czechoslovakia, Finland, France, Italy, Nor-
way, Spain, and Switzerland. The United States
discouraged suggestions from Newfoundland for
such an agreement. Other trade negotiations
were conducted with the Union of South Africa,
Denmark, Estonia, Germany, Latvia, Lithuania,
Poland, Portugal, and Rumania. Papers on mis-
cellaneous minor subjects complete the volume.
Volumes I, III, and IV, which will complete the
series for 1935, will be published at a later date.
Papers on relations with the Soviet Union are not
included in volume II, as such documentation has
already been published in Foreign Relations of
the United States, the Soviet Union, 1933-1939,
which was released on May 24, 1952.' Interna-
tional conferences and other multilateral subjects
for 1935 which relate to Europe will be treated in
volume I.
Foreign Relations of the United States, 1935,
volume II, was compiled in the Division of His-
torical Policy Research of the Department of State
chiefly by N. O. Sappington and Miss Matilda F.
Axton under the direction of E. R. Perkins, editor
of Foreign Relations. The preparation of the in-
dex, the list of papers, and the editing and proof-
reading of copy were done in the Foreimi Rela-
tions Editing Branch of the Division of Publica-
tions under the direction of Miss Elizabeth A.
Vary. Copies of this volume (Ixxi, 81(5 pp.) may
bo purchased from the Superintendent of Docu-
ments, Government Printing Office, Washington
25, D. C, for $3 each.
Recent Releases
For sale l>y the Superintendent of Documents, Ooi^ern-
ment Printinu Office, Washington 25, D. C. Address re-
quests direct to the Superintendent of Documents, except
in the ease of free publications, which 7nay be obtained
from the Department of State.
Mexican Agricultural Workers. Treaties and Other In-
ternational Acts Series 22G0. Pub. 4284. 107 pp. 30«'.
Agreement between tlie United States and Mexico —
Signed at Mexico August 1, 1949 ; entered into force
August 1, 1949.
' For an article on the documents in this volume, see
Bu.'LETiN of May 1!», 1952, p. 767, and May 26, 1952, p. S22.
162
Department of State Bulletin
outh Pacific Commission. Treaties and Other Inter-
lational Acts Series 2317. Pub. 44G1. 53 pp. 20(*.
Agreement between the United States and Other Gov-
ernments— Opened for signature at Canberra Febru-
ary 6, 1947 ; entered into force July 29, 1948.
nter-American Highway. Treaties and Other Interna-
ional Acts Series 2321. Pub. 4413. 7 pp. 5<t.
Agreement between the United States and Panama
amending agreement of May 15 and June 7, 1948 —
Signed at Washington January 16 and 26, 1951 ; en-
tered into force January 26, 1951.
ilexican Agricultural Workers. Treaties and Other In-
ernatlonal Acts Series 2331. Pub. 4435. 57 pp. 20(i;.
Agreement between the United States and Mexico
replacing agreement of August 1, 1949 — Signed at
Me.xico August 11, 1951 ; entered into force August
11, 1951.
Education, Cooperative Program in Honduras. Treaties
ind Other International Acts Series 2340. Pub. 4453.
t pp. 5<t.
Agreement between the United States and Honduras —
Supplementing Agreement of April 24, 1951 — Signed
at Tegucigalpa August 7 and September 8, 1951 ;
entered into force September 8, 1951.
Technical Cooperation, Economic Development Mission
o El Salvador. Treaties and Other International Acts
Series 2341. Pub. 4454. 8 pp. 5^.
Agreement between the United States and El Salva-
dor— Signed at San Salvador October 23, 1951 ; en-
tered into force October 23, 1951.
Economic Cooperation With Luxembourg. Treaties and
ather International Acts Series 2342. Pub. 4455. 3 pp.
Agreement between the United States and Luxem-
bourg amending agreement of July 3, 1948, as
amended — Signed at Luxembourg August 30 and
October 17, 1951 ; entered into force October 17, 1951.
Economic Cooperation. Treaties and Other Interna-
tional Acts Series 2343. Pub. 4459. 25 pp. 10(f.
Agreement and notes between the United States and
Cambodia — Signed at Phnom Penh September 8,
1951 ; entered into force September 17, 1951.
Mutual Defense Assistance. Treaties and Other Inter-
national Acts Series 2349. Pub. 4465. 8 pp. 5^.
Agreement between the United States and Yugo-
slavia— Signed at Belgrade November 14, 1951 ; en-
tered into force November 14, 1951.
Education, Cooperative Program in Peru. Treaties and
Other International Acts Series 2350. Pub. 4468. 4 pp.
50.
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Signed at Lima August 8 and September 6, 1951 ;
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Economic Cooperation With France Under Public Law
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ternational Acts Series 2359. Pub. 4476. 2 pp. 54-
Agreement between the United States and France
amending agreement of June 28, 1948, as amended —
Signed at Paris September 25 and 27, 1951 ; entered
into force September 27, 1951.
Commission Reports on Sliift
in Overseas Information Policy
Press release 531 dated July 3
The shift in the policies of America's overseas
information was tlie focus of attention in the
Sixth Semiannual Report to the Congress by the
U.S. Advisory Commission on Information.^
In the last 2 years this country's information
program has changed its over-all objectives from
presenting a "full and fair picture" of the United
States to what now is called the propaganda of-
fensive— a counterattack on the Soviet's far-flung
propaganda apparatus. The Advisory Commis-
sion, in giving its approval to this shift in policy,
discusses in detail 13 policies which form the keys
to the effective and efficient operation of the In-
ternational Information Administration.
Another section of the report covers the recent
reorganization of the Department of State's over-
seas information program. The Advisory Com-
mission reviews the major changes in this reor-
ganization, reiterates its earlier viewpoint which
favors keeping the International Information Ad-
ministration in the Department of State, and en-
dorses the Senate's action on the Benton-Wiley
resolution for an investigation of this program.
The Commission states that it favors the present
semiautonomous position of the International In-
formation Administration within the Department
of State, but the members further state that they
will withhold their final view on the reorganiza-
tion until all of the proposed changes have become
a reality.
In addition to the operational policies of the
propaganda offensive and the reorganization of
the information program, the Commission's report
contains brief sections on the International Infor-
mation Administration's facilities, evaluation pro-
gram, public acceptance, and future.
The U.S. Advisory Commission on Information
was established by Public Law 402, 80th Congress,
to review the information program and make rec-
ommendations concerning it. The members sign-
ing this report are Mark A. May, chairman, direc-
tor of the Institute of Human Relations at Yale
University; Erwin D. Canham, editor of the
Christian Science Monitor; Philip D. Reed, chair-
man of the Board of the General Electric Com-
pany; and Ben Hibbs, editor of the Saturdaxj
Evening Post. The fifth member of the Commis-
sion, Justin Miller (chairman of the Board of the
National Association of Radio and Television
Broadcasters), did not sign the report. He is on
leave of absence from the Commission since his
appointment as chairman of the Salary Stabiliza-
tion Board on November 8, 1951.
' H. doc. 526
Jo/y 28, 1952
163
July 28, 1952
Ind
ex
Vol. XXVII, No. 683
American Republics Page
BRAZIL:
Export-Import Bank to finance agricultural
equipment 141
Secretary's impressions of his recent visit
abroad 132
Australia
Anztjs Council Meeting 141
International Bank makes $50 million loan . . 140
Europe
AUSTRIA: Secretary's Impressions of his recent
visit abroad 132
GERMANY: Progress toward European integra-
tion; 10th Quarterly Report of the U.S.
High Commissioner 134
U.S.S.R. : The Soviet germ warfare campaign:
The strategy of the Big Lie (Gross) . . . 153
Check List of Department of State
Press Releases: July 14 19, 1952
Releases may be obtained from the Office of the
Special Assistant for Press Relations, Depart-
ment of State, Washington 25, D. C.
Press release issued prior to July 14 which ap-
pears in this issue of the Bulletin is No. 531 of
July 3.
Subject
Trade negotiations with Venezuela
French national holiday
Kelchner : Retirement
Aeheson: Death of Israeli minister
Amerika suspended
Foreign Relations volume II
S. African tax conventions
Pancoast : Tca appointment
Aeheson : Geneva Pow conventions
Aeheson : Anzus Council meeting
Aeheson : Impressions of visits
Grassland Congress
McCloy : Resignation
Woodward : Foreign Service per-
sonnel
U.S.-Canadian TV channels
Exchange of persons
Exchange of persons
Turkish trade agreement ends
German educational agreement
Geographical Union (Igu)
"Courier" sails for Rhodes
*Not printed.
tHeld for a later issue of the Bulletin.
No.
Date
t.'>49
7/14
*550
7/14
*551
7/14
*552
7/14
553
7/14
554
7/15
t555
7/15
t556
7/15
t557
7/16
558
7/16
559
7/16
t560
7/17
t561
7/18
t562
7/17
t563
7/18
*564
7/18
*565
7/18
t566
7/18
t.567
7/1 S
t568
7/18
f5m
7/19
Finance page
Export-Import Bank to finance agricultural
equipment to Brazil 141
International Bank makes $50 million loan to
Australia 140
Human Rights
Human welfare: A practical objective
(Kotschnlg) 142
International Information
Commission reports on shift In overseas Infor-
mation policy 163
U.S. suspends publication of Russian-language
magazine Amerika 127
New Zealand
Anzus Council Meeting 141
North Atlantic Treaty Organization
Progress toward Etiropeau integration; 10th
Quarterly Report of the U.S. High Commis-
sioner for Germany 134
Publications
New Foreign Relations volume released . . . 162
Recent releases 162
U.S. suspends publication of Russian-language
magazine Amerika 127
State, Department of
New Foreign Relations volume released . . . 162
U.S. suspends publication of Russian-language
magazine America 127
Treaty Information
Anzus Council Meeting 141
United Nations
Human welfare: A practical objective
(Kotschnlg) 142
International Bank makes $50 million loan to
Australia 140
The Soviet germ warfare campaign; The strat-
egy of the Big Lie (Gross) 153
U.S. In U.N 160
Name Index
Aeheson, Secretary 133, 141
Gross, Ernest 153
Kotschnlg, Walter M 142
McCloy, John J 134
U 5. GOVERNMENT PRINTINS OFFICE: l»SZ
1^S5,
tJ/i€/ z!/)ehcvy£menl/ /C^ cnai&
'^ol. XXVII, No. 684
August 4, 1952
'ATEa o*
CREATING SITUATIONS OF STRENGTH • by Charles
E. Bohlen 167
THE ECONOMIC BASIS OF OUR FOREIGN
POLICY • by Willard L. Thorp 173
RELATION BETWEEN DOMESTIC AND INTER-
NATIONAL ECONOMIC SECURITY • Statement by
Isador Lubin ..............a 187
GREATER STABILITY FORECAST FOR WORLD
COTTOIS TRADE • Article by Eulalia L. Wall ... 185
For index see back cover
..;>a3
^S^°*».
•^*T„ O* *■
tj/ie
^efio/yim^e^ ^l ^a^ VJ LA 1 1 vl/ L 1 1 1
Vol. XXVII, No. 684 •Publication 4672
August 4, 1952
For sale by the Superintendent of Documents
U.S. Government Printing Office
Washington 25, D.C.
Peice;
82 Issues, domestic $7.60, foreign $10.26
Single copy, 20 cents
The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1952).
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Depaetuent
OF State Bdlletin 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
selected press releases on foreign pol-
icy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well aa
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to-
which the United States is or may
become a party and treaties of gen-
eral international interest.
Publications of the Department, as
well as legislative material in the field
of interruttional relations, are listed
currently.
Creating Situations of Strength
hy Charles E. Bohlen
Counselor of the De'partment of State
Exactly what do we mean when we say "situa-
tions of strength"? How and why was the con-
cept developed? How has U.S. foreign policy
operated to create situations of strength on behalf
of the free woi'ld?
These are vital questions. They demand
pointed answers. But they can be adequately
answered only if we understand the qualities of
U.S. foreign policy which have made it possible
to think in terms of global strategy. So I should
like to begin by briefly examining some of these
qualities.
The first point I would make here is that our
foreign policy must be one of enlightened self-
interest. A nation that does not constantly look
to its self-security toys with its very existence.
That, I think, is perfectly obvious.
But there are different roads to security even
as there are different concepts as to what security
involves. Security has been used as a disguise for
conquest and imperialism.
Our concept of self-security is quite different.
Our concept is firmly rooted in the belief that we
can best preserve our way of life in a world of
peace and decency. It is dedicated to the con-
viction that our best hope for such peace and
decency lies in the full-time cooperation of
sovereign nations, all of them seeking the common
progress of humanity. It is based upon the un-
derstanding that the free nations — the United
States among them — cannot be unconcerned so
long as poverty, disease, and illiteracy remain the
constant companions of two-thirds of the human
race.
This concern is not only humanitarianism, al-
though this element must be present in the foreign
policy of a democracy. But that does not mean
that it is a policy of simple charity. Emphati-
cally not ! We are willing to help others to help
themselves because, in doing so, we are helping
ourselves.
' Adrlress made at the Coljrate University Conference
on American Foreign Policy, Hamilton, N. Y., on July 26
and released to the press (No, 586) on the same date.
Augus/ 4, 1952
And that brings me to a second quality of U.S.
foreign policy. It is a cooperative policy. It
accepts the principle that we cannot stand alone
in this kind of world — that we dare not stand
alone.
The days when the Atlantic and Pacific served
us as protective moats — as "insulation" to use the
phrase of the late Senator Vandenberg — are be-
hind us. Great oceans have become mere puddles.
The miracle of modern technology has given us
immediate neighbors in London, Paris, Canberra,
and Bangkok. Horse and buggy isolationism is
outmoded in an atomic age. What happens any-
where in the world is of concern everywhere.
When you couple this smaller, more closely knit,
technologically advanced world with the rise of
a new great power, the Soviet Union, you can
easily see why we Americans cannot stand alone.
The emergence of the Soviet Union as a great
power at the close of World War II was bound to
have a global impact. Soviet policies and actions
since the close of the war have made that impact a
dangerous one.
There is no need to belabor the Soviet menace
before this audience. You know the Soviet post-
war record. You understand the nature of the
threat posed for all free men. And you under-
stand— I am sure — that the United States must
work closely with other free nations if freedom
and peace are to weather the onslaughts of this
new imperialism.
Realistic Policy Needed
A third and necessary element of U.S. foreign
policy is realism. Our foreign policy must reflect
the ideals and principles so deeply rooted in our
tradition. It must concern itself with things as
they really are — not only with things as we would
like them to be. It seeks to meet specific situations
as they arise as well as to anticipate such situa-
tions.
It would be wonderful if this were indeed the
best of all possible worlds. It would be fine if we
could immediately realize our fondest ideals.
But this is not that kind of world. There are
167
many influences and many ambitions at work on
the international scene. And these influences and
ambitions are not readily subject to control by a
push button in Washington.
Foreign policy cannot be made in a vacuum.
Foreign-policy objectives cannot be accomplished
in keeping with a strict timetable. There are just
too many intangibles.
There are those who would apply the rigid rules
of abstract physical science to international poli-
tics. It would be vei-y helpful if it were possible
to reduce foreign policy to an exact science. But
it is not possible to do so.
A sound foreign policy must deal in possibilities
and probabilities as well as in certainties. Only
then can it be realistic. Only then can it operate
with reasonable flexibility.
A fourth quality of U.S. foreign policy which
I should like to mention is its genuine democracy.
It is not made in an ivory tower.
U.S. foreign policy is fully representative of
domestic public opinion. It is an expression of
our way of life.
Secretary of State Dean Acheson made that
clear in a Nation-wide address back in 1949. He
said:
In the long run, and very often in the short run, it is
you citizens of this Republic, acting directly through pub-
lic opinion and throufih the Congress, who decide the
contours of our policies and whether those policies shall
go forward or waver and stop.
Current events clearly support Mr. Acheson's
statement. The 1952 political conventions at
Chicago are cases in point. Foreign policy has
been a fundamental issue before both conventions.
Foreign policy is a basic plank in both platforms.
Are not political parties the vehicles through
which the people grant governmental power to
those of their choice? Of course they are.
In the last analysis, the makers of foreign policy
in any democracy must — as a matter of right and
necessity — be responsive to the voice of the people.
These, then, are some of the basic qualities which
should be in U.S. foreign policy. Enlightened
self-interest, realism, democratic inspiration, and
the cooperative spirit — these are the qualities nec-
essary to bring into being the "situations of
strength" concept we are here to discuss.
These are the qualities which have made it possi-
ble for the United States to assume its responsi-
bilities of free-world leadership in meeting the
No. 1 problem posed by World War II. What was
that No. 1 problem ?
It was a problem of power relationships made
acute by the approach taken by Soviet Russia.
Using Power to Curb Power
There is an old Chinese proverb which says:
"Use power to curb power."
In a sense, that is what the free nations have
had to do in the postwar period.
168
Now, I do not mean to imply by this that power
is an end in itself or that we have gone power-mad.
Power, insofar as free men are concerned, is a
means to an end. It is a means through which the
United States is seeking to preserve its security
and to work with others in building a world of
peace and progress. It is a means through which
the free nations can work together to deter totali-
tarian aggression.
This, I might say, is a highly significant point.
In international politics, power does not neces-
sarily have to be used to be effective. The very
fact that it exists is often enough to get results.
Now, I have said that the No. 1 problem of the
postwar period — from our point of view — was one
of power relationships. And I have already noted
that the rise of a new and special form of state
power — Soviet Russia — was of crucial importance.
The fact is that the power situation in the post-
war world is very diflFerent from anything we have
had at any other time since the rise of the modern
nation-state system. For the first time in modern
history, we have a world in which there are only
two major centers of power. Power — to use the
technical phrase — is bipolarized.
On the one hand, we have the Soviet Union and
its satellites. On the other, we have what amounts
to a coalition of free nations with the United
States playing a leading role.
This role is not one we have sought. It has been
thrust upon us by the very nature of our position
in world affairs. It has been thrust upon us and
we have been obligated to accept it.
When I say that the United States is central to
the free-world coalition, I say it with humility and
understanding of the grave responsibilities im-
posed upon us. I say it in the urgent hope that
we shall not fail to help preserve in the world that
freedom and liberty to which our entire foreign
policy is dedicated. I say it with the conviction
that our own well-being is dependent upon our
free-world partners even as theirs is dependent
upon us.
This is true — to a great extent — ^because existing
power relationships leave a good deal less room
for maneuver in foreign affairs than was once the
case. Balance of power politics no longer means
what it meant before the first global war was
fought. The day of the buffer state and the zone
of influence is rapidly passing. Any major stra-
tegic move in today's world is of immediate con-
cern to all nations and all peoples.
At the turn of the century, there were half a
dozen or more nations who could lay claim to being
powers of the first rank. If one of these nations
became unduly threatening, or aggressive, there
were always several other nations who — by uniting
with the weaker of the two — could offset the power
of the stronger. This was the classical conception
of balance-of-power politics in operation.
At the turn of the century, it was possible for a
war to be fought in the Balkans, the Near East, or
Department of State Bulletin
the Far East without involving or even directly
affecting the major powers.
But today's world is different. There is a Cold
War on between freedom and calculated tyranny.
And that war is global in scope. There is fric-
tion at virtually every point where the free and
, slave worlds meet.
j The fight against aggression in Korea is all too
I tangible proof of this. Every major power has
had a hand in tlie Korean situation in one way or
another.
Korea, I might add, will appear in the history
books of the future as one of the most significant
events of this or any other era. For here, genuine
, collective security operated to halt a deliberate,
naked aggression for the first time in modern
history. The United Nations has truly won its
spurs in Korea. It has upheld, in full, the prin-
ciples upon which it was founded.
Think of what the United Nations has accom-
plished in Korea. It has driven the Communists
back along most of the battle line beyond the
point from which they started their unprovoked,
brutal assault in June of 1950. It has preserved
the independence of the Republic of South Korea.
It has served notice on all potential aggressors
that aggression cannot be launched anywhere with
impunity.
Had the United Nations allowed the Commu-
nists to get away with their aggression, the
existing power situation would have developed to
the extreme disadvantage of the free world. To
have allowed Korea to go by default would have
been a tremendous blow to the free peoples of Asia.
It would have encouraged the Kremlin and its
cohorts to move against the periphery of the free
world again at their convenience. It would have
strengthened the possibilities of an all-out global
war and weakened considerably the containment
policy which is so basic to U.S. foreign policy and
the defense of the free world as a whole.
Emergence of the Containment Policy
I should like now to talk a little about the con-
tainment policy and about the creation of situa-
tions of strength which that policy demands.
The first thing that we must bear in mind in
this connection is that the conditions which gave
rise to the idea of containment did not spring up
overnight. They were in the process of develop-
ment for many months.
World War II did see the Soviet Union emerge
as a great power. But it was not until the free
nations had exhausted every possibility at the
conference table and the Soviets had clearly
indicated by their actions their unwillingness to
cooperate that the containment policy emerged.
In short, the containment policy was a reaction
to Soviet actions. It was a reaction to an aggres-
sive imperialism which became more and more
evident in the months immediately following the
war. It was a reaction to Soviet moves which
represented an utter departure from pledges taken
at the conference table.
The Soviet Union refused to honor its agree-
ment to sponsor free elections in Eastern Europe.
The Soviets shook their fist at Turkey and at Iran.
They encouraged Communist subversion of the
legitimate Greek Government. They allowed
huge stocks of Japanese military equipment to fall
into the hands of the Chinese Communists in
Manchuria and thus — in effect — went back on the
promise they had made at Yalta to throw their
full support to the Chinese Nationalist Govern-
ment.
Speaking of Yalta, the charge has been made
that our failure to "get tough" at the conference
table allowed Moscow to help itself to Eastern
Europe, China, and North Korea. I want to state
categorically that this charge is absolutely with-
out foundation.
The fact is that the Soviets received nothing by
negotiation that they did not already or were not
about to control by the presence of the Red army.
Soviet territorial gains have not been made by
words exchanged at the conference table._
The containment policy — being a realistic pol-
icy— has thus had to concern itself more with
Soviet actions than with Soviet words. In fact, it
was a specific concrete action which can be said to
have brought the containment policy into opera-
tion.
The scene was Iran. In early 1946, Soviet
troops were still stationed in northern Iran. Fur-
ther, they were interfering with the Iranian Gov-
ernment's attempts to govern in Azerbaijan, a key
province in northern Iran. The Soviets refused
to withdraw their troops from Iran despite a clear
treaty obligation to do so.
The situation was brought to the attention of
the United Nations. It was thoroughly aired in
open debate. The peoples of the world were given
a chance to learn — in great detail — what was going
on in Iran. The result : Pressures exerted by an
aroused world opinion — an opinion educated by
U.N. debate — forced the Soviets to withdraw their
troops.
The United Nations had proved itself an effec-
tive forum for the settlement of a dispute which
was threatening the peace. The containment
process operated for the first time because the free
nations — working through the United Nations —
contained an obvious Soviet effort to extend its
influence into neighboring Iran.
You will note that I have referred to the "con-
tainment process." The Truman Doctrine of
March 1947 was the first application of the con-
tainment policy in its more definitive form. The
President's decision to aid the Greeks and the
Turks, and congressional support of that decision,
brought the containment policy to fruition as a
total plan of action.
We helped the legitimate Greek Government to
August 4, 1952
169
defeat the Communist-led revolt and thus created
a situation of strength in Greece. Today, a stable
Greece is a full-fledged partner in the North At-
lantic Treaty Organization.
In helping the Turks to modernize and equip
their army, we helped to support a strong deter-
mination to withstand Soviet demands for control
of the vital Dardanelles. We helped to create a
situation of strength which has been vitally im-
portant in keeping Soviet imperialism from driv-
ing to the Persian Gulf and the Mediterranean.
Now it has been said that the containment pol-
icy is a purely negative affair. Words such as
"negative" and "positive" are very misleading
unless we understand clearly what we mean.
Containment is negative only in the sense that
it does not envisage the use of armed force in
aggressive action. It is no more negative than
the doctrine of individual and collective defense
is negative. It has meant and it means that the
free nations of the world will do all in their
power — including armed resistance — in the event
of aggression, to prevent the free areas of the
world from falling under Connnunist tyranny.
In every other sense our present policy, of which
containment is only one element, is positive.
The programs of mutual assistance among the
nations of the free world are anything but nega-
tive. They are not only designed to contain and
deter the aggressor; they are designed to main-
tain and strengthen the stability of free nations
everywhere. They are designed to give us a
strong boost on the road toward universal peace
and humanitarian cooperation. They are de-
signed to supplement, in full, the work of the
United Nations.
Let us look briefly at some of these programs.
Take the Marshall Plan, for example. The end
of World War II saw the nations of Western
Europe in economic chaos. Poverty was ram-
pant. Destruction in most countries was terrible
to behold. Countries which have served as battle-
fields look like battlefields long after the cannon
have stopped roaring. Morale was at a danger-
ous low. Communist parties were at the height
of their power. The possibility that Soviet power
miglit move into much of Western Europe with-
out firing a shot was a grim one.
Objectives of the Marshall Plan
In the face of this situation, Secretary of State
George C. Marshall arose to make a public
address which was to initiate the great plan which
bears his name. In that address, he said :
Our policy is directed not against any country or doc-
trine but against hunger, poverty, desperation, and chaos.
The Marshall Plan was designed to help the
Europeans help themselves get back on their eco-
nomic feet. It was designed to help them develop
internal stability. It was designed to help them
preserve their freedom and their liberties through
170
an economic rebirth capable of coping with sub-
version from within and expansionism from
without.
Self-help and mutual cooperation — these were
the terms upon which the United States offered
the Western Europeans the means of helping
themselves. And the nations and peoples of
Western Europe accomijlished a near miracle in
the process.
The situation in Western Europe today speaks
for itself. And to the extent that stability has
been restored and communism forced into re-
treat— to that extent have we Americans helped
to build a bastion of strength on behalf of our own
security and free men everywhere.
Let us look at another of our positive programs :
The Point Four Program.
Here is a program which first saw the light of
day some 3 years after the containment policy be-
came effective. But it is a logical outgrowth of
the latter.
Point Four is a happy combination of genuine
idealism and a means of strengthening the free
world as a whole. Its purpose is to help the free
peoples of the world, through their own efforts,
to produce more food, more clothing, more mate-
rials for housing, and more mechanical power to
lighten their burdens.
In helping underdeveloped areas to help them-
selves, we are working for a better standard of liv-
ing among the less fortunate peoples. We are
helping to eliminate the discontent of the poverty-
stricken. We are helping to build their fortitude
and strengthen their desire to withstand the impact
of communism.
Are we not — through Point Four — building
situations of strength ? Of course, we are.
Consider, if you will,-T;he various i-egional de-
fense pacts to which we are party. All of these
have been developed in conformity with the U.N.
Charter. They are designed to strengthen the
security of the nations immediately involved.
But they are also designed to help the United
Nations move more efficiently to meet a breach of
the peace should it occur in an area covered by a
regional agreement.
The North Atlantic Treaty Organization
(Nato) is the most far-reaching of these regional
agreements. But our mutual defense arrange-
ments in the Pacific and with our Latin American
neighbors are certainly of equal importance to our
security and the peace of the world.
Through Nato, the free nations have erected
an expanding defense force — a deterrent power
designed to preserve the security of Western
Europe and that of the entire North Atlantic area.
Equally impressive is the fact that we have man-
aged to w^ork out the organization and the tech-
niques for making this defensive mechanism
o^Derate effectively.
This, I might say, was no simple task. Extreme
nationalism has always been a difficult problem
Department of State Bulletin
for those who would build unity. The distrust
of ages is not easily dispelled in months or even
years.
Nato — like the Schuman Plan, the Marshall
Plan, and the European Payments Union — is a
tribute to the masterful statesmanship of the West-
ern Europeans themselves. They have overcome
much of the pride and prejudice of centuries in
tlieir common interest. In doing so, they have
added much to our own well-being and to the cause
of peace as a whole.
Western Europe — ^for all the problems that con-
tinue to plague it today — is indeed a bulwark of
strength for the United States as well as for the
entire free world.
I have tried to give you a brief account of a few
of the positive measures designed to create situa-
tions of strength in which the United States has
had a crucial hand. I have sought to present an
honest, realistic picture of how these measures are
related to our drive for genuine security and our
urge for a decent peace.
These measures certainly do not represent per-
fection in any sense of the word. They have not
solved the great power dilemma of our time. They
have not made one world out of two.
But I believe that they are real milestones of
accomplishment. They have set us well on the
road we are seeking to travel. There are impor-
tant lessons to be learned through what these pro-
grams have accomplished if we are but willing to
learn.
The free peoples are demonstrating that
power — material power — is on their side.
If we can but preserve our unity of spirit as well
as our unity of action, we shall certainly better our
chance of developing the sort of world climate in
which all men can breathe freely.
This may not happen for years. It may not
happen for generations. But it is the challenge of
our time.
An eighteenth century philosopher once said:
Power is not happiness. Security and peace are more
to be desired than a name at which nations tremble.
If we but heed that advice and use our power
wisely and with moderation, I believe that we will
achieve the genuine security and peace we seek.
Questions Involving Prisoners of War in Korea
U.S. URGES COMPLIANCE WITH
CONVENTION ON PRISONERS OF WAR
Press release 5S2 dated July 24
The Department of State on July 23 requested
the Soviet Government to use its good ojfi.ces in
an effort to obtain compliance hy the North Ko-
rean and Chinese Communist regimes with the
terms of the W.^fi Geneva Convention relating to
prisoners of war.
At the same time, the Department requested
the International Com.mittee of the Red Cross
again to approach the North Korean and Chinese
Communist authorities in an effort to bring about
an agreement under which this convention can be
applied by these regimes as it has been consistently
applied by the U.N. Command since the beginning
of Korean hostilities.
The action was taken as a result of the an-
nounced intention of the Chinese Communist
regime to adhere, with reservations, to this and
certain other Geneva conventions. This Chinese
Commurdst decision was conveyed to the Swiss
Government by the Minister of Communist China
in Bern on July IG, 1952. The North Korean
regime declared on July 13, 1950, that it would
abide hy the convention relating to prisoners of
war but has never done so.
The Department of Staters request to the Soviet
Government toas contained in the following note
which was delivered to the Soviet Foreign Office
on July 23 by Ambassador George Kennan:
Early in the course of the Korean hostilities, on
July 13, 1950, the North Korean authorities issued
a declaration stating that they would strictly abide
by the principles of the Geneva Convention in
respect to prisoners of war. On July 16, 1952,
the Chinese Communist authorities issued a decla-
ration of intention to adhere, with certain reser-
vations, to the Geneva Convention of August 12,
1949, for the protection of prisoners of war.
Up to the present time, the Chinese Communist
and North Korean authorities have failed to ob-
serve the provisions of the Geneva Convention.
More specifically, the following provisions which
are of particular importance to the welfare of the
personnel of the United Nations Command who
are prisoners in North Korean and Chinese Com-
munist hands have not been observed : inspection
Augusf 4, J 952
171
of prisoner of war camps by an impartial inter-
national body has not been permitted (Article
126) ; relief parcels have not been delivered (Ar-
ticle 72) ; and prisoner of war camps have been
placed in areas in proximity to military objectives,
exposing the prisoners to danger of attack (Arti-
cle 23).
The United Nations Command has consistently
abided by the provisions of the Geneva Conven-
tion and has in good faith carried out the responsi-
bilities laid upon belligerents by this convention.
It is, therefore, requested that in the interest of
the accomplisliment of tlie humanitarian objectives
of the Geneva Convention, the Government of the
Union of Soviet Socialist Republics use its good
offices with the North Korean and Chinese Com-
munist authorities, for the purpose of requesting
them to observe the provisions of the Geneva
Convention.
The following is the text of the Department's
message delivered hg the U.S. Consul General at
Geneva on July 23 to the International Gominittee
of the Red Cross:
In view of the announced intention of the
Chinese Communist authorities to adhere with
certain reservations to the Geneva Convention of
1949 for the protection of Prisoners of War, and
in view of the statements of July 13, 1950, by the
North Korean authorities that they would strictly
abide by the provisions of the Convention in re-
spect to prisoners of war, it is requested that the
International Committee of the Red Cross again
approach these authorities with a view to bringing
about agreements under which this convention can
be applied by the North Korean and Chinese Com-
munist authorities as it has consistently been ap-
plied by the United Nations Command.
The Government of the United States has re-
quested the Government of the Union of Soviet
Socialist Republics to intercede with the Chinese
Communist and North Korean authorities to bring
about conditions under which this convention can
be applied.
CHINESE COMMUNIST ASSERTION
ON GENEVA CONVENTIONS
Press release 557 dated July 16
Asked whether he regarded the Red Chinese
assertion that they were now prepared to adhere
to the Geneva Conventions on Bacteriological
Warfare and the Treatment of Prisoners of War
as a forward step., Secretary Acheson made the
following extemporaneous reply at his press con-
ference on July 16:
Well. I would hope that it might be a forward
step. All I can do is hope very feebly about it
because they said in the early stages of the war
that they were going to abide by the same treaty
which they now say they are going to adhere to.
But they have not done it. They have not done
any of the things which are called for in that
treaty: The periodic publication of lists, the in-
spection by an international agency, the appoint-
ment of a protecting power, the notification of
prisoners who are sick or wounded, the marking
of prisoner of war camps.
You could go through the list of requirements
of the treaty and you will find that none of them
have been adhered to in practice, although they
said at the outset that they were going to do so.
Now whether this means any more than what
they have done in the past, I don't know.
SHIFT OF SOVIET POLICY ON
PRISONER REPATRIATION
On June £1, Maj. Gen. William K. Harrison., Jr.,
chief V.N. truce negotiator at Panmunjon., made
a statement before assembled truce negotiators
which documented the fact that the Soviet Union
on two occasions during World War 11 had en-
dorsed voluntary repatriation of war prisoners.
Since the issue of prisoner repatriation has been
the chief obstacle to a truce iri Korea, the state-
ment is considered of prime importance as sub-
stantiation of the position consistently taken by
U.N. truce negotiators.
Following is the text of General Harrison's
statement:^
Your side has violently opposed the humani-
tarian principle of no forced repatriation, the
principle which underlies the firm position of the
United Nations Command with respect to the ex-
change of prisoners of war. You have even ex-
pressed, more than once, your contempt for any
nation which would supp'ort the principle of no
forced repatriation. It may therefore come as a
surprise to you if I inform you that this principle
has been utilized by the Union of Soviet Socialist
Republics, a nation for whom your governments
have upon occasion expressed great admiration.
Let me quote you some facts. On January 8, 1943,
the Soviet Army Command addressed an ulti-
matum to the commander of the German troops
surrounded near Stalingrad. To all those Ger-
man officers and soldiers who would cease resist-
ance this ultimatum guaranteed life and security,
and, after the end of the war, their return to
Germany or to any country the prisoners should
desire to go.
This is not the only time that the Union of
Soviet Socialist Republics indicated its implicit
approval of the principle of freedom of choice for
prisoners of war with regard to repatriation at the
' The documentary evidence on which the statement
is based was made available to the Department of State
hy the Free Trade Union Committee of the American
Federation of Labor.
172
Department of State Bulletin
end of hostilities. Upon another occasion the
Soviet Government addressed an ultimatum to
surrendering enemy troops in the Budapest area.
This ultimatum guaranteed, among other things,
(1) To the surrendering German military person-
nel— the return to Germany or to any other coun-
try after the end of the war; and (2) To the
surrendering Hungarian military personnel — re-
lease to their homes after registration and ques-
tioning.
It might be of further interest to you to learn
that in an official publication issued in 1951 by the
Institute of Law of the Union of Socialist Soviet
Kepublics' Academy of Sciences, the Soviet ulti-
matum addressed to the surrendering enemy troops
in the Budapest area was described as an act ex-
pressing the highest act of humanitarianism.
Yet your side stubbornly opposes the principle
of voluntary repatriation as incompatiole with
humanitarian objectives or with international
rules or customs of warfare. You have cast aside
all pretense of humanity by demanding that the
United Nations Command return to your side all
the prisoners of war in its custody, driving them
if necessary at the point of a bayonet. You even
have the impertinence to document your position
by referring to the Geneva Convention. What
could be more ludicrous than your attempt to
found your inhuman proposition upon an inter-
national agreement whose very purpose is to de-
fend and protect the unfortunate victims of war?
The United Nations Command firmly adheres to
the principles of humanity and the preservation
of the rights of the individual. We will never
barter the ideals which motivated us to oppose
you on the field of battle. If you harbor the slight-
est desire for peace, you must demonstrate this
sincerity by good faith which will determine the
success of these negotiations. The United Nations
Command wants peace. The question remains, do
you?
The Economic Basis of Our Foreign Policy
ty Willard L. TTwrp
Assistant Secretary for Economic Affairs ^
You and I are continually being restricted un-
happily by the limitations of our personal eco-
nomic resources. We can never do or have all the
things we want, and we are always being forced
to make choices as to how to use such resources
as we do have. Somehow we, with the aid or
interference of other members of our families,
must reach a decision as to what to have and what
to do without, among such irresistible attractions
as a trip to New York, a season's ticket to the
symphony, an enlarged wardrobe, a new television
set, or a larger contribution to the Community
Chest. How far we can go in reaching our ob-
jectives, be they culture, or pleasure, or philan-
thropy, or old-age security is determined in large
part by our economic resources and capabilities.
Metaphors are likely to be dangerous and must
never be carried too far. Nevertheless, in this
' Address made before the Fourth Annual Conference
on American Foreign Policy at Colgate University, Ham-
ilton, N. Y., on July 28 and released to the press (No. 580)
on the same date.
case it can be said that nations are faced with the
same problems as individuals. They too can
never have or do all the things they want and are
continually being forced to make choices as to how
to use their limited resources. How much support
should be given to housing or education or na-
tional defense or economic development or aid to
veterans or public health — these are the sort of
choices which nations must make. Like the case
of the individual, the problem is not merely how
best to use existing resources, but also how to find
ways to increase them if possible. These two are
interrelated. As income increases, the distribu-
tion of that income may change — percentage-wise
more may go for education, for example, although
no other activity is cut in actual amount.
When you and I come to make our choices, it
is seldom that we do so without reference to other
individuals. In today's world, the decisions made
by nations likewise must take foreign policy re-
lationships into account. We only need to think
of the extent to which American resources since
Augusf 4, 1952
173
1914 have been utilized in support of our foreign
policy to see its impoilance in our national allo-
cation of resources.
Our international objectives are not all eco-
nomic, by any means. In fact, our greatest ex-
penditures since 1914 have been in lighting the
thrust of aggression. Although our objectives
may be stated in such terms as increased capability
for defense, political stability, and international
good will, the pursuit of these noneconomic ends
usually leads fairly directly to the economic field,
and depends in large part on the utilization and
expansion of economic capacity by ourselves
and by the various nations, on economic health
and economic growth. We cannot escape from the
basic fact that, when we as a Nation consider
the uses to which our own resources shall be put,
the support of our foreign policy becomes one
of the essential claimants.
Necessity for European Recovery
Let us put this proposition in more specific
terms. After the war it was apparent that that
great economic workshop — Europe — was in bad
shape. Four years ago we agreed with 18 Euro-
pean countries to give them assistance so that
they might increase production, bring stability
to their internal financial situations, expand their
trade, and develop their foreign-earning capacity
so that they could pay for their foreign require-
ments. We provided them with assistance under
the Economic Recovery Program and their prog-
ress was extraordinary.
I think that there can be little doubt but that the
recovery program would have achieved its purpose
in the 4-year period had not new storm clouds
darkened the sky. The failure of the Soviet
Union to disarm after the war and the great
emphasis placed on building further military
strength, the seizure of Czechoslovakia, the addi-
tion of the atomic bomb to the Soviet arsenal, and
finally the unconscionable attack on South Korea
made it clear that the Politburo constituted an
imminent danger to the free world. The North
Atlantic Treaty, originating as a political instru-
ment, is now the basis for an international or-
ganization aimed at strengthening the defenses
of all of us.
For the recovering economies of Europe the
burden of rearmament could not be easily under-
taken, and once again we agreed to assist them in
the new undertaking of defense. Today by far
the largest part of our foreign aid is in the "form
of completed military equipment for the increas-
ing number of their divisions. Yet our contri-
bution covers only a fraction of the cost of de-
fense, the remainder of which our allies must
raise out of their own resources. Not only has
the strain on their governmental budgets increased
greatly, but the rise in raw material prices and
the diversion of productive capacity from export
to armament have undercut their strenuous ef-
forts to earn their own way. The sterling area
suffered a tremendous loss in reserves, and its
members as well as many other countries have
had to cut back their foreign purchases drasti-
cally. Nations like individuals cannot long carry
on beyond their resources. The North Atlantic
Treaty Organization (Nato) has had to try to
match up defense requirements and economic
capabilities in such a way as to share the burden
among the cooperating countries as equitably as
possible. American aid has been an important
element in making the Nato defense plan possible.
Since the end of the war the United States has
continually given substantial assistance to other j
countries in one form or another in support of i
the objectives of our foreign policy. However, '
this is not a sound basis on which foreign rela-
tionships should be maintained indefinitely.
There are times when individuals must be given
aid, but it is standard social and psychological
practice that the assistance should be directed
toward making the individual independent once
more. Similarly, the development of economic
independence for all countries must be our inter-
national goal.
Looking ahead, it is evident that in strictly
economic terms, there are only two solutions to
this problem if defense assistance and economic
aid to meet balance-of-payments difficulties are
ultimately to disappear. The first is for us to
reduce our exports or, to say it the other way
around, for them to reduce their imports. This
would have a direct impact upon our own econ-
omy, of course. Last year, we sent abroad one-
half of our wheat, one-third of our cotton,
ons-fourth of our tobacco, and large quantities of
otlier items ranging all the way from motion pic-
tures to machine tools and medicines. In turn,
failure to obtain these goods would greatly con-
strain the economies of other countries. This is
the course of contraction. It is a possible course
in economic terms, but it would not only reduce
economic activity at home and abroad, it would
be destructive of many other objectives in our
foreign policy.
Further Tariff Reductions Needed
The other alternative is the only one which can
be regarded as forward-looking and constructive,
namely, for us to encourage other countries to send
more goods to us so that they can then pay their
own way. They are already under serious handi-
caps in trying to sell in this country, perhaps the
greatest of which is the efficiency and competitive
strength of our own producers. In addition, there
are transportation costs and tariffs to pay. Our
complicated import regulations themselves are a
barrier. And successful distribution in the United
States is a matter of specialized skill. Frequently,
foreign enterprises cannot produce in quantities
174
Deparfment of S/afe Bulletin
necessary to break into a market of the size of ours.
Nevertheless, this has been their effort and real
progress has been made. Wlien measured in
quantity terms, imports are more than 40 percent
above the prewar level, though much of this in-
crease is in noncompetitive items.
In this area, I believe that our over-all foreign
policy, directed at economic health and economic
independence of the nations of the free world,
requires certain supporting and specific economic
policies. We must lower the barriers to our mar-
ket. This means further tariff reductions. It
means customs simplification. It means admitting
a greater degree of foreign competition. Wlien
compared with our total national product, the
amount involved is small. If we spent 2 percent
more of our national income for foreign goods
and services, it would mean not only an increase
in our exports but much greater assurance of our
receiving payment on our foreign investments.
This is the path of expansion, and expansion
rather than contraction has always been the
American way.
I have been talking primarily about bringing
our international affairs into balance and some of
the choices which we must make in that field.
Now I want to talk really about expansion. In
many parts of the world this is the No. 1 economic
necessity. In South America, in Asia, in Africa,
peoples in many countries are demanding an es-
cape from their abject poverty. In some cases
they have thought that their plight was the result
of foreign oppression and have demanded and
achieved political independence. But the problem
is still there, and the new and inexperienced gov-
ernments are trying desperately to achieve rapid
economic and social development. It is hard for
many of us to visualize whole countries where
starvation, disease, and illiteracy are ever present.
These countries are breaking out of the traditional
social and economic structures by which they have
been bound for centuries. The future pattern is
yet to be determined. One thing is certain, that
there will be great changes.
Assistance to Underdeveloped Areas
Our foreign policy cannot disregard this situa-
tion. It has great political significance, for these
countries exceed the industrialized nations in num-
ber, population, area, and natural resources. It
has great economic significance, for they can pro-
vide markets for American goods and are essential
sources for raw materials, about which the Paley
Commission has so recently reported so great a
future need.^ A positive foreign policy toward
economic development has roots in our own past.
The development of our own country was greatly
facilitated by foreign capital and skills, and we,
in turn, have been helping other countries for
' For a summary of the International Materials Policy
Commission report, see Bulletin of July 14, 1952, p. 54.
many decades through many private philan-
thropic and religious organizations.
Our foreign policy therefore directs us to join
in the great effort to accelerate the processes of
economic development. To be surCj we can play
only a supporting role. The countries themselves
must be the chief actors. But we can furnish tech-
nical assistance, and we can help them to meet
some of their requirements for capital. Much of
this can be done through private channels. In
fact, all that can should be done through private
channels. But it remains the responsibility of
the Government to see that we as a Nation give
our strong support to the realization of the aspira-
tions of the peoples in the underdeveloped areas.
There are those who seem to feel that the eco-
nomic support required by our present foreign
policy is threatening the economic health of our
own country. To be sure, it is an immediate and
substantial economic cost. Nevertheless, the fact
remains that despite the assistance which the
United States has given in the postwar period, our
economy has not only been strong but has become
even stronger. We have seen new capital invest-
ment and personal savings at unprecedented
peacetime levels. We have seen a further rise in
our standard of living. This has been the record
even during the period of our accelerated arma-
ment expansion, a process which has put a far
greater burden on our national budget and our
productive capacity than the goods which we have
shipped abroad in the form of assistance.
But the real question is one of alternatives. Is
it of value to use a small part of our resources in
support of our foreign policy? If we cut out all
defense and economic assistance, we could reduce
current tax levels by something like 10 percent.
If we continued the production of military equip-
ment now destined for other countries and put it
into our own military depots, the tax benefit would
be greatly reduced but our own rearmament would
be accelerated. On the other side, such an action
would not only cripple the military programs of
the Nato, but its economic effects would be severe,
no small part of which would fall upon the sectors
in our own economy which produce for export.
The assistance which we give to rearmament and
to economic health and economic growth oj^erates
under the multiplier principle. For example, cot-
ton which we sent to Germany in 1949 put to work
textile mills and textile workers who would other-
wise have been idle. The result was a quantity of
textile products which far exceeded the value of
the original raw material. Without American
coal during the postwar years, many European
factories would have been completely idle. The
influence of our assistance in increasing the effec-
tive use of resources in other countries is usually
much more important than the contribution of its
own direct value. The effect therefore is not one
of simple addition but rather of multiplication.
If this process of extension is true in the economic
August 4, 7952
175
field itself, it is even more true of the contribution
made indirectly to the noneconomic elements in
our foreign policy. Take away the economic
underpinning, and I hate to think of the diffi-
culties which would be created in our political
and security relationships.
I have been talking about our foreign policy
and its economic underpinnings in extremely
broad terms. However, as one who has been ac-
tively engaged in the actual operation of foreign
policy for more than 7 years, I must point out
that even though general policy lines may seem to
be clear, the day-to-day problems involve specific
choices which frequently involve conflicts among
various foreign policy objectives, domestic inter-
ests, and local pressures. Many different consid-
erations— political, military, legal, economic —
have been involved in determining our attitude in
recent months toward Iran.
The foreign exchange decree of last January in
Brazil raised a host of problems beyond its own
narrow area. The problem of the purchase of tin
has been more than a simple question of price. In
the midst of specific and so-called special situa-
tions, it is easy to become short-sighted, although
perspective is clearly a fundamental requirement.
As one looks at these many specific problems, it
becomes apparent that, in the process of trying
to build economic strength in the free world and
in utilizing resources for common purposes, there
is more involved than merely a series of immediate
economic calculations. International relations are
not built merely upon actions but also upon as-
surances. Sometimes these may take formal form,
such as the common-defense-against-attack assur-
ance in the North Atlantic Treaty. Sometimes, as
in the case of our policy to lower trade barriers,
they rest upon the multiple effect of declarations
and actions such as the 18-year-old reciprocal
trade agreement program and the Eca efforts to
encourage Europeans to seek to sell more in the
U.S. market.
You and I must make certain assumptions in
making our choices today — perhaps that our
source of income will not suddenly disappear, that
we will or will not have any more children, that
prices will or will not rise any further, that there
will or will not be greater opportunities for pur-
chasing in the future than today. We watch with
eagerness for signs to indicate how our assump-
tions, based on the past, should be modified with
respect to the future.
Dangers of Restrictive Trade Policies
Again, this holds true for nations. That is why
any deviation becomes so important and so dan-
gerous. The great concern in other countries over
the action of the Congress in restricting imports
of cheese far exceeded the importance of the trade
in cheese itself. The question to them was — "Is
this a sign of rising protectionism in the United
States?" To be sure, virtually every Congress-
man who supported the restrictive action took the
lire that he ''believed in liberal trade policies but,
in this specific case etc., etc." However, it planted
a doubt in the mind of the European businessman.
"If I succeed in selling in the American market,
may I not find new barriers suddenly raised
against my product?" A small number of such
actions, by weakening the important element of
assurance as to American commercial policy, could
more than offset all the manifold consistent actions
directed at lowering trade barriers of the previous
6 years.
Unfortunately, there are other illustrations of
this same point. Our programs of assistance have
not always given to other countries the kind of
assurance that they should. In 1947 the 80th Con-
gress refused even to consider the Administration's
proposal for an assistance program to help South
Korea make itself economically self-supporting,
and in January 1950, the Congress delayed and
then voted down a new proposal by the Adminis-
tration for Korean economic aid.
Even though we had already given South Korea
a substantial amount of assistance, and although
Congress finally reversed its position, I have no
doubt but that the actions of the 80th and 81st
Congresses with respect to South Korea in this
critical period contributed greatly to the notion
that we had no real interest or concern for that
unfortunate country.
One more illustration lies in the field of East-
West trade. American policy now for several
years has restricted the export to the [J.S.S.R. and
her satellites of any products which might con-
tribute to the Soviet bloc military potential. Most
other countries in the free world have followed a
similar general policy, but a very small amount of
trade in quasi-strategic goods still persists, either
because of contracts made some years ago or be-
cause the sale of a limited amount of some com-
modity would bring items in exchange which were
even more essential to the country involved, such
as coal, lumber, or fertilizer.
American legislation known as the Battle Act
declares that if there is a shipment of strategic
materials to the Soviet bloc by some other country,
American aid to that country must be terminated,
unless the President determines and reports to
Congress that an exception should be granted in
the interest of our national security. But the dis-
couraging fact is that, despite the existence of this
legislation and the great progress which has been
made in achieving its purpose, many Congress-
men at the last session seemed to favor the adop-
tion of the Kem Amendment, which would remove
all flexibility from this area and require automatic
termination of aid, regardless of the circumstances.
The amendment failed on procedural grounds.
But had it passed, it would have denied all our
efforts to make the defense of the free world a joint
and cooperative effort, and it would have given
this one objective, obviously very limited in its
176
Departmenf of State Bulletin
possible effects, absolute priority over the much
more basic objectives of our foreign policy to build
a common defense and to develop economic
strength. In fact, such dictation to other countries
could easily pull down our whole foreign policy
position. Here again, an action of limited eco-
nomic significance might have had devastating
effects on far broader political and security
objectives.
We cannot avoid having a foreign policy. It
may be one of constructive action or one of dead-
handed passivity. Whatever it may be, it is tre-
mendously important to each of us, and to the free
world. It will be a major element in determining
the future pattern of the world in which we and
our children will live. I cannot believe that we as
a Nation will stand aside. The world is too small
for that.
The effectiveness of our foreign policy depends
in large part upon how we utilize our vast economic
resources. And, in turn, the effectiveness of the
economic instruments will depend not only upon
the broad lines of our policy but upon the con-
sistency with which we follow our objectives in
each specific situation. We will jrain nothing — in
fact we will seriously damage our position — by
statements of high objectives and professions of
international responsibility, if in the process of
carrying them out we permit them to be undercut
by partisan groups or narrow economic interests.
Thfi danger that we look at each problem solely
within its own narrow limits is particularly pres-
ent in the economic field. Rather, we must Keep
our broad purposes always clearly in our minds.
We must present the world with such a consistent
performance in the economic field day after day
and year after year that the economic underpin-
nings will provide that solid strength required of
any lasting foundation. On it we can build a for-
eign policy of constructive action.
Peaceful Unification of Germany
Is U.S. Objective
Address hy John J. McCloy ^
It is easy for those of us who live in freedom to
speak resounding phrases to those who are not
free. In tlie West it is simple for us to make
promises, but in the East it is bitter for you when
hopes are disappointed. For that reason I shall
try to speak with restraint today.
Very soon, after serving 3 years as U.S. High
Commissioner for Germany, I shall return home.
Shortly thereafter my successor will arrive in
Germany. It would be unthinkable for me, how-
ever, to leave Germany without talking over Rias
to you. What I shall say to you is what all
'Made over Radio Station Rias In Berlin on July 11
and released to tlie press by tbe Office of the High Com-
missioner for Germany on the same date.
August 4, 7952
Americans would say if they could speak for
themselves today.
First of all, millions of people in the free world
feel gratitude and admiration for you — men,
women, and young people — in recognition of the
steadfast endurance you are displaying against
Communist dictatorship. We know the hardships
this entails and the limitations it produces. Your
determination to gain freedom gives us determina-
tion to protect it where it exists and to try to
extend it where it is suppressed.
The free world knows that most of you are
not in a position to put up militant resistance.
We know, however, that among millions in the
East sector and in the East zone there is a deep
religious and spiritual resistance and that you will
not give in to the pressures and threats against
you. Since in your hearts and minds you will
never accept dictatorship and its concepts, you
are already on the road to freedom. The day
will come when you will be united in peace and
freedom with the rest of Germany and the rest
of Europe.
The Force of History
There are deep reasons for this belief.
It is the logic of modern history that the peo-
ples living in the area of the East zone and of the
Federal Republic belong together. Just as Hit-
ler's brutal attack on the East flaunted the lessons
of history and led to the slavery in which you now
live, so does history prove that other peoples can-
not for long rule over Germans in areas where the
Germans should rightly rule themselves.
The force of history "is such that right must and
will replace wrong, and it is right for Germany
to be united in freedom.
There is a second reason why the present en-
slavement of the East zone cannot last. In our
modern world, dictatorship over foreign peoples
has had only temporary success. It is never last-
ing—no more than Hitler's was. Soviet dictator-
ship oyer non-Russians is also bound to end.
There is no reason why it should not end peace-
lully. It IS unnatural and impossible for the
Soviet rulers long to continue their rule over the
Germans, the Poles, the Czechs, and many other
peoples who seek freedom.
There is another reason why freedom in peace
will come. That is the solid growth of the Euro-
pean-Atlantic community.
During the past year, free peoples of Europe
and the world have been coming together to pool
their resources and manpower, to unite their pur-
poses and their defenses so that the Communist
aggressors will hesitate to move against them. By
its nature and intent this community is nonaggres-
sive, and no nonaggressor need ever fear it.
The European-Atlantic community, however,
is more than a defense community; it is and will
become increasingly a strong economic, political,
177
and psj'chological center of attraction. It will
exert peaceful influence everywhere. Inevitably
this peaceful community will attract all peoples
who seek freedom.
The day will come when the Kremlin will be
unable to withstand this natural, powerful but
peaceful pressure. It will some day recognize
that in place of sham peace campaigns, instead
of disruptive moves to weaken the free peoples, an
honest peace with the free world will better serve
Russia's interests.
An honest peace must have certain conditions.
One of them is the unification in peace and free-
dom of Germany. It is a firm basis of American
policy that the German people should be united,
and that we should do everything possible to aid
that unification. We have set forth that pledge
in the contractual agreements, and we mean it. We
mean it because the peaceful unification of Ger-
many in freedom will help bolster peace through-
out the world.
In the coming weeks there may be more ex-
changes of notes or talk of preliminary investiga-
tion of election conditions in the East zone. We
shall take every honest step to achieve free elec-
tions and unification. We shall not, however,
allow ourselves to be trapped by Soviet threats
and tactics. We shall not falter in our firm ad-
vance toward the erection of a strong, united
European community. We know that the people
of the East zone desire and support this policy.
Berlin— The Symbol of German Unity
There is another Allied policy which, I am cer-
tain, has the ardent backing of the people of the
East zone. And that is unflinching, firm support
for West Berlin.
The American people are giving important aid
to the economy of Berlin to counteract Soviet
strangulation efforts against the brave people of
that city. You know of the guaranties which Brit-
ain, France, and the United States have given to
Berlin. They were only recently repeated by Sec-
retary Acheson on his recent visit to Berlin.^ The
reason for the association of the West with the
fate of Berlin is clear. Berliners have made their
city a symbol of freedom for the entire world and
Berlin is the symbol of German unity.
Freedom and unification of the people of Ger-
many will not be a threat to the peoples in the
satellite nations now living under Soviet domi-
nation. Freedom for those peoples — the Poles, the
Czechs, the Hungarians, the Rumanians, and
others — will not be a threat to Germany. The
blood- and tear-stained history of Eastern Europe
in the last century is a warning to us all. I be-
lieve that the German people and the Slavic peo-
' For text of the Secretary's remarks on this occasion,
see Bulletin of July 7, 1952, p. 3.
pies must live together in respect and friendship ;
that they must never again allow hatred to guide
their affairs. There is room enough in Central
and in Eastern Europe for all; there is only one
way for all peoples, and that is tolerance and
peace among them.
My final words are directed to the youth of the
East zone. The young men and women, the boys
and girls of the East zone are certain to see the
day of German unification in freedom and peace.
The fact that you will be free citizens of a free
Europe imposes obligations on you.
We know that a majority of the young people
of the East zone, des])ite the blue shirt that many
of you must wear, seeks the free way of life. You
have a special responsibility not to allow your-
selves to be misused against the best interests of a
united Germany and a United Europe. It is not
the shirt you wear but the things you do that is
important. I repeat, do not allow yourselves to be
misused against your parents, your neighbors, and
against your comrades in tlie free world.
The day is coming when all of us will live to-
gether in greater prosperity, and in peace and
freedom.
Resignation of John J. McCloy
Press release 561 dated July 18
The President announced on July 18 that John
J. McCloy, U.S. High Commissioner for Germany,
has asked to be relieved of his responsibilities as
High Commissioner for personal reasons. Mr.
McCloy is expected in Washington for consulta-
tion around July 28, 1952. His resignation is to
become effective July 31, 1952.
The President, in regretfully accepting Mr. Mc-
Cloy's decision, expressed his great personal ap-
preciation for the outstanding contribution Mr.
McCloy has made in bringing the Federal Repub-
lic of Germany into the family of free nations and
in the development of friendly relations between
tlie United States and the Federal Republic of
Germany.^
The President appointed Ambassador Walter
J. Donnelly, who is presently serving as U.S.
High Commissioner for Austria, as the new U.S.
High Commissioner for Germany. Mr. Donnelly
is expected to assume his new duties around Au-
gust 1, 1952.
The President also appointed as American Am-
bassador to Austria and U.S. High Commissioner
for Austria, Llewellyn E. Thompson, Jr. Mr.
Thompson has been assigned as counselor of Em-
bassy at Rome with the rank of Minister since
June 1950.
' For texts of Mr. McCloy's letter of resignation and
the President's reply, see White House press release of
July 18.
178
Department of Stale Bulletin
U.S.-German Educational
Exchange Agreement
Press release 567 dated July 18
The Federal Republic of Germany on July 18
signed an agreement with the United States put-
ting into operation the program of educational
exchanges authorized by the Fulbright Act. The
signing took place at Bonn with Chancellor
Konrad Adenauer representing the Federal Re-
public of Germany, and U.S. High Commissioner
John J. McCloy representing the Government of
the United States.
The agreement provides for an annual expendi-
ture not to exceed the equivalent of $1,000,000 in
deutschemarks for a period of 5 years to finance
exchanges between that country and the United
States for purposes of study, research, or teach-
ing. The program will be financed from certain
funds made available by the U.S. Government
resulting from the sale of surplus property to the
Federal Republic of Germany.
All recipients of awards under this program are
selected by the Board of Foreign Scholarships,
appointed by the President of the United States.
Under the terms of the agreement, a U.S. Educa-
tional Commission in the Federal Republic of
Germany will be established to assist in the admin-
istration of the progi'am. The Board of Directors
of the Commission will consist of 10 members, 5
of whom are to be Germans having their perma-
nent residence in the Federal Republic of Germany
and/or the Western section of Berlin, and 5 of
whom are to be citizens of the United States.
After the members of the Commission have been
appointed and a program foi'mulated, information
about specific opportunities will be made public.
Termination of U.S.-Turkish
Trade Agreement
Press release 566 dated July 18
The reciprocal trade agreement concluded be-
tween the United States and Turkey in 1939 will
be tei'minated by mutual consent as of August 4,
1952. This action was taken in view of the fact
that Turkey has become a contracting party to the
General Agi'eement on Tariffs and Trade to which
the Uniterl States is also a party. Since October
17, 1951, when Turkey's accession became effective,
the terms of the General Agreement have gov-
erned trade relations between that country and the
United States. Pursuant to U.S. policy of super-
seding existing bilateral agreements as countries
parties thereto become contracting parties to the
General Agreement on Tariffs and Trade, steps
for terminating the bilateral agreement were
taken while Turkey was negotiating for accession
to the General Agreement.
The termination of the 1939 agreement wiU
cause no changes in tariff rates.
Termination of the 1939 agreement was effected
by an exchange of notes between the two Govern-
ments at Ankara. The notes were signed by both
Governments on July 5. The text of the notes
will be published at a later date.
A proclamation was signed by the President on
July 18 terminating on August 4, 1952, two Presi-
dential proclamations, dated April 5, 1939, and
November 30, 1939, which proclaimed the United
States-Turkish trade agreement.
The text of the proclamation follows :
BY THE PRESIDENT OP THE UNITED STATES
OF AMERICA
A PROCLAMATION'
1. Whereas, under the authority vested in him by
section 350 (a) of the Tariff Act of 1930, as amended by
the Act of June 12, 19.34, entitled "An Act to amend the
Tariff Act of 1930" (48 Stat. 943), which amending
Act was extended by Joint Resolution of Congress, ap-
proved March 1, 1937 (50 Stat. 24), the President of the
United States entered into a trade jigreement with the
President of the Turkish Republic on April 1, 1939 (54
Stat. 1871), and proclaimed such trade agreement by
proclamations of April 5, 1930 (53 Stat. 1870) and Novem-
ber 30, 1939 (54 Stat. 1890) ;
2. Whereas the Government of the United States of
America and the Government of the Republic of Turkey
have agreed to terminate the said trade agreement effec-
tive August 4, 1952 ;
3. Whereas the said section 350 (a) of the Tariff Act
of 1930 authorizes the President to terminate in whole or
in part any proclamation carrying out a trade agreement
entered into under such section ;
Now, THEREFORE, I, Harry S. Truman, President of
the United States of America, acting under and by virtue
of the authority vested in me by the constitution and
the statutes, including the said section 350 (a) of the
Tariff Act of 1930, as amended, do hereby proclaim that
the said proclamations dated April 5, 1939 and November
30, 1939, shall terminate August 4, 1952.
In witness whereof, I have hereunto set my hand and
caused the Seal of the United States of America to be
affixed.
Done at the City of Washington this 18th day of July,
1952 in the year of our Lord nineteen hundred
[seal] and fifty-two, and of the Independence of the
United States of America the one hundred and
seventy-seventh.
By the President :
Dean Acheson
Secretary of State
' No. 2982 (17 Fed. Reg. 6605).
August 4, 1952
179
U.S.-S. African Tax Conventions
and Protocols Enter Into Force
Press release 555 dated July 15
On July 15, 1952, the Secretary of State and the
Ambassador of the Union of South Africa at
Washington met and exchanged the instruments
of ratification of the two Governments with re-
spect to certain tax conventions and protocols be-
tween the United States and the Union of South
Africa, as follows: (a) the convention of Decem-
ber 13, 1946, for the avoidance of double taxation
with respect to taxes on income and the protocol of
July 14, 1950, supplementary thereto; (6^ the con-
vention of April 10, 1947, for the avoidance of
double taxation with respect to taxes on the estates
of deceased persons and the protocol of July 14,
1950, supplementary thereto.
Upon the exchange of the instruments of ratifi-
cation the two conventions and the related supple-
mentary protocols entered into force in accordance
with their respective terms.
The Senate, on September 17, 1951, gave its
advice and consent to the ratification of the con-
ventions and protocols. Senate approval of the
income-tax convention and protocol was made sub-
ject to a reservation affecting article II (3) of the
protocol and an understanding affecting article
XV of the convention as amended by the protocol.
Senate approval of the estate-tax convention and
protocol was made subject to an understanding
affecting article VIII of the convention as
amended by the protocol. The reservation and the
understandings were accepted by the Union of
South Africa. On December 14, 1951, the Presi-
dent ratified both conventions and their related
protocols. A proclamation with respect to the
entry into force of each of the conventions and its
related protocol will be issued by the President.
Agreement With Canada
for Allocation of TV Channels
Press release 563 dated July 18
The Governments of the United States and
Canada have recently concluded an agreement
covering the allocation of television channels
along the U.S.-Canadian border.
The agreement concerns itself with the assign-
ment and utilization of 82 television channels be-
tween 54 and 890 megacycles within an area of 250
miles on either side of the border between the
United States and Canada and establishes certain
technical requirements relating to the position,
power, and equipment of the television channels
falling within the 250 mile radius. Provision is
made for changes in frequency assignments and
continuous cooperation between the appropriate
180^
agencies of the two Governments to minimize in-
terference and obtain the maximum efficiency in
the use of television channels.
The agreement reflects the results of several
conferences between officials of the Federal Com-
munications Commission of the United States and
officials of the Department of Transport of Can-
ada. Agreement was effected by an exchange of
notes between Ambassador Stanley Woodward
of the Embassy at Ottawa and the Secretary of
State for External Affairs of Canada. The U.S.
note was dated April 23, 1952, and the Canadian
note was dated June 23, 1952.
U.S.-Venezuelan Trade
Agreement Negotiations
Press release 549 dated July 14
Delegations representing the Governments of
the United States of Venezuela and of the United
States of America have been meeting at Caracas
since April 18 for the purpose of negotiating a
revision of the reciprocal trade agreement which
has been in effect between the two countries since
1939. Notwithstanding the careful preparation
prior to the negotiations, their very nature, in-
volving many items of trade, has required lengthy
discussion and detailed analysis by both sides.
Agreement has been reached on much of the
matter under discussion, and both Govern-
ments are hopeful that the negotiations may be
successfully concluded in due course.
It had been agreed that the initial phase of the
negotiations would be conducted at Caracas but
that additional negotiations would take place at
Washington, after which signature of the agree-
ment would take place at Caracas.
In accordance with the plan previously agreed
upon, the two Governments have decided that the
time is now appropriate to carry out the next phase
of the negotiations at Washington.
Revocation of Suspension
of Duties on Lead and Zinc
A PROCLAMATION'
Where^as the import duties imposed under paragraphs
3D1 and 302 of the Tariff Act of 1930, as amended, on
lead-bearing ores, flue dust, and mattes of all kinils, lead
bullion or base bullion, lead in pigs and bars, lead dross,
reclaimed lead, scrap lead, antimonial lead, and antimo-
nial scrap lead have been suspended by Public Law 257,
82d Congress, approved February 11, 1952, with respect
to imports entered, or withdrawn from warehouse, for
consumption during the period beginning February 12,
19.52, anil ending with the close of March 31, 1953, or the
'No. 2979 (17 Fed. Reg. 5785).
Department of Slate Bulletin
termination of the national emergency proclaimed by me
on December 16, 1950, whichever is earlier ;
Whekeas the said Public Law 257 contains the follow-
ing proviso :
Provided, That when, for any one calendar month during
such period [of suspended duties], the average market
price of common lead for that month, in standard shapes
and sizes, delivered at New York, has been below 18 cents
per pound, the Tariff Commission, within fifteen days
after the conclusion of such calendar month, shall so ad-
vise the President, and the President shall, by proclama-
tion, not later than twenty days after he has been so
advised by the Tariff Commission, revoke such suspension
of the duties imposed under paragraphs 391 and 392 of
the Tariff Act of 1930, such revocation to be elfective with
respect to articles entered for consumption or withdrawn
from warehouse for consumption after the date of such
proclamation ;
Whereas, on the fifth day of June, 1952, the Tariff
Commission reported to me that it has found that the
average market price of common lead for the month of
May 1952, in standard shapes and sizes, delivered at
New York, has been below 18 cents per pound :
Now, THERETOEE, I, Haret S. Teuman, President of the
United States of America, pursuant to the said proviso of
Public Law 257, 82d Congress, do hereby proclaim the
revocation of the suspension of duties provided for in the
said Public Law 257, such revocation to be effective with
respect to articles entered for consumption or withdrawn
from warehouse for consumption after the date of this
proclamation.
In witness wheeewf, I have hereunto set my hand and
caused the seal of the United States of America to be
affixed.
Done at the City of Washington this 25th day of June
in the year of our Lord nineteen hundred and
[SEAL] fifty-two, and of the Independence of the United
States of America the one hundred and seventy-
sixth.
By the President :
David Bbuce,
Acting Secretary of Btate.
A PROCLAMATION'
Whereas the import duties on zinc-bearing ores imposed
under paragraph 393 of Title I of the Tariff Act of 1930,
as amended, and on zinc in blocks, pigs, and slabs im-
posed under paragraph 394 of such title, have been sus-
pended by Public Law 258, 82d Congress, approved Feb-
ruary 11, 1952 (66 Stat. 7), with respect to imports
entered, or withdrawn from warehouses, for consumption
during the period beginning February 12, 1952, and ending
with the close of March 31, 1953, or the termination of the
national emergency proclaimed by me on December 16,
1950, whichever is earlier ;
Whereas the said Public Law 258 contains the follow-
ing proviso :
Provided, That when, for any one calendar month during
such period, the average market price of slab zinc ( Prime
Western, f. o. b. East St. Louis) for that month has been
below 18 cents per pound, the Tariff Commission, within
fifteen (}nY^ after the conclusion of such calendar month,
shall so advise the President, and the President shall,
by proclamation, not later than twenty days after he has
been so advised by the Tariff Commission, revoke the
suspension of duties made by this Act, such revocation to
be effective with resiiect to articles entered for consump-
tion or withdrawn from warehouse for consumption after
the date of such proclamation ;
And Whereas on the third day of July 1952 the Tariff
Commission reported to me that it has found that the
average market price of slab zinc (Prime Western, f. o. b.
East St. Louis) for the month of June 1952 was below 18
cents per pound :
Now THEREFORE, I, Harrt S. Tbuman, President of the
United States of America, pursuant to the said proviso of
Public Law 258, 82d Congress, do hereby proclaim the
revocation of tlie suspension of duties provided for in
the said Public Law 258, such revocation to be effective
with respect to^ articles entered for consumption or with-
drawn from warehouse for consumption after the date of
this proclamation.
In WITNESS WHEREOF, I have hereunto set my hand and
caused the Seal of tlie United States of America to be
aflixed.
Done at the City of Washington this 23rd day of July
in the year of our Lord nineteen hundred and
[seal] fifty-two, and of the Independence of the United
States of America the one hunrlrfl nnd seventy-
seventh.
= No. 29.S3 (17 Fed. Reg. 6835).
August 4, 1952
216831—52 3
By the President :
Dean Acheson,
Secretary of State.
Proposal To Move Israel
Foreign Office to Jerusalem
Press release 576 dated July 22.
The following is the text of an aide-memoire
concerning the proposed move of the Israel For-
eign Ministry from, Tel Aviv to Jerusalem which
was delivered by the Emhassy at Tel Aviv to the
Israel Government on July 9, 19o'2:
The Government of the United States has noted
with concern the decision and announcement of
the Israel Government on May 4, 1952, to move
the Foreign Office to Jerusalem.
The Government of the United States has ad-
hered and continues to adhere to the policy that
there should be a special international regime for
Jerusalem which will not only provide protection
for the holy places but which will be acceptable
to Israel and Jordan as well as the world com-
munity.
Since the question of Jerusalem is still of inter-
national importance, the U.S. Government be-
lieves that the United Nations should have an
opportunity to reconsider the matter with a view to
devising a status for Jerusalem wMch will satis-
181
factorily preserve the interests of the world com-
munity and the states directly concerned. Con-
sequently, the U.S. Government would not view
favorably the transfer of the Foreign Office of
Israel to Jerusalem.
The Government of the United States also
wishes to convey that in view of its attitude on the
Jerusalem question, it has no present intention of
transferring the Ambassador of the United States
and his staff to Jerusalem.
U.S. Private Agencies
Supply Aid to India
Press release 574 dated July 22
The Advisory Committee on Voluntary Foreign
Aid of the Department of State reported on June
22 that during the 12 months' period ending June
30, 1952, relief supplies valued at upward of
$750,000 have gone forward to India as donations
from U.S. private sources.
The forwarding and distribution of these sup-
plies have been facilitated by the U.S. and the
Indian Governments. The cooperation of these
Governments and the participating voluntary
agencies was furthered by an agreement author-
ized by the India Emergency Food Aid Act of
1951. This Act, in addition to the authorization
of a loan to the Indian Government for the pur-
chase of American grain to meet the food emer-
gency in India, permitted the United States to
reimburse the voluntary agencies for the ocean
freight charges for the transport of their supplies
from U.S. ports to ports of entry in India.
The Indian Government for its part permitted
the goods to enter without payment of duty
charges or other taxes and provided inland trans-
port of the supplies to the points of consumption
where they were distributed on the basis of need
and without cost to the recipient. The voluntary
program carried out through this cooperation was
an effective demonstration of its value as a sup-
plement to the Indian Government's program of
food rationing.
The American relief gi-oups which have carried
on relief activities in India under this arrange-
ment were Church World Service, War Relief
Services — National Catholic Welfare Conference,
Care, American Friends Service Committee,
Lutheran World Eelief, and the Mennonite Cen-
tral Committee. Urgently needed food, much of
which was donated by American farmers, com-
prised the major portion of the total, but distri-
bution also included significant quantities of
medical supplies and hospital equipment, agri-
cultural equipment, such as small plows and other
implements which the recipients could use in pro-
ducing food. The total also includes administra-
tive supplies of the voluntary relief agencies, such
as jeeps and office equipment, to make possible
effective distribution. This distribution was
carried out by American representatives of the
agencies in close cooperation with the Indian
authorities and local welfare groups.
These gifts represented contributions from per-
sons in all sections of the United States and from
all segments of the population. It was an ex-
pression of good will on behalf of the American
people for the people of India.
U.S.S. ''Courier" Sails
for island of Rhodes
Press release 509 dated July 19
The International Information Administration
announced on July 19 that the Voice of America's
first seagoing broadcasting station, the U. S. Coast
Guard Cutter Courier^ sailed Thursday, July 17
for the island of Rhodes in the Eastern Mediter-
ranean on its initial assignment as a floating relay
base for progi-ams in the Near East and Iron Cur-
tain languages.
Wilson Compton, administrator of the United
States International Information Administration
said that, "The sailing of the Courier marks an-
other phase of our effort to reach more people
behind the Iron Curtain." It follows the opening
last fall of a programming center in Munich, Ger-
many, which is now broadcasting an hour and 30
minutes a day in five Iron Curtain languages. In
addition, it continues to relay broadcasts originat-
ing in New York.
The 338-foot Courier recently returned from a 6
weeks' shake-down cruise in the Caribbean where
tests proved it to be one of the most versatile means
thus far developed to promote the U.S. Campaign
of Truth. During the extended tests in the Canal
Zone its medium wave transmitter was heard
clearly throughout the Caribbean and its two
short-wave transmitters as far away as Europe and
New Zealand.
En route to Rhodes, the Courier will make cour-
tesy visits at Tangier about August 1 ; Gibraltar,
August 2 ; Naples, August 9 ; and Piraeus, August
18.
182
Department of State BuHetin
Calendar of Meetings *
Adjourned During July 1952
Universal Postal Union, 13th Congress Brussels May 14-July 12
UN (United Nations):
Trusteeship Council: 11th Session New York June 3-July 25
Fag (Food and Agriculture Organization) :
European Forestry and Forest Products Commission : Meeting of Nice June 28-July 8
Working Group on Torrent Control and Protection from
Avalanches.
Meeting on Home Economics and Education in Nutrition (Fag- Port-of-Spain June 30-July 5
Caribbean Commission).
International Philatelic Exhibition Utrecht June 28-July 6
IcAO (International Civil Aviation Organization):
4th Special Meeting of Rules of the Air and Traffic Services Com- Paris June 30-July 9
mittee — European-Mediterranean Region.
International Commission for the Northwest Atlantic Fisheries: 2d St. Andrews, New Bruns- June 30-July 10
Annual Meeting. wick.
International Wheat Council: 10th Session London July 1-11
Fifteenth International Congress on Public Education Geneva July 7-16
Sixth International Congress for Animal Husbandry Copenhagen July 9-14
Itu (International Telecommunication Union):
Conference for Revision of Bermuda Telecommunications Agree- London July 9-21
ment.
Wmg (World Meteorological Organization):
Commission for Maritime Meteorology, 1st Meeting of London July 14-26*
Third Meeting of the Sub-Group of the Intersessional Working Party Geneva July 15-26
on the Reduction of Tariff Levels of Contracting Parties to Gatt.
International Soil Fertility Meeting Dublin July 21-31
In Session as of July 31, 1952
International Materials Conference Washington Feb. 26, 1951-
International Conference on German Deljts London Feb. 28-
UN (United Nations):
Economic and Social Council:
14th Session of Council New York May 20-
Economic Commission for Asia and the Far East:
Working Party on Small Scale Industries and Handicrafts Mar- Bangkok July 28-
ketmg: 2d Meeting.
Twenty-sixth Biennial International Exhiliition of Art Venice June 14-
Unescg (United Nations Educational, Scientific and Cultural Organiza-
tion) :
International Center for Adult Education — Workers' Education . . Paris July 12-
Eighteenth Conference of the International Red Cross Toronto July 23-
Eighth General Assembly of the Inter- American Commi-ssion of Women . Rio de Janeiro .... July 23-
Paigh (Pan American Institute of Geography and History) :
3d Consultation on Geography Washington July 25-
Scheduled August 1-October 31, 1952
Inter-American Seminar on Vocational Education University of Maryland. Aug. 2-
Unesco (United Nations Educational, Scientific and Cultural Organiza-
tion) :
Seminar on Education in World Citizenship, especially in Human Woudschoten, Zeist, Aug. 3-
Rights. Netherlands.
International Conference to Negotiate a Universal Copyright Con- Paris Aug. 18-
vention.
Seminar on Museums New York Sept. 15-
International Congress of the Arts Venice Sept. 21-
First Australian-New Zealand-United States Council Meeting (Anzus) . Kaneohe, Oahu, T. H . Aug. 4-
International Conference on Agricultural and Cooperative Credit . . . University of California, Aug. 4—
Berkeley.
Thirteenth International Exhibition of Cinematographic Art Venice Aug. 8-
Eighth General Assembly of the International Geographical Union . . Washington Aug. 8-
Fourth World Assembly of the World Organization for Early Childhood Mexico, D. F Aug. 11-
Education.
International Radio Scientific Union: 10th General Assembly .... Sydney Aug. 11-
Sixth International Edinburgh Film Festival Edinburgh Aug. 17-
Sixth International Grassland Congress State College, Peunsyl- Aug. 17-
vania.
' Prepared in the Division of International Conferences, Department of State, July 25, 1952.
*Tentative dates.
August 4, J 952 183
Calendar of Meetings — Continued
Scheduled August 1-October 31, 1952 — Continued
Fourth International Congress of Onomastic Sciences Uppsala Aug. 18-
International Championships for 1952 Military Pentathlon Brussels Aug. 18-
UN (United Nations) :
Commission on Prisoners of War: 3d Session Geneva Aug. 25-
Ad Hoc Committee on Factors (Non-Self-Governing Territories) . . New York Sept. 3-
Committee on Information from Non-Self-Governing Territories . . New York Sept. 11-
General Assembly Committee on Administrative Unions New York Sept. 23-
General Assembly: 7th Session New York Oct. 14-
UN Ecosoc:
Economic Commission for Asia and the Far East:
Inland Transport Committee, Highway Subcommittee: 1st Session . Bangkok Aug. 18-
2d Regional Conference of Statisticians Bangkok Sept. 1-
Inland Transport Committee, Inland Waterway Subcommittee Bangkok Sept. 16-
Working Party of Experts on Mobilization of Domestic Capital . . Bangkok Sept. 22-
Subcommittee on Electric Power Bangkok Oct. 14—
Inland Transport Committee, Railway Subcommittee: 1st Session . Bangkok Oct. 20-
Seminar on Power Alcohol Lucknow Oct. 23-
IcAO (International Civil Aviation Organization) :
Aeronautical Information Services Division: 1st Session Montreal Aug. 19-
Special Diplomatic Conference to Conclude a Convention on Damage Rome Sept. 9-
Caused by Foreign Aircraft to Third Parties on the Surface.
Statistics Division: 2d Session Montreal Sept. 16-
Aerodromes, Air Routes and Ground Aids Division: 5th Session . . . Montreal Oct. 21-
International Wine Office, 32d Plenary Sessionof the Committee . . . . Freiburg Aug. 19-
Itu (International Telecommunication Union) :
International Radio Consultative Committee (Ccir) : Study Group X . Geneva Aug. 20-
Teleoommunication Plenipotentiary Conference Buenos Aires Oct. 1-
International Union of Theoretical and Applied Mechanics: 2d Assembly Istanbul Aug. 25-
Forty-first General Assembly of the Interparliamentary Union Bern Aug. 28-
Fourth International Congress of Anthropological and Ethnological Vienna Sept. 1-
Sciences.
International Bank for Reconstruction and Development — and Inter- Mexico, D. F Sept. 3-
national Monetary Fund: 7th Meeting of Boards of Governors . .
International Astronomical Union: 8th General Assembly Rome Sept. 4—
Seventh International Congress and Exposition of Photogrammetry . . Washington and Dayton . Sept. 4-
Nineteenth International Geological Congress Algiers Sept. 8-
Thirteenth International Horticultural Congress London Sept. 8-
Ilo (International Labor Organization) :
Chemical Industries Committee: 3d Session Geneva Sept. 9-
Petroleum Committee: 4th Session Sehevenigen Oct. 14—
Wmo (World Meteorological Organization) :
3d Sessionof the Executive Committee Geneva Sept. 9-
Paso (Pan American Sanitary Organization) :
17th Meeting of the Executive Committee Habana Sept. 10-
6th Session of the Directing Council — and 4th Regional Committee of Habana Sept. 15-
the World Health Organization.
18th Meeting of the Executive Committee Habana Sept. 25-
Fourth Meeting of the International Scientific Committee for Try pa- Louren^o Marques (Mo- Sept. 10-
nosomiasis Research. zambique).
Fao-Ecla Central American Seminar on Agricultural Credit Guatemala City .... Sept. 15-
Fourth International Congress of African Tourism Lourenpo Marques . . . Sept. 15-
Twenty-first International Congress for Housing and Town Planning. . Lisbon Sept. 21-
International Council for Exploration of the Sea Copenhagen Sept. 29-
Committee on Improvement of National Statistics: 2d Session .... Ottawa Sept. 29-
Fourth Meeting of the Executive Board of the International Council of Amsterdam Sept. 30-
Scientific Unions.
Fag (Food and Agriculture Organization) :
Technical Advisory Committee on Desert Locust Control: 2d Meeting. Rome Sept.
Eucalyptus Study Tour Australia Sept.
Latin American Meeting on Livestock Production Brazil Sept.
Committee on Financial Control Rome Oct.*
Indo-Pacific Fisheries Council: 4th Session Manila Oct.*
Sixth General Assembly of the International Council of Scientific Unions. Amsterdam Oct. 1-
International Conference on Legal Metrology, Provisional Committee . Brussels Oct. 2-
Gatt (General Agreement on Tariffs and Trade) : 7th Session Geneva Oct. 2-
Joint Ilo/Who Committee on Occupational Health: 2d Session .... Geneva Oct. 6-
International Committee on Weights and Measures: Biennial Se.ssion . Sfevres Oct. 7-
Paigh (Pan American Institute of Geography and History): 6th Con- Ciudad Trujillo .... Oct. 12-
sultation on Cartography.
Eighth Pan American Congress of Architects Mexico, D. F Oct. 19-
First Ibero-American Congress on Archives, Libraries and Copyrights . Madrid Oct. 20-
Pan American Highway Congress: Extraordinary Session Mexico, D. F Oct. 26-
Inter-American Economic and Social Council: 3d Extraordinary Meet- Undetermined Oct.
ing.
South Pacific Commission: 10th Session Noumda Oct.
International Wool Study Group: 5th Meeting London Oct.
184 Department of Slate Bulletin
Greater Stability Forecast for World Cotton Trade
INTERNATIONAL COTTON ADVISORY COMMITTEE'S ELEVENTH PLENARY MEETING
hy Eulalia L. Wall
The eleventh plenary meeting of the Interna-
tional Cotton Advisory Committee was held at
Rome, May 17-28, at the invitation of the Govern-
ment of Italy. Present were delegations from 25
member countries and observers from 22 nonniem-
ber countries and five international organizations.^
The U.S. delegation to the meeting included :
Chairman
Leslie A. Wheeler, Special Assistant to the Secretary of
Agriculture
Vice Chairman
Francis A. Linville, Chief, Agricultural Products Staff,
Department of State
Advisers
Howard R. Cottam, Counselor of Embassy, American Em-
bassy, Rome
Read P. Dunn, Jr., Foreign Trade Director, National Cot-
ton Council, Washington, D.C.
Ren4 Lutz, Deputy to the Assistant Director for Foreign
Requirements and Claimancy, Office of International
Trade, Department of Commerce
^ Member governments which participated in the meet-
ing were Argentina, Australia, Austria, Belgium, Brazil,
Canada, Denmark, Egypt, Finland, France, Federal Re-
public of Gei'many, Greece, India. Italy, Japan, Mexico,
the Netherlands, Pakistan, Peru, Spain, Sweden, Switzer-
land, Turkey, United Kingdom, and the United States.
The member governments which did not send representa-
tives were Anglo-Egyptian Sudan and the Philippines.
Nonmember governments which sent observers were
Afghanistan, Colombia, Costa Rica, Cuba, Dominican Re-
public, Ecuador, Hungary, Indonesia, Israel, Luxembourg,
Nicaragua, Norway, Panama, Paraguay, Poland, Portugal,
Syria, Union of South Africa, Uruguay, Venezuela, Viet-
nam, and Yugoslavia.
International organizations which sent observers were
Food and Agriculture Organization of the United Na-
tions, International Monetary Fund, Organization for
European Economic Cooperation, International Federa-
tion of Agricultural Producers, and International Federa-
tion of Master Cotton Spinners and Manufacturers
Associations.
Arthur W. Palmer, Head, Cotton Division, Office of For-
eign Agricultural Relations, Department of Agricul-
ture
P. Marion Rhodes, Director, Cotton Branch, Production
and Marketing Administration, Department of Agri-
culture
Oscar Zaglits, Head, Foreign Agricultural Trade and
Policy Division, Office of Foreign Agricultural Rela-
tions, Department of Agriculture
Secretary and Adviser:
Eulalia L. Wall, Department of State
In addition, Francis H. Whittaker, European represen-
tative for cotton. Office of Foreign Agricultural Relations,
Department of Agriculture, was in Rome and available
for consultation.
The International Cotton Advisory Committee
is an intergovernmental fact-finding organization
designed to observe and keep in close touch with
the world cotton situation, and to suggest to the
governments represented measures for the solu-
tion of world cotton problems through interna-
tional cooperation. The Committee was founded
in 1939 in response to a resolution adopted by 10
of the leading cotton-exporting countries at an
international cotton meeting held at Washington
in early September of that year. Following a
period of inactivity during the war years, the
Committee was reactivated m 1945.
At its first postwar meeting, the Committee
opened its membership to all countries having a
substantial interest in the production, importa-
tion, or exportation of cotton. Today, the Inter-
national Cotton Advisory Committee enjoys the
support of 27 countries representing nearly nine-
tenths of world cotton production, consumption,
and international trade. The Committee main-
tains a permanent secretariat at its seat in Wash-
ington and, in the intervals between plenary
meetings, functions through a standing committee
composed of the representatives in Washington of
all member governments. The annual plenary
Augusf 4, 1952
185
meetings enable the Committee to make periodic
reviews of the over-all economic position of cotton
in the world; to review and approve the work of
the standing committee and the secretariat in
carrying out their responsibilities; to approve
annual work programs and budgets; to ascertain
the ne«d for special studies of cotton production,
consumption, and trade ; and to formulate recorn-
mendations for international collaboration in
solving world cotton problems.
Increase of World Cotton Stocks
At the eleventh meeting, as at previous plenary
sessions, the Committee directed its attention first
to an appraisal of the cotton situation and out-
look. Delegations reported on conditions in their
respective countries and the secretariat presented
a comprehensive report on the world cotton situa-
tion. On the basis of these statements, the Com-
mittee found that world cotton stocks had
increased materially in 1951-52, and had i-eached
a level where the available supply was in approxi-
mate balance with demand.
Thus the supply position, which had been of
great concern to importing countries at the tenth
meeting, had become somewhat easier. Moreover,
it was clear in retrospect that speculative buying
and holding of cotton goods after the outbreak of
hostilities in Korea had been a factor in the all-
time record high level of cotton textile output in
1950-51 and in the subsequent downward readjust-
ments in 1951-52. Nevertheless, it was considered
likely that raw cotton consumption in 1951-52
would reach the highest level of any postwar j'ear
except 1950-51. It was concluded that although
i-eadjustments were still underway, there was a
reasonable hope for more settled conditions in the
world cotton trade than those that had prevailed
during the preceding 18 months. The Committee
was also impressed with the need for finding means
of moderating extreme fluctuations in cotton sup-
plies and prices such as those which had occurred
in the past year and a half. Consideration was
given to remedies for this situation being sought
by individual governments, and to problems in-
volved in an international cotton agreement.
The Committee had before it a Report on an
International Cotton Agreement wliich its stand-
ing committee had prepared in response to Resolu-
tion X of the Tenth Plenary Meeting.^ This re-
port was concerned mainly with two types of
agreement: the multilateral contract, and a com-
bined form of agreement embodying international
trade qufttas and buffer stocks. It analyzed the
basic principles of both and sought to explore
the types of problems which might arise if they
were taken as a basis for international action on
cotton. The report suggested possible solutions
to some of the technical problems, but listed a
number of important questions which would re-
quire further study before any conclusion could
be reached. The Committee commended the re-
port as an aid in advancing thought on the ques-
tions of whether an agreement would be possible,
and if so, what form it should take. It was
agreed, however, that considerable additional
study was needed before governments could ar-
rive at final views or determine their attitudes
toward a possible agreement. Accordingly, the
standing committee was instructed to explore
further the complex problems involved and to re-
port to member governments on the progress of
its studies, submitting if possible concrete pro-
posals so as to enable governments to consider
more fully their position in relation to a cotton
agreement.
Cotton Yields in Underdeveloped Countries
Following this action, the Committee discussed
possibilities for obtaining technical and financial
aid for the purpose of increasing cotton yields in
underdeveloped countries. The importance of
cotton research and the desirability of increasing
yields in underdeveloped countries had been
stressed in resolutions of the ninth and tenth
meetings. It was the concensus of the eleventh
meeting that these objectives might be furthered
by the initiation of a research project on a regional
cooperative basis at a suitable center. Accord-
ingly, it was resolved that the Committee should
enlist the aid of the organizations of the United
Nations and other international agencies toward
this end.'
The eleventh meeting also reviewed the Com-
mittee's organizational structure, and decided
ujion the M'ork program and budget for the fiscal
year beginning July 1, 1952. To facilitate this
phase of the work, two subcommittees were estab-
lished : one on organization and finance, and the
other on information and statistics. The subcom-
mittee on organization and finance reviewed and
approved, with minor amendments, the codifica-
tion of the Committee's rules and regulations
which had been prepared by the standing com-
mittee in accordance with resolution v of the
tenth meeting. The codification, as amended, was
approved by the meeting. The meeting also
adopted four resolutions proposed by the subcom-
mittee on organization and finance relating to the
1952-53 budget and scale of contributions and
other financial matters.
'Copies of this report may be obtained from the Inter-
national Cotton Advisory Committee, South Agriculture
Building, Washington 25, D.C.
186
'The te.xt of resolutions adopted at the meeting will be
included in Proceedings of the Eleventh Plenary Meeting
of the International Cotton Advisory Committee, which Is
expected to be published shortly by the International
Cotton Advisory Committee, South Agriculture Building,
Washington 25, D.C.
Deparimeni of State Bulletin
Upon the recommendation of the subcommittee
on information and statistics, a resolution was
passed to expand the statistics collected by the
Committee in order to include data by staple
lengths and/or varieties whenever possible.
Owing to the marked differences in the staple
lengths and varieties of cotton grown in different
countries, it was considered that this additional
information would make a significant contribu-
tion to the undei"standing of the world cotton
situation. Also upon the recommendation of the
subcommittee on information and statistics, the
meeting approved a resolution instructing the sec-
retariat to continue the publication of the Monthly
Review of the World Cotton Situation and Quar-
terly Statistical Bulletin, and if feasible to com-
plete the special study on the availability and
reliability of world cotton prices and quality data
begun in 1951-52.
At the final session of the meeting, the Commit-
tee unanimously reelected E. D. White of the
United States as chairman of the standing com-
mittee to serve until convocation of the Twelfth
Plenary Meeting. The Committee also accepted
the invitation of the United States to hold the
twelfth meeting at Washington in the second half
of April or the first half of May 1953, the exact
time to be decided upon later by consultation
between the standing committee and the U.S.
Government.
*Miss Wall is an international ecorwTnist with
the Agricultural Products Staff, Department of
State. Her article had the benefit of review and
comment by Ai'thur W. Palmar, head of the Cot-
ton Division, Office of Foreign Agricultural Re-
lations, Department of Agricidture.
Relation Between Domestic and International Economic Security
Statement by Isador Luhin
U.S. Representati've in the UJf. Economic and Social Council
D.S./U.N. press release dated June 30
It is with particular interest that I speak on the
subject of international economic stability. One
reason, of course, is the continuing importance of
the subject before us. Another reason is personal.
It was 2 years ago at Geneva that I made my
"maiden speech" as the U.S. representative in this
Council, and the subject of that speech was the
first experts' report, "National and International
Measures for Full Employment."
The Council worked very hard that summer in
formulating a series of recommendations to gov-
ernments which would enable us intelligently to
consider the international aspects of the problem
of economic instability. The resolution of Au-
gust 15, 1950, is one of the great achievements of
this Council. It is a benchmark of progi'ess, and
it reflects the growing enlightenment of public
opinion over much of the world. It represents
increased recognition by governments that eco-
nomic changes within their own borders have
international impacts.
Despite the achievement represented by that
resolution, much still remains to be done. For
one thing, we can do a better job of analyzing
trends of employment and the trends of inter-
national trade and of recommending useful poli-
cies to be pursued by governments. But if we are
to be in a position to do this most governments
will have to be more prompt and thorough in re-
porting on their economic situation, as requested
in the August 1950 resolution. Because of their
failure to make the necessary information avail-
able, the Secretariat has not been able to present
to the Council, in either 1951 or 1952, the kind of
summary and appraisal of the employment and
balance of payments situation which would en-
able the Council to have the kind of discussion
which might give rise to improved government
policies. Perhaps we shall be able to do better
this session, when we take up agenda item 4 (a).
Another thing the Council can do is to draw
from the latest experts' report, now before us,
August 4, 1952
187
"Measures for International Economic Stability," '
and from our debates on it, useful recommenda-
tions on the international aspects of the stability
problem. The resolution of August 1950, supple-
mented by an amendment of March 1951, recog-
nized the need for further consideration of this
subject and asked the Secretary-General to as-
semble a group of experts "to formulate and ana-
lyze alternative practical ways of reducing the
international impact of recessions and to give par-
ticular attention to the problems of the underde-
veloped countries, which are especially vulnerable
to fluctuations in international commodity mar-
kets and to related fluctuations in the terms of
trade."
Importance of National Action
Before discussing the experts' product in detail
I wish to make some general comments. First,
I wish to express appreciation to the authors for
their labors. The authors place the problem of
international economic stability in its proper per-
spective and ably delimit a possible course of prac-
tical action within the fi-amework of existing
institutions. They avoid the temptation to devise
automatic formulas and organizational blueprints.
In our opinion, the experts are entirely right
in saying that national measures must be the pri-
mary reliance for dealing with economic insta-
bility, even in its international aspects. If the
International Monetary Fund, for example, is to
be of much assistance in the creation of a better
world monetary system, national governments
must normally avoid inflationary policies which
increase the countries' demands for imports and
decrease their opportunities for export. A coun-
try that maintains a fair degree of stability inter-
nally will not spread much instability to other
countries. International measures cannot provide
internal stability to any significant extent. They
can only be helpful as supplementary devices to
cushion the international repercussions of reces-
sions temporarily and to smooth the processes of
adjustment.
We also agree with the conclusion of the experts
that progress has been made toward overcoming
economic depressions. It is encouraging to read
the experts' prediction that prosperous yeai-s will
be the rule rather than the exception in the future,
and that even in years of recession, prosperity will
be "not merely around the comer, but in full view."
I share this optimism. The U.S. delegation has
frequently set forth the reasons why, in the United
States, at least, a disastrous depression like that
of the 1930's is highly unlikely. As I explained
in some detail in my statement on the world eco-
nomic situation, the basic factors which make this
unlikely are the changes that have occurred in our
economic institutions, the structural changes
which ameliorate tendencies toward depression,
' U.N. doc. E/2156.
188
and most important, the determination of the
American people to avoid such a depression.
U.S. Agrees With Experts
Despite the unlikelihood of a serious recession
in the United States or other industrial countries,
there can still be, as the experts observe, minor
recessions and instabilities in particular industries
that will have international repercussions. These
instabilities may arise from rapid changes in rel-
ative demands as between different industries,
rapid technological changes which alter supply
conditions, and unforeseen political and military
developments. Some of these changes will be tem-
porary and some permanent, and it will often be
hard to tell whether they will be one or the other.
In either case, no international economic
cushions — whether commodity agreements, flows
of capital, or monetary reserves — are going to
eliminate the need for national economies, or sec-
tors of them, to adjust to changes. Cushions can
ease the difficulties involved in making readjust-
ments, but th^ cannot eliminate the need for re-
adjustment. Economic life as well as human life
generally is a matter of constant adaptation. To
seek a stability which is fixed and rigid is not only
unrealistic but the antithesis of growth. My del-
egation sees eye to eye with the experts on this
point.
There are one or two general aspects of the re-
port, however, on which our agreement with the
experts is less than complete. One is their im-
plication that any previous peak in trade is to be
taken as a point of reference for measuring the
magnitude of the recession problem. To use such
peaks as a point of reference results in exagger-
ating the size of the problem that must be resolved.
Another deficiency of the report is its failure
to say much about reducing the impact of cyclical
or other temporary expansionarnf forces. A bal-
anced view of the problems of international eco-
nomic stability requires not only that recessions be
reduced, but that abnormal expansions be checked.
We must cushion or counteract the repercussions
of both. In final analysis, this would suggest that
countries take measures to offset the effects on their
economies of abnormal increases as well as ab-
normal reductions in foreign demand.
For example, countries experiencing rapid in-
creases in foreign sales would often find it in the
interest of their economic stability to save their
foreign-exchange earnings and institute internal
disinflationary measures until the boom subsides.
To the extent that they fail to do so and allow the
structures of their entire economies to be built up
to temporary very high levels of export receipts,
one is led to wonder how far they should expect
international measures to relieve them of respon-
sibility for the readjustment of national income,
imports, and domestic prices which are required
when export receipts return to more normal levels.
Dapartment of Sfafe Bulletin
Despite these somewhat critical observations, I
wish to express my agreement with tlie general
tenor of the analysis and policies recommended
by the experts. They recommend that an attempt
be made to bring more stability into the primary
commodity markets, that we try to avoid large
fluctuations in the international flow of capital,
and that we utilize national and international
monetary reserves to soften the international im-
pact of recessions.
In the view of the U.S. Government, these
policies are clearly desirable. I shall now take
up the discussion of each of them, starting, first,
with the section that deals with monetary reserves.
International Monetary Measures
The experts very properly emphasize the im-
portance of adequate monetary reserves. Unless
they are available it will not be possible for coun-
tries to maintain a reasonably stable flow of im-
ports and the world will be faced with a periodic
tightening of foreign trade and exchange restric-
tions.
The experts are convinced that nationally-held
reserves of convertible currencies and gold are in-
adequate to meet possible fluctuations in trade and
capital flows. They do not go into the reasons for
this inadequacy. Nor do they suggest corrective
measures which individual governments might
themselves be able to take. They might well have
urged that governments should make every effort
to pursue policies which would help to ameliorate
their reserve difficulties. They might have
pointed out, for example, the importance of
domestic monetary and fiscal policies which would
greatly reduce if not eliminate inflationary pres-
sures; they might also have stressed the need for
minimizing international exchange and trade bar-
riers. They presumably took the view that they
ought to confine their recommendations to the field
of mternational action. One might wish they had
directed at least brief attention to the possibilities
for national action in this field.
The report deals primarily with the possibili-
ties for supplementing national reserves in time
of recession from the resources of the Inter-
national Monetary Fund. It views the Fund as
presently affording only "a comparatively trivial
supplement" to national reserves. It submits a
number of recommendations for remedying this
situation. These recommendations relate, first, to
the availability of the Fund's resources, and
second, to the size of the Fund's resources.
With respect to the question of availability, the
experts emphasize the desirability of making
finance available to member countries at the onset
of a recession, as cheaply and as freely as possible,
in order that the contraction of trade may be re-
tarded. But at the same time, they believe that
the Fund's main criterion for lending should be
whether the member can be expected to repay. I
have no desire to take issue with the experts on
this point. I merely wish to point out that it is
likely that at the time of greatest need the expecta-
tions of repayment might look the dimmest.
The experts make a number of specific recom-
mendations for increasing the availability of the
Fund's existing resources in times of recession.
These recommendations are of a somewhat tech-
nical nature and I shall not take the time of the
Council to discuss them here. The Fund will un-
doubtedly give them most serious consideration.
Moreover, the Fund has recently indicated its
intention to pursue lines of policy which go a
very considerable distance toward meeting the
views of the experts.
I must also point out, Mr. President, that as far
back as September 1946 the Fund recognized that
it could appropriately use its resources "to give
temporary assistance in financing balance-of-
payments deficits on current account" during
periods of economic recessions. The Fund, Mr.
President, has made it evident that it is clearly
cognizant of the problem and that it is prepared
to take reasonable and practicable measures for
dealing with it.
Meeting recession needs for short-term foreign
funds is, however, Mr. President, only one of the
responsibilities of the Monetary Fund. The Fund
can hardly meet its responsibilities by always
giving a member that desires to borrow from it
the benefit of any doubt as to its ability to repay.
The Fund will have to feel its way, like any
other organization, considering each application
for temporary assistance in the light of the exist-
ing circumstances and the basic purposes for
which the Fund was created.
With respect to the size of the Fund's resources,
the experts recommend they should be increased
at the earliest possible moment. Obviously, a
larger volume of resources and a willingness, on
the part of both the Fund and its borrowing mem-
bers, to use these reserves freely would help offset
the international repercussions of a recession in
any of the member coiintries. It is obvious, also,
that the mere availability of a greater volume of
resources is no guarantee that a disequilibrium
will be corrected. In the absence of domestic
monetary and international trade policies de-
signed to correct the disequilibrium, such addi-
tional resources could be very rapidly dissipated.
Moreover, if the Fund's resources of gold or scarce
currencies are to be increased, difficult questions
arise as to whether they should be increased in
accordance with Fund quotas or by other means.
Since the great majority of the governments
represented in the Council are also members of
the International Monetary Fund, it would appear
that the Fund itself presents the best forum for a
detailed discussion of the question of whether its
resources would be adequate to cope with the prob-
lems that will arise should a recession take place.
In our opinion, the present resources of the Fund
August 4, 1952
189
are not inconsiderable. But, I do want to make
it absolutely clear that if and when a shortage of
Fund resources does become imminent, the United
States can be counted on to give the matter proper
consideration.
International Flow of Capital
In discussing the international flow of capital,
their second main topic, the experts concentrate
their attention on long-term capital movements
for investment purposes.
They point out that since foreign-exchange
earnings provide a means for financing imports
essential for economic development programs,
declines in the foreign-exchange earnings of un-
derdeveloped countries may retard their economic
development. If these earnings drop because of a
recession in other countries, the underdeveloped
countries may be forced either to cut imports for
consumption, possibly through the imposition of
trade or exchange restrictions, or to cut those
imports without which they cannot maintain a
steady rate of economic development. The only
alternative, it is suggested, is additional long-term
foreign financing.
Under pi-esent circumstances there is little pros-
pect that the underdeveloped countries could at-
tract additional foreign private investment capital
to fill the gap created by a fall in export receipts.
Indeed, in times of recession the flow of private
capital is more likely to diminish than to increase.
In such times, therefore, the underdeveloped coun-
tries will have to look mainly to governmental or
intergovernmental agencies for the financial aid
they need.
The experts suggest that governmental agencies
which operate in this field may, to some extent, be
able to increase the rate at which they provide de-
velopment funds in order to meet recession needs.
They point out, however, that the scope for such
action by national governments is necessarily
limited. Accordingly, they turn to the intergov-
ernmental sphere, where in the International Bank
for Reconstruction and Development, they find an
institution "eminently appropriate" for applying
anti-recession policies.
The experts propose that the Bank should stand
ready to provide increased outflows of funds to
member countries for development purposes when-
ever these countries experience a decline in their
foreign-exchange availabilities because of a reces-
sion abroad. They also indicate a number of
situations under which the Bank could take action
along the lines they propose.
The functions and responsibilities of the Inter-
national Bank have been discussed in the Council
on many occasions. The Council has always taken
the view that the Bank should achieve and main-
tain the highest practicable flow of lending for
economic development. The experts are in full
accord with this view. They believe, however,
that, without departing from this objective, the
Bank should adjust its lending policies to take
account of such special needs of borrowers as may
arise out of cyclical movements, or, to be more
jDrecise, out of economic recessions.
The U.S. delegation has consistently held that
the primary function of the International Bank
is to ijrovide long-term capital on a continuous and
sustained basis for the development of under-
developed areas. Tliis is still our view. We see
some danger of conflict between this objective and
anticyclical action. We doubt whether the Bank
would base its loan policies to any large extent on
anticyclical considerations without danger of con-
flict with what should be its primary purpose,
namely, sustaining continuous economic develop-
ment in the less developed areas, within the re-
quirements of the principles set forth in its Char-
ter. In other words, we feel that the Bank should
not withhold loans in times of prosperity so as to
be able to increase its lending in times of recession.
This is not to say that the Bank would not be
in a position to increase the flow of its loan funds
in the event of a recession. As the experts point
out, the Bank may find it possible to accelerate
the actual disbursement of the loans it has already
committed to particular programs. The extent to
which this will be possible will, of course, depend
upon the ability of the borrowing countries to
step up the speed of construction on the projects
for which loans have been arranged. To the ex-
tent that it will be possible to telescope the period
of construction, the actual flow of the Bank's
funds will be increased.
It has been suggested also that the flow of funds
can be increased in those instances where the Bank
finds it possible to enlarge its share of participa-
tion in given development projects. There may
be cases where, because of a recession, an under-
developed country may find itself unable to finance
as large a part of its development program out
of its own foreign exchange resources as it had
anticipated. If its long-run prospects are suffi-
ciently good to warrant the assumption of in-
creased foreign debt for development, it may de-
cide to increase the proportion of the program to
be financed with loans and to request additional
aid from the Bank. By granting the request, the
Bank could help to cover a deficiency in the for-
eign exchange earnings which the underdeveloped
country had originally planned to use for financ-
ing the particular program.
in this same category is the possibility that the
Bank might undertake to help finance develop-
ment projects which an underdeveloped country
had intended to finance entirely out of its domestic
resources and foreign exchange earnings.
The experts, however, raise the question of
whether the Bank's resources would be adequate
to meet these additional demands for loan funds
that may arise during a recession. Certainly no
one can deny that the time may come when the
International Bank will need more funds. As for
190
Deparfment of Sfofe Bulletin
the calculable future, the U.S. delegation sees little
probability of the Bank's pressing against the
limits of its resources. Nor is the Bank vmaware
of the possible effects of a recession upon its re-
sources. We understand that in periodically con-
sidering the problems of financing its future oper-
ation it takes into account various possible con-
ditions, including a possible recession.
To be sure, the question of the adequacy of the
Bank's resources is of concern to this Council. In-
deed, this question was the subject of prolonged
debate at one of our previous sessions. The prob-
lem, however, is one that must be discussed in
detail in the Bank, where most of the members of
this Council also have membership.
International Commodity Arrangements
Coming now to the section of the experts' report
which deals with international commodity agree-
ments, I am certain that no one would take issue
with their comments concerning the important
part played by extreme swings in the prices of
major primary commodities in bringing about
general economic instability and of the important
effects of such swings on both underdeveloped and
more developed countries. These major primary
commodities account for about one-third of total
world commodity trade. If there were a statisti-
cal measure of price instability, there is no doubt
that it would show that these commodities account
for a far higher share of price instability than
their importance in world trade would justify.
The reasons for the extreme instability of the
prices of most of the major primary commodities
are quite well understood. Their prices tend to
react sharply to small changes in supply and de-
mand. For most of them, supplies cannot be rap-
idly expanded when there is an increase in de-
mand. The consequence is that their prices rise
rapidly. Similarly, when there is a reduction in
demand, the supplies coming on to the market do
not fall off rapidly with the result that there is
usually a fast decline in their prices. Moreover,
the demand for these materials is of such a nature
that when there is a drop in price, demand does
not rise very much.
The evidence is fairly clear that the sharp
changes in prices of these commodities do not
facilitate the functions price changes are sup-
posed to perform in the economic system. Indeed,
they interfere with these functions. Increases in
demand should stimulate increased production
and decreases in demand should discourage pro-
duction. The rapid changes that take place in
the prices of certain raw materials, however,
make it impossible for investors and producers
to know whether the basic price trend is up or
down and whether to plan to expand or reduce
their output.
Because of these considerations governments
have for a number of years taken the view that
primary commodities moving in international
trade deserve special consideration. The Gov-
ernment of the United States believes that it is
desirable to take action to limit these large swings
in prices. And to accomplish this end, it is pre-
pared to enter into international commodity
agreements.
The principal reason why more intergovernmen-
tal commodity agreements have not come into
being seems to be that the negotiating govern-
ments have had great difficulty in agreeing on the
substantive elements of the proposed contracts.
There are at the present time nearly a dozen inter-
national study groups considering the pi'oblems
of major primary commodities and most of them
have commodity agreements in various stages of
preparation. For most business transactions, it
is customary to say that it takes two to make a
deal ; for an international commodity agreement
it takes many governments, and behind them many
interested groups, to make a deal.
We do not believe that any new type of organi-
zation machinery would eliminate points of dif-
ference that are bound to exist between the bar-
gaining parties. This point was made by the
experts. We agree with them.
But an even stronger point can be made. If an
effort were made at this time to establish new
machinery for dealing with commodity problems,
it might even delay the process of discussion and
negotiation with respect to individual commodi-
ties. The difficulties and delays inherent in the
establishment of a new organization should not
be incurred unless there is a much clearer case
than now exists that the present machinery is
inadequate.
In our opinion, the Interim Coordinating Com-
mittee for International Commodity Arrange-
ments (Iccica), as presently constituted, is quite
satisfactory. Any government wanting to explore
specific intergovernmental commodity arrange-
ment possibilities in an international forum can
call on IcciCA and the Secretary-General of the
United Nations, in accordance with Ecosoc Reso-
lution 296 (XI), with the assurance of prompt
action. Iccica and tlie Secretary-General can ar-
range for individual commodity study gi-oups,
whenever they are asked for. And in our opin-
ion, study groups are the most effective devices
for considering the feasibility of commodity
agreements and for laying the groundwork for
their negotiation.
Incidentally, I should like to note that Iccica
has recently completed another of its excellent
reports on the world commodity situation, and I
should like to compliment the Secretary-General
for having as secretary of Iccica the very able
Perce R. Judd of Australia.
Agreed Set of Principles Available
Not only do adequate organizational arrange-
ments exist to facilitate the negotiation of inter-
national commodity agreements, but there is also
Augusf 4, 1952
191
available to the prospective negotiating govern-
ments the benefit of an agreed set of principles
recommended by this Council to guide them.
These principles are those contained in chapter VI
of the Havana Charter, negotiated under U.N.
auspices, and endorsed by Ecosoc as a general
guide in 1947, an endorsement which was reaf-
firmed at our 13th session in 1951.
These principles serve, among other things, to
eliminate what might be almost endless arguments
as to the appropriateness of any proposed com-
modity agreement in the light of other interna-
tional obligations.
It is our view that further general studies of
commodity arrangements or attempts to devise
multicommodity stabilization schemes, or inter-
national price parity schemes, such as the World
Food Board proposed in 1946, would actually de-
lay rather than e.xpedite the conclusion of agree-
ments for dealing with primary commodity in-
stabilities. If I may be permitted to quote the
experts on this question of international parity
schemes: "We believe that no such scheme ('some
kind of systematic international "parity price"
scheme') would be either practicable or desirable."
And the experts advance sound reasons for this
position (paragraph 44), which I shall not repeat.
I think that most persons who have actually
been involved in commodity agreement negotia-
tions, as well as those who worked on the Havana
Charter for so long, will agree that there is no
possibility of successful negotiation of a com-
modity agreement covering many commodities at
the same time. Furthermore, we believe that the
interests of the countries directly and importantly
concerned with particular commodities would be
better protected in single-commodity negotiations.
Financial Burdens
You will recall that the experts have a good bit
to say about different kinds of commodity agree-
ments. The U.S. Government shares the view of
the e.xperts that commodity arrangements should
minimize direct controls over production and
trade and tliat the purpose of an agreement should
not be to alter the long-term trend in the price of
the commodity. In our opinion, no attempt should
be made to prejudge, on general grounds, the
kinds of agreements which would be appropriate
to meet the purposes of producers and consumers
of particular commodities, except, of course, as
chapter VI of the Havana Charter provides
general guiding lines.
By way of illustration, almost any commodity
agreement imaginable has financial burdens, and
we should think that these burdens, including
those involving stocks, should be borne by the
])articipating parties. Hence we feel it would not
be wise to ask the International Bank to tie up its
funds either actually or on a contingent basis in
investments in stocks of primary commodities.
The effect might well be to reduce the volume of
the Bank's loan funds available for development
purposes.
In summarizing the views of the Government
of the United States on the matter of commodity
agreements, the essential facts I should like to
emphasize are the following:
First, we recognize that extreme swings in prices
of major primary commodities present difficult
problems for nearly all countries. Second, it is
our belief that international commodity agree-
ments, negotiated in accordance with the prin-
ciples and procedures approved by this Council,
can make a significant contribution to the reduc-
tion of price instability for primary commodities.
Third, we are convinced that more commodity
agreements will be negotiated only when govern-
ments can resolve their specific points of difference
with respect to particular proposed agreements.
Fourth, it is our opinion that the present organiza-
tional machinery is entirely adequate for facil-
itating the negotiation of agreements, and that
new machinery would not ease the problems of
negotiation.
Finally, the U.S. Government is prepared to
cooperate fully in discussions and negotiations
for international commodity agreements for pri-
mary commodities on an individual commodity
basis whenever there is reasonable hope of success.
Whenever any country, either buyer or seller, is
f;enuinely interested in an agreement for a particu-
ar commodity, it can request the Iccica and the
Secretary-General of the United Nations to ar-
range for the organization of a study group, or a
conference on the basis of thorough work by a
study group. Whenever the United States has a
legitimate interest either as a producer or as a con-
sumer of such a commodity, it will gladly partici-
pate in such a study group or conference.
Conclusion
By way of a brief general conclusion on the
experts' report, I do want to say again that in the
opmion of my delegation the experts have ren-
dered an excellent public service in producing this
report. Our understanding of the problems of
international economic instability will be defi-
nitely advanced as a result of their work.
In the opinion of the U.S. delegation their re-
port makes doubly clear the fundamental impor-
tance of governments taking appropriate action
to maintain domestic full employment and eco-
nomic stability, if international economic stability
is to be maintained. It also reveals the impor-
tance of governments reporting more fully and
more promptly on the domestic and international
aspects of their economies as requested in the
Council's basic resolution.
Mr. President, it may have come as a surprise to
members of the Council that throughout this dis-
cussion I have made no reference to the statement
192
Department of State Bulletin
made hj the experts that the real danger to the
economic stability of the rest of the world lies in
the United States.
To my mind, Mr. President, this is an example
of a mythological type of thinking that has been
popular in many quarters since the Great Depres-
sion, a type of thinking that refuses to recognize
that that depression had its source in circum-
stances that no longer exist.
Today — and I cannot emphasize this too
strongly — the circumstances that prevailed in the
late twenties do not exist. I can only attribute
the persistence of the myth that they do continue
to exist to the fact that too few people outside this
country fully realize the extent to which stabili-
zation has been built into the United States
economy in the past two decades.
I referred at some length to the stabilizers that
we have incorporated into our economy, when I
discussed the world economic situation. I re-
ferred to them again a few minutes ago, when I
said that, "A disastrous depression like that of the
1930's is highly unlikely."
Such a disaster is highly unlikely, Mr. Presi-
dent, because we now have a better money and
banking system than we did 20 years ago. We
have a better tax structure, a better system of farm
aid, a better system of collective bargaining be-
tween unions and management, a better wage and
income structure, a more equitable distribution of
incomes, and a better system of social security
benefits. And, added to these, we have something
else. We have a national frame of mind radically
different from the one which made possible, and
at the same time, was unable to deal with the dis-
aster of 1929.
As a result of that disaster, millions of Ameri-
can families, thousands of corporations, and even
many communities and states were either close to
bankruptcy or in fact bankrupt — frequently be-
cause of insolvency of other people, firms, or banks.
Thus every American, no matter what his job or
financial situation, became painfully aware of the
need for economic stabilizing devices. This
awakening cut right across the fabric of the
American society. It was apparent — and contin-
ues to be apparent — in all geographic areas, and
on every level of American economic life. The
result has been that structural changes have been
made possible which, though long recommended
by far-seeing economists, might never have taken
place.
There is always present, of course, the possibil-
ity of minor recessions — in the United States, as
elsewhere. I certainly have no desire to under-
estimate the relationship of the United States
economy to that of the rest of the world. But, in
this connection, I would like to point out that even
in the recession of 1949 — a recession that can be
attributed very largely to the United States — the
magnitude of the adverse effects on other countries
came not so much from the variation in demand in
the United States as it did from the weakness of
the balance-of-payments situation in other coun-
tries, and the rigidity of the structure of their
economies.
If I may pursue this line of thought a little
further, most of us will agree, I am sure, that
variations in capital movements and unilateral
financial transfers also play their part in bringing
about economic instability. I do not deny — al-
though I regret — that some of these changes in
capital movements have started in the United
States. I would like to point out, however, that
for more than 20 years — and for reasons well
known to all of us — abrupt movements of capital
have occurred on a very large scale. Some of these
movements may properly be described as capital
flights. Most of these flights originated in areas
outside of the North American Continent and
have taken place for reasons which had nothing to
do with the United States.
And may I suggest a final thought in regard to
locating the primary sources of violent economic
instability? We will all acknowledge, I think,
that much of such instability has arisen in connec-
tion with wars — or from the threat of wars. I
might recall that neither World War I nor World
War II originated in the United States; nor did
the economic confusion which characterized the
early postwar years in many parts of the world.
Mr. President, I have said that it is highly un-
likely that a major depression — with all its inter-
national concomitants — could again occur in the
United States. I have said that recessions, both
in the United States and elsewhere, are always
conceivable — but that machinery exists, both na-
tional and international, with which to deal with
them. But I would also like to say that it is
hardly conceivable that the world will become so
stabilized — so static — that there would be no fur-
ther need for such adjustments and machinery for
bringing them about. In our pursuit of stability
we certainly must not hamper the pursuit of eco-
nomic development, or of economic progress itself.
What the world seeks, I think, is more stable
progress within the area of an expanding and ever
more dynamic world economy. I trust that our
work here will contribute to that end.
The U.S. in the U.N.
A weekly feature, does not appear in this issue.
August 4, 1952
193
Report of U.N. Command Operations in Korea
FORTY-THIRD REPORT: FOR THE PERIOD
APRIL 1-15, 1952'
U.N. doc. S/2662
Transmitted Juoe 13, 1952
I herewith sulmiit report number 43 of the United Na-
tions Command Operations in Korea for the period 1-15
April, inclusive. United Nations Command communiques
numbers 1221-1235, provide detailed accounts of these
operations.
No progre.ss was made in resolving the major issues
remaining under agenda item 3. The discussion of this
item was moved from the staff oflScer meetings to the sub-
delegation level on 3 April. The remaining issues con-
tinue to be :
A. Participants in the neutral nations inspection teams,
and
B. Restriction of the rehabilitation of airfields.
The United Nations Command position on these two
issues was explained in United Nations Command reports
number 37, 38 and 40 and remains unchanged.
The executive sessions of staff oflicers on agenda item 4
continued for the first four days of the period with both
sides striving for a common ground on which to obtain
agreement. As a result of these executive sessions, it
was agreed by both sides to recess for the purpose of de-
veloping additional information and data relating to Pris-
oners of War and to reconvene as soon as such data was
available.
The period was also accompanied by the usual vicious
propaganda attacks by the Communists on the United Na-
tions Command treatment of Prisoners of War. The rec-
ord of humane treatment of Prisoners of War by the
United Nations Command leaves no room for doubt as to
the falsehood of tbese charges. The United Nations Com-
mand has at all times invited full and impartial investiga-
tions of its Prisoner of War camps and the International
Committee of the Red Cross has frequently conducted
such investigations. On the other hand, the Communist
leaders continued unequivocally to refuse to allow such
Impartial investigations of their Prisoner of War camps.
They have al.so refused to accept the official impartial
reixirts of the International Committee of the Red Cross
as valid.
'Transmitted to the Security Council by the acting
representative of the U.S. to the U.N. on .June 13. Texts
of the 30th, 31st, and 32d reports appear in the BtrLLETiN
of Feb. 18, 19ri2, p. 206; the 33d report, ibid.. Mar. 10,
19.52. p. 39.5; the .34th report, ibid.. Mar. 17, 19.52, p. 430;
the 3.5th report, ibid.. Mar. 31, 1952, p. 512; the 36th and
37th reports, ibid., Apr. 14, 1952, p. 594 ; the 3Sth report,
ibid.. May 5, 10.52, p. 715; the 39th report, ibid., Mav 19,
1952, p. 788 ; the 40th report, ibid., June 23, 19.52, p. 998 ;
the 41st report, ibid., June 30, 1952, p. 1038; and the 42d
report, ibid., July 21, 1952, p. 114.
The status of agenda item 5 remains unchanged. The
United Nations Command delegation is still awaiting a
Communist call to reconvene at the staff ofiicer level, to
incorporate into the armistice agreement the agreed ar-
ticle as reported in United Nations Command report
number 40.
Hostile forces launched three relatively large-scale
local attacks against United Nations Command positions
early in the period. Except for these unsuccessful local
attacks, the enemy limited his activities, as in the recent
periods, primarily to the interception of United Nations
Command patrols. The enemy's patrols seemed to be
confined almost exclusively to the hours of darkness and
consisted of widely scattered exploratory attacks involv-
ing small units of platoon size or less. Front lines and
enemy troop dispositions remained unchanged.
The most aggressive enemy action of the period occurred
on the western front when an enemy regiment attacked
United Nations Command positions in the Hungwang
vicinity. Although supported by artillery, the attacking
enemy elements were able to dislocate only one United
Nations Command forward position, which was imme-
diately restored by counter-action. Another relatively
large scale attack was attempted in the Kigong area when
an enemy battalion made several attempts to penetrate
United Nations Command positions. Despite the strong-
est artillery support of recent periods these enemy efforts
were totally ineffective.
The most prominent hostile action on the central and
eastern fronts occurred on 1 April in the Yulsa area. In
this action, the enemy employed a force greater than
battalion size in a persistent but fruitless effort to pene-
trate a one and half mile sector south of Yulsa. The
hostile units abandoned their efforts and withdrew after
two and half hours of heavy fighting. This thrust consti-
tuted the sole departure from^ the enemy's otherwise defen-
sive attitude on these fronts. Forward units, however, did
not hesitate to maintain generally effective resistance to
the numerous United Nations Command patrols which
continuously prodded hostile front-line positions. The
majority of these United Nations Command-initiated
patrol clashes were fought in the Talchon-Nulgu.ji area
of the eastern front. The hostile patrolling effort, which
failed to approximate that of United Nations Command
units, continued to consist of .sporadic probes against
United Nations Command positions during darkness by
small hostile units. In a number of instances these
enemy units failed to reach their ob.lective area as a
result of interception by United Nations Command patrols.
Hostile vehicle movement, Prisoner of War statements,
and other lesser indications attest to the enemy's effort
to improve the combat effectiveness of his units. From
these activities it is clear that he is prepared for a
continuation of hostilities. His manpower, equipment
and supplies are suifieient to launch a major offensive.
194
Department of State Bulletin
Nevertheless, the enemy's attitude at the close of the
periiKl i-omaiiied pi-iuianly defensive.
United Nations Command carrier-based aircraft
operated from the fast carriers in the Sea of Japan
against Communist transportation facilities and supply
routes In North Korea. Jet and conventional-type planes
concentrated their attacks on the vulnerable rail lines
alons the Korean east coast. Rail lines were cut in many
place.?; and Iwidues, by-passes and rail ears were de-
molished. Additional damage inflicted on enemy facili-
ties included the destruction of buildings, vehicles, trucks,
boats and sun positions.
United Nations Command Naval aircraft, operating
from carriers based in the Yellow Sea, furnished cover
and air support for the surface units on blockade patrols
and anti-invasion stations. They also flew reconnaissance
missions and offensive strikes as far north as Hanchon
and into the Chinnampo area, the Hwanghae Province,
along tlie north bank of the Han River and in close support
of the United Nations Command ground forces. Supply
buildings, ox carts, bridges, stacks of supplies, shipping
and gun positions were destroyed. Enemy casualties were
relatively high.
Patrol planes conducted daylight reconnaissance mis-
sions over the Sea of Japan and the Yellow Sea. They
also flew day and night patrols and weapon reconnais-
sance missions for surface units in the Japan and Yellow
Seas.
Surface units on the east coast furnished fire support
for United Nations Command ground forces. With sup-
port from shore fire control parties as well as from air
observers. United Nations Command vessels demolished
bunkers, buildings, artillery pieces and other equipment,
and troop shelters. They inflicted many casualties. On
one occasion, enemy artillery tire more than eighteen
miles inland was stopped as the result of Naval gunfire.
The Naval blockade continued along the east coast from
the line of contact to Chongjin with surface units mak-
ing day and night coastal patrols. Patrol vessels fired
on key rail targets along the coast daily, maintaining rail
cuts and blockading tunnels at several strategic points.
Vessels continued the siege of the major ports of Wonsan,
Hungnam and Songjin, conducting day and night bom-
bardment of enemy positions, transportation and indus-
trial facilities. The enemy was also denied the use of his
coa.stal waters for shipping and fishing.
Enemy shore batteries were active on eight different
days in the Wonsan area. In one instance a United Na-
tions Command vessel received one hit on the starboard
bow, suffering no personnel casualties and only insignifi-
cant material damage. Prompt counterbattery fite scored
hits on the offending gun. In another instance, an en-
gagement was fought between enemy shore batteries and
friendly surface craft. The battle began when mine-
sweeping vessels working inshore were taken under small
arms fire from Kalma Gak. United Nations Command
ships opened fire on these positions and were then taken
under fire by three enemy shore batteries. No hits were
scored on friendly ships although there were several near
misses. At Chongjin enemy batteries opened fire on a
minesweeper while she was checksweeping. Counter-
battery fire destroyed several gun positions and scored
hits on others.
On the west coast. United Nations Command surface
units manned anti-invasion stations along the coast from
Chiimampo to the Han River estuary, in support of the
friendly islands north of the battle line. During dark-
ness, enemy positions and invasion approaches were
illuminated and all signs of enemy activity were taken
under fire. Daylight bombardment of enemy positions
started many fires, inflicted casualties and destroyed troop
shelters and buildings.
United Nations Command minesweepers continued
operations to keep the channels, gunfire support areas and
anchorages free of mines of all types. Sweepers also en-
larged areas needed by the operating forces.
Ships of the amphibious forces. Naval auxiliary, Mili-
tary Sea Transport Service and merchant vessels under
contract provided personnel lift and logistics support for
the United Nations Naval, Air and ground forces in Japan
and Korea.
United Nations Command Air Forces continued their
attacks against the lines of communication in North Korea.
Selected segments of rail trackage on the principal routes
were destroyed by light bombers and fighter bomliers in
round-the-clock operations conducted to maintain con-
tinuous disruption of the lines. These attacks were aug-
mented by medium bomber strikes against key rail
bridges. These operations were successful in keeping
most of the enemy's major rail lines out of commission
for considerable periods of time. Sightings of enemy air-
craft in northwest Korea were slightly higher than pre-
viously reported. Twenty-five enemy aircraft were de-
.stroyed and twenty-eight damaged by United Nations
Command interceptor aircraft on counter air missions.
Fighter bombers, in continuation of the interdiction
program, cut the rail lines from Kunu-Ri to Huichon,
Sonchon to Sinanju, Pyongyang to Sinanju and in the
Sunchon area. On three occasions large concentrations
of fighter bombers attacked a limited stretch of track
during a twelve-hour period. The concentration of fighter
bombers on one target has resulted in a decrease in
friendly losses due to ground fire.
In addition to interdiction missions, the United Nations
Command fighter bombers flew in supix>rt of the United
Nations Command ground forces, destroying supply build-
ings, gun positions, and bunkers as well as inflicting troop
casualties.
As most of the airfields in North Korea remained un-
serviceable, the medium bomber effort was concentrated
on key rail bridges, with the bridges at Sinanju, Kwaksan,
Chongju and Shihungilong destroyed. Merlium bombers
also flew close support missions uuder control of ground
radar installations and night leaflet missions over troops
and civilians in North Korea.
A special mission of medium bombers attacked the
Kujangdong supply complex after reconnaissance re-
vealed a buildup of stock piles and anti-aircraft defenses
in the area.
Enemy air activity continued to be sporadic. Daily
sightings of MIG-15 aircraft varied from zero to 382. The
enemy pilots appeared reluctant to engage the United
Nations Command interceptors and often did not return
fire when attacked. The enemy continued to vary his
operations, with many aircraft reported as flying at low
altitudes. All engagements, however, took place at the
usual high altitudes. One enemy jet was observed in
the vicinity of Suwon and Kimpo conducting what was
believed to have been a reconnaissance mission. Tyiie-15
jet aircraft were observed periodically and two of these
aircraft were damaged in aerial combat. The pilots of
the type-15 aircraft were usually more aggressive than
the MIG-1.5 pilots. Suggesting that they may be from a
more highly trained unit.
Night intruder aircraft continued armed reconnaissance
of the main supply routes in enemy territory and assisted
the fighter bombers by attacking rail lines during the
hours of darkness. The timing of the attacks was
planned to disrupt repair work on cuts made during the
day.
Tactical reconnaissance aircraft maintained constant
coverage of key rail and highway crossings, other enemy
targets and flew photographic missions to determine the
status of markings on Prisoner of War camps. On 3
April, markings were discovered on the Prisoner of War
collection point at Yuhyon-Ni, and photographs taken on
6 and 8 April showed markings on camps number ten
and number eight.
United Nations assistance to Korea in economic rehabil-
itation is a major theme of current United Nations Com-
mand leaflets and radio broadcasts. These media are
publicizing the extensive non-military aid being given to
the Republic of Korea by individual member states of
the United Nations and the progress of the organized relief
August 4, 7952
195
and rehabilitation programs of the United Nations
agencies in Korea. The contrast between United Nations
action and Communist negligence in the field of public
health is receiving particular attention in all United
Nations Command media. In this manner, efforts are
being made to show the People of North Korea the real
reasons for Communist rejection of tiie International
Committee of the Red Cross and World Health Organiza-
tion offers of assistance in bringing disease conditions
under control.
The Unified Command Mission to arrange financial,
economic, and possibly other agreements with the Republic
of Korea arrived in Tokyo from Washington, 8 April
1952. The Chief of the Unified Command Mission is the
Honorable Clarence E. Meyer. The mission attended
briefings at General Headquarters, United Nations Com-
mand, In Tokyo and proceeded to Pusan 13 April 1952.
Crude Sulphur Allocation
The Sulphur Committee of the International
Materials Conference on July 18 announced the
allocation plan of crude sulphur for the last 6
months of 1962, unanimously accepted by its mem-
ber governments. The Committee has agreed that
half of the quantities set out in the table below ^
constitutes the allocation for the third quarter,
and the other half constitutes the allocation for
the fourth quarter, with the proviso that the Com-
mittee may review the allocation for the fourth
quarter.
Sixteen governments are represented on the
Sulphur Committee. They are Australia, Bel-
gium (representing Benelux), Brazil, Canada,
France, the Federal Republic of Germany, India,
Italy, Mexico, New Zealand, Norway, Sweden,
Switzerland, the Union of South Africa, the
United Kingdom, and the United States.
In 1950 and in the first half of 1951, before the
first of the Sulphur Committee's plans of inter-
national distribution, consumption exceeded pro-
duction by 7.8 percent and 8.3 percent, respectively.
This led to a serious reduction in world stocks.
Since July 1951, however, as a result of the Com-
mittee's allocations, consumption has virtually
been brought into line with production and the
severe drain on stocks halted. This, however, has
meant a reduction in consumption below the level
of demand. Production in the last half of 1952
is estimated at an annual rate of 6,400,000 long
tons, compared with 5,900,000 in 1950, and
6,140,000 in 1951. However, although production
in the last half of 1952 is expected to increase to
3,200,000 long tons, it still falls short of require-
ments which are estimated at 3,830,000 long tons.
The Committee agreed to make arrangements
whereby domestic users in the United States or in
other countries may purchase any sulphur allo-
' Not printed here ; see Imc press release of July 18.
cated to other countries participating in the Imc
and not used by any such participating country.
As on previous occasions, the Committee dealt
only with crude sulphur and did not allocate the
relatively small quantities of refined sulphur
which enter into international trade. The Com-
mittee expects, however, that trade in refined
sulphur will continue to follow the normal
pattern.
Conference on American Studies
Opens at Cambridge University
Press release 542 dated July 10
A 6-week Conference on American Studies was
officially opened on July 10 at Cambridge Univer-
sity under the auspices of the U. S. Educational
Commission in the United Kingdom. The 65
British professors taking part in this conference,
the first of its kind to be held in England, will be
welcomed by American Ambassador Walter S.
Gifford, and the American professors who are to
conduct the lecture series will be welcomed by
Lord Tedder, Chancellor of Cambridge Univer-
sity.
The American lecturers at the conference and
the subjects they will discuss are as follows :
J. B. Brebner, Columbia University — "The Atlantic Mi-
gration, 1607-1924"
H. S. Commager, Columbia University — "The Rise of
American Nationalism"
Merle Curti, University of Wisconsin — "The Development
of the American Democratic Idea"
Allan Nevins, Columbia University — "The United States
and Europe 1890-1952"
M. S. McDouf-'all, Yale University— "The Bill of Rights
and Civil Liberties"
Robert Horn, University of Chicago — "American Govern-
ment"
L. M. Hacker, Columbia University — "The Modern Ameri-
can Economy"
John Hazard, Columbia University — "American Develop-
ments in the English Common Law"
Alfred Kazin, The New School for Social Research — "The
American Tradition and the Minority Group 1880-
1952"
Other speakers will be Herbert Agar, author
and publicist, on "The United States Constitution
and Foreign Policy"; D. W. Brogan, professor of
political science at Cambridge University, on
"Materials for Research in American History and
Institutions in Great Britain"; Prof. H. G.
Nicholas of Oxford University, on "American and
British Elections: a Comparison."
A second session on American studies for 42
British high-school history teachers from the
United Kingdom will follow the conclusion of the
present conference.
196
Department of State Bulletin
Communiques Regarding Korea
to the Security Council
The Headquarters of the United Nations Com-
mand has transmitted communiques regarding
Korea to the Secretary-General of the United Na-
tions under the following United Nations docu-
ment numbers : S/2646, May 27 ; S/2647, May 28
S/2648, May 29; S/2651, June 2; S/2653, June 4
S/2654, June 4; S/2655, June 5; S/2656, June 6
S/2658, June 10; S/2659, June 11; S/2660, June
11; S/2661, June 12; S/2665, June 16; S/2666,
June 16; S/2668, June 18; S/2669, June 18;
S/2670, June 19; S/2676, June 24; S/2677, June
24; S/2678, June 24; S/2680, June 25; S/2681,
June 27; S/2682, June 27; S/2683, June 30;
S/2686, July 1; S/2691, July 7.
U. S. Delegations
to international Conferences
International Red Cross
On July 22 the Department of State announced
that the eighteenth conference of the Interna-
tional Red Cross will be held at Toronto, Canada,
from July 26 to August 7, 1952. The U.S. Gov-
ernment will be represented by a nonvoting
observer delegation constituted as follows:
Chairman
Charles Burton Marshall, Policy Planning Staff, Depart-
ment of State
Members
Thompson R. Buchanan, Division of Research for Eastern
Europe and the U.S.S.R., Department of State
Augustus Sabin Chase, Division of Research for Far East,
Department of State
Alice B. Correll, Division of Protective Services, Depart-
ment of State
Thomas J. Cory, Adviser on Security Council Affairs, U.S.
Mission to the U.N., New York
John B. Dwan, II, Maj., U.S.A., Department of Defense,
Washington
Clarence Hendershot, Office of the Assistant Secretary
for Public Affairs, Department of State
Robert J. G. McClurkin, Deputy Director, Office of North-
east Asian Affairs, Department of State
Edward V. Roberts, Office of the Assistant Secretary for
Public Affairs, Department of .State
Raymond T. Tingling, Assistant Legal Adviser for Euro-
pean Affairs, Department of State
Technical Secretary
Robert G. Efteland, Committee Secretariat Staff, Depart-
ment of State
The conferences in this series, customarily held
at 4-year intervals, are organized by the Interna-
tional Red Cross in collaboration with the League
of Red Cross Societies, an association of national
Red Cross organizations. Invitations to partici-
pate in the conference have been issued by the In-
ternational Red Cross to all national Red Cross
societies, to governments which are parties to Red
Cross conventions, to specialized agencies of the
United Nations, and to nongovernmental organi-
zations interested in the humanitarian activities
of the Red Cross. Since it is not expected that
any issues will arise at the Conference which would
require direct governmental action, a number of
the governments which have been invited will be
represented by observers.
Inter-American Commission of Women
The Department of State announced on July 22
that the U.S. delegation at the eighth general
assembly of the Inter-American Commission of
Women, to be held at Rio de Janeiro on July 23
to August 10, is as follows :
Delegate
Mary M. Cannon, Chief, International Division, Women's
Bureau, Department of Labor, and U.S. Delegate,
Inter-American Commission of Women
Alternate Delegate
Gladys Dorris Barber, c/o Counselor, U.S. Embassy, Lima,
Peru, and (Former Member, Governor's Commission
on Child Labor, Annapolis, Md.)
The Commission, which was created in 1928, is
an advisory body composed of representatives of
the governments of the 21 American Republics.
It works for the extension of civil, political, eco-
nomic, and social rights for the women of America,
making recommendations to the Organization of
American States (Oas) and to the governments
of the American Republics. The Commission co-
operates closely with other inter- American organ-
izations and with organizations of world-wide
scope which have similar objectives. The as-
sembly, which meets annually, held its seventh
session at Santiago, Chile, May-June, 1951.
At the forthcoming session, delegates will dis-
cuss the action taken on the work plan and the
resolutions approved at the assembly in Chile.
Items on the agenda include consideration of the
actual situation of women in the Americas in re-
gard to civil and political rights, further ratifica-
tion of inter-American conventions affecting
women, ways to encourage recognition of women
in public and professional life and in international
organizations, assurance of equal pay for equal
work for women, and cooperation with the U.N.
Commission on the Status of Women.
August 4, 1952
197
THE DEPARTMENT
Appointment of Officers
Robert F. Woodward as Chief of the Division of For-
eign Service Personnel, effective July 17.
Point Four Appointments
Omar B. Pancoast, Jr., as Director of Program Planning,
Technical Cooperation Administration, effective July 15.
William J. Hayes as Country Director for Afghanistan.
THE CONGRESS
Aid to Denmark To Continue
White House press release dated July 25
The President on July 25 sent the following
identical letters to Kenne.th McKellar^ Chairman,
Committee on Appropriations, United States
Senate; Richard B. Russell, Chairman, Com/mit-
tee on Armed Services, United States Senate;
Tom. Connolly, Chairman, Committee on Foreign
Relations, United States Senate; Clarence Can-
non, Chairman, Committee on Appropriations,
House of Representatives ; Carl Vinson, Chair-
man, Committee on Armed Services, House of
Representatives ; and James P. Richards, Chair-
man, Committee on Foreign Affairs, House of
Representatives :
Dear Mr. Chairman: On July 7, a Danish
shipbuilding firm delivered to the Soviet Union
a 13,000-ton petroleum tanker. Tankers of this
category have been listed by the Administrator of
the Mutual Defense Assistance Control Act as
items of "primary strategic significance". Under
Public Law 213, 82nd Congress, I am therefore
required to terminate all military, economic and
financial aid to Denmark or to direct the continua-
tion of such aid if termination would "clearly be
detrimental to the security of the United States".
I have considered tliis problem with great care
and Mr. W. Averell Harriman, the Administra-
tor of the Mutual Defense Assistance Control Act,
has gone into it exliaustively with all Government
agencies concerned, including the Departments of
State and Defen.se and the United States civil and
military chiefs in Europe.
The issues presented by this case go far beyond
the carrying capacity of an oil tanker and the
physical volume of United States aid to Den-
mark. They go to the very heart of our mutual
security program.
The United States Government is fully aware
that the community of free nations can realize
its potential strength only through common ac-
tions that have been agreed upon freely by equal
partners after democratic exchange of views.
Over the past several years, we, and the other Nato
countries have made important reductions in
strategic trade witli the Soviet bloc. The United
States has taken and will continue to take the lead
in seeking to prevent the shipment of any com-
modities that would add significantly to the mili-
tary strength of the Soviet Union and its satellites.
Denmark is a small nation that lives in the
shadow of a powerful and unfriendly power. It
has a long tradition of neutralism and has not, in
recent history, maintained substantial armed
forces. In 1949, the Danish people supported the
courageous decision of their government to enter
the North Atlantic Treaty Organization and join
together with the other western democracies in
common defense against the threat of Soviet
aggression. The Danish Government has collab-
orated consistently with the United States and
other free nations in the common effort to elimi-
nate from their trade with the Soviet bloc those
items that would contribute significantly to the
armed potential of the Soviet Union and its
satellites.
The Danish Government does not dispute the
strategic value of the tanker in question. How-
ever, the Danish Government has considered that
it was legally obligated to permit delivery of the
vessel. Delivery of the tanker was called for by
a trade agreement signed in 1948; and a firm con-
tract with a Danish shipbuilding firm was signed
in 1949, before the communist aggression in Korea
and long before the Battle Act was in existence.
The Danish Government has emphasized to the
United States Government that it traditionally has
maintained the sanctity of international commit-
ments and has pointed out the possible impact on
its relations with the Soviet bloc of a violation of
the trade treaty. The United States Government
recognized the strength of the Danish position in
this regard. In our own dealings with other na-
tions, we have consistently recognized the impor-
tance of honoring international commitments in
the belief that such a policy provides one of the
best means of securing a world peace.
The United States Government felt very
strongly, however, that the aggressive intentions i
of the Soviet Union, as revealed in the communist
attack on the Republic of Korea and tlie continua-
tion of the Kremlin's campaign of threat and
hatred against the free world, overrode the legal
considerations involved in the proposed transac-
tion. This view was forcefully presented to the
Danish Government, because we felt that the se-
curity interests of the United States and those of
Denmark were identical in these matters and
would be best served by non-delivery of the tanker.
The United States Government still holds this
view and deeply regrets the delivery.
The Battle Act directs me to consider whether
198
Department of Sfofe Bulletin
the termination of aid would "clearly be detri-
mental to the security of the United States." In
arriving at my decision, I have considered the
following factors:
1. By virtue of its geography, Denmark occu-
pies an important position in the strategic plans
formulated by Shape for the defense of western
Europe and therefore of the United States. It
commands the exit from the Baltic Sea to the
Atlantic Ocean and its participation is tlius essen-
tial to the success of any plan to keep the Soviet
submarine fleet from operating from the Baltic
in the event of war. In addition, Denmark exer-
cises political jurisdiction over Greenland, an im-
portant bridge between Noi'th America and the
European continent on which the United States
Air Force now maintains strategic bases, impor-
tant to the air and naval defense of North America.
2. Denmark is contributing directly to the de-
fense build-up of the Nato powers. A substantial
part of the ground forces assigned by Shape to
the northern flank of the European defense system
is being provided by Denmark, in addition to air
and naval units being contributed to the Nato
forces. Members of the Danish Government have
indicated recently that they are considering re-
vision of a long-standing policy against the pres-
ence of non-Danish forces on Danish territory in
order to make available to Nato forces certain
facilities which would contribute greatly to the
defensive strength of the Atlantic area. Danish
contributions to the common defense could not be
met without American assistance.
3. The Danes require certain vital imports,
notably coal and potash, from thn Soviet bloc.
The dependence of the Danes on imports from the
Soviet bloc is reduced substantially by American
aid. Without the aid, Denmark would be forced
to seek more of its imports from the Soviet bloc
and, in return, would have to make greater ex-
ports. The most effective export which Denmark
co'ild offer would be ships and ship repair services,
and Soviet bloc negotiators would be in a strong
position to bargain for increased deliveries of
tankers and other vessels. Termination of United
States aid would therefore result in a greater
rather than diminished flow of strategic goods and
services to the Soviet bloc.
4. For some years, the Danish Government has
cooperated consistently with the United States
and other free governments in the development of
collective programs to eliminate or curtail the
shipment of strategic commodities to Uie Soviet
Union and its satellites. The Danish Government
now operates a comprehensive system of export
controls and has again reassured the United States
Government of its intention to continue to collabo-
rate fully in international efforts to eliminate
strategic trade with the Soviet bloc. The delivery
of the tanker in question was not the result of any
laxity in the Danish system of controls but rather,
as pointed out above, was due to the fact that the
Danish Government regarded its delivery as re-
quired by legally binding commitments made prior
to the time these international efforts were insti-
tuted.
5. The security of the United States is squarely
based on the unity of the western world and the
continued strengthening of its joint institutions,
particularly the North Atlantic Treaty Organiza-
tion. It is a primary political and propaganda
objective of the communist bloc to weaken those
institutions and to drive a wedge between the dem-
ocratic allies which have joined together for their
common defense. There can be no question that
the termination of United States aid would weaken
the structure of Atlantic unity and thus serve the
ends of Soviet policy.
6. The Administrator of the Battle Act has
recommended to me that aid to Denmark be con-
tinued. His recommendation has been supported
by the Secretary of State; the Secretary of De-
fense ; General Ridgway ; the United States Spe-
cial Representative in Europe, Ambassador Dra-
per; the United States Ambassador to Denmark,
Mrs. Anderson ; and other interested Government
officials.
On the basis of these considerations, I have
concluded that to terminate aid to Denmark would
clearly be detrimental to the security of the United
States by weakening the defenses of Nato, con-
tributing to the strength of the Soviet Union, fos-
tering the political and propaganda objectives of
the communist bloc, and defeating the purposes
of the Battle Act. In conformity with Section
103 (b) of Public Law 213, 82nd Congress, I there-
fore have directed that military, economic and
financial aid to Denmark be continued.
As you will realize, many of the details of the
considerations involved in this matter are highly
classified. Representatives of the Executive
Branch will be pleased to discuss this matter fur-
ther with you and your Committee, if you so
desire.
Sincerely yours,
Harrt S. Truman
Mutual Security Provisions
of Supplemental Appropriation Act
Statement hy the President
White House press release dated July 15
[Excerpts]
I have today signed H.R. 8370, the Supple-
mental Appropriation Act of 1953. This is an
omnibus measure, appropriating funds for a great
many agencies.
In a number of ways, this act falls so far short
of what is required in the national interest that
I feel I cannot let it go without comment. For-
tunately, some of the most drastic and unwise
slashes proposed were averted by the Congress
August 4, 1952
199
before the act was finally passed. I have been
particularly gratified by the determined stand of
many Members of the Congress in the days before
adjournment, which saved the vital expansion of
our atomic energy facilities from disastrous cur-
tailment.
Nevertheless, the act contains a number of ap-
propriation cuts which will seriously hamper our
total defense effort. In particular, I am deeply
concerned by the slashes in funds for civil defense,
for anti-inflation controls, and for our Mutual
Security Program.
As for the Mutual Security Program, the Con-
gress has cut almost 25 percent from the program
which I recommended last February.'
The passage of the mutual security legislation
and the appropriations for it included in this
act are a reaffirmation of one of the cardinal points
of our foreign policy — the achievement of peace
through helping to build the collective strength
of the free world to resist aggi'ession from without
and subversion from within. I am gratified that
the Congress had the wisdom to reject many of the
crippling amendments which were proposed by
those who sought to clothe their all-out opposition
to this program with devious and specious devices
to destroy it. Nevertheless, it is clear that the
amount of this appropriation is inadequate and
was arrived at in an effort to present the American
people in an election year with the illusion of econ-
omy rather than with the reality of an adequate
collective defense.
Slashes in funds have been particularly severe
in the programs for Europe and for the Indian
subcontinent.
Our contributions toward building up the
forces of our North Atlantic Treaty partners are
but a small portion of the contributions made by
our allies, but ours is a critical portion. By vir-
tue of the cuts made by the Congress in the mili-
tary equipment program and in defense support,
the European forces will have less equipment and
consequently less fire power and less air cover.
As a result, our own forces in Europe become both
more vulnerable and less effective in the defense
tasks they might be called on to perform. I
think the American people should clearly under-
stand that every dollar which has been cut from
the amount requested represents a loss of much
more than a dollar's worth of strength for the free
world.
There has been an equally short-sighted reduc-
tion in funds available for the Point Four Pro-
gram in the new nations of South Asia, including
India, Pakistan, Burma, and Indonesia. The
original program recommended for this area
' The amount reeommenfled by the President was $7,-
900,000,000 ; the final amount appropriated by the Congress
was $6,001.047, 7.50. For text of the President's message,
see Bulletin of Mar. 17, 1952, p. 403.
amounted to 178 million dollars. The amount
finally appropriated was slightly over 67 million
dollars, or a slash of more than 60 percent. Simi-
lar slashes were made in our contribution for tech-
nical assistance through the United Nations.
This is an exceedingly dangerous thing for the
Congress to have done. Take India for example.
India, the largest democratic nation in all Asia,
is now engaged in a tremendous effort of her own
to build up her economy and living standards —
to show that democratic government and demo-
cratic methods can succeed in curing the poverty,
the hunger, and the misery that afflicts so much of
Asia. Every dollar of the aid recommended was
to back up the concrete and constructive efforts
that the Indians themselves are making. Upon
these efforts may well depend the whole future
course of freedom and democracy on the continent
of Asia.
The cut for these Asian countries is even more
cruel because it comes at a time when they are
facing severe economic strain — when even Paki-
stan, normally a country of grain surplus, is fac-
ing a grain shortage. The American people
should carefully note the strange fact that prom-
inent among the proponents of this cut were some
of the very individuals who have shouted loudest
that we are not doing enough in Asia.
The cuts in our Mutual Security Program have
allegedly been made in the name of economy. To
me, this is the falsest kind of economy. I am con-
vinced that such cuts will in the long run cost us
much more. I am equally convinced that the Con-
gress itself will eventually recognize the necessity
of making additional funds available during this
fiscal year to meet the needs of this program.
Current Legislation on Foreign Policy
Authorizing the Committee on the Judiciary To Conduct
a Study of the Problems of Certain Western European
Nations Created by the Flow of Escapees and Refu-
gees From Communist Tyranny. S. Rept. 1671, 82d
Cong., 2d sess. [To accompany S. Res. 326] 2 pp.
Change in Supplemental Estimates Relating to the Mu-
tual Security Program. H. doc. 512, 82d Cong., 2d sess.
Ip.
Loan of Certain Naval Vessels to Government of Japan.
H. rept. 2195, 82d Cong., 2d sess. [To accompany
H. R. 8222] 3 pp.
Providing for the Removal of Certain Discriminatory
Practices of Foreign Nations Against American-Flag
Vessels, and for Other Purposes. S. rept. 1752, 82d
Cong., 2d sess. [To accompany S. J. Res. 150] 4 pp.
Loan of Two Submarines to the Government of the
Netherlands. H. rept. 2184, 82d Cong., 2d sess. [To
accompany H. R. 7993] 3 pp.
Urgent Deficiency Appropriation Bill, 1952. S. rept. 1780,
82d Cong., 2d sess. [To accompany H. R. 7860] 9 pp.
Estimates of Appropriation To Carry Out the Purposes of
the Mutual Security Act of 1952. H. doc. 510, 82d
Cong., 2d sess. 5 pp.
Extending the Rubber Act of 1948 H. rept. 2168, 82d
Cong., 2d sess. [To accompany H. R. 6787] 4 pp.
Amending Section 3115 of the Revised Statutes. H. rept.
2174, 82d Cong., 2d sess. [To accompany H. R. 6245]
3 pp.
200
Deparlment of State Bulletin
An Agreement Regarding Status ot Forces of Parties of
the North Atlantic Treaty. Message From the Presi-
dent of the United States Transmitting a Certified
Copy of an Agreement Between the Parties to the
North Atlantic Treaty Regarding the Status of Their
Forces, Signed at London on June 19, 1951. S. exec.
T, 82d Cong., 2d sess. 19 pp.
An Agreement Relating to the Status of the North At-
lantic Treaty Organization. Message From the
President of the United States Transmitting a Certi-
fied Copy of an Agreement on the Status of the North
Atlantic Treaty Organization, National Representa-
tives and International Staff, Signed at Ottawa on
September 20, 1951, Together With a Signed Extract
From the Summary Record of a Meeting of the North
Atlantic Council Deputies Held on December 12, 1951,
Correcting Certain Errors in the French Text of That
Agreement. S. exec. U, 82d Cong., 2d sess. 15 pp.
An Act To assist in preventing aliens from entering or
remaining in the United States illegally. Pub. Law
283, 82d Cong., Chapter 108, 2d sess., S. 1851. 2 pp.
An Act Authorizing Vessels of Canadian Registry To
Transport Iron Ore Between United States Ports on
the Great Lakes During 1952. Pub. Law 409, 82d
Cong., Chap. 458, 2d sess., S. 2748. 1 p.
An Act To Extend the Rubber Act of 1948 (Pub. Law 469,
80th Cong.), as Amended, and for Other Purposes.
Pub. Law 404, 82d Cong., Chap. 453, 2d sess., H. R.
6787. 1 p.
Departments of State, .Justice, Commerce, and the Judici-
ary Appropriation Bill, 1953. S. Rept. 1807, 82d Cong.,
2d sess. [To accompany H. R. 7289] 29 pp.
Continuing Until Close of June 30, 1953, the Suspension
of Duties and Import Taxes on Metal Scrap. S.
Rept. 1830, 82d Cong., 2d sess. [To accompany H. R.
6845] 4 pp.
Providing Funds for the Acquisition and Maintenance
of a German Embassy by the Federal Republic of
Germany. S. Rept. 1977, 82d Cong., 2d sess. [To
accompany S. 2439] 3 pp.
Approving the Constitution of the Commonwealth of
Puerto Rico Which Was Adopted by the People of
Puerto Rico on March 3, 1952. H. Rept. 2350, 82d
Cong., 2d sess. [To accompany H. J. Res. 430] 3 pp.
Concerning Canadian Meeting of the Commonwealth
Parliamentary Association. S. Rept. 1985, 82d Cong.,
2d .sess. [To accompany S. Con. Res. 86 and S. Res.
341] 2 pp.
An Act To Amend the Mutual Security Act of 1951, and
for Other Purposes. Pub. Law 400, 82d Cong., Chap.
449, 2d sess., H. R. 7005. 11 pp.
Supplemental Appropriation Bill, 1953. H. Rept. 2316,
82d Cong., 2d sess. [To accompany H. R. 8370]
70 pp.
Importation of Wild-Bird Feathers. S. Rept. 1832, 82d
Cong., 2d sess. [To accompany H. R. 7594] 6 pp.
Immigration and Nationality Act. Message From the
President of the United States Returning Without
Approval the Bill (H. R. 5678) To Revise the Laws
Relating to Immigration and Nationality, and for
Other Purposes. H. doc. 520, 82d Cong., 2d sess.
101 pp.
An Act To Authorize the Establishment of Facilities Nec-
essary for the Detention of Aliens in the Administra-
tion and Enforcement of the Immigration Laws, and
for Other Purposes. Pub. Law 395, 82d Cong., Chap.
442, 2d sess., S. 1932. 1 p.
Elstate- and Income-Tax Conventions With Finland and
an Estate-Tax Convention With Switzerland. S.
Exec. Rept. 13, 82d Cong., 2d sess. [To accompany
Executive K, 82d Cong., 2d sess. ; Executive L, 82d
Cong., 2d sess. ; and Executive P, 82d Cong., 1st sess.]
3 pp.
The Prisoner of War Situation in Korea. Hearings Be-
fore a Subcommittee of the Committee on Appropria-
tions, House of Representatives, 82d Cong., 2d sess.
Committee print. 27 pp.
Statement of General Hudelson on Korea. Hearings Be-
fore a Subcommittee of the Committee on Appropria-
tions, House of Representatives, 82d Cong., 2d sess.
Committee print. 3 pp.
Communism in the Detroit Area — Part 2. Hearings Be-
fore the Committee on Un-American Activities,
House of Representatives, 82d Cong., 2d sess. Mar.
10, 11, 12, and Apr. 29 and 30, 1952. Committee
print. 312 pp.
Emergency Powers Continuation Act. Hearings Before
Subcommittee No. 4 of the Committee on the Judi-
ciary, House of Representatives, 82d Cong., 2d sess.
on H. J. Res. 386, To Continue in Effect Certain
Statutory Provisions for the Duration of the National
Emergency Proclaimed December 16, 1950, and 6
Months Thereafter, Notwithstanding the Termina-
tion of the Existing State of War. Feb. 27, 28, 29,
Mar. 6, 7, 12, 13, 21, 24, 26, 28, April 2, 7, 25, 28, 1952.
Serial No. 15. 622 pp.
Convention on Relations With the Federal Republic of
Germany and a Protocol to the North Atlantic Treaty.
Hearings Before the Committee on Foreign Relations,
United States Senate, 82d Cong., 2d sess. on Execu-
tive Q and R, a Convention on Relations With the
Federal Republic of Germany and a Protocol to the
North Atlantic Treaty and Related Documents. June
10, 11, 12, 13, 16, and 17, 1952. Committee print.
267 pp.
Departments of State, Justice, Commerce, and the Ju-
diciary Appropriations for 1953. Hearings before
the Subcommittee of the Committee on Appropria-
tions, United States Senate, 82d Cong., 2d sess. on
H. R. 7289. Committee print. 1828 pp.
Convention on Relations With the Federal Republic of
Germany and a Protocol to the North Atlantic Treaty.
Report of the Committee on Foreign Relations on
Executives Q and R, 82d Cong., 2d sess. S. Exec.
Rept. 16. 58 pp.
International Convention for the High Seas Fisheries of
the North Pacific Ocean With a Protocol Relating
Thereto. S. Exec. Rept. 15, 82d Cong., 2d sess. To
accompany Executive S, 82d Cong., 2d sess.] 7 pp.
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Agriculture: Cooperative Program in Honduras, Addi-
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Agreement between the United States and Honduras —
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Agreement between the United States and Finland —
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Sample Questions From the Foreign Service OfiBcer Ex-
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A pamphlet illustrating types of questions used in
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Agreement, with annex, between the United States
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5, 1047 ; entered into force Jan. 24, 1951.
General Agreement on Tariffs and Trade. Treaties and
Other International Acts Series 2300. Pub. 4431. 11 pp.
Protocol modifying article XXVI of the agreement
of Oct. .30, 1947 between the United States and Other
Governments — Dated at Annecy Aug. 13, 1949; en-
tered into force Mar. 2S, 19.50.
Agriculture, Cooperative Program in Peru. Treaties and
Other International Acts Series 2303. Pub. 4369. 5 pp.
50.
Supplementary agreement between the United States
and Pern — Signed at Lima June 7 and 15, 1951; en-
tered into force June 19, 1951.
Narcotic Drugs, International Control of Drugs Outside
the Scope of the Convention of July 13, 1951, as amended.
Treaties and Other International Acts Series 230S. Pub.
4389. 48 pp. 150.
Protocol between the United States and Other Gov-
ernments— Dated at Paris Nov. 19, 1948; entered
into force with respect to the United States Sept. 11,
1950.
Health and Sanitation, Cooperative Program in Honduras.
Treaties and Otiier International Acts Series 2323. Pub.
4420. 6 pp. 50.
Agreement between the United States and Hon-
dura.s— Signed at Tegucigalpa Sept. 21 and 28, 1950;
entered into force Sept. 28, 1950; operative retro-
actively from June 30, 1950.
Parcel Post. Treaties and Other International Acts
Series 2336. Pub. 4440. 37 pp. 150.
Agreement between the United States and Yugo-
slavia— Signed at Belgrade Aug. 14. 1950, and at
Washington Sept. 1, 1950 ; entered into force Jan. 1,
1950.
Census Mission to El Salvador. Treaties and Other In-
ternational Acts Series 2362. Pub. 4329. 5 pp. 50.
Agreement between the United States and El Salva-
dor— Signed at San Salvador July 23, 1951 ; entered
Into force July 23, 1951.
Health and Sanitation, Cooperative Program in Panama,
Additional Financial Contributions. Treaties and Other
International Acta Series 23G7. Pub. 4494. 4 pp. 50.
Agreement between the United States and Panama —
Signed at Panamii Aug. 14 and Nov. 8, 1951; entered
into force Nov. 8, 1951.
Charter of the Organization of American States. Trea-
ties and Other International Acts Series 2361. Pub.
4479. 95 pp. 250.
Signed at Bogota April 30, 1948; entered into force
December 13, 1951.
Education, Cooperative Program in Ecuador. Treaties
and Other International Acts Series 2363. Pub. 44S2.
4 pp. 50.
Agreement between the United States and Ecuador
supplementing agreement of September 15, 1950 —
Signed at Quito September 27, 1951; entered into
force September 27, 1951.
Health and Sanitation, Cooperative Program in Vene-
zuela, Additional Financial Contributions. Treaties and
Other International Acts Series 2378. Pub. 4505. 5 pp.
50.
Agreement between the United States and Venezuela —
Signed at Caracas September 24 and October 30,
1951 ; entered into force October 30, 1951.
Health and Sanitation, Cooperative Program in Nicara-
gua, Additional Financial Contributions. Treaties and
Other International Acts Series 2379. Pub. 4506. 4 pp.
50.
Agreement between the United States and Nicara-
gua— Signed at Managua October 23 and November
20, 1951; entered into force November 20, 1951.
Copyright. Treaties and Other International Acts Series
2382. Pub. 4510. 9 pp. 5«».
Agreement between the United States and Italy —
Signed at Washington December 12, 1951; entered
into force December 12, 1951.
Technical Cooperation. Treaties and Other International
Acts Series 2401. Pub. 4563. 8 pp. 50.
Agreement between the United States and Israel-
Signed at Hakirya (Tel Aviv) February 26, 1951;
entered into force February 26, 1951.
Security Treaty Between the United States and Japan.
Treaties and Other International Acts Series 2491. Pub.
4607. 14 pp. 50.
Signed at San Francisco September 8, 1951 ; entered
into force April 28, 1952.
Security Treaty Between the United States, Australia,
and New Zealand. Treaties and Other International Acts
Series 2493. Pub. 4608. 8 pp. 50.
Signed at San Francisco September 1, 1951; entered
into force April 29, 1952.
Check List of Department of State
Press Releases: July 21-26, 1952
Releases may be obtained from the Otfice of the
Special Assistant for Press Relations, Department
of State, Washington 25, D.C.
Press releases issued prior to July 21 which ap-
pear in this issue of the Bulletin are Nos. 540 of
July 9, 542 of July 10, .549 of July 14, 555 of July 15,
556 of July 15, 557 of July 16, 561 of July 18, 562 of
July 17, .563 of July 18, 566 of July 18, 567 of July 18,
and 569 of July 19.
No. Date Subject
*570 7/21 Colombia : Anniversary
*571 7/21 Belgium : Anniversary
t572 7/22 Radio Scientific Union
573 7/22 Commission of Women
574 7/22 Committee on voluntary foreign aid
575 7/22 Red Cross conference
576 7/22 Aide m^moire to Israel
*577 7/23 Newsman receives Iie award
*578 7/23 Exchange of persons
*579 7/24 Palmer: Retirement
580 7/24 Thorp: Economic policy
*.5S1 7/24 Ethiopia : Anniversary
5S2 7/24 Acheson : Prisoners of war
*.5S3 7/25 Scandinavia Dav at Seattle
*.584 7/25 Miller ; Geography consultation
*5S5 7/25 Opening of geography session
586 7/26 Bohlen: U.S. foreign policy
fHeld for a later issue of the Bulletin.
*Not printed.
202
Department of State Bulletin
'Field Reporter" To Tell
)f U. S. Activities Abroad
Field Reporter, newest publication of the De-
partment of State, makes its first appearance this
veek with the 40-page July-August number. De-
ligned to cover all the varied activities conducted
)y the United States in other countries, the new
nagazine will be published every second month.
Secretary Acheson has written a foreword to
he first number :
"This new magazine tells yon about some of the
)rob]ems of free people and would-be free people
•verywhere, and about how you, through your
jovernment and private organizations, are help-
ng them to work out solutions to their problems.
"Americans have always believed in helping
ithers. Our desire to help is stronger than ever
oday. As part of a united effort against hunger,
[isease, and ignorance, we are sending to all parts
if the world a growing number of skilled men and
vomen to work side by side with other peoples.
3ur technical missionaries,' as President Truman
las called them, are contributing valiantly to the
)eace and happiness of the world.
"This magazine tells you of their work, in pic-
ures and in their own words. I hope you will
ind it interesting and informative."
Howland H. Sargeant, Assistant Secretary of
state for Public Affairs, also comments on Field
Reporter:
"Hundreds of Americans are engaged in Point
^'our projects throughout the world ; many more
n this country and overseas participate in the De-
)artment of State's International Information
,nd Educational Exchange Program. It was felt
hat a new medium was needed to report on these
;reatly expanding phases of U. S. foreign policy.
"Many of the men and women to whose activi-
ies tliis magazine is devoted have exchanged a
afe, comfortable way of life for a difficult, often
lazardous, existence. Why are they willing to
aake this sacrifice? I think the reasons will be-
ome apparent to you as you read of the friends
hey are making for America — of the age-old
luman problems tliey are trying to conquer — and
if a rising spirit of hope the world over."
The front cover of the July-August number of
'^ieJd Reporter carries a photograph of a young
ndian girl balancing on her head a basket heaped
pith raw cotton. Inside, the first story is an ac-
ount by Ambassador Chester B. Bowles of his
ctivities in the Indian capital of New Delhi.
Emphasizing the cooperative programs sponsored
ly tlie Governments of India and the United
5tates, Mr. Bowles' article appears in the depart-
nent "From World Capitals."
Presented as companion pieces are stories from
Burma which show how two American women,
vorking in completely different fields, have suc-
ceeded in making friends for the United States.
Helen Hunerwadel, wife of a former county
demonstration agent from Tennessee, began by
sharing her homemaking skills with women in a
remote Burmese province and ended by establish-
ing a national canning industry. Zelma Graham,
a librarian at the U.S. Information Center in Ran-
goon, was able to assist in the framing of Burma's
new constitution by supplying Government lead-
ers with books about the U.S. Constitution.
In "Harnessing Lebanon's Litani River," Field
Reporter presents an account of a typical Point
Four engineering project, whose purpose is to plan
a "Tva" for Lebanon and thus increase that coun-
try's farming area and food supply.
A picture story contributed from the Philip-
pines shows how children in that country are bene-
Cover of the first issue
fiting from the skills brought back by Philippine
teachers and nurses trained in the U.S. under the
educational exchange program.
Field Reporter is the successor publication to the
Department of State Record, which began publi-
cation in 1945 to tell Americans about their coun-
try's international exchange programs — educa-
tional, cultural, scientific, and technical.
Subscriptions to Field Reporter, at $1.50 a year,
may be obtained by writing the Superintendent of
Documents, Washington 25, D. C. Sample copies
are available from the Division of Publications,
Department of State.
203
August 4, 1952 I
Africa
UNION OF SOUTH AFRICA: Tax conventions
and protocols enter into force 180
Agriculture
Greater stability forecast for world cotton trade
(Wall) 185
American Principles
Creating situations of strength (Bohlen) . . . 167
American Republics
Inter-American Commission of Women . . . 197
U.S.-Venezuelan trade agreement negotiations . 180
Asia
INDIA: U.S. private agencies supply aid . . . 182
KOREA:
Communiques to the Security Council . . . 197
Questions involving prisoners of war .... 171
Report of U.N. Command operations, 43d
report 194
NEAR EAST: Proposal to move Israel foreign
ofDce to Jerusalem 181
TURKEY: Termination of trade agreement with
U.S 179
Canada
Agreement with U.S. for allocation of TV
channels 180
Congress
Ciirrent legislation on foreign policy .... 200
Europe
DENMARK : Aid to continue to 198
GERMANY:
Peaceful unification Is U.S. objective ... 177
Resignation of John J. McCloy 178
U.S. -German educational exchange agree-
ment 179
U.K. : Conference on American Studies opens at
Cambridge University 196
U.S.S.R. : Questions involving prisoners of war . 171
Foreign Aid
U.S. private agencies supply aid to India . . . 182
Foreign Policy
The economic foundation of our foreign policy
(Thorp) 173
Foreign Service
Appointment of officers 198
Resignation of John J. McCloy 178
Human Rights
Questions involving prisoners of war in Korea . 171
Industry
The economic foundation of ova foreign policy
(Thorp) 173
International Information
U.S.-German educational exchange agreement . 179
U.S.S. CouTier sails for Island of Rhodes . . . 182
International Meetings
Calendar of meetings 183
Conference on American Studies opens at Cam-
bridge University 196
Crude sulphur allocation 196
Greater stability forecast for world cotton trade
(Wall) 185
U.S. DELEGATIONS:
Inter-American Commission of Women . . . 197
International Red Cross Conference .... 197
ndex Vol. XXVII, No. 684
Mutual Aid and Defense
Aid to Denmark to continue 198
Mutual security provisions of supplemental
appropriations act, statement by the Presi-
dent 199
Presidential Documents
PROCLAMATIONS :
Revocation of suspension of duties on zinc
and lead 180
Termination of U.S.-Turklsh trade agreement . 179
Publications
Field Reporter to tell of U.S. activities abroad . 204
Recent releases 201
State, Department of
Appointment of officers 198
Strategic Materials
Crude sulphur allocation 196
Greater stability forecast for world cotton trade
(Wall) 185
Taxation
U.S.-S. African tax conventions and protocols
enter into force 180
Technical Cooperation and Development
Point Four appointments 198
Telecommunications
Agreement with Canada for allocation of TV
channels 180
Trade
Revocation of duty suspension on zinc and lead . 180
UjS. -Venezuelan trade agreement negotiations . 180
Treaty Information
Agreement with Canada for allocation of TV
channels 180
Termination of U.S.-Turklsh trade agreement . 179
U.S.-German educational exchange agreement . 179
U.S.-S. African tax conventions and protocols
enter into force 180
U.S.-Venezuelan trade agreement negotiations . 180
United Nations
Relation between domestic and international
economic security (Lubin) 187
Report of U.N. Command operations In Korea,
43d report 194
SECURITY COUNCIL: Communiques re Korea . 197
Name Index
Acheson, Secretary 171
Bohlen, Charles E 167
Harrison, MaJ. Gen 172
Hayes, William J 198
Lubin, Isador 187
McCloy, John J 177, 178
Pancoast, Omar B 198
Thorp, Wlllard L 173
Truman, President 179, 180, 199
Wall, Eulalia 185
Woodward, Robert P 198
U. S. GOVERNMENT PRiNTINC OFFICE: I9BZ
^
"l^^B, / rj
tJrie/ ^e^a/^meni/ ,(w t/tate^
il. XXVII, No. 685
August 11, 1952
AUSTRIA APPEALS TO UNITED NATIONS MEMBERS
FOR SUPPORT IN RESTORATION OF SOVER-
EIGNTY AND ENDING OF OCCUPATION ... 221
THE ECONOMIC STRUCTURE OF PAN AMERI-
CANISM • by IT. Tapley Bennett, Jr 207
ECONOMIC FOUNDATIONS FOR LASTING PEACE:
President's Midyear Economic Report 225
Council of Economic Advisers' Midyear Economic
Review 227
PROPAGANDA AT THE RED CROSS CONFERENCE •
Statement by Charles B. Marshall 224
DEFENSE SITES NEGOTIATIONS BETWEEN THE
UNITED STATES AND PANAMA, 1936-1948 • 6y
Almon R. Wright 212
For index see back cover
^^«NT o*.
,. 3. SUPemNTENDENT OF DOCUMENTS
SEP 9-^9^^
iJ/i^
'le
^efia/ytinen^
^/mate bullGtin
Vol, XXVII, No. 685 • Publication 4676
August 11, 1952
For sale by the Superintendent of Documents
U.S. Government Printing Office
Washington 25, D.C.
Price:
62 issues, domestic $7.50, foreign $10.25
Single copy, 20 cents
Ttie printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1962).
Note: 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 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
selected press releases on foreign pol-
icy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the func-
tions of the Department, Informa-
tion is included concerning treaties-
and international agreements to
which the United States is or may-
become a party and treaties of gen~
eral international interest.
Publications of the Department, as
well as legislative material in the field
of international relations, are listed
currently.
The Economic Structure of Pan Americanism
hy W. Tapley Bennett, Jr.
Deputy Director, Office of South American, Affairs ^
In iindertakino; an assessment of the curi'ent
state of relations between the United States and
Latin America, it is perhaps well to reflect on that
maxim which is inscribed in Washington over the
entrance to tlie great building which houses the
National Archives of the United States : "The Past
is Prologue." For indeed, hemisphere relations
today, in addition to reflecting the changes that
have evolved in the normal course of historical de-
velopment, are in a particular sense the result of
conscious efforts and consistent policies which
have been carried out by the governments and
peoples of the 21 American Republics during the
last 20 or 25 years.
Let us then review briefly some of those efforts
and policies. It is perhaps also incumbent on us
to look at some of the developments which, like
Topsy, "just growed." Many people in our coun-
try do not as yet realize the full unplications of the
fundamental changes which have taken place in
recent years in the relationships of the United
States with its neighbors to the south.
For more than 100 years the attitude of the
United States toward Latin America was marked
by the unilateral concepts of the Monroe Doctrine.
In the early days of this century there was added
President Theodore Roosevelt's corollary, and
there were the years of the "Big Stick." Our at-
titudes reached a turning point in the years 1928
to 1936, when we abandoned intervention and
adopted the Good Neighbor Policy as our rule of
conduct in our relations with the other American
Republics.
First there were Ambassador Morrow's mission
to Mexico, Secretary of State Stimson's departure
from unilateral policies, and President Hoover's
preinauguration tour of South America. These
' Afklress made before the Hispanic American Institute
at Stanford University, Stanford, Calif., on July 29 and
released to the press (No. 592) on the same date.
steps, combined with the later and more extensive
programs of President Franklin D. Roosevelt,
Secretary Hull, and Sumner Welles, effected a
thorough-going revision of our methods of deal-
ing with Latin America and were characterized
by the relinquishment by the United States of
vested positions throughout the area and the
adoption of positive programs of cooperation.
In 1934 we abrogated the Piatt Amendment
which had given us the treaty-right to intervene
in Cuba. We withdrew from our military and
financial interventions in Nicaragua, Haiti, and
the Dominican Republic. We restated our rela-
tions with Panama in the treaty of 1936. At the
Habana conference, in 1928, the Montevideo con-
ference in 1933, and the Buenos Aires conference
in 1936 we voluntarily accepted without reserva-
tion the commitment of nonintervention in the in-
ternal affairs of other republics of the hemisphere.
We accepted the principle of sovereign juridical
equality of all the American States. These volun-
tai-y liquidations of long-held positions and our
acceptance of these principles went far to di-
minish Latin American distrust and dislike of the
United States. They opened the way for the
development of a hemispheric solidarity which
proved its worth in the searing oi'deal of World
War II.
Postwar Years of the Inter-American System
In the postwar years the further development
of the inter- American system, which now has more
than 60 years of existence, has proceeded apace.
In 1947 the Rio treaty, forerunner of the North
Atlantic pact, was signed to provide for the mili-
tary defense of the hemisphere and to prevent
aggression within the inter- American community.
In the brief lifetime of the Rio pact there has
already been strong and effective multilateral ac-
August 7 7, 7952
207
tion to keep the peace in three instances of serious
inter- American dispute.
In 1948, at Bogota, a charter for the Organiza-
tion of American States was adopted. This char-
ter may be regarded as the constitution of the
inter- American system. In 1951 the Foreign Min-
isters of the American States, meeting at Washing-
ton to consider problems raised by the menace of
aggressive international communism, set in motion
machinery to resolve economic problems arising
out of the preparedness program. The Ministers
also decided to base hemisi^here defense plans on
the principle of collective action and agreed that
forces should be developed for specific roles within
that concept. Those plans are now in the process
of implementation.^
The growth of political relationships and inter-
dependence among the American Republics has
been accompanied by similar developments in the
economic field. With the fastest growing popula-
tion of any area in the woild, the economic growth
of Latin America has been dramatically impres-
sive in recent years. While no exact figures on the
national incomes of the various countries are avail-
able, rough estimates indicate that the national in-
come of Latin America as a whole increased about
100 percent in the 6 years between 1943 and 1949.
In that period, Brazil's national income is esti-
mated to have increased from 2.5 billion dollars to
5.9 billion dollars, Chile's from 955 million dollais
to 2.3 billion dollars, and Mexico's from 2.1 to over
3 billion dollars. In Colombia, the expansion was
from 732 million dollars in 1943 to 1.5 billion dol-
lars in 1947, and other repulilics showed similar
increases. In many countries the rise in national
income has been accompanied by a sharp ex^jan-
sion in the volume and rate of domestic capital
formation.
These growth figures are reflected in the increase
in trade between the United States and Latin
America. In 1920, a year of economic prosperity
and inflated postwar prices, U.S. imports from
Latin America amounted to 1.8 billion dollars. By
1950 they reached 2.9 billion dollars and consti-
tuted about 35 percent of all U.S. imports from all
sources.
These 1950 imports were significant, not only for
their size but also because more than half of them
were strategic materials in which the United
States is in short sup]ily. Quite aside from its
production of sugar, coffee, and bananas, Latin
America is the source of 100 pei'cent of our imports
of vanadium ; more than 95 percent of our impoits
of quartz crystals and castor-bean oil; more than
80 percent of our imports of crude petroleum and
fuel oil, cordage sisal, and vegetal)le tannin mate-
rials ; more than 60 percent of antimony, cadmium,
and copper; more than 50 percent of beryl, bis-
muth, and lead ; and a significant part of our im-
ports of such products as chromite, manila fibers,
fluor spar, manganese, tin, wool, and zinc.
Venezuela, Chile, and Brazil are becoming in-
creasingly important suppliers of two of the basic
ingredients of our steel industry — iron ore and
manganese. The monumental report issued last
month by the President's Materials Policy Com-
mission, a distinguished committee of private citi-
zens headed by William S. Paley, president of the
Columbia Broadcasting System, makes it amply
clear that we shall be more, not less, dependent
in the future on these foreign sources of supply for
some of our most essential and vital needs.'
U.S. Economic Involvement in Latin America
The facts on U.S. exports to Latin America are
equally striking and emphasize the importance of
Latin America to this country's mamifacturers
and exporters. Wliile in 1930, Latin America ab-
sorbed only about 16 percent of our total exports,
in 1950 she took 27 percent of them. In 1950 the
countries of Latin America purchased about 2.7
billion dollars of U.S. goods. By comparison our
exports to Western Europe in the same year were
valued at 2.9 billion dollars, nearly 2 billion dol-
lars of which was financed out of Marshall Plan
funds. "Wliile some of this increase in trade with
Latin America is undoubtedly due to wartime dis-
locations and disruptions in other exporting na-
tions, much of it is due to changes in Latin Amer-
ican demand, brought on by industrialization and
increased purchasing power there. These facts
]irovide striking evidence of the importance of
industrial development in Latin America to our
foreign trade. Latin America in 1950 absorbed
about 44 percent of our total exports of automo-
biles, 40 percent of our exports of textile manu-
factures, 40 percent of our exports of iron and
steel advanced manufactures, 38 percent of our ex-
ports of chemicals, and 30 percent of our exports
of machinery.
Nor should we overlook the fact that Latin
America is extremely important as a field for U.S.
foreign investment. Dollar investments have
flowed to Latin America since the war at an un-
precedented rate, and at the end of 1950 our direct
jirivate investments in the area were about 6 bil-
lion dollars. Except for Canada, this amount rep-
resents something over half of the total of all U.S.
private investment abroad. The scope of this eco-
nomic involvement in Latin America takes on an
added impressiveness when we consider the fact
that the population of the 20 Republics of Latin
America represents less than 7 percent of the pojDU-
lation of the world, it having recently, like the
United States, passed the 150 million mark.
This tremendous economic growth of Latin
° For information on tliis meeting, see Butj-etin of Apr.
9, 1951, pp. 566-575 and ibid., Apr. 16, 1951, pp. 606-618.
208
^ For a summary of the Commission's report, see iUd.,
July 14, 1952, p. 55.
Deparfmenf of Sfofe BuUefin
America in recent years has differed from our own
development. In contrast to the steady growtli
of the industrial structure in this country since the
early days of the Republic, there have been sudden
and radical changes in the past two decades in
Latin America after a more or less static economic
structure of long duration. The old agricultural
and real estate economy has suddenly felt the im-
pact of a surging industrial development. This
surge is not something that has been decided on
and imposed from above — it has come about by
popular demand. As in other parts of the world,
the masses of the people of Latin America are no
longer apathetically resigned to lives of grinding
poverty, disease, and ignorance. They want more
of the good things of life for themselves and
greater op])ortunities for their children. Their
determination for a gi'eater sharejn the benefits
of modern society has brought powerful pressures
in every country. There is genuine social ferment
throughout the region. Governments have become
increasingly responsive to the will of the ]>eople
and universally show a preoccupation with im-
proving the lot of the common man through eco-
nomic and social development that was unknown
two decades ago in many countries. This concern
for tlie public welfare and these plans for eco-
nomic expansion assume crucial importance when
one recognizes that perhaps the most critical prob-
lem for Latin American countries in the decades
immediately ahead is whether living standards
and social improvements will go forward fast
enough to keep discontent from erupting into ex-
tremist excesses or from being made use of by
international communism for its own ruthless and
imperialistic ends.
Operating Arms of U.S. Cooperative Policy
Chile
The United States is assisting in these efforts
toward economic and social development. In ad-
dition to the significant contributions of private
enterprise mentioned above, a cardinal point of
our foreign policy toward Latin America in the
past decade has been our participation in a pro-
gram of wholehearted cooperation with the other
American Republics to improve living standards
by increasing production, bettering educational
and health conditions, and diversifying economies.
Improvement in these fields means stronger and
more confident friends and practical and profitable
economic relations between us.
The technical cooperation programs of our In-
stitute of Inter-American Affairs in the fields of
health, education, and agriculture were already 7
years old in Latin America when the Point Four
Program was announced on a world-wide basis in
1949. The loan programs of the Export-Import
Bank were begun in 1939 for the financing of in-
dustrial activities, transportation needs, high-
ways, and other vital aspects of national develop-
ment. The World Bank has been operating since
the war. Other activities have been carried on
for many years in Latin America at the grass-roots
level by such Government agencies as our Public
Health Service and the Department of Agricul-
ture. These are the principal operating arms of
our policy of cooperation. I sliould like now to
discuss some specific examples and results of our
program of helping others to help themselves in
this hemisphere.
One of the most interesting programs is in
Chile; it has been planned by the extremely well-
organized Chilean Development Corporation, an
autonomous Government entity established for the
specific purpose indicated in its name. The larg-
est single loan to Chile by our Export-Import
Bank — one of 58 million dollars — was for the con-
struction of a steel mill near Concepcion, the cur-
rent production of which is about 300.000 tons of
steel ingots per year. It has not only provided
Chile with a nucleus around which a cluster of
other industries is growing up but it has also pro-
duced an exportable surplus which helps Chile to
balance her trade with neighboring countries. It
also saves Chile about 15 million dollars a year in
foreign exchange. Other loans were used for a
rayon and staple fiber plant which has helped
Chile build up its textile industry, a copper wire
and fabricating plant, a tire plant, a cement plant,
a ferro-manganese plant, and substantial loans for
agricultural machinery to clear new arable acreage
and mechanize Chilean agi'iculture.
The World Bank has granted an initial credit
for the location of ground water resources of the
Rio Elqni Valley where the crop of over 50,000
acres fails 1 out of every 3 years for lack of
water. The U.S. Bureau of Reclamation has as-
signed technicians to assist in this pilot project,
which, if successful, will be extended and will
relieve food shortages in the arid northern part
of the country where there is mined the nitrate
so important to our own agriculture.
One of the most valuable projects is the help
being extended to Endesa, the Development Corpo-
ration's electric power affiliate, to which substan-
tial loans have been granted by both the Export-
Import Bank and the World Bank for increasing
the generation of electric power for industrial
production, rural electrification, and home con-
sumption. As a result of cooperation between
the Chilean Government, U.S. private capital, and
the two Banks, the Santiago-Valparaiso region
tripled its consumption of electric power between
1936 and 1951, with additional expansion now
under way. When Endesa's present program
with foreign aid is completed, consumption
thi'oughout Chile will have been increased by
1958 to six times the level of 1944 when the first
Export-Import Bank loan was made for the hy-
Augusf 7 7, 7952
209
droelectric plant whicli supplies the steel mill at
Concepcion.
With the encouragement, and assistance when
necessary, of the U.S. Government, U.S. private
capital has invested more than half a billion dol-
lars in basic Chilean industries, producing more
than 400,000 tons of copper per year and over a
million tons of nitrate of soda, the two chief
sources of dollar income for the country. In addi-
tion, U.S. firms engage in many other activities
which increase the national wealth and provide
employment.
The United States has been cooperating with
Chile since 1943 in the improvement of health
and sanitation standards. Assistance has been
provided in the construction of sewerage and
water supply systems, hospitals and sanitoriums,
and health centers. These projects have helped
Chile to establish an excellent public health system.
Cooperation is now going on in the field of agricul-
ture to help expand food production, improve the
quality of crops, and eliminate dietary deficiencies.
These activities are supplemented by hundreds of
grants under which Chileans are brought to this
country for training and which will, in the long
run, increase technical efficiency and improve liv-
ing standards.
Brazil
In Brazil, the most important development in
our program of cooperation was the establish-
ment last July of the Joint Commission for Eco-
nomic Development.* This Commission was the
first of its kind and represented a new departure
in economic cooperation between sovereign pow-
ers. Brazil and the United States each have
named to this body, which sits in Kio, a commis-
sioner, and there are subcommissions on technical
aid, power, agi'iculture, mining, transportation,
industry, and other functional aspects of Brazil's
economic life. Our principal contribution is the
furnishing of technicians.
The purpose of the binational Commission,
which is strictly an action body, is, briefly, to draft
an economic development program for Brazil and
to help channel the tremendous economic poten-
tial of tliat great country, which is larger than
the United States by another Texas, along sound
and productive lines. Concrete results of the
Commission's planning in the fields of electric
energy and railroad rehabilitation — absolutely
vital to Brazilian develoj^ment — were apparent in
the granting of 100 million dollars of loans, prin-
cipally from the World Bank, to Brazil in June.
The outstanding example of our Export-Import
Bank loan assistance is the Volta Redonda steel
mill, which today has a capacity of 450,000 tons
of steel ingots. This capacity is to be increased
* For announcempnt of agreement establishing this
Commission, see ibid., Jan. 1, 1951, p. 25; formal installa-
tion of the agreemcDt occnrred on July 10, 1951.
to about 680,000 tons with the proceeds of an addi-
tional loan made last year. These loans bring the
total of financial assistance to Brazil from the two
Banks to 425 million dollars. Other programs of
U.S. technical assistance have been under way for
more than 10 years in Brazil in the fields of agri-
culture, health and sanitation, the exchange of
students, et cetera.
Ecuador and Venezuela
In Ecuador, Export-Import Bank loans have
been applied to waterworks projects in the capital
and other cities, improvements on commercial air-
ports, modern machinery for rice growing and
food production, and highway equipment and
rolling stock for the railroad which connects the
capital with the coast. The cooperative agricul-
tural experiment stations, jointly financed by
Ecuador and the United States, are centers of in-
vestigation and extension work. Exjjerimental
campaigns against tuberculosis and other diseases
have been started in Ecuador that may well set the
pattern for similar work elsewhere in the world.
One of the most spectacular countries of the
area is Venezuela, which is second only to the
United States in oil production and has now re-
placed the United States as the world's leading
exporter of that absolutely vital iiroduct. At the
Bolivar coastal field alone on Lake Maracaibo,
4,000 wells in one concentrated area bring every-
day iuto world commerce over 700,000 barrels of
crude oil — more than the entire maximum produc-
tion of Iran. The total Venezuelan production
from all fields is at a rate of 1,700,000 barrels per
day and could be readily expanded if the country
so desired.
In Venezuela is offered a peculiarly fine example
of the role which private enterprise can play in
the development of a country. The economic co-
operation involved in the utilization of Vene-
zuela's incredibly rich natural resources, with the
aid of private investment capital and technical
know-how from the United States, has brought
about an almost unparalleled record of economic
and social advancement. In contributing to this
development, U.S. businessmen have invested 2.5
billion dollars in Venezuela, a larger figure than
in any other foreign country except Canada.
It has been Venezuela's policy to welcome the
investment of foreign capital on a mutually ad-
vantageous basis. The worldng relationship be-
tween the Venezuelan Government and the foreign
oil companies — based on a 50-50 tax formula — is
an example for the world and offers a record of
great benefit to both parties.
Venezuela has made use of its mounting oil in-
come to build roads, hospitals, and other public
works, and to promote agricultural development,
education, and public health projects. The people
are receiving the benefit of the country's incalcu-
lable resources.
The report of the President's Materials Policy
210
Department of State Bulletin
Commission, in paying tribute to Venezuela's
enliglitened development program, concluded.
The Venezuelan case, accordingly, illustrates one point
of overriding importance and significance. The social
benefits — the rising standard of living, the industrial
growth, the improvement of agriculture, education, and
public health — have not stemmed automatically from the
vast income that oil operations have produced. These
benefits have come from the will to spend this income in
socially valuable ways. The Venezuelan Government, in
its determination to "sow the petroleum", and the Vene-
zuelan ijeople in supporting this policy have set a worthy
example for all others and have set the most persuasive
example of all — success.
Peru and Colombia
Our program of technical cooperation in Peru
is one of our oldest and most successful ; it is ver-
itably a model program which is pointed to with
great pride by Peruvians and Americans alike.
In the field of agriculture, programs cover re-
search throughout the Peruvian Amazon Basin,
operation of an extension service, insect and pest
control campaigns, farm irrigation, soil conserva-
tion, livestock demonstration and breeding farms,
oj^eration of a machinery pool, and so on. The
health, welfare, and housing programs include
operation of health centers, hospitals, dispensaries
and posts in the jungle, an industrial hygiene
program, yellow fever control, nutrition program,
and vital statistics assistance. The effects of the
cooperative ecUication program are nation-wide.
In addition, Peruvian technicians are coming
to the United States in large numbers to receive
specialized training which will equip them for
more responsible positions on their return to Peru.
It is perhaps worthy of note here that Peru itself
bears the largest part of the expense of this pro-
gram of technical cooperation, as do other coun-
tries which participate in this type of program.
Peru contributes at a rate greater than 3 to 1 to
the amount of the United States share.
This enlightened self-interest on the part of
Peru is also evident in the economic and financial
reforms which have been instituted in the past
few years. The new Peruvian mining code and a
recently promulgated petroleum law have been
widely acclaimed as just and reasonable legisla-
tion, both to insure the protection of Peru's re-
sources for the welfare of Peru's people and to
attract the huge amounts of investment capital
necessary to finance such development. The elimi-
nation of import restrictions and virtual abolition
of all exchange controls have proved highly bene-
ficial to the national economy.
In that connection, I should like to take this
opportunity to pay tribute here in Palo Alto to
the work of Julius Klein, former Assistant Secre-
tary of Commerce, who for several years has
headed the Klein Mission in Peru. A wise coun-
selor and helpful friend to Peru, Mr. Klein is an
example of the citizens of this country of highest
caliber who are taking part in cooperative en-
deavors with the governments of Latin America.
One of the best examples of a comprehensive
and integrated program for nation-wide develop-
ment is offered in the case of Colombia. In
1949-50 the World Bank sponsored the Currie Eco-
nomic Mission to Colombia to formulate a develop-
ment progi-am. The analyses and recommenda-
tions of this mission covered all phases of national
develojDment — agriculture, industry, transporta-
tion, power, public health, housing, public finance,
and fiscal jjolicy, etc., and led to the establish-
ment by the Government of Colombia of an Eco-
nomic Development Commission. That Commis-
sion is now operating actively and effectively in
implementation of the proposed program, most of
which is planned for execution over the 5-year
period, 1961-55.
An important contribution to the physical and
social betterment of Colombia by our technical-
assistance program is the national school of nurs-
ing, established in 1943 with the collaboration of
the Rockefeller Foundation, and now considered
one of the best in all Latin America. An interest-
ing example of the self-help nature of the Point
Four Program is that at the beginning of the co-
operative health and sanitation program in 1942
in Colombia, the United States bore 63 percent of
its cost whereas our share of the cost is now only
10 percent.
Nationalistic Pressures in Latin America
The social discontent and ferment mentioned
earlier in these remarks as characteristic of Latin
American life today often result in pressures
which directly affect the orderly and sound de-
velopment of national economies. In this con-
nection, it is undenialile that the siren song of
extreme nationalism, as distinguished from the
love of one's homeland by the true patriot, exerts
potent influence in Latin America today. In the
unsettled social conditions of today this type of
nationalism has in many cases become interwoven
with the urge for social and economic betterment,
and its adherents associate the former dominance
of foreign companies with the period of static
economic life. It is but a short step to the charge
that all foreign investment comes bitt to exploit
and that the country's riches must be guarded at
all costs against the "colonial-minded" foreigner —
even at the cost of not having them developed at
all. This doctrine is attractive for demagogic
purposes; it also offers an excellent opportunity
for the Communists to combine with extreme
nationalists to exploit and organize nationalistic
aspirations into political pressures. The tragedy
of extreme nationalism is that its practices close
the door to outside help through unrealistic laws
and retard the very economic development which
it professes to promote. Naturally, such happen-
ings do not bring unhapiDiness to the Communists
and often serve their disruptive ends.
August 71, 1952
211
In approaching the subject of economic develop-
ment we have consistently stressed to our Latin
American friends that the rate of their economic
growth must depend primarily on their own
efforts. Our Secretary of State has aptly re-
marked that U.S. assistance can only be effective
when it is the one missing component of a situation
otherwise favorable to economic and political
progress. In sum. if tlie Latin American coun-
tries have the will to adopt the necessary internal
measures and to create a favorable climate for
investment, then the United States is ready to
extend desired assistance in economic development.
For the United States alone cannot and should
not determine the state of relations between it and
another country. It takes two to make relations.
Cooperation should beget cooperation, and there
is no substitute for nuitual understanding and
mutual respect. Good relations are a joint respon-
sibility and there is recipi'ocity in obligations.
I have discussed in some detail this evening the
various aspects, both public and private, of this
country's cooperation programs with our neigh-
bors in the other American Republics. I have dis-
cussed these programs in a desire to emjAasize
their permanent and continuing nature, in con-
trast to the emergency nature of many of our activ-
ities in Asia and Europe which are necessarily di-
rected against immediate and specific threats to
our national security and, incidentally, to the secu-
rity of Latin America. I have sought to show
that, notwithstanding the clear and j^resent dan-
gers on the farther international horizons, our
peaceful cooperation toward a better life in this
hemispliere has not been merely maintained but
gi'eatly increased and intensified in recent years.
And I would urge on those who tend to take a pes-
simistic view of the present a sense of historical
perspective. George Kennan, our Ambassador to
Moscow, has cautioned that there is in the field
of foreign affairs generally a great time lag be-
tween cause and effect in major developments. In
almost any direction, we may look back in Latin
America no fai'tlier than 20 or 25 years and com-
pare those times with today to note the great
strides made and the genuine improvement in the
relations between the United States and the other
republics with which we share this hemisphere.
Let us continue to build and strengthen this
great structure of pan-Americanism on which such
labor and devotion has been lavished through the
years since Simon Bolivar dreamed his dream.
Let us go forward in connnunity of spirit and
unity of purpose.
Defense Sites Negotiations Between the United States
and Panama, 1936-1948
hy Almon R. Wright
In the autumn of 1933 the President of Panama,
Harmodio Ai-ias, arrived in Washington to lay
before President Franklin D. Eoosevelt an outline
of grievances and a list of remedial measures that
would l>ring prosperity to Panama. President
Roosevelt agreed to consider what could be done
for the Isthmian Republic.
Tlie Panamanian President formulated his
agenda in 21 points based upon the principle of
administering the Canal Zone for the purpose of
operating and protecting the Canal. Upon the
foundation of this formula and of other principles,
diplomats of the two countries began negotiations
culminating in a series of conventions, signed on
March 2, 1936,^ which considerably altered the re-
lations established by the original convention of
1903.
^ For summaries of these conventions, see Buu.etin of
July 29, 1939, pp. 83-80 and 89.
A bilateral approach to problems concerning
the Canal displaced many of the older grants of
one party to the other. Thus the United States
renounced its obligation to guarantee the inde-
pendence of Panama. It i-elinquished F'anama's
grant, made in perpetuity, of the
use, occupation, and control of lands and waters in addi-
tion to tliose already under the jurisdiction of the United
States of America outside of the zone . . . which may
be necessary and convenient for the construction, main-
tenance, operation, sanitation, and protection of the
Panama Canal or . . . other works.
On the other hand, Panama joined the United
States as a partner to insure to both countries and
to all the world the benefits of the Canal. In the
e\ent of an unforeseen contingency, the two coun-
tries were to consult together and agree upon such
measures as might be necessary to protect it.
Some Washington officials feared that these
212
Deparfmenf of Sfafe Bulletin
renunciations withdrew from the United States
the autliority necessary to maintain and protect
tlie oreat water highway. Tlie need lor addi-
tional lands and waters, however, appeared remote
in 1036, for statistics indicated that the capacity of
the locks and of the water supply was by no means
bein<j entirely used. Moreover, the new agree-
ment did not annul the provision of the 1903 con-
vention wliich permitted the use of lakes and
rivers for purposes of water power, navigation, or
water supply. Some apprehensions also existed
that in a sudden emergency the United States
might find its hands tied by the necessity of obtain-
ing Panama's consent for military measures. Of-
ficials of the Department of State felt that Pana-
ma had already given consent for such measures
when it obligated itself to cooperate to protect
the Canal. To allay any fears on this matter,
representatives of the two countries expressed
their understanding, in notes exchanged in 1939,
that the United States need not await the results
of consultation if a military emergency arose.
In two other renunciations, the United States in-
dicated its confidence in the staliility and coopera-
tive spirit of the Panamanian Government. The
right to intervene in the cities of Colon and Pan-
ama and their surrounding territories to jjreserve
order rested, according to the terms of the 1903
convention, upon the unilateral judgment of the
American authorities. This prerogative now
seemed unnecessary, and a renunciation of it ac-
corded with the Convention on Rights and Duties
of States adopted at the Conference of American
States in 1933. Among the provisions of that
agreement, which was endorsed by the U. S. dele-
gation, was the following : "No state has the right
to intervene in the internal or external affairs of
another."
Upon the basis of Panamanian cooperation
rested the willingness of the American negotiators
to yield the right, conferred by the first conven-
tion, of acquiring property from individuals
through the exercise of eminent domain. It was
believed that, should the owners refuse to sell
property, Panama was under obligation to obtain
it tlu'ough this method. Thus, from the formula
that President Arias advanced in 1933, that the
Canal Zone should be administered primarily to
operate and protect the Canal, evolved the renunci-
ations of the 1936 convention : namely, the right
to acquire lands and waters outside of the Zone, the
guaranty of Panamanian independence, the right
to intervene to preserve order in Colon and Pan-
ama City, and the use of eminent domain to ac-
quire property.
The General Convention of 1936 was supple-
mented by two special conventions dealing with
radio, since Panama was dissatisfied with the uni-
latei'al character of the existing controls. The
1936 agreement substituted cooperative arrange-
ments in the assignment of wave frequencies and
in licensing radio stations, operators, and imports
of certain essential equipment. The United States
was to continue to handle communications involv-
ing the operation and defense of the Canal, but it
agreed to a joint control, through the Radio Boards
of each country, when the security of the Republic
or of the Canal Zone was threatened. The trans-
fer of the two Navy radio stations was provided in
the second of these two special conventions.
The bilateral approach was also apparent in the
fourth of the conventions signed in 1936. Ac-
cording to its terms, which were subjected to much
modification subsequently, a new highway was to
be built across the Isthmus. A large part of it was
to lie outside the Canal Zone and was to be con-
structed by the United States at Panama's expense.
Progress of the Conventions in the U.S. Senate
After the four conventions were signed, they
were submitted to the Panamanian Assembly and
the U. S. Senate for consideration. A decade
earlier the latter had approved a new treaty only
to have it rejected by the Assembly. This time,
the Panamanian legislative body indicated its
approval promptly and the Senate of the United
States deliberated at much greater length. The
Committee on Foreign Relations conducted ex-
tensive hearings, particularly on the effect of the
agreement on the Canal defenses. The War and
Navy Departments had reservations about the
provisions that abrogated the right of the United
States to maintain order, that appeared to in-
fringe upon the supplying of the Armed Forces,
and that restricted the facility in obtaining addi-
tional land and water rights and in exercising
control over them. The committee satisfied it-
self, however, that the agreements would not im-
pair the power to defend the Canal and recom-
mended them.
The Senate consented to the ratification of the
General Convention and the convention on high-
way building in August 1939, less than a month
before war came to Europe. It failed to approve
the agreement on radio control. The agreement
on the transfer of the two radio stations was not
ratified by the President.
In 1940 and 1941, reports of the activities of a
Nazi clique in Panama and the possibility of attack
by large numbers of aircraft led the United States
to seek new defensive positions from which an
attack on the Canal might be defeated. In the
first phase of the war, the Germans employed two
methods of warfare which had an important bear-
ing upon the defense of the Canal. The first was
the use of "fifth columns" to weaken or even bring
realignment of policy within a country ; the second
was the commitment of masses of airplanes to
deliver, at the outset of war, knockout blows
against enemy air strength and strategic points.
The fear of a "fifth column" was intensified
August 71, 7952
213
after a new administration took office in Panama
in June 1940. Among the official associates of
President Arnulfo Arias (brother of ex-President
Hai-modio Arias) were a number of individuals
who were reported to be sympathetic with the
Nazi cause. The administration's treatment of
the Panamanian press led to further speculation
and suspicion. The pro-Allied editor of one
newspaper was deported; a columnist critical
of dictators was dismissed from the staff of an-
other. A third ]iaper, openh' pro-Nazi, was
reportedly printed by the pi'esses of the admin-
istration party. The official position of the ad-
ministration was proclaimed as one of neutrality,
but the local Axis legations were said to control
the handling of mail. When the anti-Jewish
policy was in full swing in Germany, there was an
increase in the German population of the Isthmus
which could not be attributed entirely to an influx
of refugees. German and Italian nationals were
able to obtain provisional naturalization with ease,
ancl they enjoyed the protection of citizenship
while under no obligation to complete the natural-
izing process.
U.S. Invokes Provisions of 1936 Convention
In view of this situation, the United States
found it necessary to request of Panama the co-
operation in defending the Canal which was stipu-
lated in the convention of 1936. The threat of air
attack required new lands in Panama for the
defense of the Canal, in addition to those already
in the hands of the United States.
A large tract, the Rio Hato area, had previously
been leased by the American Army fi-om a private
agricultural firm and a large air base was being
built there when, in October 1940, Ambassador
William Dawson initiated negotiations to take
over 71 additional defense sites. These sites fell
into five categories, of which four were directly
concerned with air warfare and the fifth with
highway connections among the other four. In
the first group were the emergency landing fields —
temporary runways that could be maintained by
civilian labor. The second group consisted of
auxiliary landing fields manned by small groups
of military personnel and provided with readily
expansible equipment. Mechanical aircraft- warn-
ing stations at points somewhat more distant from
the Canal Zone made up the third group of defense
sites. The fourth group of sites, comprising
nearly half of the area desired, were small plots
of ground for searchlights.
Ambassador Dawson's presentation of the prob-
lem early in November 1940 was not favorably
received. President Arias pointed out that the
establishment of many dispersed sites would
create military objectives throughout the Republic
subject to bombardment by an enemy. The con-
necting of the sites by military highways would
not be a blessing, he asserted, for these would
multiply the problems of controlling smuggling.
He suggested that the leases extend only for the
period of a presidential term and that Panama
retain criminal jurisdiction over persons on the
sites with the exception of military personnel.
Panama Requests Extensive Concessions
Several weeks later the Panamanian Minister
of Foreign Relations began conversations on a
long series of proposed additional conditions. He
stipulated the details as to the location of the
connecting roads, their construction specifications,
and their unrestricted use by Panamanians. In
the descriptions of the size of peacetime garrisons
for the defense sites, he rejected the word "ap-
proximately" and substituted "maximum." To
initiate on-the-ground proceedings, he proposed
the creation of a mixed commission to investigate
the titles to the sites, produce studies, take photo-
graphs, and make recommendations. Finally, he
indicated that monetary compensation must be
given priority of discussion over other considera-
tions.
Other matters were actually taken up. however,
before the rental rate was fixed. At Washington,
in January 1941. jlmbassador Carlos N. Brin
presented a formidable list of 12 public works
projects and other concessions which Panama
requested as compensation. The item calling for
the transfer of the water and sewer system of
Colon and Panama City to Panama presented
many complications, for it involved consideration
of such matters as water rates, amortization
charges, street maintenance, and repair costs.
Panama also wanted the Panama Railroad Com-
pany to turn over any properties not directly con-
cerned with the operation of the Canal and rail-
road, and to arrange to move its railroad station
in Panama City to another site so as to permit the
beautification of the city. Ambassador Brin pro-
posed two other public works projects: a bridge
across or a tunnel under the Canal to eliminate
dependence u])on the ferry service, and a military
road, financed by the United States, to connect
Chorrera and the base at Rio Hato.
The Ambassador's list included items in the
]iublic utilities field: recourse to electric power
from the surplus ]iroduced from the Alhajuela
Dam at the rate of one cent per kilowatt hour, and
aid in locating gasoline and oil tanks near Balboa.
Panama renewed its request that the Jamaican
laborers and their families be repatriated and that
no further immigi-ation of these people of the
Negro race be permitted.
President Arias, recalling, perhaps, the success
of his brother's direct approach to President
Roosevelt in 1933, and perhaps his own meeting
with him on board the U. S. S. Tuscaloosa as it
passed through the Canal in 1940, had instructed
Ambassador Brin to carry his appeal directly to
214
Department of State Bulletin
President Koosevelt. The Ambassador was re-
ceived instead by Under Secretary Sumner Welles,
who conveyed to him the attitude of the President.
The latter held : first, that, in view of the explicit
obligations of the 1936 convention, Panama should
turn over the necessary sites to the Canal Zone
authorities; second, that these defense areas
should be transferred speedily because the world
situation was grave ; and third, that when Panama
had complied, the United States would then be
willing to consider the Ambassador's proposals.
The Under Secretary observed that an intolerable
situation would arise if every new Panamanian
administration demanded new and expensive con-
cessions as a price for observing its treaty obliga-
tions. He rejected the Panamanian contention
that the additional proposals were to be regarded
as compensation for the defense sites.
In Panama during those first weeks of 1941,
while Ambassador Dawson used every opportunity
to emphasize the need for a speedy agreement, his
efforts were none too successful. On March 6
President Arias announced that the American
Army authorities were empowered to begin con-
struction on one of the defense sites. He stated
further that these sites would be turned over for
the duration of the European conflict only, and
that they would be evacuated vipon its termination.
The announcement was made without the
knowledge (much less the agreement) of the
American Ambassador. Nevertheless, the military
authorities accepted the statement as sufficient
justification for immediate utilization of the sites.
The occupation was accomplished by April 3, but
it was then too late for the Army to make much
headway on construction before the start of the
rainy season.
Direct Negotiations Between the U.S. and Panama
To the Government at Washington the all-im-
portant consideration was the strengthening of
the Canal defenses as speedily as possible. Hence,
after the Army was in a position to install the
warning stations and searchlight batteries and to
build the airfields, negotiations on Panama's de-
mands proceeded without the pressure of military
necessity. In May, Ambassador Brin was in-
formed that the United States was willing to
transfer the water and sewer systems of Colon
and Panama City and to supply water at the Zone
boundary, provided Panama would agree to main-
tain existing sanitary standards and continue the
payments on the unamortized part of the original
cost of the installations. Further, the United
States would transfer those lands of the Panama
Railroad Company not needed for the operation
of the Canal and railroad and move its railroad
station in Panama City to a new site. On the
other hand, it was made clear that these conces-
sions were contingent upon the conclusion of a sat-
isfactory arrangement on the tenure and juris-
diction over the new defense sites.
In reply to these j^roposals, Panama launched
a counter program and dispatched its Minister of
Foreign Relations, Raul de Roux, to Washington
to undertake negotiations with Under Secretary
Welles and to discuss with him the whole field of
United States-Panama relations.
Minister de Roux invoked article 10 of the 1936
convention, which called for consultation between
the two countries in the event of an international
conflagration or threat of one. On the other hand,
he rejected as inapplicable article 2 of that treaty
under which Panama agreed to join the United
States in taking measures to protect the Canal if
an unforeseen contingency arose. A second major
difference of opinion concerned the termination
date of the Army's occupation of the defense sites.
De Roux reiterated the position of his chief that
the sites should revert to Panama when the Euro-
pean conflagration was brought to a close, but
Welles argued — prophetically — that "a treaty of
peace theoretically ending tlie present 'European
conflagration' might not mean the removal of the
danger. . . ." The Under Secretary was not in a
position to accept the Panamanian proposals to
limit the size of American garrisons or to allow
Panamanian nationals to use the auxiliary air-
fields.
The Minister suggested that the United States
pay a rental for the occupied areas computed on
the basis of $4,000 a hectare annually. At first
officials of the Department of State found it diffi-
cult to believe that this was a serious proposal;
they thought the sum of $4,000 had been stipulated
through error. At this rate, the Rio Hato area
would have cost the United States $30,000,000 an-
nually, whereas the Army was then paying the
owner $2,400 annually and held an option to pur-
chase the tract for $140,000.
On these issues — the applicability of the 1936
convention, the termination date of the occupation
of the sites, the size of the garrisons, the use of the
airfields, and the amount of rental — there was to
be no meeting of minds with the Panamanian
administration then in office.
The Panamanian Minister included on his
agenda discussions not only of these military proj-
ects but also of the 12 additional projects that Am-
bassador Brin had presented. He claimed that the
payments made by Panamanians for the water they
had consumed had also covered the construction
costs of the water and sewer systems. Therefore,
he contended, these systems should be trans-
ferred to Panama, without any liability for amorti-
zation charges. To Welles' suggestion that a
study of this matter be made from the accounting
books of the Canal Zone, he replied that such a
step would require too much time. De Roux ad-
vanced a coupon-and-tax plan to limit the clientele
of the commissaries and to equalize prices. Welles
August 11, 1952
215
contended that the metliod of hearing complaints,
as prescribed in the General Convention of 1936,
should be given a trial. The Panamanian replied
that this method was not feasible because of the
great number of contraband cases.
Breakdown of Negotiations
When it was apparent that little progress was
to be expected in the negotiations, the official Pan-
amanian Government newspaper published a pes-
simistic commentary hj President Arias. He ex-
pressed a hope for President Roosevelt's interven-
tion in the negotiations. A few days later, in a
final conference with de Roux, Welles, with a
fresh authorization from the President, said to the
Minister :
I bave received from President Roosevelt a personal
commission to express categorically to the Goverament of
Panama . . . that the President has from the beginning
))een informed of the nature of the present conversa-
tions . . . and that the views which I bave exiwessed or
will express fully represent those of the President.
The Under Secretai-y was just about to present
the concessions that his Government was ready to
oflPer when, unexpectedly, the Panamanian Min-
ister announced that he had decided to leave Wash-
ington the following day.
The Minister did not, however, intend his abi-upt
departure to terminate the negotiations with the
United States. He appears to have contemplated
a resumption of conversations with the American
Ambassador in Panama and a continued effort
by Ambassador Brin in Washington to reach an
agreement. Further negotiations did take place,
but no substantial progress was made during the
period of the Arias regime.
The stalemate was broken when Ricardo Adolfo
de la Guardia became President on October 1,
1941. There were rumors that the United States
had exerted pressure in the Panamanian elections,
in view of the trend of the negotiations, but Sec-
retary of State Cordell Hull issued a statement
deploring such reports. "I state clearly and
categorically for the record," he said, "that the
United States Government has had no connection,
direct or indirect, with the recent governmental
changes in the Republic of Panama." ^
The new President announced his willingness
to collaborate witli the United States, but the final
terms of agreement were not announced for 7
months after his elevation to power.^ Although
President de la Guardia, like his predecessor, op-
posed a reference to the mutual obligation of the
two countries to defend the Canal, as set forth in
article 2 of the 19-36 convention, the delay in con-
cluding tlie negotiations was not due to any nuijor
differences of opinion.
'Bulletin of Oct. IS, 1941, p. 293.
' For text of this agreement, see ibid.. May 23, 1942, pp.
448-452.
The problem of determining the date on which
the occupation of defense sites was to cease was
solved by adoption of a formula whereby tenure
would terminate one year after the definitive
treaty of peace was signed. Panama yielded to
the Army's needs concerning the airfields and
jurisdiction over civilian and military personnel.
The highway construction was left to military
authorities, but the responsibility for maintenance
was laid upon Panama with sustaining U.S. help
to the extent of one-third of the cost. The two
countries agreed upon a rental of $50 a hectare
for the defense sites, excepting Rio Hato. This
tract was treated separately, and the rental fixed
for it was a flat $10,000 a year.
Although Minister de Roux had hastened his
departure from Washington presumably because
he felt he had failed to achieve his objectives in his
conversations with Under Secretary Welles, in
reality he had succeeded better than he realized at
the time. In the final terms of agreement on the
12 projects considered, the United States accepted
most of Panama's requests. Under Secretary
Welles agreed to all Panama's proposals regarding
the sewer and water system of Colon and Panama
City. These properties, together with the prop-
erties of the Panama Railroad Company not
needed in the operation of the Canal and railroad,
were transferred free of cost. The Under Secre-
tary also favored the liquidation of the loan of
$2,500,000, obtained by Panama from the Export-
Import Bank for tlie Chorrera-Rio Hato High-
way. These three provisions involving the trans-
fer of U.S. property were, of course, agreed upon
subject to the approval of the U.S. Congress.
Two other concessions to Panama were prospec-
tive in character: construction of the bridge or
tunnel to traverse the Canal would not be under-
taken until the end of the war, and the moving
of the railroad station would have to be delayed
until Panama provided another convenient site.
De Roux's requests concerning electric power
and fuel tanks were also settled to the advantage
of Panama. On the other hand, the United States
coidd not meet completely his demands to repatri-
ate the West Indian laborers and to refrain from
introducing laborers of races which the Pana-
manian Constitution held to be objectionable.
However, the United States did agree to fill its
labor needs in Panama, as far as practicable, with
]iersons whose immigration was permitted by the
Panamanian Government and to forbid the move-
ment from the Canal Zone into Panama of those
not legally qualified to enter.
Tlie agreement emliodying these provisions was
written as an exchange of notes, not as a treaty or
convention. When the provisions calling for
transfer of U.S. property were presented to the
Congress for approval, tliere were criticisms not
only of substantive matters but also of the use of
an executive agreement — not requiring Senate
approval — instead of a treaty or convention.
216
Department of State Bulletin
The clauses transferrino; the water and sewer
system were subjected to close scrutiny, since there
was the possibility that the standards of sanitation
might be lowered at a time when thousands of
American soldiers were passing through the
Canal. Already under consideration was a type
of management contract leaving the ownership
of the water and sewer system with Panama but
placing its operation in the hands of American
authorities.
Supplemental Conversations
The defense sites negotiation was supplemented
by conversations on closely related problems. The
employment policies of the Canal authorities had
been the subject of frequent diplomatic inter-
change. In the hiring of laborers and technical
personnel for the Canal, there were always two
somewhat conflicting considerations: the necessity
of obtaining efficient labor and competent skilled
workers, and the desirability of employing as
many F'anamanians as feasible. The greatly ex-
panded construction activity that followed the
outbreak of the war in Europe accentuated the
problem. It was further complicated by Con-
gressional stipulation, in connection with financial
appropriations, that skilled positions be filled by
American citizens only. To Panamanians, par-
ticularly, this action appeared discriminatory and
contrary to the spirit and letter of the 1936 treaty.
It was, therefore, necessary to choose between
organized lalior's demands that Americans have
first chance at jobs in the Canal area and adherence
to a commitment emlxidied in the note of agree-
ment exchanged with Panama in 1936. President
Roosevelt in February 1940 asserted his determi-
nation to uphold tlie latter, and pending legisla-
tion was modified to that effect.
Early in 1940 the War Department was con-
fronted with the problem of recruiting sufficient
labor for a third set of locks, three highway proj-
ects, and other defense works. The need could
not possibly be met from the Isthmus, and hence
an arrangement was made with the United King-
dom to introduce several thousand laborers from
Jamaica. Although assurances were given that
these laborers would be housed in the Canal Zone
and would be repatriated upon discharge, the
spokesmen for Panama expressed profound sur-
prise and disappointment. They said they had
been given to understand that recruitment of
Jamaicans would not be necessary.
In view of President Roosevelt's desire to respect
Panama's ethnic sensibilities, efforts were made to
recruit laborers from other countries including
Puerto Rico, Colombia, Costa Rica, and Cuba.
But this recruiting was not very successful. It
was, therefore, found necessary to import
Jamaicans.
During the war period, questions relating to
employment of Panamanians and Jamaicans were
subordinated to the necessities of the times. "VVlien
the Japanese struck at Pearl Harbor, Panama ex-
tended full cooperation by rounding up German,
Italian, and Japanese aliens; declared war upon
the enemies of the United States ; and collaborated
with the U.S. Navy in establishing censorship of
postal and cable communications.
The cooperative approach to common problems
offered some difficulty in the aviation field. Much
of the regidation of aircraft in the Canal area was
under the authority of a joint Aviation Board.
Panama altered the Board's composition from a
membership of three from each country to one in
which Panama would have a majority. In effect-
ing the change, the Arias government denounced,
on June 3, 1941, the 1929 agreement with the
United States under which the Board had been
organized. In reply to a message urging a con-
tinuation of friendly consultation, the Pana-
manian authorities observed that the naming of
an American citizen to the Board was unconstitu-
tional. They suggested the creation of an all-
Panamanian administrative board and a mixed
commission with membership from both countries,
but with reconunendation powers only. Since
there was little hope of reconciling the divergent
views held by the two countries, the American
Ambassador allowed the question to subside.
Later, under the De la Guardia regime, Panama
adopted the air traffic rules of the United States
and permitted American military planes to use
the national airport at Punta Paitilla.
Panamanian opposition to control of Isthmian
commei'cial aviation by Canal Zone authorities was
not limited, however, to the Arias government.
Courts of the Republic in 1939 and again in 1944
upheld the theory of Panamanian sovereignty in
the air and the doctrine that commercial aviation
was not connected with operation and defense of
the Canal. The successors of Arias were inter-
ested in promoting a new national airport for
Panama and in developing trained personnel to
manage and operate commercial planes. The
United States encouraged these objectives and
provided scholarships which enabled qualified
students to obtain schooling in American universi-
ties and technical institutions.
Re-emergence of Defense Sites Problem
With the end of hostilities in Europe and the
Far East, the defense sites problem came more
sharply into focus. U.S. military authorities had
pursued a policy of releasing the sites when they
were no longer useful. At the time of the Japa-
nese surrender, 55 of these sites on which the
United States had made improvements valued at
a total of about $400,000 had been returned to
Panama. By July 1947, when a new agreement
August I/, J 952
217
seemed to be forthcoming, 98 sites had been re-
turned and only 36 remained in U.S. liands.
On October 31, 1945, the Constitutional Assem-
bly summoned the Minister of Foreign Relations,
Eicardo Alfaro, to apx^ear before it and provide
information regarding the termination of Ameri-
can occupation of the sites. Alfaro interpreted
the words "one year after the signing of the defini-
tive treaty of peace," which was the stipulation on
this jjoint in tlie 1942 agreement, to mean one year
after the signing of the Japanese surrender docu-
ment on the U.S.S. Missouri. This was not an m-
terpretation to which the United States could sub-
scribe, and it was one which had been rejected by
Under Secretary Welles during the negotiations in
1941 and 1942. On June 4, 1941, Welles had in-
formed the Foreign Minister that the sites were
requested "for the period which the United States
considers them indispensable for the protection
of the Canal and . . . they will revert to Panama
when the present emergency is past." At no time
did the United States regard the military surren-
der as a "definitive" peace treaty. In the Isthmian
Republic, however, the Alfaro interpretation
gained credence, so that on September 2, 1946, the
General Assembly unanimously resolved that the
sites should be returned since the term of occupa-
tion had expired.
In the meantime, negotiators of the two coun-
tries had begun a series of conversations which
were not concluded until an agreement was signed
on December 10, 1947. From the outset there had
been a tacit understanding that defense of the
Canal required U.S. retention of some of the sites,
but differences of opinion had developed not only
on the date of termmating the occupation but also
on nearly every other consideration pertaining to
the general question. The initial position of Pan-
ama, as conveyed in October 1946, contemplated
a declaration that the 1942 agreement was no
longer in effect and provisions for joint operation
of the sites, for retention by Panama of sover-
eignty and jurisdiction, for maintenance of the
1942 rent level, and for a tenure of one year subject
to renewal.
Although the Panamanians contended that a
new agreement should declare the termination of
the old one, the American Ambassador refused to
acquiesce, and in the draft treaty of 1947 no men-
tion was made of the 1942 pact. Various forms
of joint control of the sites were discussed, but
the War Department was adamant on the proposi-
tion that defense of the Canal must not rest upon
divided authority and responsibility. The 1936
convention had been specific regarding the joint
responsibility of the two countries to protect the
Canal.
Actually, Panama did not appear to question
practical U.S. military authority over the sites
but was apparently seeking a legal basis of joint
authority. In reaching an agreement on this ques-
tion, the negotiators provided for a joint commis-
sion to consult on the use of the sites, while at the
same time leaving full military, technical, and
economic responsibility with the United States.
Panama's contention that it should jDarticipate in
deciding which sites were to be continued and
which dismantled was resolved by the attachment
to the agi'eement of a list in which each site was
described and the length of occupation stipulated.
Panama's sovereignty over the sites and the air
space above them and its jurisdiction in civil and
criminal cases were affii'med, but at the same time
the negotiators agreed that the United States
should exercise jurisdiction over its own civilian
and military personnel and over cases, excepting
those involving Panamanians, where security of
the Canal was involved.
Future Occupation of the Defense Sites
A wide gap appeared between the opinions of
representatives of the two countries as to the
length of future occupation of the sites. The U.S.
military authorities ]:)referred long-term leases,
particularly for the Rio Hato area, where they
contemplated the erection of permanent buildings.
On the one hand, therefore, the United States
was proposing a 30-year maximum and 10-year
minimum tenure, while Panama would have lim-
ited tenure to 10 years with a minimum of 2 or 3
years, the maximum in both cases applying to the
Rio Hato area. The final compromise specified
10 years for the occupation of this largest of
the sites, subject to renewal, and 5 years for the
remaining 12 sites.
The military authorities were willing to pay for
these areas an annual rental of up to $50 a hectare,
except for the two large sites, Rio Hato and San
Jose. The Panamanian negotiators, however,
contended that there was no reason to differentiate
between sites. The Rio Hato site had cost the
United States $10,000 a year under the existing
arrangement; under the Panamanian formula the
cost would have been $350,000 annually. The two
parties settled the problem by establishing three
rates : one for the Rio Hato, $10,750 annually ; one
for the San Jose site, $15,000; and one for the
remaining sites, $17,250. In addition to this sum
of $43,000 for rent, the United States was to pay
$1.37,500 as its share in maintaining the roads
used by the military forces.
In previous negotiations of this type, Panama
had presented a list of economic grievances that
the United States was asked to correct and benefits
to be conceded. In this instance, Foreigii Min-
ister Alfaro was not disposed to associate the eco-
nomic needs of his country with the defense ques-
tion. During his absence in February 1947, how-
ever, the Acting Foreign Minister suggested that
Panama's obligation to help defend the Canal
should be balanced by a U.S. guaranty to provide
commercial advantages. Specifically, he wanted
the United States to build the highwav to the Costa
218
Department of State Bulletin
Kican border, transfer a hospital and a dock, and
return Paitilla Point airport. The Department
of State did not reject these suggestions outright,
but it did indicate that no conversations would
be held on these matters until the defense-sites
question was settled.
Panamanian Reaction to the Final Agreement
The continued occupation of any defense sites
by U.S. forces was vigorously opposed in Panama
many months before tire signing of the agreement
on December 10, 1947. Powerful newspaper
criticism developed, and hostility toward the
settlement appeared even within the President's
official family. Foreign Minister Alfaro, respon-
sible for much of the negotiation, turned against
the agreement the day before it was signed. The
Acting Minister of Foreign Relations, who was
favorably inclined toward the agreement, marched
with jDolice support upon the University in an
unsuccessful attempt to arrest an oifending radio
broadcaster. Student agitation against the agree-
ment increased to the point of violence, and idlers
and Communist agitators assisted in further
attempts at intimidation.
It was therefore in an atmosphere of extreme
tension that the Panamanian Assembly in Decem-
ber 1947 came to deliberate on the defense-sites
agreement. A committee studied the document
and brought in a favorable report, subject to
amendments that altered the provisions on crimi-
nal and civil jurisdiction, tax exemption, and
duration of the occupation of Rio Hato and in-
cluded a stipulation terminating the 1942 defense-
sites agreement. But these reservations, which
should have dissolved most of the opposition in
the Assembly, had no such effect. A last-minute
indication by the Department of State that it was
ready to discuss economic aid to Panama likewise
had no effect. Students and other demonstrators
were allowed to crowd into the legislative cham-
ber. AVhen the President of the Assembly re-
fei-red to the demonstrators as "ten thousand boys
with knives," the legislatoi's sought police protec-
tion. It was under these circumstances that a
roll call on the defense-sites agreement was
taken. It was unanimously decided to i-eject the
agreement.
By mid-January 1948, all l>ut two of the defense
sites had been evacuated. More time was neces-
sary for withdrawal from the Rio Hato and the
San Jose Island areas but by mid-February this
too was completed. The announcement of this
fact by the two Governments * brought to a close
a chapter — alternately pacific and turbulent — in
the relations between the United States and
Panama.
*Mr. Wright, author of the above article is a
historian in the Division of Historical Policy
Research.
' Ihiil.. Mar. 7, 1948, pp. 317-318.
First Meeting of Anzus Council
Statement by Secretary Acheson ^
I am leaving today for the first meeting of the
Anzus Council in Honolulu, which will be at-
tended also by the Ministers for External Affairs
from Australia and New Zealand. The princi-
pal purpose of this meeting is to consider matters
concerning the implementation of the Anzus
Treaty to which our three countries are parties and
which provided for the establishment of this
Council. Our common interests and relationships
in the Pacific will be reviewed and arrangements
for future meetings will be discussed.
It should be emphasized again that the Anzus
Treaty is one more step in our continuing efforts
to strengthen the peace in the Pacific and in the
world. It is significant, I believe, that the ti'eaty
opens with a reaffirmation of faith by Australia,
New Zealand, and the United States, in the "pur-
poses and principles of the Charter of the United
Nations, and their desire to live in peace with all
peoples and all Governments." Our discussions
at Honolulu will be undertaken and carried out
in that spirit.
Press Conference Statement by Secretary Acheson
Press release 595 dated July 30
I can give you a few details of this forthcoming
trip to the Hawaiian Islands. The delegation
will leave Washington on the morning of next
Friday, August 1 and expects to arrive in San
Francisco during the afternoon. We expect to
take off again on Saturday morning and arrive in
Honolulu Saturday afternoon. Tliat will get us
there about 24 hours before the first meeting of
the Conference which is to be held on Monday,
August 4.
We hope that it will be possible for us to start
back again on Friday, August 8, with the expecta-
tion of reaching Washington on the afternoon of
August 9 — Saturday, the 9th.
The principal advisers who will be with me at
the Conference will be Ambassador at Large
Jessup; Admiral Arthur William Radford, Com-
mander in Chief in the Pacific, who will be the
chief military adviser; George Perkins, Assistant
Secretary for European Affairs; and John M.
Allison, Assistant Secretary for Far Eastern
Afl'airs.
The principal work of this Conference will be
to reach agreement on the organization of the
Council and the functions of the Council. We will
take up various political and military matters
affecting our common relationships in the Pacific.
We think that the result of this first meeting ought
to be to set up an organization which will provide
^ Made at the Washington National Airport on Aug. 1
and released to the press (No. G07) on the same date.
August 11, J 952
219
an oppoi'tunity for closer and more effective gov-
ernment-to-governnient relations with our Aus-
tralian and New Zealand friends. Of course all
of this is in the framework of the treaty which
refers to these efforts as "efforts for collective de-
fense for the preserving of peace and security
pending development of a more comprehensive
system of regional security in the Pacific area."
U.S. Delegation
The first meeting of the Council created by the
Security Treaty between Australia, New Zealand,
and the United States, which entered into force
on April 29, 19.52, will convene at Kanoehe, Oahu,
Territory of Hawaii, on August 4, 1952. The U.S.
delegation to this meeting is as follows:
Dean Acheson, Secretary of State
Philip C. Jessiip, Ambassador at Large
Jobn M. Allison, Assistant Secretary of State for Far
Eastern Affairs
George W. Perkins, Assistant Secretary of State for
European Affairs
Admiral Arthur W. Radford, U.S.N., Commander in Chief,
Pacific and U.S. Pacific Fleet
John K. Emnierson, Planning Adviser, Bureau of Far
Eastern Affairs, Department of State
Andrew B. Foster, Deputy Director, Office of British
Commonwealth and Northern European Affairs,
Department of State
It is expected that this meeting will be primarily
devoted to matters regarding the organization and
functions of the Council. In addition, representa-
tives of the three signatory powers will review
matters affecting their common relationships in the
Pacific area.
Warren Kelchner, who recently retired as chief
of the Division of International Conferences, De-
partment of State, has been designated as Secre-
tary General of the meeting.
Death of Senator Brien IVIcMahon
Statement hy Secretary Acheson
Press release 591 dated July 28
I am deeply grieved and shocked at the death
of Senator Brien McMahon and mourn the loss of
a close friend and colleague. His fellow country-
men have long benefited from his valued and im-
portant contributions to the strength and welfare
of our Nation and its institutions.
Senator McMahon's forward looking recom-
mendations and activities in the field of atomic
energy, in wliich he specialized, have done much
to insure the preeminent place of our Nation
today in all aspects of atomic energy development.
All of us in the State Department know the
major role that he has played in furthering our
foreign policy and maintaining peace.
A truly wise and outstanding statesman has
been lost to our councils of state. Brien McMahon
was an intense patriot who possessed both a
courageous heart and a brilliant mind which
worked in concert to further the interests of his
fellow men.
President Ratifies
Convention with Germany
I
On August 2 President Truman made the fol-
Iotoi?ig statement after ratifying the Convention
on Relations hetween the United States^ the United
Kingdom., and France and the Federal RepuMic of
Germany, and the North Atlantic Treaty Proto-
col: 1
"With the advice and consent of the Senate, I
have today ratified the convention on relations
between the three powers and the Federal Re-
public of Germany, and the protocol to the North
Atlantic Treaty. Ratification of these instru-
ments represents the latest in a long series of efforts
on the part of this Government to establish normal
and friendly relations between the United States
and Germany. Ratification is also a further step
toward assuring the security of Western Europe
and the whole North Atlantic area. While the
United States is the first nation to ratify both of
these documents, I feel certain that our Eui-opean
Allies, realizing the importance and urgency of
these measures to Western Germany and the free
world, will join in expediting approval of the
pacts by their own parliaments.
In giving its advice and consent to ratification
of the convention on relations with the Federal
Republic of Germany, the Senate stated its in-
terpretation with respect to constitutional proce-
dures as referred to in the convention.
I should like to make it clear that this interpre-
tation refers only to internal relationships between
the component jiarts of the Government of the
United States, and does not in any way affect the
rights and obligations of the United States or
other signatory states mider the convention, or
any of the related conventions or agreements.
Furthermore, the interpretation does not in any
way lessen the determination of the United States
to carry out its commitments.
The convention does not, in my opinion, grant
to the President any new legislative authority, nor
does the interpretation adopted by the Senate in-
crease or diminish the powers the President has
under the Constitution.
' For a summary of the convention and text of the
North Atlantic Treaty Protocol, see Bulletin of June 0,
1932, pp. 888 and 896.
On August 1 the British Parliament approved the con-
vention with Germany and the Nato Protocol, as well as
the agreement establishing the European Defense Com-
muuit.v.
220
Deparfment of State Bulletin
Austria Appeals to United Nations Members for Support
in Restoration of Sovereignty and Ending of Occupation
On July 31 the Austrian Charge (T Affaires, Dr.
Wilfrkd Platzer, presented to the Department of
State a memoraiidu/ni announcing his Govern-
menfs intention of taking to the United Nations
its plea for the conclusion of a State treaty to end
the occupation of Austria and restore its national
sovereignty. The memorandum is to he delivered
to all states members of the United Nations.
Attached to the memorandwm are the following
annexes: 1) List of International Acts Violated
by Germany in 1938 Through Her Occupation of
Austria; 2) Statements hy British and American
Statesmen Concerning the Restoration of a Free
Austria; 3) The Reasons for Which the Continued
Occupation of Austria is Inconsistent With the
Principles of International Law; lA Council of
Foreign Ministers Paris Meeting — Agreement on
Controversial Clauses of Austrian Sta.te Treaty —
Communique of June 20th, 1949 [see Bulletin
of July 4, 191)9, p. 858); 5) Losses Incim^ed by
Austria Through the Occupation; 6) Draft Treaty
for the Re-Establishment of an Independent and
Democratic Austria; and 7) Text of Proposed
Abbreviated Treaty for Austria Presented by the
Governments of the United States, the United
Kingdom, and France to the Government of the
Soviet Union on March 13, 1952 (Bulletin of
Mar. 24, 1952, p. U9).
Following is the text of the memorandwm :
MEMORANDUM
Bt the Austrian Federal Government Con-
cerning THE Termination of the Occupation
OF Austria and the Reestablishment of Her
Full Sovereignty
The Statute of the Republic of Austria is based
upon the treaty of Saint-Germain.
Austria, admitted to the League of Nations in
1920, remained a member until her forcible occu-
pation by Germany. During this entire period
Austria loyally cooperated in the achievement of
the aims of the League of Nations to safeguard
peace. The League of Nations, on the other hand,
more than once aided Austria to overcome her
economic and social difficulties.
Aogusf II, 1952
217514 — 52 3
For the maintenance of her independence
Austria, being only a small country, relied, above
all, upon Article 10 of the Covenant wherein the
members of the League undertook to respect and
preserve against external aggression the territorial
integrity and political independence of all mem-
bers. However, this guaranty did not prevent the
German Reich from occupying Austria by force
of arms on March 12th, 1938, in violation of
Article 80 of the Treaty of Versailles and the
Austro-German agreement of July 11th, 1936,^ and
in complete disregard of the declaration of May
21st, 1935, by which Hitler had recognized the
inviolability and independence of the Federal
State of Austria. Though the Government of
Austria tried to the very end to induce the mem-
bers of the League to come to its aid against the
German aggression, the members did not make
good their pledge of guaranty ; instead they lodged
notes of protest.
Thus, Austria became the first victim of Nazi-
aggression. (Annex 1 ; list of agreements violated
by Germany in 1938 through ner occupation of
Austria).
However, when Germany invaded Poland on
September 1st, 1939, thereby unleashing the sec-
ond world war, the question of the unlawful oc-
cupation of Austria by Germany was reopened by
the Allied Powers. British and American states-
men solemnly announced that Austria had to be
liberated from the German yoke and restored as
a sovereign state (Annex 2). These announce-
ments made on various occasions finally led to the
Declaration of Moscow signed by Great Britain,
the U.S.A. and the U.S.S.R. on November 1st,
1943. (The French Committee of National Lib-
eration made a similar declaration in Algiers on
November 16th, 1943.) In this declaration the
governments of the signatory powers expressed
their will that "Austria, the first free country to
fall a victim to Nazi aggi-ession, shall be liberated
' For text of this agreement and for documents from the
archives of the German Foreign Ministry dealing with the
annexation of Austria, see Documents on Oerman Foreign
Policy 1918-19^15. From ]iirurath to Ribbentrop (Series
D, Vol. I), Department of State publication 3277, pp. 278-
626.
221
from German domination." They regarded "the
annexation imposed upon Austria by Germany
on March 15th, 1938, as null and void", considered
themselves "as in no way bound by any changes
effected in Austria since that date" and declared,
"that they wished to see re-established a free and
independent Austria."
By their announcements made during the war,
and, in particular, by the Moscow Declaration of
November 1st, 1943, the Allied Powers (Great
Britain, the U.S.A., the Soviet Union and France)
have also recognized the existence of Austria as a
separate state. Consequently, after the liberation
of Austria by the Allies, this problem was not
mentioned any more and an agreement was con-
cluded on July 4th, 1945, (so-called 1st control
agreement) on the establishment of the Allied
Control system which will function in Austria un-
til the formation of a freely elected Austrian Gov-
ernment recognized by the four powers.
The fact that, at the Potsdam Conference, (July
17th to August 2nd, 1945) the four Allied Powers,
while discussing the termination of the state of
war and the conclusion of peace treaties with Italy,
Bulgaria, Finland, Hungary and Kumania, did
not adopt similar decisions with regard to Austria,
corresponded entirely to the then prevailing and
repeatedly corroborated conception of the Allies
under which Austria, as a state, was to be liberated,
and her evacuation, after free election had been
held and a free Government formed, was consid-
ered as a matter of course which did not require
the conclusion of any peace treaty.
An occupation of Austrian territory by the
Allies had become inevitable during the war, a
war aiming at the annihilation of the armed
forces of Germany and also at the restoration of a
free Austria. Furthermore, it was clear to every-
one in Austria that this occupation had to be
maintained for some time after the liberation in
order to disarm the soldiers of the Wehrmacht sta-
tioned on Austrian soil, to re-establish public or-
der and public life and to take measures for the
restoration, without disturbance, of the sover-
eignty of Austria. Temporary occupations of a
similar character had become necessary in the
course of the liberation in other countries such as
France and Belgium. But though the conditions
for the withdrawal of Allied troops and the res-
toration of a free and democratic Austria, i.e. free
elections, formation of a constitutional govern-
ment and re-establishment of public order, had
been fulfilled as early as November 1945, Austria —
to the great disappointment of her entire people —
was not treated as the other countries liberated by
the Allies — not even as the countries which had
gone to war on Hitler's side, and with which peace
treaties had been signed years ago.
The reasons which led the four occupying
powers to change their original intention to end
the occupation of Austria as soon as a stable
Austrian Government had been set up, are at-
tributable to world politics and influenced by the
contrasting political and ideological concepts of
the East and the West.
The decision of the four Allied powers to con-
tinue the occupation of Austrian territory until
the conclusion of a State (not a peace) Treaty was
a bitter disappointment for the Austrian people
since, according to the facts of the case, Austria
has had and has a just claim, hardly contestable
under international law, to regain her full sover-
eignty even without a treaty (Annex 3). It will
Background of Austrian Treaty Negotiations
Starting-point of the negotiations for the Austrian State
Treaty, one of the most protracted in diplomatic history,
was the Moscow Conference of 1943. On November 1 of
that year representatives of the United States, United
Kingdom, and Union of Soviet Socialist Republics an-
nounced their agreement that "Austria, the first free
country to fall a victim to Hitlerite aggression, shall be
liberated from German domination. . . . They declare
that they wish to see re-established a free and independent
Austria, and thereby to open the way for the Austrian
people themselves, as well as those neighboring states
which will be faced with similar problems, to find that
political and economic security which is the only basis for
lasting peace" (Bulletin of Nov. 6, 1943, p. 310). France
concurred in this declaration on November 16, 1943.
Deputies of the Four Powers began formal negotiations
in January 1947 and held a total of 258 meetings without
reaching agreement on a treaty draft. On September 14,
19.51, the U.S., British, and French Foreign Ministers,
meeting at Washington, announced "that in the view of
their Government there is no justification for any further
delay in the conclusion of a treaty for the re-establishment
of a free and independent Austria. This has been the con-
stant aim since the conclusion of hostilities. They wiU
not desist in their efforts to bring the Soviet Government
to the same view and to that end they have decided to
make a new and resolute effort in the meetings of the
Austrian Treaty Deputies to fulfill the long over-due
pledge to the Austrian people."
The 2.59th meeting of the Treaty Deputies was scheduled
for .January 21, 1952. The U.S., British, and French
Deputies gathered at London; the Soviet Deputy, who
had been notified of the meeting a month in advance,
failed to appear.
On February 28 the three Western Powers announced
that they were "urgently examining new proposals so
that the Four Powers may be enabled to fulfill their
pledge made in the Moscow Declaration to restore to
Austria her full freedom and independence" (Bulletin
of Mar. 10, 19.52, p. 379). On March 13 they presented
to the Soviet Government a simplified treaty draft which
would give Austria full independence (Bulletin of Mar.
24, 19.52, p. 448). Since no response was received from
the Soviets, the three Governments sent a follow-up note
on May 9 (Bulletin of May 19, 1952, p. 778), but again
no reply was forthcoming.
be remembered in this connection that the four
occupation powers, in their solemn declaration
at Moscow, had pledged themselves to restore a
free and sovereign Austria. As a matter of
course, the Federal Government would have been
prepared to conclude with individual states such
asfreements as might have proved necessary.
In view of the existing situation, the Federal
222
Department of State Bulletin
i
Government, although continuing to argue that
the conclusion of a state treaty was no require-
ment of International Law, has done everything
in its power to maintain an attitude that would
facilitate and expedite the negotiations of an Aus-
trian state treaty started by the Allies after their
change of policy; in this comiection the Govern-
ment of Austria has courageously faced the ex-
tremely heavy burdens contained in the draft
treaty, although it appeared doubtful, at times,
whether Austria would really be able to shoulder
them. This all the more as several years have now
passed since the Federal Government has made
this concession, only in order to bring about the
termination of the occupation with its heavy bur-
dens, while, during all this time, Austria has had
and still has to bear the burdens of occupation and
to suffer the exploitation of a considerable part of
her economy (German assets) and of her natural
resources (oil).
In the beginning, the negotiations for the State
Treaty left hope for an early conclusion. In fact,
at the Conference of Foreign Ministers held in
Paris in June 1949, agreement was reached on cer-
tain points and the deputies of the four foreign
ministers were instructed to resume their work
promptly in order to reach an agreement on the
draft treaty as a whole not later than September
1st, 1949. (Annex 4; Communique of the Paris
Conference of Foreign Ministers of June 20th,
1949.)
These instructions notwithstanding, the depu-
ties were unable to reach agreement at the given
date ; subsequently, in spite of all our concessions
and appeals, negotiations were made increasingly
difficult by changed international conditions, and
finally deadlocked as the Soviet Union continu-
ously put forward new demands which were no
longer connected in any way with the Austrian
problem. In the end, the Soviet representative
failed to appear at the 258th meeting of the
deputies.
The protracted occupation of Austria, the dura-
tion of which can now not even be estimated, af-
fects Austrian political and economic interests in
the most serious manner. The mere fact of the
occupation weighs heavily upon the entire popu-
lation, both physically and morally, and the ag-
gravation of economic strain due to the occupa-
tion, apart from preventing a normalization of
the economy, causes unrest among the people.
The losses caused to Austria by allied occupa-
tion, and the burdens put upon her economy, her
land and her financial resources by its continua-
tion are demonstrated by Annex 5.
Well aware of the fact that negotiations cannot
be resumed on the basis of the old treaty draft
which, moreover, contains a number of financial
and economic provisions no longer bearable under
prevailing circumstances, and hardly ever accept-
able to the Austrian Parliament, the three Western
Allies, according to Austria's demand for the
restoration of lier full sovereignty and the evacua-
tion of her territory, have transmitted to the gov-
ernment of the Soviet Union the text of a new
abbreviated State Treaty (Annex 7) in the form
of a protocol of evacuation, on March 13th, 1952.
The success of this attempt, on the part of the
Western powers, by freeing the country from for-
eign troops, and by terminating the burdens con-
nected with the occupation which weigh so heavily
upon the country and its people, would, of course,
achieve the long sought aim of the Federal Gov-
ernment.
However, should all attempts fail to restore
Austria's full sovereignty in this way, it is cer-
tainly intended to bring the question of the evacu-
ation of Austria and the problem of the State
Treaty before the forum of the United Nations, at
a given date, and to appeal for their mediation to
induce the four occupying powers to evacuate
Austria at last and to restore the freedom that is
her due.
U.S. Views on Austria's
Nazi Amnesty Legislation
Press release 588 dated July 28
On July 18 the lower house of the Austrian
Parliament approved three laws granting (1)
amnesty to certain implicated Nazis, (2) cancella-
tion of property forfeitures of certain implicated
Nazis, and (3) promotions for certain implicated
Nazis whose civil-service promotions had been
frozen. The lower house also approved a law
amending the Third Kestitution Law. The
amendment provides that persons who had been
required under the Third Kestitution Law to resti-
tute land to victims of Nazi persecution now have
the right to purchase such land without the con-
sent of the original owner. The amendment also
provides for the possible reopening of judgments
returning their enterprises to victims of Nazi
oppression if such enterprises were found to
have been indebted at the time of the original
deprivation.
The Department of State has informed the
Austrian Ambassador at Washington that it is
greatly disturbed to have received reports on the
above legislation when restitution and general
claims problems of victims of nazism still have
not been satisfactorily resolved by the Austrian
Government, and that it is equally concerned about
tlie action to amend the Third Restitution Law to
the detriment of victims of national socialism.
Similar representations were made to the Austrian
Government in Vienna.
The Department of State is of the opinion that
two further laws, passed by the Austrian Parlia-
ment on July 18, granting compensation to civil
August I?, 1952
223
servants, resident in Austria, for loss of salary and
other losses suffered by them during the Arhs-chJuss,
and granting compensation generally to victims of
Nazi oppression who reside in Austria, do not
adequately meet the request frequently expressed
by the Government of the United States to the
Government of Austria not to discriminate against
such victims on the basis of their present residence
or citizenship.
The Acting U.S. High Commissioner in Vienna
who is the U.S. representative on the Allied Coun-
cil, the body to which tlie above legislation will
be submitted for consideration, has been informed
of the views of the Department.
Propaganda at
Red Cross Conference
Press release 599 dated July ,"0
Following is the text of extemporaneous re-
marks made to the -press at Toronto on July 30 by
Charles Burton Marshall, Chairman of the U.S.
Observer Delegation to the International Red
Cross Conference currently in session at Toronto,
and a member of the Policy Planning Staff of the
Department of State. Mr. MarshalVs statement
was issued as a result of two resolutions introduced
by Communist delegations alleging mistreatment
of prisoners of war by the U.N. Command in
Korea and use of germ warfare.
The purpose of the U.S. Government Observer
Group at the International Red Cross Conference
is solely this: to help forward the humanitarian
work in which the American Red Cross Society
and the sister Red Cross Societies of other nations
and the Red Cross woi'ld as a whole are engaged.
The question which now arises — and it is not
given to us to answer it — is, when can we get ahead
with the legitimate business of the Red Ci'oss?
Several delegations in attendance have not the
slightest interest in the humanitarian work of the
Red Cross. They are not putting on an act here.
In their frame of thinking a society that exists
for humane purposes, applying to all men ii-re-
spective of individual differences, simply is im-
possible. They understand human relations only
in terms of conflict. They are here for fomenting
conflict and for no other purpose.
They are using this place as a sounding board
not only for political conflict in the international
aspect, but also, and this is even more significant —
for purposes of political conflict between the rul-
ing groups of these countries and their own
peoples.
There is no mystery to this perpetual hammer-
ing away at the subject of biological warfare. The
governments of the countries in question face grave
problems growing out of the lassitude — the inertia
of disbelief — among their own peoples. The Red
224
Cross Conference is being used as a rostrum from
which to produce propaganda in the form of the
fiction of a ruthless enemy — all this in the hope of
getting some pickup in the flagging efforts of the '
peoples who live under those tyrannies.
Mark this also. They are using this Red Cross
meeting for purposes of trying to undermine the
credit of the United Nations.
Men of good will everywhere — and I include
those who still entertain hopes of a better day
while living under the burdens of oppression —
will feel deep regret at this attempt to use a hu-
manitarian forum as a means of trying to hni't t"he
effectiveness of that great international organiza-
tion which works in the political sphere.
This attempt to discredit the United Nations
will fail wherever men are still free to discuss
facts and know the truth. It is not only to these
that this propaganda is being directed ; it also is
aimed toward the domestic audience behind the
Iron Curtain.
I want to say a word about two resolutions in-
troduced in the General Commission this morning.
The resolution put forward by the Polish Dele-
gation relates to adherence to the Geneva Protocol
of June I7th, 1925, concerning the bacteriological
weapon. This constitutes merely one more in a
long series of efforts of the Iron Curtain delega-
tions to move the present conference from a neutral
and humanitarian plane to a political and polem-
ical plane.
The Polish resolution actually is merely a para-
phrase of the draft resolution which was sub-
mitted to the U.N Security Council last June by
Soviet Repre.sentative Jacob Malik. This resolu-
tion was fully considered and rejected by the Se-
curity Council. It obtained only one vote — that of
Soviet Russia. The other 10 members of the Se-
curity Council abstained. The Polish draft reso-
lution therefore has already met with rejection in
the United Nations. This resolution refers to the
old charge of biological warfare. I do not want to
get into the details of that hoary fiction. Let me
instead invite to your attention a fine and compre-
hensive statement on the subject drawn up by
three scientists of the host country of this con-
ference (Canada) and tabled in the House of
Commons at Ottawa. I hope all of you have it.
It is a travesty on the decency and high prin-
ciples of the International Red Cross to pi'oject
this subject into the conference.
I want to mention also the resolution put forth
by the Chinese Communist regime's representa-
tives and the corresponding Red Cross group. It
concerns the conduct of the resistance to aggression
in Korea.
This is an anti-United Nations resolution. It is
a shabby attempt to put the International Red
Cross on record against the United Nations. It is
a resolution to abuse the Red Cross by making
it into something to give comfort to aggression.
Department of State Bulletin
Economic Foundations for Lasting Peace
Oil July 19, 1952, President Truman presented
to the Congress his Midyear Economic Refort, to-
gether with the Midyear 1952 Economic Review
frefarcd for the President hy the Council of
Economic Advisers} Excer-pts from, the Presi-
dents Report and from the Economic Review
folloio :
PRESIDENT'S MIDYEAR ECONOMIC REPORT
TO THE CONGRESS
To the Congress of the United States:
This Midyear Economic Report appears at a
time when the 82nd Congress has adjourned, and
when the Congress may not again be in session
until January 1953. For this reason, the Report
does not contain specific legislative recommenda-
tions. It is limited to a broad view of the Nation's
economy, its current condition of strength, and its
prospects and problems for the future.
It is highly desirable that these matters now be
placed before the American people and their rep-
resentatives. During the coming months, issues
of economic policy will be widely discussed
throughout the land.
Nobody can expect, and it would not be desir-
able, that everybody view these problems in the
same light or propose identical solutions. The
strength of our free institutions rests upon free
debate and free decisions by the people.
But in these trying times, while some issues will
continue to divide us, we must seek out and sti-ess
those things which hold us together.
We face a common danger in the world — the
communist menace. We share common aspira-
tions for our domestic economy — stability, justice,
and advancing prosperity.
There are certain facts that we should all know
and accept. These facts converge upon one in-
escapable conclusion : America has the economic
strength, while fulfilling its domestic responsi-
' For sale b.v the Superintendent of Documents, U.S.
Government Printing OiBce, Washington 2.5, D. C. at 50^
a copy (paper bound).
bilities, to build with other free nations the con-
ditions for a more enduring peace. America
cannot afford to relax in this effort, in the false
fear that we do not have the strength to carry
through.
This country, from the time of its formation,
has passed successfully through many trying
times. This success has not come through doubt-
ing our own ability. It has not been achieved by
trying to get by with lower exertions and costs
than were necessary to do the job.
Yet every day one hears some expression of
opinion that our security efforts are weakening
us at home, and that we must reduce them in order
to save ourselves. Many who hold this view are
entirely sincere. The trouble is that they have
not examined all the facts. I am confident that,
when they do so. they will join in the realization
that danger lies in l)elieving wrongly that we are
weak. Our strength commences with knowing
that we are strong — and becoming stronger.
The facts reveal beyond question that the
security programs now being undertaken are not
even threatening — much less depleting or impair-
ing— the strength of our domestic economy.
Despite the burden of these pi'ograms — and they
are a real burden — our business system has been
doing better and our people have been living better
than ever before.
Our just pride in these facts should be tempered
by the sobering realization that the burden of re-
sistance to aggression is pressing very heavily
against the living standards and productive op-
portunities of other free peoples. They are just
as desirous of achieving freedom and security as
we are. But the resources they can devote to
building economic and military strength are much
more limited than ours, because they have far less
of a margin alx)ve the absolute necessities of life.
Under these circumstances, the help we give them
can return many times its cost in greater security
for them and for us. The record of the recent
years shows that this is true — and the contrast be-
tween our own economic situation and that of
other free peoples shows how fallacious is any
claim that we are doing more than our part.
August J I, J952
225
The people of the United States have proved
that they could stand up under adversity whenever
the need arose. But we also draw inspiration from
achievement. It speeds us forward to even greater
achievement. The facts about the strength and
progress of the American economy since the
Korean outbreak should be made clear to all.
These facts can provide the clearest guide to the
actions we should take.
The presentation of these facts can also
strengthen our position in the free world. Com-
munist propaganda is founded upon the false idea
that the American economy cannot maintain its
strength. Even some of our friends abroad are
concerned about the future of the American econ-
omy— whicli they regard as the bulwark of the
hopes of free men everywhere. The truth about
our economic situation should also be brought
home to them.
Economic Relations With tlie Free World
There is general agreement that we must join
with the free world in the development of military
strength. But there is not yet in this country an
equally general undei'standing that the military
security of the free world is inseparable from its
economic future. This is true because economic
strength is the source of military strength, and
because no nation can maintain either the means
or the morale to maintain a great defense effort in
a period short of total war unless its economic con-
ditions are at least tolerable. It is true for the even
more important reason that the free peoples of
the world want not only to be secure from military
attack ; they also want to live as free men should
live. They want adequate food and clothing,
housing, and medical care. They want to advance
their industrial arts, so that they will have the
productive power to achieve these ends. These
aspirations are not only worthy; they are vital.
The I'nited States would be in much greater
danger, if the people of any substantial portion
of the free world should come to believe that we
are not interested in their human aspirations, but
interested only in helping them to arm in order
to help defend ourselves. This would provide the
communists with a propaganda weapon against
which counter-measures would be extremely diffi-
cult.
Recent actions by the Congress have displayed a
failure to appreciate in full the importance of
these facts. But facts have a way of persisting,
and I am sure the time will come when the Con-
gress will respond to them fully. I can only hope
that it will not be too late.
The people of the United States have gained
more through the maintenance of freedom than
any other people in the history of the world.
Hence we have the most to lose if freedom is lost,
and we cannot enduringly remain free unless free-
dom predominates in the rest of the world.
There is nothing in our own history, or in the
history of all human events, to indicate that free-
dom can be maintained without cost and effort. It
costs a lot to maintain freedom, in money and ma-
terial things, in human understanding, and some-
times in blood. To avoid an incalculable cost in
blood, we must be prepared to sustain a great effort
in money and material things and in human under-
standing.
The building of military security is only a first
stage in this long effort. We must be prepared,
while that first stage is going forward, and in-
ci-easingly after it is completed, to make our fair
contribution toward a more prosperous free world.
And a more prosperous free world will mean a
more secure free world.
In this long effort, the kind of emergency aid
which we have thus far been extending will need
to be supplemented and then increasingly sup-
planted by a more normal flow of capital from the
United States to other countries. This, in turn,
will need to be accompanied by more realistic ap-
preciation that exports must in the long run be
accompanied by imports.
It is disturbing to note that, despite the high
level of employment in the United States, pres-
sures have been growing recently to restrict im-
ports. Embargoes on importation of foreign
products, increases in duties on imported goods,
and numerous requests for other increased duties,
are some examples of how these pressures for re-
striction of imports have manifested themselves.
The pressures for restrictionism have generally
been exerted with too little consideration for the
effects that the measures have on our security ob-
jectives, and on economic policies consistent with
our position as a creditor nation.
Ti-ade restrictions have a direct impact on
United States programs to strengthen the free
world. The joint defense effort must be built on
a solid foundation of strong nations acting to-
getlier. We cannot consistently throw up barriers
here, while, at the same time, we urge the creation
of a close partnership in the North Atlantic com-
munity. Inconsistencies of this sort undermine
the basis on which our position of leadership rests.
In addition, the economies of our friends are
much more dependent on foreign trade than the
economy of the United States. If they are unable
to eaj-n dollars to pa}' for those essential com-
modities which they now purchase in the dollar
area, they will be under additional ])ressure to
secure them in other areas of the world, including
the Soviet bloc.
The encouragement of economic conditions
which will enable the other free nations to pay
their own way is the goal that we must seek, as a
transition from the emergency conditions which
have made it essential for us to extend temporary
aid.
The way to get out of an emergency is not to
pretend that the emergency does not exist, but
226
Department of State Bullefin
instead to remove the conditions which have pro-
duced the emergency. Communist subversion
will i^resent no great threat to the free world, as
the free world achieves economic stability and
further economic progress. Communist aggres-
sion may still continue to be a threat, but the free
world will then have the clearly apparent jiower
to I'esist any such aggression. We must continue,
with courage and vision, to help create the con-
ditions in the free world which will provide the
only dependable foundation for lasting peace.
MIDYEAR ECONOMIC REVIEW BY THE
COUNCIL OF ECONOMIC ADVISERS'
United States commodity exports reached an
all-time peak of about 16 billion dollars (annual
rate) in the first half of 1952. The main events
elsewhere which have affected United States trade
are discussed in the following paragraphs.
International payments. The last months of
1951 and the first months of 1952 found most
countries of the free world reacting from the sud-
den impact of the Korean war. Memory of war-
time shortages, readily available credit, and ex-
panded defense production, had brought a tre-
mendous increase in demand for goods at all stages
of production, an expansion of output throughout
the world, and rapidly rising incomes and prices.
The prices of primary products had experienced
the sharpest rises, increasing the incomes of most
of the countries exporting raw materials, but
causing a fairly severe worsening in the terms
of trade of most of the industrialized countries.
Western Europe's balance of payments situation
was further aggravated by abnormally large im-
ports of coal and oil fi-om the United States, neces-
sitated by a lag in the out^Jut of coal behind
industrial production and the cessation of oil ex-
ports from Iran. The United Kingdom also lost
earnings as a result of the impasse over Iranian
oil.
Countries which had reacted earliest to chang-
ing market prospects by heavy inventory accumu-
lation, such as Belgium, The Netherlands, and
Gei-many, experienced balance of payments defi-
cits in 1950 and early 1951, and had already taken
steps to remedy their position by the summer of
1951. In England and France, on the other hand,
stocks were drawn down after June 1950, and these
countries then imported more heavily at the high
level of prices prevailing after the first quarter of
1951. Their balance of payments troubles were
further aggravated by a flight of capital induced
by fears of currency depreciation, and by the
corrective measures taken in some other countries
which held down British and French exports.
■ Submitted to the President on July 16, 10.")2. Members
of the Council of Economic Advisers are Leon H. Keyser-
ling, chairman, John D. Clark, and Roy Blough.
The leveling-off of consumer spending and busi-
ness buying that accompanied the stabilization of
prices and money incomes brought depressed con-
ditions to the textile industry throughout the free
world, revealing a basic structural problem in this
industry. In almost every country, large and
small, industrialized or underdeveloped, the second
half of 1951 and the first of 1952 found unemploy-
ment and unused capacity in woolen mills, and, to
a smaller degree, in cotton mills. In part, this
world-wide situation is explained by the fact that
rising raw materials prices in the last half of 1950
led to speculative purchases of textiles by dealers,
with the result that production soon outran sales,
and inventories were built up. At the same time,
consumer demand slackened, Germany and
Japan reappeared on the world market as textile
exporters, and balance of payments deficits in var-
ious parts of the world forced curtailment of im-
ports, causing the exports of large textile
producers to be reduced.
Although these were the precipitating factors in
certain countries, the world-wide depression in
textiles also reflects an older and more fundamental
malaise than these short-run factors suggest. The
secular development of synthetic fibers, which are
being increasingly substituted for the natural, af-
fects not only the producers of cotton and wool
throughout the world, but insofar as the new fibers
rec^uire new spindles and looms also affects the
manufacturers of other textiles. Furthermore,
the world-wide growth of the textile industry, in
both industrialized and underdeveloped countries,
has caused an expansion of productive capacity in
certain lines beyond the level of demand at current
jjrices, despite the existence of great need.
The decline in textile ]3roduction accounts for
the preponderant part of the recent increases in
unemployment in Western Europe, as table 19
indicates,^ and for a proportion of total unemploy-
ment which is far greater than the importance of
the textile industries in their total economies.
Despite the dej^ressed textile market and a level-
ing off of total industrial production, there is no
evidence of a general recession of demand in
Europe such as would have serious adverse effects
on the United States economy. The stability ap-
pearing in the index of industrial production for
Western Europe in the first part of 1952 reflects
strong demand in the remainder of the European
economy, especially in the metal and metal-using
industries. In almost every country, output of
metal products for the first quarter of 1952 was
substantially above that for the same period of
1951 ; in particular, steel production in the first
4 months of 1952 was 9 percent above the same
period of 1951 for the area as a whole. The easing
of demand for consumers' goods may be expected
" Appendix tables and charts referred to in this Review
are not printed here.
Aogusf n, J952
227
to facilitate a sliift of manpower to industries
Avhere it is urgently needed.
In other parts of the world, national economies
■were characterized by similar developments.
Textile production in India and Japan was larger
than sales in the second half of 1951 and in the
first months of 1952, in part because of reduced
export demand. Increased activity in the metal
industries of Japan caused the level of industrial
production in the first quarter of 1952 to he nearly
20 percent above 1951. In the underdeveloped
countries, production of industrial primary prod-
ucts in general continued at high levels.
Whether the increases in output and gi'eater
stability of prices achieved by most countries of the
free world in the first half of 1952 will be main-
tained depends to a considerable extent on develop-
ments in the United States and other industrialized
countries. Assuming no change in the interna-
tional political outlook and the maintenance of a
high rate of economic activity in the United States,
accompanied by a moderate expansion of imports
and foreign aid expenditures, other countries are
likely to be able to maintain the improved over-
all stability experienced in recent months.
Meanwhile, the slackening of consumers' and
business purchases of finished goods and raw ma-
terials, which started in the United States in early
1951 and spread to other industrialized countries,
led to declines in the prices of many primary prod-
ucts. Countries exporting primary products suf-
fered declines in export prices after the first
quarter of 1951, while in some cases imports con-
tinued to expand. As a result, payments surpluses
were reduced, and in many cases were transposed
into deficits and loss of reserves by some of the
countries of Latin America, Africa, Asia, and the
Pacific. By the end of 1951, the balances of pay-
ments of most industrial countries had improved,
but those of a number of raw material producing
countries and of the United Kingdom and France
had deteriorated seriously.
Underlying many of the factors described above,
and accentuating the balance of payments prob-
lems of many deficit countries, was the general
expansion of their money demand and incomes.
Open or suppressed inflation, supported by the
pressures of internal investment from both public
and private sectors, contributed to deterioration
of balance of payments positions, mainly because
of its stimulating effect on imports.
It is important to note that the balance of pay-
ments deficits experienced by England and France
at the end of 1951 did not result from an absolute
decline in exports, but rather from a failure of ex-
ports to rise as rapidly as imports, even though
exports were reaching unprecedented levels. The
exports of both countries in the fourth quarter of
lO.")! were at an all-time high in value, while the
quantity of exports for the entire year 1951 also
228
set new records, and tlie volume of exports from
the United Kingdom in the first quarter of 1952
set a new high. On the other hand, in certain coun-
tries exporting mainly primary products, notably
Australia and Argentina, government policies of
the last several years to encourage manufacturing
industries contributed to actual reductions in sup-
plies of foods available for export.
Corrective measures. The steps taken to correct i
the balance of payments situations in most coun-
tries of the world recognized the role of internal
monetary forces. Although direct controls over
imports were made more stringent, in general a
larger role was given to internal credit and fiscal
measures than in the preceding postwar balance of
payments crises. Interest rates were raised, and
credit was restricted in an effort to keep effective
demand at levels consistent with the countries' re-
sources. The increasing reliance of Western Eu-
ropean, and also other countries, on monetary and
credit controls was partially due to a reluctance
or inability to tighten direct controls further or
to increase taxes, which in some cases are very
high. Even without import restrictions and active
anti-inflationary policies, however, it is likely that
the rate of imports of some nations would have
declined, because of a reduction in the abnormally
high rate of inventory accumulation.
Developments in the f,rst half of 1952. During
the first half of 1952, there was evidence that most
of the free world had achieved or was achieving
price stability at a high level of economic activity.
By early spring, most European countries and
others in Asia and the Western Hemisphere had
experienced moderate declines in wholesale prices,
although in certain countries, for example, Aus-
tralia, New Zealand, and South Africa, domestic
wholesale prices reached new highs. In some
countries, such as the United Kingdom, Germany,
and the Scandinavian nations, where the peak in
wholesale prices came near the end of 1951, cost-
of-living indexes rose somewhat further. (See
appendix table B-2-1:.) Industrial production,
which had expanded rapidly and continuously
from June 1950 to the spring" of 1951, leveled off
in Western Europe and other industrial countries.
( See chart 22. ) The leveling-off of industrial pro-
duction was the net result of a continued rise in
defense expenditures and strength in markets for
capital goods, combined with weaknesses in mar-
kets for consumers' goods and certain related raw
materials. The prices of hides and wool, for ex-
ample, started to decline in the second half of 1951,
and at the end of the first quarter of this year
reached a low which was considerably below their
pre-Korean level. Although these prices have
since recovered somewhat, they have recently fluc-
tuated about a level substantially below that of
June 1950. Prices of tin and rubber, much influ-
enced by controlled buying in the United States,
Department of State Bulletin
|have declined sharply from their post-Korean
ipeaks. the price of rubber in fact having fallen
below the pre-Korean level. In the first half of
ld~>'2, purchases of rubber, which had been made
-jolcly by the General Services Administration,
\v( Ml' returned to private buyers.
I'nited States imports. Commodity imports
iu the first 5 months of 1952, although below
the same period in 1951, were at a rate 11 per-
cent higher than during the last half of 1951.
(See appendix tables B-43 and B-44 for data on
merchandise imports, and appendix table B-38
for data on all imports.) Most of the movement
in imports between the first quarters of 1951 and
1952 can be accounted for by 8 commodity groups :
joifee, cocoa, wool, sugar, tin, nonferrous ores and
concentrates, rubber, and gas and fuel oil.
Although these commodities accounted for only 41
percent of the value of our total commodity im-
ports in the first quarter of 1951. they accounted
for 82 percent of the decline in the value of our
commodity imports from the first to the fourth
quarter of 1951. Similarly, from the fourth quar-
ter of 1951 to the first quarter of this year, they
accounted for 94 percent of the increase in the
value of our commodity imports. Only a part of
these movements can be accounted for by seasonal
changes; to a considerable extent, they reflected
the effect of the preceding consumption of inven-
tories, which made it necessary to increase imports
to levels more nearly in accord Avith current
consumption.
After an agreement in January between the
! governments of the United States and the United
Kingdom providing for the purchase of steel by
the United Kingdom and of tin and aluminum
by the United States, the United States resumed
purchases of tin which it had ceased to buy for
several months.^ A decline in the foreign price
for lead and zinc, resulting from greater world
production and large foreign stocks, brought in-
creasing imports of these metals. Their foreign
prices declined to the level of United States ceil-
ings, and then caused United States prices to fall
below the ceiling level. The first months of 1952
also brought increased imports of natural rubber,
as well as seasonably high imports of coffee, wool,
sugar, and cocoa.
Although the value of commodity imports in the
first quarter of 1952, an annual rate of al)out 11
billion dollars, was somewhat below the level of
the first quarter of last year, the resulting decline
in the total of dollars available to foreigners was
fully counterbalanced by an increase of 800 mil-
lion dollars (annual rate) in Government pur-
chases of services abroad. Other service imports
remained about the same, with the result that total
imports of goods and services in the first quarter
of this year were at an annual rate of 15.6 billion
dollars, approximately the same as a year earlier,
* For a communique relating to this U.S. -U.K. agree-
ment, see Bulletin of Jan. 28, 1952, p. 115.
and it is believed that they remained close to this
rate in the second quarter. (See chart 23 and
appendix table B-38.)
Other means of financing exports. United
States Government aid, which had declined after
the second quarter of 1951, continued to decline in
the first qtiarter of 1952, but rose again in the
second quarter to the level reached in the same
period of the preceding year. (See table 20 and
appendix table B-40.) This rise from the first
to the second quarter was chiefly the result of an
expansion in military aid, although economic aid
and defense support increased somewhat. At the
same time, there was an increase in private capi-
tal exports between the first and second quarters
of this year. The increase in aid and in private
investment, along with an apparent decline in the
flight of capital (unrecorded transactions), en-
abled foreign countries in the aggregate to stop
the decline in their gold and dollar assets which
had Ijeen going on since mid-1951. According to
preliminary estimates, there was in fact some net
accumulation in the second quarter of this year,
largely on the part of Canada and Indonesia, but
with the gains distributed quite widely, in Europe
as well as elsewhere. The sterling area, which lost
a very large volume of gold and dollar assets in
the first quarter of this year, maintained these
assets substantially unchanged in the second
quarter, partly with the help of a substantial in-
crease in United States aid.
United States exports. Despite the internal
measures taken by several nations to restrict effec-
tive demand. United States merchandise exports,
excluding military supplies, maintained during
the first 5 months "of 1952 the high levels achieved
during the last part of 1951. If military sup-
plies are included, exports were more than 12 per-
cent above the level of the same period of 1951.
(See appendix tables B-41 and B^2 for data on
merchandise exports and appendix table B-38 for
data on all exports.) The failure of these meas-
ures to reduce the level of United States expoi'ts
up to now is in part the result of the fact that
a decline in imports of some goods from the dollar
area was offset by a rise in imports of foodstuffs
and other essential goods ; in part it is evidence of
the lag between the adoption of these measures
and the appearance of their effects in shipments
data.
International Economic Policy
There has recently been growing pressure to in-
crease restrictions on the entry of imports into the
United States — through amendments to the De-
fense Production Act, through use of the "escape
clause" to revoke concessions made in reciprocal
trade agreements, and in other ways. The tend-
ency to seek increased protection when domestic
markets soften is a natural one. The Government,
August II, 1952
229
in determining its course, must always endeavor to
administer its policies in a manner whicli mini-
mizes injury to individuals. But in considering
requests for increased restrictions upon importa-
tion, the Government must also consider the gen-
eral economic effects of such restrictions and their
consistency with other public policies.
Effective increases of import restrictions raise
prices to domestic users, and, under normal con-
ditions of trade, also force foreign countries sooner
or later to cut their purchases from us. In the
long run, the artificial curtailment of trade gen-
erally reduces efficiency in the use of economic
resources, and thereby reduces the total amount
of output. These considerations, being well
known, need not be elaborated here. In addition
to them, however, is a newer consideration arising
out of the fact that some of the countries whose
trade would be affected by increased United States
import restrictions are receiving foreign aid.
This country has extended foreign aid since the
end of the war because, after repeated and thor-
ough public discussion in connection with the loan
to the United Kingdom, the European Recovery
Program, the Mutual Defense Assistance Pro-
gram, the Mutual Security Program, and other
programs, it was concluded that the volume of
goods which a number of foreign countries should
be enabled, in our joint interests, to import was
greater than the volume they could finance solely
through their exports of goods and services and
the flow of our private capital and private gifts.
It has been generally recognized that, if these coun-
tries are to become self-supporting, and if under-
developed countries are to increase their borrowing
capacity so that sound loans and direct investments
can be substituted for grants from the United
States, they must increase their exports. Wlien
we place increased restrictions upon their exports
to us, and thus upon their dollar earnings, however,
we increase their need for aid, and to that extent
defeat our own policy of helping them to get along
without it. Thus some of the burden of such re-
strictions falls upon the United States taxpayer,
who finances a larger volume of aid than would
otherwise be necessary. Even if we were to pro-
vide no additional aid in response to the increased
need, such measures reduce the ability of the coun-
tries affected to repay the loans we have already
extended to them.
Purchases from us by foreign countries,
whetlier or not they receive aid, are limited by
their dollar receipts. To the extent that we
restrict imports without increasing foreign aid,
and avoid a reduction of foreign payments on our
public and private investments, our exports are
certain to be reduced. The gain in sales, profits,
and employment by the domestic industry which
is given increased protection is then made at the
230
expense of sales, profits, and employment in indus-
tries producing for export, a fact which most
producers for export appear to have been slow to
recognize.
It is clear that the policies of helping other coun-
tries to become more fully self-supporting, and
of reducing the strain on our economy, both require
an expansion of imports. This establishes a
strong presumption against increases in our bar-
riers to imports. Indeed, the Council believes
that in the years ahead further reductions in our
import barriers will be found to be in the national
interest.
Another major aspect of international economic
policy relates to the export of capital from the
United States to other countries. Many of the
less- well-developed nations have come to recognize
their potentialities for economic development. In
the nature of the case, their development will be
very slow, if it must be based entirely on their own
current saving. For these countries, the importa-
tion of capital is essential.
The raising of economic levels throughout the
free world is a matter of vital interest to the United
States. Economic development not only raises
living standards and facilitates cultural and
political advance within the developing country ;
it also increases the supply of needed goods for
other countries. More important, economic de-
velopment is necessary for the achievement of the
world-wide jieace and tranquillity, which are vital
if our own economic future is to be a favorable
and secure one.
The economic development of the United States
during the nineteenth century was speeded and
advanced by capital investment from abroad.
The shoe is now definitely on the other foot.
The economy of the United States is now relatively
far advanced, and has been exporting capital for
a generation. However, in the present state of
world insecurity, little tendency is being shown for
private capital from the United States to be in-
vested overseas, except to secure raw materials,
particularly oil and metals.
The policy of the United States has been one of
encouraging investment abroad. We believe this
policy should be continued and expanded. To
tlie greatest extent possible, investment abroad
should be through private channels. In the exist-
ing situation, however, it is not likely that private
capital will go abroad in any very large stream
without improved ]nMvate institutional arrange-
ments or further positive encouragement by the
Government. Further efforts are needed in order
to achieve a mutually desirable flow of capital from
the United States to the less developed countries.
Sound methods for encouraging such investments
should be under continuing study of promotion.
Deparfment of State Bulletin
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Report of U.N. Command Operations in Korea
FORTY-FOURTH REPORT: FOR THE PERIOD APRIL lG-30, 1952 '
U.N. doc. S/2700
Transmitted July 11, 1952
I herewith submit report number 44 of the United
Nations Command Operations in Korea for the period
16-30 April, inclusive. United Nations Command com-
munique numbers 1236-1250, provide detailed accounts
of these operations.
The sub-delegation meetings on agenda Item 3 con-
tinued until 19 April with no progress being made on the
remaining issues. On 19 April the Communists proposed
that the Staff Officers' meetin.ss on agenda item 3 be re-
sumed on the following day. The United Nations Com-
mand sub-delegation agreed. Staff Officers' meetings on
agenda item 3 continued through 27 April with discussion
centering on :
(a) The restrictions on reconstruction and rehabilita-
tion of airfields and
(b) The acceptance of the Soviet Union as a member
of the Neutral Nations Supervisory Commission.
On 28 April plenary sessions were resumed. The
United Nations Command proposed an overall solution
of all remaining problems, including the basis of exchange
of Prisoners of War. The United Nations Command
proposed, and the Communist delegation agreed, to the
conduct of executive sessions until such time as either
side may elect otherwise.
Executive sessions at Staff Officer level on agenda item
4, which had been originally agreed to by both sides in
order to allow maximum freedom of discus.sion, were
abrogated unilaterally by the Communists on 25 April.
The United Nations Command was able, for the first time
since executive sessions started on 25 March, to release
"Transmitted to the Security Council by the acting
representative of the U.S. to the U.N. on July 11. Texts
of the 30th, 31st, and 32d reports appear in the Btilletin
of Feb. IS, 1952, p. 266; the 3.3d report, ibid.. Mar. 10, 19.j2,
p. 395 : tlie 34th report, ibid.. Mar. 17, 19.52, p. 430 ; the .35th
report, ibid.. Mar. 31, 1952, p. 512; the 36th and 37tb
reports, ibid., Apr. 14. 19.52, p. 594; the 38th report, ibid.,
May 5, 1952, p. 715; the 39th report, ibid.. May 19, 1952,
p. 7S8 ; the 40tb report, H}id.. June 23, 19.52, p. 998; the 41st
report, ibid., June .30. 1952, p. 1038 ; the 42d report, ibid.,
July 21, 19.52, p. 114; and the 43d report, ibid., Aug. 4,
1952, p. 104.
August 7 7, 7952
the entire scope of the negotiations conducted during
this ijeriod. This unilateral termination by the Com-
munists of the executive sessions brought to a climax
the long series of fruitless attempts on the part of the
United Nations Command to achieve an equitable and
honorable settlement of the issues involved.
During the executive sessions and in the open sessions
which preceded them, agreement had been reached on a
number of matters relating to Prisoners of War ; but on
the primary issues, the basis on which Prisoners of War
were to be exchanged, the positions of the Communists
and the United Nations Command were diametrically op-
posed. The Communists have been adamant in their de-
mand for unconditional return of all Prisoners of War
held by each side; a demand absolutely unacceptable
to the United Nations Conmiand because it would almost
certainly mean death or torture for the thousands of
United Nations Command-held prisoners who signified
their determination to resist return to Communist control.
On two related issues the views oC the Communists and
the United Nations Command were violently opposed.
The Communists attempted to lay claim to 37,000 South
Korean civilian internees held by the United Nations
Command who early in the war had largely been im-
pressed into the North Korean army. At the same time
the Communists refused to account for more than 50,000
persons admittedly captured by them but whose names
were not on the prisoner lists submitted at the time such
data were exchanged last December. Their only account-
ing for this group was the allegation that they had been
released at the front, had died, or had been permitted to
join their armed forces.
Discussions in the open sessions dragged on, sometimes
under extremely trying circumstances. In an effort to
create the most favorable possible atmosphere in which
the detailed position of each side could be examined and
discussed without the necessity for publicity to which
the Communists appeared particularly sensitive, the
United Nations Command proposed that executive, or se-
cret, sessions be held.
On 25 March the first secret session was convened. The
United Nations Command position on forced repatriation
was made unmistakably clear. The Communists indi-
cated their willingness to negotiate but only on condition
that the United Nations Command would provide an esti-
mate of the total number of persons the Communists
would expect to have returned to their side. The United
231
Nations Command explained that since no poll of the
individual prefereiiees of prisoners had been taken, there
was no liasis for any reliable estimate of the nuujber avail-
able for return. Hovpever, the United Nations Command
gnaranteed the return to the Conununists of every North
Korean and Chinese Communist prisoner who desired to
return to Connnnnist control. Rut in no case would the
United Nations Command employ force to insure the re-
turn of any person who resisted repatriation. As a fur-
ther indication of desire to effect the most equitable
.settlement of this issue, the United Nations Connnand
agreed to permit any South Korean I'risoner of War or
civilian internee to transfer to the Connnnnist side if he
so desired.
Continued insistence on the part of the Comnninists for
a round numlier of persons to lie returned to Communist
control cr)mpelled the United Nations Command to initiate
a screening program for all per.sons held in custody in
the camps at Ko.ie Do and Pusan.
The screening program was designed to determine the
number of North Korean and Chinese Prisoners of War
who could not be returned without the use of force to Com-
munist control and to give the nationals of the Repul>lic
of Korea held in custod.v by the United Nations Command.
either as Prisoners of War or civilian internees, freedom
of choice to be returned to Comnuniist control or to remain
in the Republic of Korea.
During a twenty-four hour period prior to the screen-
ing. North Korean and Chinese Connnnnist Forces Pris-
oners of War of each compound on Ko.je Do were carefully
infcirtned of the fact that they wouhi be interviewed for
the purpose of determining whether or not they would
forcibly oppose repatriation. The prisoners were Iiriefed
not only on the importance of this decision, which was
to be final, but on the fact that for their own safety they
should not discuss the matters with others or make known
their decision before the individual interviews were held.
The interviews were conducted by unarmed United Na-
tions Connnand personnel near the entrance to each com-
pound. Each prisoner, carrying his personal possessions,
was called forward individiially and interviewed in
private. Highly qualified personnel conducted the
interrogations.
The series of questions used in the interview was de-
signed to encourage a maximum number of prisoners to
return to the Communists' side, not to oppose such I'eturn.
The first question was designed to identify those who
clearly desired to return. In the case of Chinese prison-
ers, the first question was : "Would you like to return to
China?" In the case of North Koreans, the first question
was: "Would you like to return to North Korea?" If
the answer was in the affirmative, the prisoner was listed
for repatriation without further questioning. Those who
replied in the negative were subjected to additional ques-
tions designed to determine whether their opposition was
nominal or whether they would violently oppose repatria-
tion. The second question was: "Would you forcibly re-
sist repatriation?" If the answer was "No" the Prisoner
of War was listed for repatriation. If the answer was
"Yes" the Prisoner of War was asked four additional
questions to fully determine his attitude. These were :
"Have you carefully considered the important effect of
your decision upon your family?" "Do you realize that
you may stay in Ko.ie Do for a long time — even after those
who choose repatriation have already returned home?"
"Do you understand that the United Nations Command
has never promised to send you to any certain place?"
"Do yen still insist on forcibly resisting repatriation?"
And then, perhaps the most important question, "De-
spite your decision, if the United Nations Command
should repatriate you, what would you do?" The pris-
oner was listed for repatriation unless during the ques-
tioning he mentioned suicide, fight to death, braving death
to escape, or similar intentions. As a result of these
procedures all Prisoners of War were included among
those to be repatriated except those whose opposition to
return was so strong that they would attempt to destroy
themselves rather than return to Communist control.
A more humane, impartial, and conscientious procedure
could not be devised.
Prisoners of War and civilian internees in custody at
the hospital compound in Pusan were screened under
similar procedure.
As a result of the screening, in which Prisoners of War
and civilian internees were interviewed to ascertain their
decisions, approximately 70,000 Prisoners of War and
civilian internees will remain on Koje Do to await repa-
triation to the Communist authorities following an
armistice.
This was the number reported to the Communists and
nnist be the basis on which any future negotiations are
conducted.
The Communists attempted to secure agreement to con-
duct open Staff Officers' sessions. However, it was evi-
dent that they intended to make no reasonable attempts
to move toward settlement of the Prisoner-of-War issue
and that their offer meant only an opportunity for them '
to continue an unscrupulous propaganda campaign to dis-
tract the attention of the world from the basic problems
involved in the negotiations. The United Nations Com-
mand recessed immediately in preparation for movement
to plenary sessions as the most logical step to solve the
unresolved issues. The Ccimmunists agreed to convene
plenary sessions on 28 April, at the opening of which the
United Nations Command informed the Communists that
we were prepared to present an overall solution of the
problems remaining to be settled. In response to the
United Nations Command suggestion that the executive
session form of meeting was the most suitable for this
purpose, the Communists agreed that negotiations in
plenary session would be withheld from the public. Both
sides agreed further that the executive sessions could be
discontinued at the request of either side. At the con-
clusion of the first conference, the Communists recessed
to reconvene at the time of their choosing.
The status of agenda item .5 remains unchanged from
that reported in United Nations Command Report number
forty-three.
Enemy ground action was highlighted by small scale
attacks on the central and east central sectors of the
United Nations Command front, where he employed units
of up to two-compan.v strength. Effective enemy re-
actions to United Nations Command patrolling and "prob-
ing efforts continued. He is still reluctant to allow ac-
cess to the ground he controls and is determined to
abruptly halt or drive back such United Nations Com-
mand actions. Enemy aggressive action usually starts
during the hours of darkness and is .supported by artillery
and mortar fire. The heaviest of these fires was concen-
trated on the eastern front. Enemy positions and capa-
bilities remained unchanged, although an inter-Army
relief took place in the central sector.
The most aggressive action on the western front against
United Nations Command units took place in the Hung-
wang-Pun.ii sector from 15 through 17 April when hostile
forces launched two attacks. The larger of these at-
tacks involved a company which was repulsed by United
Nations Command elements in the Pun.ii sector on the
night of 15-ir> April. The following night two enemy
jilatoons attacked the same sector. Other than these
two unsuccessful hostile actions the enemy was content
to intercept I'nited Nations Command patrols and prob-
ing attempts and to continue to improve his defensive
battle line positions. A ndnor order of battle change
took place on the western front when a Chinese Com-
nuniist Forces Army replaced one of its Divisions with
two Divisions which had been in reserve. This is a
normal change anil conforms to the enemy policy of re-
lieving front line units for rest and reorganizing purposes.
The normally quiet central sector was the scene of the
most aggressive hostile action along the entire United
Nations Command front. Enemy miits launched small
scale aggressive attacks of up to two-compan.v size sup-
ported by artillery and mortar barrages. These attacks
232
Department of Stale Bulletin
ranged along the central sector from northeast of
Kiimhwa eastward to the I'nkhan River. The most note-
worthy action took place in the Kumsong area on the night
of 10-17 April when two enemy companies attacked (lur-
ing the hours of darkness, under cover of rain and fog.
rhi.s action, fought for eight hours, was ended by a suc-
cessful United Nations Counnand counterattack. A two-
lompany attack in the Yulsa area on the seventeenth and
1 company attack in the same area on the eighteenth were
repulsed without loss of ground and with a minimum of
casualties. Friendly elements in the Talclion area were
temporarily forced to relinquish an outpost on the night
3f 10 April when two companies attacked, but the posi-
tion was regained after a lu-ief counterattack. United
Mations Command tank elements fired on positions in the
Sutae area on 10 April during daylight, inflicted over 200
»nemy casualties and caused extensive damage to hostile
junkers and trench networks.
Hostile action along the eastern portion of the United
N'ations Command front consisted of patrol clashes and
.nterceptions with very little initiative being shown by
;nemy forces. During this period enemy artillery and
•nortar units in the Tupo-Yuusil area of the eastern front
■xjiended almost half of the total reported delivered
igainst United Nations Command units on the entire
"rent.
From 10 to 18 April, inclusive, the Sixth and Seventh
Companies of the Seventh Republic of Korea Regiment,
Sixth Republic of Korea Division, performed in an out-
standing manner by holding a critical terrain feature in
"he face of enemy attacks in superior numbers. Results
.vere 103 known enemy dead, fifty estimated dead and two
jrisoners. Friendly losses were thirty-five killed and 117
wounded. This action reflects gi-eat credit upon these
inits and their supporting elements and iUustrates the in-
tegrity and determination of the Republic of Korea Army.
United Nations Command .let- and propeller-driven air-
n'aft, operating from the fast carriers in the Sea of .Japan,
Sew against Communist transportation facilities and sup-
ply routes in North Korea. The attacks were concen-
trated on vulnerable rail lines along the east coast of
Korea.
Rail lines were cut and bridges, by-passes, and rail cars
(vere destroyed. Additional destruction and damage in-
sluded trucks, barracks, warehouses, locomotives, gun
positions and many small vessels.
United Nations Command carriers continued to operate
in the Yellow Sea. Their planes furnished cover and air
supjiort for surface imits on blockade patrols and anti-
invasion stations. They also flew reconnaissance mis-
■lions and offensive strikes over the Chinnampo area and
Hwanghae Province and in close supijort of the front
Line troops. Rail cars, warehou.ses and motor vehicles
were destroyed and many enemy casualties were Inflicted.
Patrol planes conducted daylight reconnaissance mi.s-
sions over the Sea of .Tapan and the Y'ellow Sea and also
flew day and night patrol and weather reconnaissance
missions for surface units in these same areas.
The Naval blockade continued along the east coast from
the bombline to Chong,iin. Surface units made <lay and
night coastal patrols to fire on rail targets along the
coastal line. Vessels continued a siege of ma.ior east
coast ports with Wonsan, Hungnam and Songjin kept
under almost continuous harassment. The Communists
were denied the use of coastal waters for shipping and
fishing as all attempts to go to sea were taken under fire
and broken up. Fire support vessels at the bombline
provided gunfire for the front line troops as far as twenty
miles inland.
Enemy shore batteries were active against United
Nations warships. In tlie Songjin area a minesweeper
received one hit by a 2~> inch projectile which caused light
material damage and no personnel casualties. In the
Chongjin area a destroyer received one hit from a 7rnnm
battery. Two crew members were killed and four wore
injured, none seriously. The material damage was
negligible. A destroyer minesweeper received one hit
which caused only minor material damage and no per-
sonnel casualties. At Wonsan another United Nations
Command vessel received one hit of 122mm fired from
Hodo Pando. Material damage was not serious b>it two
crew members were injured, one seriou.sly. Shore bat-
teries were active on numerous other occasions at Won-
san, Hungnam, Tanchon, Songjin and Chongjin.
On the Korean west coast, the United Nations Com-
mand surface units manned anti-invasion stations along
the coast from Chinnampo to the Han River Estuary to
protect friendly islands north of the battle line. Day-
light firing into enemy positions started many fires and
inflicted numerous casualties. An enemy attack on Y'ong-
mae Do was repulsed by United Nations Command
vessels.
I'T boats of the Republic of Korea Navy made their
first offensive sorties, striking Hodo Pando on the east
coast and the north shore of Tadong Man on the west
coast. Fires were started by rockets and 40mm fire.
On the east coast tlie boats received machine gun and
small arms fire but were not hit. Other vessels conducted
inshore patrol and blockade missions and assisted United
Nations Command Forces In minesweeping duties.
Other Navy ships and merchant vessels, under eon-
tract, provided logistic suijport for United Nations Com-
mand Forces in Japan and Korea. Ships of the amphibi-
ous forces provided personnel lift to move Prisoners of
War and internees from the island of Koje Do to other
relocation centers In South Korea.
The United Nations Command minesweepers continued
operations to keep the channels, gunfire support areas, and
anchorages free of mines. Sweepers also enlarged previ-
ously swept areas to meet the needs of operating forces.
Although eight days of poor weather hampered air op-
erations, aircraft of the United Nations Command Air
Force continued to maintain air superiority, attack rail
lines, vehicles and supplies, and provide close support for
ground units. Medium bombers disrupted the two main
rail routes from Manchuria into northwest Korea b.v re-
peatedly attacking four key railroad river crossings.
Fighter bomber attacks were conducted against these and
other important rail routes in North Korea. Light bomb-
ers conducted night attacks against enemy vehicles and
against the rail lines in order to prevent the rapid repair
of the cuts inflicted during daylight hours. Fighter in-
terceptors patrolled the northwest sector of Korea and
engaged the enemy MIG aircraft on six occasions.
The two main lines from Manchuria to North Korea,
the Sinuiju-Sinanju route and the Kanggye-Kunuri line,
were both interdicted by medium bombers. On the first
route the interdiction was accomplished by four attacks
on the Sinanju bridges, which rendered both bridges un-
ser\iceable, and a single attack on the Ohnngju Railroad
bridges which completely blocked the line by knocking
out the main and by-pass crossings. Without neglecting
the Sinuiju-Sinanju line the effort was periodically
shifted to the second main route. The Sinhungdong
bridge on this route was bombed out three different times.
In nn<ither attack on this route the rail crossings at
Huichon wei-e hit resulting in four spans destroyed on
the by-pass and two .spans destroyed on the main bridge.
In addition to other sorties, the medium bombers flew
leaflet and clo.se support missions. No medium bombers
were lost although one aircraft sustained damage from
antiaircraft fire.
In further interdiction operations United Nations Com-
mand fighter bombers concentrated large scale attacks
on short stretches of traflv making multiple cuts and
destroying sections of the road bed. The area of opera-
tion was influenced by weather; but, by maintaining a
flexible target schedule, the fighter bombers were able to
make cuts on all main lines with the result that the
main routes were in commission only for very short
periods of time. The majority of the cuts were on the
lines between Sinanju and Namsidong, Kunari and
Huichon, Pyongyang and Sinanju, and Sunchon and
August 11, 7952
233
Samdongni, with the remainder of the cuts on lines farther
south.
The primary missions of the light bombers remained
night armed reconnaissance and interdiction. The light
bombers were scheduled nightly on these missions. De-
layed fuse bombs were dropped on the rail lines where
fighter bombers had hit during the day to further harass
the crews attempting to repair their lines. The night
intruder aircraft were credited with destroying numerous
vehicles, locomotives, and railroad cars. No aircraft were
lost during these operations.
United Nations Command fighter interceptors sighted
enemy aircraft on only eight days. On two days the
enemy jets failed to appear even though the weather was
operational. The fiighter interceptors claimed fifteen
MIGs destroyed, eighteen damaged and two probably de-
stroyed. The largest engagements occurred on 21 April
when seven MIG aircraft were destroyed and three were
damaged. One United Nations Command aircraft was
lost during the engagement. No significant change in the
pattern of MIG activity was observed. Tlie aggressive-
ness of the enem.v fighter pilots was not constant. It was
again noted that pilots of the type fifteen aircraft were
generally more aggressive than those of the MIG-15.
Tactical reconnaissance units continued to provide
photograph coverage of important airfields, rail bridges,
rail choke points, and enemy installations. Current in-
telligence information was secured through visual recon-
naissance missions. In addition to other missions flown,
reconnaissance aircraft performed fire adjustment mis-
sions for United Nations Command vessels operating on
the east coast of Korea.
United Nations Command leaflets and broadcasts dis-
seminated factual reports of the Communist action in
breaking off the executive sessions on prisoner exchange.
In publicizing the continued Communist frustration of
efforts to reach a realistic armistice agreement, the
United Nations Command media made it clear to the
soldiers and civilians in enemy territory that their Com-
munist leaders were deliberately prolonging the war at a
tragic cost in human lives. Intensified measures for air
dropping miniature news sheets to cities and towns
throughout North Korea are making it more difficult for
the Communist to suppress the truth. Although it is not
feasible to distribute enough leaflets to reach every person
in North Korea, refugees fleeing from Communist tyranny
report that the information contained in the United
Nations Command news sheets is eagerly received and
passed orally from person to person.
The health of the civilian population throughout South
Korea is generally good. The incidence of relapsing fever
and smallpox is on the decrease. A large scale immuniza-
tion program for smallpox and typhus has been completed
during which 7,57(i,202 persons received smallpox vac-
cinations, and 7,56.5,607 persons were immunized against
typhus since October 1951.
Mild Spring temperatures have facilitated the progress
in the construction of all types of houses under the
National Housing Program. Of the 19.644 family units
planned, 0,475 have been completed and 4,336 are under
construction. Of the planned 17,912 refugee shelters,
13,649 have been completed and 1,188 are under
construction.
Biennial Film Exhibitions
To Open at Venice
Press release 608 dated August 1
The U.S. Government will be represented at
the Tliirteenth International Exhibition of Cine-
mato<jraphic Art, the Third International Exhi-
bition of the Scientific Film and Art Documen-
tarj', and the Fonrtli International Festival of
Films for Children, to be held concurrently at
Venice from August 8 to September 10, 1952, by
Wilson R. Cronenwett, Lt. Comdr.. USN. Head
of the Motion Picture Branch, Naval Photo-
graphic Center, Department of the Navy. Mr.
Cronenwett has been engaged in theater jiroduc-
tion for 22 years and has been active in motion
picture production, with the training-film pro-
gram of the U.S. Navy, since 1946. In 1947 he
produced the first Navy training film to be honored
by a silver award at the Venice Exhibition.
The purpose of the biennial exhibitions is to
give formal public recognition to films which
demonstrate outstanding progress toward making
the motion picture a means of artistic expression
and of improving international cultural relations.
The meetings also afford American representa-
tives an opportunity to view the techniques that
are employed in other countries.
From the films submitted by the agencies of this
Government which produce motion pictures, an
interdepartmental committee has selected 13 films
on various subjects, including documentary, medi-
cal, scientific, and instructional films, for showing
at Venice. The film-producing agencies whose
motion pictures will constitute the U.S. exhibit
are the Departments of Agriculture, Defense (Air
Force, Army, and Navy), and State, the Federal
Secui-ity Agency (Public Health), and Veterans
Administration. The motion picture industry of
the United States has also been invited to partici-
pate, and it is understood that several amusement
and documentary films have been entered in the
competition.
U.S. Delegations to
International Conferences
Edinburgh Film Festival
On July 29 the Department of State announced
that the Sixth International Edinburgh Film Fes-
tival will be held at Edinburgh, Scotland, from
August 17 to September 7, 1952. This series of
international film festivals at Edinburgh was or-
ganized in 1947 for the purpose of showing realist,
documentary, and experimental films on a non-
competitive basis. All governments which pro-
duce films have been invited to participate in the
Sixth Festival exhibits and in the special pro-
grams of selected scientific, educational, and chil-
dren's films. Fourteen films, produced by the De-
partments of Agriculture, Defense (Army and
Navy), Federal Security Agency (Public Health),
the Interior, and State, will constitute the U.S.
exhibit at the Festival.
United States Delegate
Irene A. Wright, Consultant to the Acting A.ssistant Ad-
ministrator, International Motion Picture Service,
Department of State
234
Department of State Bulletin
Itcniate U.S. Delegate
loyde E. Brooker, Chief, Audio Visual Branch, Ofl5ce
of Information, Mutual Security Agency
ivisers
ranlclin Irwin, I'niilic Affairs Officer, American Consu-
late Ccneral, Edinburgh, Scotland
ils C. Nilson, Films Information Specialist, Mutual
Security Agency, Paris, France
yndon Vivrette, Films OflScer, American Embassy,
London, England
adio Scientific Union
The Department of State announced on July
l that the International Radio Scientific Union
Qrsi ) ( Union Radio-Scientifique Internationale )
iJl convene its tenth general assembly at Sydney,
.ustralia, on August 11. The U.S. delegation to
18 assembly is as follows :
elegates
harles R. Burrows, Ph.D., chairman, Director, School
of Electrical Engineering, Cornell University, Ithaca,
N.Y.
:enry G. Booker, Ph.D., Professor of Electrical Engi-
neerintr. Cornell University, Ithaca, N.Y.
Dhn H. Dellinger, Ph.D., vice president. International
Radio Scientific Union, President of International
Commission I (Radio Standards and Jlethods of
Measurement) 3900 Connecticut Avenue, NW, Wash-
ington, D.C.
[arold E. Dinger, Electronic Scientist and Head of Sys-
tems Interference Unit. Radio Division 2, Naval Re-
search Laboratory, Department of Defense
rthur H. Wayniek, D.Sc, Professor of Electrical Engi-
neering, I'ennsylvauia State College
Iternate Delegates
'rancis J. Gaffney, Chief Engineer and Manager of Opera-
tions, Polytechnic Research and Development Com-
pany, Brooklyn
ack A. Morton, supervisor. Department of Semiconductor
Device Research and Development, Bell Telephone
Laboratories, JMurray Hill, N.J.
-Ian H. Shapley, physicist. Central Radio Propagation
Laboratory, National Bureau of Standards
amuel Silver. Ph.D., Profes.sor of Electrical Engineering,
University of California, Berkeley
Ursi is affiliated with the International Council
if Scientific Unions. Since its organization in
919 Ursi has been developing, on an international
)asis, scientific studies and programs pertaining to
■adio-electricity and related subjects, and bringing
ogether, in its biennial assemblies, the scientists
vho are responsible for the research underlying
he spectacular advances in electronics, radar, tele-
dsion, and other applications of radio principles
md techniques. Its aims are to promote inter-
lational cooperation in the scientific study of
•adio, to encourage and aid in the organization of
'adio research requiring cooperation on a large
icale, to promote the establishment of common
nethods and standards of radio measurement, and
.0 encourage and aid in the discussion and dis-
semination of the results of these activities. Ursi
has an active national committee in each of its
22 member states. These committees, organized
and sponsored in each country by the National
Research Council or a corresponding body, hold
scientific meetings and have active working
committees.
Geographical Union
The Department of State announced on July 18
that the U.S. Government has extended invita-
tions through diplomatic channels to 71 other
governments to be represented at the eighth gen-
eral assembly of the International Geogi-aphical
Union (Igu) at Washington, August 8-15, 1952.
The seventeenth International Geographical Con-
gress, to be held at Washington concurrently with
the Igtj assembly, is sponsored by the Interna-
tional Union. The forthcoming congress and
assembly will be the first international gathering
of geographers in this country since 1904, when
the eighth Congress, which delegates dubbed the
"Peripatetic Congress," convened successively at
Washington, New York, Philadelphia, Chicago,
and St. Louis.
More than 1,000 geographers, from the 31 coun-
tries which are members of the Union and from
nonmember countries which will send observer
delegations, are expected to attend the assembly
and congress sessions. The U.S. delegation is as
follows :
Delegates
Wallace W. Atwood, Jr., Ph.D., chairman. Director, Office
of International Relations, National Academy of
Sciences-National Research Council, Washington,
D. C. ; chairman. National Committee of the United
States, International Geographical Union
Samuel W. Boggs, Special Adviser on Geography, Depart-
ment of State
Edwin J. Foscue, Ph.D., Professor of Geography and
Chairman, Department of Geography, Southern
Methodist University, Dallas
Robert M. Glendinning, Ph.D., Professor of Geography,
University of California at Los Angeles, Los .\ngeles
Gilbert H. Grosvenor, President, National Geographic
Society, Washington, D. C.
Otto E. Guthe, Ph.D., Special Assistant for Maps, Depart-
ment of State
Chauncy D. Harris, Ph.D., Professor of Geography, Uni-
versity of Chicago, Chicago
Preston E. James, I'h. D., Professor of Geography and
Chairman, Department of Geography, Syracuse Uni-
versity, Syracuse, Retiring I'resident, Association
of American Geographers, U.S. Member of the Com-
mission on Geograpliy, Pan American Institute of
Geography and History
Lester E. Klimm, Ph. D., Professor of Geography, Uni-
versity of Pennsylvania, Philadelphia
Richard Upjohn Light, M. D., I'resident, American Geo-
graphical Society, New York
Glenn T. Trewartha, Ph. D., Professor of Geography, Uni-
versity of Wisconsin, Madison, President Association
of American Geographers
John K. Wright, Ph. D., Research Associate, American
Geographical Society, New York
ftogusf J 7, 1952
235
Tlie International Geographical Union, organ-
ized in 1922, is one of nine constitnent organiza-
tions of the International Council of Scientific
Unions which encourages and facilitates interna-
tional cooperation in science. The purj^oses of the
Geographical Union are to promote the study of
geographical problems, to initiate and coordinate
researches requiring international cooperation,
to provide for meetings of the International Geo-
grapiiical Congress, and to appoint commissions
for the study of special matters during the interval
between congi-esses. The first International Geo-
graphical Congress was held in Antwerp, Bel-
gium, in 1871. During the next 50 years, ten
congresses were held under various sponsorships.
In a program encouraging the free exchange of
ideas among geographers of all countries, em-
phasis will be directed to those areas of scientific
investigation which are most successfully de-
veloped through international cooperation. The
forthcoming general assembly will review the re-
search activities of various commissions appointed
at tlie seventli general assembly held at Lisbon
in 1949. The commissions reporting to this as-
sembly are those dealing with aerial photograph}',
ancient maps, industrial ports, medical geography,
periglacial morphologj', regional planning, soil
erosion, and inventory of world land use. The
assembly will also discuss a report from its com-
mittee on arid lands. Fields of the geographical
sciences to be discussed in the section meetings of
the congress are biogeography, cartography, cli-
matology, demography, and cultural geogi-aphy,
geomorphology, historical and political geog-
raphy, ]iydrogra]5hy, regional geography, teach-
ing of geography, trade and transportation,
ui'ban and rui'al settlement, and resources, agri-
culture, and industry. There will be special
symposia on "World Food Supply" and "Tropical
Africa," in which leading experts will participate.
Under the auspices of several private groups
in the United States, excursions are being planned
for the visiting geographers both before and after
the meetings in Washington. Tiiese include a
transcontinental tour with bus and rail trips to
various scenic centers in the West and South-
west; a geographical and historical tour of New
England; a first-hand .study of the industrial
cities of the lower Great Lakes region ; and a tour
of the Southeastern States, including a visit to
the Tennessee Valley. Visiting geographers will
be the guests of the American Geographical So-
ciety in New York City, August 4-6, to join in
the celebration of the Society's one-hundredth
anniversary.
Arrangements for the meetings have been un-
der way for 3 years by the United States of
America National Committee of the International
Geographical Union. Wallace W. Atwood, Jr.,
Director of the Office of International Relations,
National Academy of Sciences-National Research
Council, is chairman of this committee. Geog-
raphers throughout the United States have been
enlisted as members of the committees on arrange-
ments for the conference.
Several geograjihical organizations plan to
hold meetings in Washington prior to the open-
ing of tlie assemljly and congi'ess. During the
period July 2,'")-August 4, the third Pan American
Consultation on Geography will be convened. The
Association of American Geographers and the
National Council of Geography Teachers are
scheduled to hold their annual meetings on Au-
gust 6 and 7. From September 4—16, the seventh
International Congress of Photogrammetiy will
hold meetings in Washington and Dayton.
U.S., U.K. Conclude
Telecommunications Talks
Press release 602 dated July 31
Talks have been concluded in London between
a delegation of U.S. teleconnnunications experts,
led by Federal Communications Commissioner
Edward Webster, and representatives of the
United Kingdom and Commonwealth Telecom-
munications Board representing Commonwealth
governments. The discussions dealt with a pro-
posal for the modification of article 2 of the Lon-
don Revision of the Bermuda Telecommunications
Agreement, which regulates various telecommuni-
cations matters between the United States and
Commonwealth govermnents. This article, which
concerns exchange rates and accounting proce-
dures, required adjustment in light of the devalu-
ation of the pound sterling in 1949 and has been
the subject of correspondence between parties
concerned since 1950. The full agreement which
was reached between the delegations concerned
is subject to confirmation by the respective
governments.
Tlie U.S. delegation raised the question of the
handling of transit traffic by American companies
to British Commonwealth countries, and as a
result thereof certain U.S. proposals for the lib-
eralization of the ]H*esent prohibition of handling
such traffic are being ])laced before the Common-
wealth governments for consideration.
236
Department of Sfofe Bulletin
The United States in the United Nations
July 25-AugTist 7, 1952
Security Council
Kasmir — Frank P. Graham, U.N. representa-
tive for India and Pakistan, sent the following
letter, July 30, to the President of the Security
Council :
On 29 May 10.j2 I informed the President of the Security
Council that in agreement with the Governments of India
and I'al<istan the negotiations on the question of the State
of Jamnni and Kashmir had been renewed.
Following upon these negotiations the Governments of
India and Pakistan have agreed to a meeting of repre-
sentatives of the two Governments at a ministerial level
under the auspices of the United Nations Representative
in the Eiiropean Office of the United Nations, Geneva,
beginning 2.5 August 1952.
At the appropriate moment I shall report to the Presi-
dent of the Security Council the outcome of the negotia-
tions.
Economic and Social Council
The Council concluded its fourteenth session on
August 1. Two sessions will be held in 19,53 : the
fifteenth, beginning March 31, 1953, at U.N. Head-
quarters, and the sixteenth, beginning June 30,
1953, at Geneva. The French resolution to hold
the sixteenth session in Geneva was approved by
a vote of 8-5 (Canada, China, United Kingdom,
United States, Uruguay) -5 (Mexico, Pakistan,
Iran, Philippines, Egypt). Isador Lubin (U.S.)
appealed to the Council to vote in favor of hold-
ing this session also at headquarters. He stated
that at a time when governments were complaining
of the high cost of the United Nations and when
it was becoming increasingly difficult to obtain
legislative approval for necessary activities, a de-
cision to meet in Geneva next year would be an
"irresponsible decision." It was more important,
he added, that these additional funds be spent on
technical assistance, Unicef, Unkra, and other
programs set up to make life easier and better for
the i)eople of the world. Also, a Geneva meeting
would greatly reduce the possibility of holding
Near East and Far East sessions.
The Council took the following action, inter
alia, during the final week of this session:
1. Adopted by a vote of 15-0-3 (Sov. bloc) the
revised draft resolution jointly submitted by Bel-
gium, Cuba, Egypt, France, Pakistan, Philip-
pines, and the United States requesting the Secre-
tary-General to prepare for publication in 1954,
a supplementary report on national and interna-
tional measures taken to improve social conditions
throughout the world, and to prepare a second
edition for publication in 1956 of the report on
the world social situation. This resolution also
authorized the Social Commission to hold its regu-
lar session in 1953 and to make recommendations
to the Council at that time on a program of con-
certed action in the social field in accordance with
General Assembly Resolution 535 (VI).
2. Adopted by a vote of 15-0-3 (Sov. bloc)
the Social Commission's resolution commending
Unicef; recommending increased efforts to make
its achievements known; expressing concern that
the 1952 budget was not fulfilled, and calling at-
tention to the urgent need for meeting the 20
million dollars target set for the year ending June
30, 1953. AValter Kotschnig (U.S.) endorsed the
extension of Unicef programs in economically
less-developed areas and urged continued em-
phasis on permanent child welfare and health
services and that more attention be given to child
nutrition and welfare in contrast to the present
heavy emphasis on child-health programs. In
calling attention to the resolution's reference to
needed funds, he mentioned the recent U.S. appro-
priation of more than $6 million for Unicef and
noted that the cumulative U.S. contribution of
some 87 million dollars, which has thus far been
made available by the U.S. Congress, will repre-
sent 70 percent of the total contributions of govern-
ments to the central account of the fund. It was
his Government's hope, he said, that other gov-
ernments within tlie limits of their resources and
commitments would be able to continue their sup-
port of the fund so that the humanitarian work
could go forward in 1953 without interruption.
3. Elections were held to fill the vacancies on
the Council's 7 functional commissions, the Non-
Governmental Committee, and the Unicef Execu-
tive Board. It was agreed to defer until 1953 the
selection of countries to replace the five Narcotics
Commission members appointed in 1949 for 3-year
terms.
August 7 7, 7952
237
4. Salvador P. Lopez (Philippines) was elected
rapporteur on Freedom of Information. He will,
in cooperation with the specialized agencies, fol-
low developments in the field of freedom of infor-
mation and report to the Council in 1953.
5. The Council approved, by a vote of 12-3
(Sov. bloc) -2 (Belgium, Egyj)t), the Social Com-
mittee's resolution requesting the appointment of
a small group of experts to report on methods of
measuring standards of living.
6. It adopted, unanimously, three Social Com-
mission resolutions requesting the Secretary-
General to continue to emphasize advisory social
welfare services and to cooperate with Unicef, the
specialized agencies, interested nongovernmental
organizations and other appropriate international
bodies to encourage and assist governments in
developing child-welfare programs; and that the
member states give due attention to the principles
adopted by the Social Commission on in-service
training of social welfare personnel.
7. Adopted, 12 (U.S.) -3 (Sov. bloc) -3, a reso-
lution on the simplification of formalities and
the reduction of costs for migrants.
8. Adopted, by a vote of 15-0-3 (Sov. bloc) a
resolution recommending to governments the de-
velopment, for low-income groups, of long-term
policies on building, housing, and town and
country planning.
9. The Council approved, 15-0-3 (Sov. bloc),
the Social Commission's work program for 1952-
53 as drawn up by the Commission at its eighth
session, and, inter alia, reiterated the need for
priorities to be established for the success of the
economic and social work of the United Nations
and specialized agencies, and pointed out that
international action can achieve substantial results
only by concentrating the limited resources now
available on tasks of primary importance for the
realization of the objectives of the U.N. Charter.
10. The Council adopted, 14-3 (Sov. bloc)-l
(Uruguay), a U.K.-U.S. resolution on the ques-
tion of the implementation of recommendations
on economic and social matters. The operative
part of this resolution states that (1) in the future,
wherever practicable, the Council will indicate the
specific dates when reports are expected from mem-
ber governments in connection with the imple-
mentation of resolutions adopted ; (2) will include
in its annual report to the General Assembly in-
formation covering the replies received from
governments regarding the implementation of
recommendations of the General Assembly and the
Council in economic and social matters; and (3)
will consider from time to time the desirability of
reviewing the implementation of such recom-
mendations relating to a particular field, or fields,
of its activities.
11. The Council approved, 11-3 (Sov. bloc)^
(Egypt, Iran, Mexico, Pakistan) , the joint Philip-
pine-Swedish-United States resolution instruct-
ing the Commission on Human Rights to complete
its work on the two Covenants on Human Rights
at its next session in 1953 and to submit them
simultaneously to the Council. It also approved,
14—3 (Belgium, France, United Kingdom)-!
(Sweden) , a resolution transmitting, without com-
ment, to the General Assembly, the Commission's
two resolutions relating to the question of self-
determination of the people of non-self-governing
and trust territories. The first of these two resolu-
tions recommends the granting of the right of self-
determination on demand and after a plebiscite,
and the second asks the administering powers to
transmit to the United Nations political informa-
tion on non-self-governing territories.
Mr. Lubin (U.S.) stressed that the U.S. affirma-
tive vote on the transmittal resolution was with
the understanding that neither approval nor disap-
proval of the self-determination formulations was
involved. He pointed out that the U.S. Govern-
ment "has supported in the i^ast and will continue
to support the principle of self-determination, in
deed as well as in word," but that it had serious
reservations as to these two proposed resolutions.
He noted that:
The Members of the United Nations have undertaken
to develop self-government in the territtn-ies under their
administration. The Charter specifies that this will be
done by taking into consideration the particular circum-
stances of each territory and its peoples and their varying
stages of advancement. It is recognized, therefore, that
the development of self-government, while an urgent
problem, is a continuing process and must be accomplished
progressively.
. . . Under the Charter of the United Nations, territories
lieing administei'ed by other countries are enjoying an
ever-larger degree of self-government. Bach of the eight
administering countries has accepted the obligations of
the Charter relating to the territories which they ad-
minister. Each of these countries is jiromoting the
political, economic, and social advancement of the
territories under its administration.
... in each case there is progress, and the peoples of
these non-self-governing territories are assuming an in-
creasingly greater degree of responsibility in taking care
of their own affairs. The policy of the United States is
to assist, through the United Nations and otherwise, in
making this progress move rapidly, yet surely.
238
Department of State Bulletin
Sixth Grassland Congress
Opens August 17
Press release 5C0 dated July 17
The Secretary General of the Sixth Inter-
national Grassland Congress, to be held at the
Pennsylvania State College from August 17 to 23,
will be Will M. Myers, chief of the Division of
Agronomy and Plant Genetics, University of
Minnesota. Until July 1, 1952, Mr. Myers was di-
rector of Field Crops Research, Bureau of Plant
Industry, Soils and Agricultural Engineering,
Department of Agi-iculture. He is now serving as
vice chairman of the Organizing Committee for
the Congress, chairman of the Executive Commit-
tee of the Organizing Committee, and chairman of
the Program Committee. For the past year and
a half, during all the preparations for the Con-
gress, Mr. Myers has served as deputy to P. V.
Cardon, Department of Agriculture, who was re-
requested by the Fifth Congress to coordinate
preparations for the forthcoming session.
The deputy secretary general for the Congress
will be Herbert R. Albrecht, professor of Agron-
omy, Pennsylvania State College; "William R.
Chapline, chief. Division of Range Research,
Forest Service, Department of Agriculture, and
executive secretary of the Organizing Committee
for the Congress; and Clarke L. Willard, acting
chief, Division of International Conferences,
Department of State.
The Congress, sponsored by the U.S. Govern-
ment and the Food and Agriculture Organization
of the United Nations (Fag), will provide an op-
portunity for scientists and technicians from
various parts of the world to exchange informa-
tion on the production, improvement, manage-
ment, and use of gi'assland. The U.S. Government
has invited approximately 65 countries to partici-
pate in this Congress, the first to be held in the
United States.^
PUBLICATIONS
Recent Releases
For sale by the Superintendent of Documents, Government
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direct to the Superintendent of Documents, except in the
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Department of State.
Waging the Truth Campaign. International Informa-
tion and Cultural Series 22. Pub. 4575. 70 pp. 35^.
Eighth semiannual report of the Secretary of State
to Congress on the International Information and
Educational Exchange Program, July 1 to December
31, 1901.
Suppression of White Slave Traffic. Treaties and Other
International Acts Series 2332. Pub. 4430. 53 pp. 20^.
Protocol, with annex, between the United States and
Other Governments, amending agreement of May 18,
1904, and coiiventidu of May 4, 1910 — Opened for sig-
nature at Lake Success May 4, 1949 ; entered into
force with respect to the United States Aug. 14, 1950.
Aviation, Air Transit Facilities in the Azores. Treaties
and Other International Acts Series 2351. Pub. 4449.
6 pp. 50.
Agreement between the United States and Portugal —
Signed at Lisbon Feb. 2, 1948 ; entered into force
Feb. 2, 1948; operative retroactively Dec. 2, 1947.
Economic Cooperation. Treaties and Other International
Acts Series 2344. Pub. 4460. 24 pp. 100.
Agreement and notes between the United States and
Laos — Signed at Vientiane Sept. 9, 1951 ; entered into
force Sept. 9, 1951.
Economic Cooperation. Treaties and Other International
Acts Series 2346. Pub. 4462. 31 pp. 150.
Agreement and notes between the United States and
Vietnam — Signed at Saigon Sept. 7, 1951 ; entered into
force Sept. 7, 1951.
Education, Cooperative Program in Bolivia. Treaties
and Other International Acts Series 2364. Pub. 4485.
5 pp. 50.
Agreement between the United States and Bolivia —
Concluded at La Paz Nov. 22, 1950 ; entered into force
Nov. 27, 1950.
' For background information on the Congress, including
its program, see Bttlletin of Feb. 25, 1952, p. 309.
Check List of Department of State
Press Releases: July 28-Aug. 1, 1952
Releases
may be obtained from the Office of the
Special Assistant for Press Relations, Department
of State, Washington 25, D.C.
Press releases issued prior to July 28 which ap-
pear in this
issue of the Bulletin are Nos. 560 of
July 17, 568 of July IS, and 572 of July 22.
No. Date
Subject
*587 7/28
FSO retirements
588 7/28
Austrian Nazi amnesty legislation
*589 7/28
Liberian anniversary
*590 7/28
PeruWan anniversary
591 7/28
Acheson : Death of Sen. McMahon
592 7/29
Bennett: U.S. and Latin America
*593 7/29
Exchange of persons
594 7/29
Edinburgh Film Festival
595 7/30
Acheson : Anzds meeting
596 7/30
U.S. del. to Anztjs
t597 7/30
Departmental appointments
t598 7/30
U.S.-Mexican TV Channels agreement
599 7/30
Marshall : Remarks before the Icrc
*600 7/31
American specialists leave for Ger-
many
*601 7/31
Foreign students begin orientation
602 7/31
Telecommunications agreement
*603 7/31
Pt. 4 technicians (assignments)
t604 7/31
Establishment of British scholarships
t605 7/31
U.S., U.K. notes on tin trade
*606 8/1
Fulbright scholarships announced
607 8/1
Secretary departs for Honolulu
608 8/1
Cinematographic art exhibit
*609 8/1
U.S.-German teacher interchange
*610 8/1
Selections for Armed Forces staff col-
leges
*611 8/1
Swiss anniversary
d.
*Not printe
tHeld for a
later issue of the Bulletin.
August n, 1952
239
August 11, 1952
Vol. XXVII, No. 685
Index
Agriculture
Sixth Grassland Congress opens August 17 . . 239
Aid to Foreign Countries
The economic structure of Pan Americanism . 207
American Republics
The economic structure of Pan Americanism . 207
PANAMA: Defense sites negotiations between
the United States and Panama, 1936-48
(Wright) 212
ANZUS Council
First meeting, statement (Acheson) .... 219
Asia
KOREA: Report of U.N. Command Operations
(44th Report: April 16-30, 1952) .... 231
Communism
Propaganda at Red Cross Conference .... 224
Congress
Death of Senator Brien McMahon 220
Economic foundations for lasting peace (Presi-
dent's midyear economic report; economic
review by Council of Economic Advisers),
excerpts 225
Europe
AUSTRIA :
Appeal to U.N. members for support in restora-
tion of sovereignty and end of occupation
(text of memorandum) 221
U.S. views on Austria's Nazi amnesty legisla-
tion 223
GERMANY: President ratifies convention with
Germany 220
ITALY: Biennial film exhibitions to open at
Venice 234
U.K. : Edinburgh film festival 234
U.S., U.K. conclude telecommunications conver-
sations 236
International Meetings
Biennial film exhibitions to open at Venice . . 234
Propaganda at Red Cross Conference .... 224
Sixth Grassland Congress opens August 17 . . 239
U.S. DELEGATIONS:
Edinburgh film festival 234
First meeting of Anzus Council, statement
(Acheson) 219
Geographical Union 235
Radio Scientific Union (Ursi) 235
Mutual Aid and Defense
First meeting of Anzus Council, U.S. delegation,
statement (Acheson) 219
North Atlantic Treaty Organization (NATO)
President ratifies Nato protocol and convention
vrtth Germany 220
Presidential Documents
Economic foundations for lasting peace (Presi-
dent's midyear economic report; economic
review by Council of Economic Advisers)
excerpts 225
President ratifies Nato protocol and convention
with Germany 220
Publications
Recent releases 239
Telecommunications
Radio Scientific Union (URSi) 235
U.S., U.K. conclude telecommunications conver-
sations 236
Treaty Information
Defense sites negotiations between the United
States and Panama, 1936^8 (Wright) . 212
President ratifies Nato protocol and convention
with Germany 220
United Nations
Austria appeals to U.N. members for support in
restoration of sovereignty and end of occu-
pation (text of memorandum) 221
FAO: Sixth Grassland Congress opens August
17 239
Propaganda at Red Cross Conference .... 224
Report of U.N. Command Operations in Korea
(44th Report; April 16-30. 1952) .... 231
The United States in the United Nations . . . 237
Name Index
Acheson. Secretary 219,220
Allison, John M 220
Atwood, Wallace W., Jr 235
Bennett, W. Tapley, Jr 207
Burrows, Charles R 235
Cronenwett, Wilson R 234
Emmerson, John K 220
Foster, Andrew B 220
Jessup, Philip 220
McMahon, Senator Brien 220
Marshall, Charles B 224
Perkins, George W 220
Radford, Admiral 220
Truman, President 220, 225
Webster, Edward 236
Wright, Almon R 212
Wright, Irene A 234
U. 5. COVERNHENT PRINTING OFFICE: 19B2
9^., c^,, I rf^
tJrie/ ^eha/}it77teni/ ^ tfiaie^
Vol. XXVII, No. 686
August 18, 1952
v»eNX o^
ates o^
ANZUS COUNCIL MEETING AT HAWAII:
Remarks by Secretary Acheson 243
Communique on First Meeting 244
AID TO ESCAPEES FROM IRON CURTAIN COUN-
TRIES • Article by George L. Warren 261
CHALLENGES FACING THE WORLD'S SCIENTISTS
• by John D. Hickerson 264
TERMS OF SETTLEMENT FOR GERMAN PRE-
WAR DEBTS 252
GERMAN EDUCATION IN TRANSITION • Article by
Vaughn R. DeLong ... 246
For index see back cover
U.S.SUPERINTENOENT OF DOCUMENTS
SEP 9 ^952
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August 18, 1952
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Pacific Area Relationships: ANZUS Council Meets in Hawaii
REMARKS BY SECRETARY ACHESON >
We are all grateful, I am sure, to Governor
Long, who has so gi-aciously and hospitably wel-
comed us here, and to Admiral Radford, who
will serve as mv military adviser at this Confer-
ence and to wliom we are indebted for all the
special arrangements made here for our conven-
ience and our comfort.
In behalf of the Government of the United
States I welcome our distinguished friends from
Australia and New Zealand to a meeting which
we all hope will advance the cause of peace.
The United States is honored that the Territory
of Hawaii — which we hope will soon become the
State of Hawaii — has been chosen as the setting
for these deliberations.
The setting is as appropriate as it is attractive,
for the people of Hawaii have a tradition of sup-
port for cooperative effort among the nations of
the Pacific. In the earliest years of this century,
one of Governor Long's predecessors, with great
foresight, helj^ed form among the nations of the
Pacific an organization which bore the pictur-
esque name of The-Hands-Around-the-Pacific
Club, later to become the Pan-Pacific Union.
Ever since, Hawaii has been prominent in scien-
tific, educational, and commercial cooperation
among the nations of this gi"eat vast area.
In accordance with article 7 of the treaty by
which our three countries have expressed their
connnon security interests, we have come together
to organize a council.^ I indulge in an under-
statement when I say that the prospect of an ar-
rangement for even closer relations with our
friends in Australia and New Zealand is warmly
and enthusiastically regarded by the people of
' Made before the Council's opening session at Kaneohe,
Oatiu, Hawaii on Aug. 4 and released to the press (No.
616) on the same date.
' For text of the tripartite security treaty, see Bulletin
of July 23, 19.51, p. 148.
the United States. The treaty, which was ratified
with overwhelming support in the Senate of the
United States, is but a formal expression of a
sense of identity of interest which long antedated
the treaty.
Soldiers of our three countries fought shoulder
to shoulder in the war in the Pacific, as in many
other parts of the world in both the First and
Seconcl World Wars. Our American soldiers will
never forget the friendship and hospitality which
they found in Australia and New Zealand. We
are deeply touched by the action of the people of
Australia expressed through the Australian-
American Association, and generously supported
by the Australian Government, in erecting in
Canberra a moniunent in memory of the Ameri-
can servicemen who died in the Pacific in World
War II. We are grateful also for the many other
thoughtful actions of connnemoration in both
Australia and New Zealand.
Both countries have always been foremost
among the free nations of the world in their
readiness to labor and to sacrifice in the cause of
freedom and the cause of peace. It therefore
occasioned gratification, but no surprise, among
my countrymen that Australia and New Zealand
were among the first to join us in upholding the
cause of the United Nations in Korea.
As we have been comrades in war, so also do
we .stand together in our determination to pre-
vent war.
That is the purpose of the council we are here
to organize. This action is but one of a series of
actions by which the community of free nations
is strengthening the peace — not only in the Pa-
cific area but in many parts of the world. Like
other such efforts, this one is being carried for-
ward in full accordance with the Charter of the
United Nations. It could not be. otherwise since
the treaty under which we are meeting reaffirms
our faith in the purposes and principles of the
Charter.
August 18, 7952
243
This treaty furthers the cause of peace in two
ways. First of all, each of our three countries,
recognizing that its own peace and safety would
be endangered by an attack upon the others, has
expressed its determination in the treaty to act
in such an event to meet the common danger in
accordance with its constitutional processes. And
secondly, the treaty, in establishing this council,
has provided a means for a closer consultative
relationship between Australia, New Zealand, and
the United States.
We shall necessarily be occupied, in this, our
first meeting of the council, with discussions of
the council's own organization, its functions, and
its procedures. It is not our purpose to create
an elaborate organization. All of us are agreed
that the effectiveness of the council can best be
furthered if it is organized in a simple and a
flexible way.
In addition to this problem of organization, the
meeting of the council will provide our three
Governments with an opportunity for an ex-
change of views regarding problems of coinmon
concern, problems affecting our relationships in
the Pacific area.
Our actions here shall not subtract from but
shall strengthen and support our interest in and
our associations with other nations in the Pacific
area and in other parts of the world. Each of
us has ties which we value with other friends and
neighbors in the Pacific and throughout the world.
It is our firm belief and intention that these efforts
of ours shall be a source of encouragement to a
wider cooperation among all who are united by a
common dedication to peace.
The pattern of defense which is ernerging is
a variegated one, as befits the diversity of the
free nations of the world. But however varied
and manifold may be the measures through which
the free nations are linking their defensive ef-
forts, the purpose of these measures is constant,
and that is to reduce the danger of aggression
and thus to bring nearer the day when the princi-
ples of the United Nations may govern the entire
international community.
This purpose is being fulfilled by painstaking
labor in many different ways and in many differ-
ent parts of the world. Each step, such as the
one we are taking today, is but one ouilding block
in the total structure of peace.
We know that this labor is hard and complex
and long. But, like a cathedral which is built
by many hands over many years, this structure
has a unity of spirit which flows from the com-
mon inspiration of these labors.
As we work here, we cannot but be heartened
by the consciousness that each such step strength-
ens not only our defenses but our common un-
derstanding and our habits of working together.
We pray that these efforts shall enable our cher-
ished values not only to meet the test of survival
but to flourish and advance.
244
COMMUNIQUE ON FIRST MEETING
Press release 62-1 dated August 7
Following is the text of the communique issued
August 7 at the conclusion of the first meeting of
the Council of Anzus which convened at Kaneohe,
Hawaii, on August 4-
The Anzus Council established by the security
treaty between Australia, New Zealand and the
United States concluded its first meeting at
Kaneohe today. The Right Honorable Richard
G. Casey, Minister for External Affairs, repre-
sented Australia ; The Honorable T. Clifton Webb,
Minister for External Affairs, represented New
Zealand ; and The Honorable Dean Acheson, Sec-
retary of State, represented the United States of
America.
Advisers of the Australian Minister for Ex-
ternal Affairs included : The Honorable Sir
Percy Spender, Ambassador to the United States ;
Mr. Alan Watt, Secretary, Department of Ex-
ternal Affairs ; Sir Frederick Shedden, Secretary,
Department of Defense and Air; Vice Marshal
F.R.W. Schergerhead, Australian Joint Service
Staff.
The Advisers of the New Zealand Minister for
External Affairs included : The Honorable Leslie
K. Munro, Ambassador to the United States ; Mr.
Foss Shanahan, Deputy Secretary, Department
of External Affairs; and Major General W.G.
Gentry, Chief of General Staff.
The Advisers of the United States Secretai-y of
State included : The Honorable Philip C. Jessup,
Ambassador at Large ; The Honorable George W.
Perkins, Assistant Secretary of State for Euro-
pean Affairs; The Honorable John M. Allison,
Assistant Secretary of State for Far Eastern
Affairs ; and Admiral Arthur W. Radford, Com-
mander in Chief, Pacific and U.S. Pacific Fleet.
At the end of the meeting the three Foreign
Ministere issued the following announcement:
Anzus treaty recognizes that an armed attack
in the Pacific area on any of the parties would
be dangerous to the peace and security of all sig-
natories and declares that each would act to meet
the common danger in accordance with constitu-
tional processes. The treaty also establishes the
Council as the means for a closer consultative re-
lationship among the three governments. We be-
lieve that the Council will afford each of us the
opportunity to achieve more effective cooperation
as members of the free world. We take this occa-
sion to reaffirm the principles of the treaty.
At this first meeting we have established the
necessary organization to implement the treaty.
In following the provisions of the treaty which
states that the Council is to consist of the three
foreign ministers or their deputies we have agreed
that the Council of Ministers should meet annually
one year in the United States and the alternate
Department of State Bulletin
year in Australia or New Zealand. The Council
also agreed that special meetings normally at-
tended by the Deputies will be held in Washing-
ton to provide for continuing consultation and to
provide a focus where existing channels and
agencies may be utilized in the implementation of
the treaty.
The deputy members of the Council will be:
For Australia, The Honorable Sir Percy C. Spen-
der, Ambassador to the United States; for New
Zealand, The Honorable Leslie K. Munro, Ambas-
sador to the United States; and for the United
States, The Honorable David K. Bruce, Under
Secretary of State.
To ensure that effective measures are taken to
implement Article III of the treaty the Council
will have the advice of appropriate military of-
ficers of the three governments. Admiral Arthur
W. Radford USN has been designated as the
United States military representative accredited
to the Council. The Australian and New Zealand
military representatives will soon be designated.
An early meeting of these officers will be held at
Honolulu to work out details of the military ma-
chinery the general nature of which was agreed to.
The Council considered the responsibilities de-
volving upon it in the light of Article VIII of the
treaty which authorizes it to maintain a consulta-
tive relationship with other states and regional
organizations. The Council discussed the ways
and means by which it might contribute to the
growth of the system of regional security referred
to in this article and reaffirmed on behalf of the
three governments the need for collective defense
in the Pacific area. The Council examined the
possibility of providing arrangements for the as-
sociation of other governments in its work. Rec-
ognizing that the Council is just beginning to
evolve its own tripartite organization and pro-
gram it came to the conclusion that it would be
premature at this early stage in its own develop-
ment to attempt to establish relationships with
other states or regional organizations. The Coun-
cil agreed, however, that in the meantime the mem-
bers of the Council would continue to keep in close
touch through existing channels with other states
concerned to preserve peace in the Pacific area.
We reaffirm that our governments are dedicated
to the strengthening and furtherance of friendly
and peaceful relationships among nations in the
Pacific area. In so doing we emphasize that the
purpose of the Anzus treaty is solely the defense
of its members against aggression. As is clear
from the treaty itself this is fully consistent with
the principles of the United Nations Charter and
with the obligations of the members under the
charter. The Anzus Council is dedicated to
help support and implement the principles and
responsibilities of the United Nations. The prin-
ciple of collective security is the common objective
of both and the security system of the United Na-
tions which we are seeking to build will be made
stronger by the steps which we have taken here.
Furthermore, in our discussion of how best to con-
tribute by constructive measures to the security of
the Pacific area we have taken into account the
membership of Australia and New Zealand in the
British Commonwealth and United States partic-
ipation in the North Atlantic Treaty organization
and its association by treaty with the other Ameri-
can republics and with Japan and the Philippines.
We have taken the opportunity to review situ-
ations of mutual concern. We exchanged views
on the operations of the United Nations in Korea
and the problem of assisting the free nations of
Asia to resist Communist imperialism.
We emphasize, however, that we neither reached
any decisions nor undertook any commitments re-
garding matters of direct concern to our friends in
the Pacific area or elsewhere.
German Elections Commission
Adjourns Indefinitely
The following was released to the press at Ge-
neva on August 8 hy the United Nations Informa-
tion Center:
The United Nations Commission To Investigate
Conditions for Free Elections in Germany decided
today to adjourn sine die its session in Geneva fol-
lowing the signing of its final report to the U. N.
Secretary-General.
After the submission of its first report on May
1, 1952, the Commission remained in session in
Geneva to implement, if feasible, the direction
given it by the General Assembly whei"eby it was
required to carry out its task of investigation
throughout the whole of Germany. It will be re-
called that the Commission was able to secure by
the end of April 1952 every assurance of coopera-
tion and every facility requested from the Allied
High Commissioner, authorities of the Federal
Republic of Germany, and of the western sectors
of Berlin.
It will also be recalled that the Commission, in
spite of repeated attempts made to establish re-
ciprocal contact with authorities in the Soviet zone
of Germany and in the eastern sector of Berlin,
was given no answer to its letters by the Soviet
Control Commission for Germany. The Commis-
sion was therefore obliged to conclude that, at that
time, there was little prospect of its being able
to pursue its task.
The Commission, according to its terms of ref-
erence, however, remained in constant session,
hoping that the Government of the Soviet Union,
anxious for a solution of the German question,
would be persuaded to cooperate.
The Commission considered closely develop-
ments in the situation arising from an exchange
of notes between the Soviet Union and the three
August 18, 7952
245
Western Powers and from reports on internal de-
velopments in Germany. These developments
have been such as not to afford any prospect that
German authorities in the Soviet zone of Germany
will cooperate with the Commission in the fur-
tlierance of its work. At its 24th meeting on July
31, the Commission decided to submit its final
report to the Secretary-General and to adjourn its
session sine die.
However, the Commission feels that its work
hitherto has not been fruitless, inasmuch as the
four occupying powers have during this period
found some common ground by agreeing to the
necessity of establishing an impartial body for
investigating conditions preparatory to holding
free elections in Germany. Therefore, while the
Commission has left free its representatives to re-
sume duty with their respective gpverimients, it
wishes to stress that it will continue to remain at
the disposal of the United Nations and all parties
concerned to carry out its task during such time as
its mandate remains in force and at such time as it
seems likely to it that it can do so with the prospect
of positive results.
German Education in Transition
l)y Vaughn R. DeLong
As the U. S. occupation of Western Germany
draws to a close, those who worked with the j^ro-
gram for rehabilitating Germany are taking stock
of the results. Long before the end of World
War II, American policy makers and educators
recognized that an Allied victory would have to
be followed by cooperation with Germany in de-
veloping an educative process that would influ-
ence her people away from authoritarianism and
toward a democratic way of life. This article of-
fers a backward glance at 7 years of effort to pro-
vide the new Germany with an educational philos-
ophy and a school system rooted in democratic
concepts.
The traditional German school system was both
a product of authoritarianism and a factor con-
tributing to the perpetuation of autlioritarianism.
The organization of German schools was a tool
titting the hand of Hitler when he came to power.
Class distinctions and reservation of privileges
and advantages for the elite were implicit ; he had
only to manipulate the organization a little to
make it serve his own philosophy and objectives.
The Platonic concejit of education of the elite
easily became the Hitlerian leadership principle.
Hitler's doctrine of the "necessity for sacrifice of
individual freedom for the good of tiie state"
seemed neither alien nor suspect to pupils, teach-
ers, and parents who had been thoroughly condi-
tioned to unquestioning obedience to higher au-
tliority. The transition from an undemocratic to
an antidemocratic school system was an easy one.
The German school system has been known as
a "two-track" system, because at the age of 10,
after 4 years of free schooling under a common
course of study, the children were segregated into
two groups. The children in one group, consist-
ing of only 10 to 15 percent of the total enroll-
ment, were those whose parents could afford to
pay tuition at schools offering academic training
and who were able to pass the examinations.
These children started in the fifth grade along
the academic track leading to professional careers
and to positions of leadership. The remaining 85
to 90 percent of the pupils continued for another
4 years of compulsory schooling in the VoJks-
schvJe, the eight-grade free elementary school.
At 14, these less-favored children left full-time
school and took 3-year apprenticeships to learn a
skill or trade, meanwhile attending vocational
school for a few hours a week.
From the fifth grade on, the two tracks of the
school system diverged so widely as to make it
virtually impossible for a child to shift over to
the academic track once he had started on the vo-
cational track. For example, if a pupil's father
had been unwilling to send him along the aca-
demic track at the set time but had a change of
heart 2 years later, he could not simply pay his
tuition and liave him switch tracks. By this time
the pupils of the academic school would have had
2 years of a foreign language; they would be ex-
ploring abstract mathematics and the finer points
of German grammar. The Volkssehiile pupil
would have had no foreign language; he would
have been studying practical arithmetic and
246
Department of State Bulletin
strictly functional German. To change tracks,
he would have had to go back and start at the fifth-
year level or his father would have had to hire
"tutors to push him through the subject matter he
had missed. In either case, he would have lost
much time.
In both types of school, the subject matter was
considered more important than the child; teach-
ers as well as children were regimented ; pay was
low for all, but lower — as were standards — for
teachers of the VoJk-sxchvle track. This system,
the United States and its wartime Allies agreed,
required drastic change if democracy was to gain
a foothold in Germany.
The Democratic Approach
In January 1945 Vice President Truman, speak-
ing of the difficulties involved in "re-educating"'
a former enemy, said :
For the victors to rely upon force alone would be fu-
tile. Any order which hopes to survive must ultimately
appeal to the minds of men.
In other words, a liberal attitude, a democratic
way of life, could not be inspired either in or out
of the schools by military fiat. German democ-
racy had to spring from German roots — be a Ger-
man development.
In the United States more than a hundred years
ago, a number of States adopted from Germany
the ideas of compulsory school attendance and
State provision for public education. The insti-
tution of the kindergarten came to us from Ger-
many with the democrats who sought refuge in
America at the time of the German revolution of
1848. Froebel and Herbart have had a lasting
influence upon American educators. American
students and followers of William Wundt, of
Leipzig, returned to the United States to kindle
American interest in child psychology. The con-
cept of the intelligence quotient reached us from
Germany. But although many advanced educa-
tional theories were first developed in Germany,
very few of them actually found their way into
practice in the German jniblic schools.
After the First World War, until Hitler came
into i^ower, there was a steady exchange of stu-
dents and professors between Americait and Ger-
man universities. German educators came to the
United States to get inspiration for their intended
reform of the German school system after the
repressive years of the Empire and returned to
Germany full of enthusiasm for American schools
and the philosophy of John Dewey. In Germany,
that period saw the beginning of the Rudolph
Steiner school system with its low tuition ; its con-
centration upon the needs of the individual child;
and its highly progressive theory and practice.
Eurythmics, welcomed enthusiastically by the
jH'ogressive schools of America in the twenties,
came to us from Stuttgart.
With the end of World War II and the begin-
ning of the occupation, American officials in Ger-
many set out to find the liberal and progressive
elements among German educators and philos-
ophers. Their aim was to cooperate with them
to develop schools and an educational philosophy
that would educate the people toward democracy.
But, before the building up of the new could begin,
the worst of the old influences had to be expunged.
Educational Problems of the Early Occupation
In the chaos of defeated Germany comparatively
few school buildings were left undamaged. IMany
had been reduced to rubble. Of those that had
escaped serious damage, many had been taken over
by Germans for use as offices ; others, our occupa-
tion forces requisitioned for use as military offices
or for quartering of troops. Under such circum-
stances, the formal military order closing the
schools was scarcely necessary in cities that had
suffered severe bombing.
Thus the American authorities not only had to
weed out Nazi teachers and textbooks before the
schools could reopen, but also had to release or
pro\dde buildings. Until teachers could be ap-
proved on the basis of the regulation 131-point
denazification questionnaire, until textbooks could
be screened, and until buildings could be made
available, upward of 3 million school-age chil-
dren in the American zone of Germany alone were
at large with nothing constructive to do and with
little if any supervision.
Germany, like the United States, had lost many
teachers to war industries and military service.
During the Nazi period, in order to be hired,
teachers were obliged to become Nazi Party mem-
bers. Whereas a number of them had given lip-
service only, many had been active members of
the party. The questionnaires used in denazifica-
tion revealed that a large percentage of the
younger, more energetic, and better trained teach-
ers had been vigorous supporters of the Nazi
regime and hence were unemployable. Many of
the employable teachers were getting on in years
and tended to look backward to the nationalistic
period of their own pre-Hitler heyday— which,
after all, had led to Hitlerism.
The textbooks were thoroughly polluted with
Nazi doctrine; even the arithmetic books were
tainted. Few Germans capable of writing new
textbooks were available in the early occupation
])eriod, and the American staff assigned to check-
ing and clearing the new texts was pitifully small.
To make matters worse, there was a severe paper
shortage. The few texts available at first dated
back to the Weimar Republic ; they were printed
from microfilm supplied by the Columbia Univer-
sity Library. The books were out-of-date and un-
inspiring, but such books were better than none.
As many as six children had to use a single copy
when the schools began to open in October 1945.
Classes met in any space available— undamaged
August 18, 1952
247
parts of bombed-out buildings, underground bomb
shelters, in one instance in a teacher's kitchen —
and the space was never sufficient. Teachers'
helpers with no technical training supplemented
inadequate teaching staffs. Two and three shifts
were common in city schools, with the same teacher
taking all shifts. Throughout 1946 the average
number of pupils per teacher in the VoUcsschvJe
was more than 70. All teaching materials were
short, and, between Hitler's burning of the books
and Allied bombings, libraries had practically dis-
appeared.
On the basis of the report and recommendations
made in the fall of 1946 by the Education Mission
to Germany,^ which was composed of 10 Ameri-
can educators, the American Military Govern-
ment drew up a set of principles considered essen-
tial to the training of citizens for a democracy.
This list, given to the chief German school officials
and the Education Ministries of the Land (State)
Governments, included the following points:
Equality of educational oppiortunity for all ; free
tuition, texts and necessary school supplies in pub-
lic schools for all pupils of compulsory school age ;
compulsory full-time school attendance for all
between 6 and 15 years of age and part time at-
tendance at a vocational school until the age of
18 ; a comprehensive educational system for the
compulsory period of attendance, in which "ele-
mentary education" and "secondary education"
would not overlap but would involve instruction
at two consecutive levels; emphasis upon educa-
tion for civic responsibility and a democratic way
of life in all schools ; promotion of understanding
of and respect for other nations as an objective
of all courses of study ; provision for educational
and vocational guidance for all pupils ; provision
for health education and supervision for all pu-
pils ; all teacher education on the university level ;
provision for effective participation of the people
in the reform and organization as well as in the
administration of the educational system.
Within the framework of these principles, the
Germans themselves were expected to bring about
the reform of their school system. The German
authorities within each Land established commit-
tees to work on the development of changes that
would improve the schools along lines recom-
mended by the Military Government. The pro-
gram was widely publicized, and many public
forums were held in the American zone to discuss
and debate proposals for the reforms. Beginning
in 1947, various laws and regulations affecting the
educational systems of the several Laender were
passed. -
' Report of the United States Education Mission to
Germany, Department of State puhlipation 26G4.
' For texts of a number of these laws and other <locu-
ments relating to educational developments during the
occupation, see Germany 19Ji7-19/i9 — The Story in Docu-
ments, Department of State publieation 3556, pp. 541-578.
The Reform Movement
Basic to school reform were provisions for mak-
ing public schools free to all, introducing free
textbooks, extending the period of a common
school experience beyond the traditional 4-year
period, and improving teacher education. Meas-
ures to effect such progi'ess presented economic
problems. Except for the Volksschulen, German
public schools had always depended upon tuition
for a substantial portion of their support. Cut-
ting off that source of income required budgetary
and tax adjustments and a great deal of planning.
Economic conditions in the several Laeiider with-
in the American zone and also the attitude of the
German educational authorities determined the
speed and thoroughness with which these basic
reforms could be accomplished.
Hesse took the lead in moving away from the
old caste system of education, paving the way for
educational reform with constitutional provisions
in 1946.^ On the strength of these provisions,
secondary schools in that Land were freed of tui-
tion in April 1947. In February 1949 " the Hes-
sian Landtag enacted legislation which confirmed
this action and made official the constitutional
provision for extension of free schooling through
the university and provision of free schoolbooks
and learning materials in all public schools. In
the same year the schools developed a common
curriculum through the fifth school year, which
was extended in 1950 through the sixth. In addi-
tion to providing free public schools, the Hesse
Government appropriated funds for making
maintenance grants, or subsidies, to boys and girls,
refugee youth included, who were both able and
needy.
Not all the other Laender acted so promptly or
so comprehensively as Hesse, but throughout the
American zone, they have made progress toward
the goal of a common curriculum for 6 instead
of 4 years. Bavaria and Wuerttemberg-Baden
(now the Southwest State) have gradually re-
duced tuition, so that the vanishing point is near.
Bavaria passed laws to provide free textbooks for
all public-school pupils under 18 and also to allow
maintenance subsidies to promising students who
need such assistance,* but lack of funds has made
it impossible to carry out these provisions in full.
Social studies, previously unknown in the Ger-
man school, are now taught in most schools from
the fifth grade upward, and a few schools include
them in the lower grades. Teacher-training in-
stitutions emphasize both the subject matter and
the methods of teaching social sciences. New
texts for training for citizenship have been writ-
ten, printed, and distributed, and citizenship
courses include study of the local community.
' IhUl., p. 554.
* lUa., p. 564.
' Ibid., p. 562.
248
Department of State Bulletin
visits to municipal buildings, and tours of nearby
cities. History books no longer present Germany
as the center of the universe and have shifted
emphasis from German kings and their military
triumphs to world affairs and social and economic
developments. Gradually, new textbooks have
replaced the out-dated ones of the pre-Hitler era
and are being printed in sufficient number to per-
mit each pupil to have his own book in most
schools. Student councils are common in sec-
ondary schools and are to be found in some
V olksschiden. Parent-teacher associations in-
crease steadily in number and gradually in effec-
tiveness. New courses of study have provided
more time for general education in the vocational
schools and in some localities have introduced vo-
cational courses in the academic schools.
Vocational guidance is becoming increasingly
available to boys and girls. A few Volksschtden
provide specially trained teachers to give voca-
tional counseling to the students, and some of the
larger cities have clinics that counsel both pupils
and parents, with a view to helping young people
into congenial lines of work.
Health education, free medical and dental ex-
aminations, and school feeding programs have
combined to raise the health conditions of Ger-
many's youth, many of whom were suffering from
malnutrition and diseases resulting from it in the
early postwar years. Because of its special posi-
tion and problems, Berlin continues its free feed-
ing program for all students, including those of
the Free University. In some parts of the coun-
try, a school feeding program is no longer neces-
sary; in others, those who can pay a small sum
for a hot noonday meal do so. while those who
cannot pay get the meal free. Through the High
Commissioner's Special Project Fund, popularly
known as the McCloy Fund, America has helped
to make these programs possible. As German
authorities are able to assume increasing financial
responsibility for the programs, the American
contribution diminishes.
Changes in the Universities
Many changes have come to the German univer-
sity since the war. For example, whereas for-
merly very few girls went to the university, now
they constitute 25 percent of the student body.
The total enrollment of universities in the Federal
Republic, 120,000 students, is double that of the
Nazi period. Formerly, the student who earned
his way through the university was virtually un-
heard of ; the present proportion of fully or par-
tially self-supporting students ranges from 30
percent in Hesse to 80 percent in Berlin's Free
University, and universities have student-operated
employment offices to help students find jobs that
can be combined with their class work. The
student council and the student union are now
features of every German university, and, in some
institutions, the students have more voice in the
administration than the average American uni-
versity student. Colleges of fine arts have been
added to a number of universities since the war,
and all offer courses of study which recognize
social and political needs. Most of the univer-
sities conduct international summer sessions.
School Buildings
Germany continues short of school buildings
but is constructing new ones as rapidly as possi-
ble. Most of the new buildings are admirable,
and some that have been fashioned out of old
army barracks an; both functional and attractive.
Compared with the new and the imaginatively
designed buildings, the typical old-style school-
houses that have survived the bombings make a
bad showing. In the classrooms of these struc-
tures the teacher sits enthroned upon a raised
platform looking down upon the pupils. For
dark days there is normally only one light, which
hangs from the center of the ceiling. The few
windows are small and high. Walls are drab.
Pupils are crowded together, three or four to a
desk and bench. Playgrounds and space for ex-
tracurricular activities are inadequate or nonex-
istent. Unhappily, this type of school was built
to last for centuries, and those that escaped bomb
damage will undoubtedly endure for some time to
come.
Americans, through the Exchange Program and
through the McCloy Fund, have helped Germany
to get new schools. Germany has many talented
and civic-minded architects, a number of whom
have studied in the United States through the Ex-
change Program. Here they have been en-
couraged to jilan schools to serve as models for
future school-construction programs.
The new schools are light, airy, and cheerful.
In the classrooms of most of them, tables and
chairs have replaced the traditional desk. Elec-
tric lighting is diffused so that everyone has an
equal share of the light. Some schools have an
adjoining landscaped terrace which serves as an
outdoor classroom for each room in the school.
Auditoriums, libraries, laboratories, workshops,
and special rooms for demonstration of new teach-
ing techniques are common. Frequently the new
school serves as a community center, with its audi-
torium available for lectures, theatricals, and con-
certs, its classrooms for evening adult education
courses, open forums, or group meetings.
Rural .schools in remote spots remain a problem.
Often small children are obliged to walk as far as
3 miles each way in order to attend them. Most
isolated small rural schools have escaped bomb
damage and have remained physically unchanged
to date. Many of them are badly overcrowded.
In parts of Germany, however, plans are being
made to consolidate the upper grades of several
August 18, 7952
249
small rural schools into a centrally located union
school.
A promisinfT development in the line of consoli-
dation is the Jugenheim Schuldorf, near Darm-
stadt. There, several communities and a teacher-
trainino; institution have united to build a school
com]ilex of 17 buildinos, which will house all types
of schools from kinderparten to adult evening
classes. Jugenheim Schuldorf will be used as a
demonstration school for one of the larger teacher-
training institutions.
Teachers and Teaching
Understandably, teacher education in postwar
Germany has been concerned with instructing
teachers on the job as well as training prospective
teachers. x\.t first, the only ceiliticated teachers
available were those who had received their train-
ing either under the old rigid system of the Em-
pire or under the Nazi regime. Until a new gen-
eration of teachers could be trained, it was neces-
sary to provide the teachers on hand with oppor-
tunity to learn not only new practices and tech-
niques but also new subjects.
In the early occupation period, when teachers
taught two or even three shifts daily, they had no
time or spirit to learn new methods and to acquire
a new philosophy of life and education. But by
1048, the worst of the emergency period was over.
A"ot only (German teachers and educators but also
the American authorities had more time and
energy to give to the training of teachers on the
job.
From the beginning of this period of German
school reform, the teachers' workshop has proved
highly successful, and the number and variety of
woi'kshops have increased steadilv. Begun under
the American Office of Military (Tovernment, they
have expanded and flourished under the office of
U.S. High Commissioner for Germany (Hicog)
simply because they meet a vital need. The work-
sho]> is a form of conference at which the members
work as a single group part of the time and in com-
mittees part of the time. The workshop pro-
grams consist of lectures, demonstrations of tech-
niques, discussions, committee work on specific
problems, and study projects. Some workshops
are continuous, like those established in Hesse in
1948 on modern working methods in the school,
psychological problems, and education in the fine
arts. Others are organized locally to meet a spe-
cial need.
Educational Service Centers, established by
HicoG at strategic points througliout the Amer-
ican zone, i^rovide teachers with the latest profes-
sional literature, slides, pictvu-es. and other teach-
ing materials from America and other countries.
Their workshops increase teachers' understanding
of the social studies and methods of teaching them.
The workshoj) provides experience in group
work and in particijjating in and conducting dis-
cussions. The workshop has been particidarly
important in that it has brought together teachers
from various types of institutions — the FoM'.s-
schiden, the part-time vocational schools, and the
academic schools — to discuss and try to solve prob-
lems common to all.
Periodically international workshops are held.
One of the earliest was that held at Esslingen in
the summer of 1949 to get help from educational
experts of other countries in solving the knotty
echicational and teaching problems of "Wuerttem-
berg-Baden. At the invitation of the Office of
Education and Cultural Relations of Military
Government for the Land, educators from the
United States, the Netherlands, France, and Swit-
zerland spent the summer in Esslingen working
with educators of Wuerttemberg-Baden on those
problems. Teachers M'ho had been isolated from
the ideas and teaching developments of the out-
side world for 13 years or more joined in the inter-
national give and take.
Another type of international workshop was
held in Braunschweig from May 12 to 23. 1952,
with representatives from Belgium, France, the
Netherlands, Switzerland, the United Kingdom,
Norway, Denmark. Italy, Greece, Austria, Ger-
many itself, and the United States. Basically,
this workshop conference was for historians and
history teachers. Its objectives were to get an
evaluation by German history teachers and his-
torians of American history textbooks and their
way of presenting German histoiy and life and
to get an evaluation by American historians and
history teachers of the new German history text-
books.
Since 1948 when the privilege of foreign travel
was restored to German nationals, each year has
brought a larger number of teachers, educators,
and students to the United States to study and
observe teacher-training institutions and public
schools. In the 1951-.52 academic year, ISO young
German teachers of 1 to 5 years of experience
came here, in groups of 1.") or 20, to spend 6 months
at various teacher-training institutions and then
to go out singly for 2 months' practical teaching
exi>erience in public schools. In the coming year
100 more elementary-school teachers will come to
the Ignited States for the same kind of experience;
19 German secondary school teachers will come
here to teach German for a year in American high
schools; and 19 American high school teachers
will go to Germany to teach English in Gennan
secondary schools.
In Conclusion
Authoritarianism has not vanished from the
German school. Many older teachers continue to
lecture authoritatively, shunning the discussion
method and resenting the enthusiasm for new ways
and ideas shown by young retiirned exchangees.
Not all the exchangees returning from America
250
Department of State Bulletin
are capable of standiiifr up to their seniors in the
j)rofession ; many j'Oun<j teachers are afraid to
practice the teclmiqiies that they have acquired,
lest they lose their jobs. In many instances chil-
dren of well-to-do parents continue to get more
consideration than children of the poor. Corporal
punishment is sanctioned by law in two Laender.
Many parents continue to wash their hands of
school affairs, believing: that the school is the
teacher's responsibility just as the home is the
parents'. Old dueling fraternities, outlawed
though they are, have turned up in many German
universities to flout democratic principles.
Nevertheless, German educators and foreign
observers agree that there is a steady if slow move-
ment away from authoritarianism, a growing ap-
]ireciation of the worth of the individual child,
and a growing recognition of the school's respon-
sibility to train for citizenship. That the teach-
ers are becoming politically educated and capable
of asserting themselves outside the school room is
suggested by the fact that a Bavarian teachers'
organization was recently able to till 22 seats in
the Landtag.
Americans have had to persuade, demonstrate,
work with, and help the Germans without rush-
ing them and, above all, without trying to force
democratic concepts or American ways upon
them. This policy of persuasion and cooperation
has paid substantial dividends. John F. Steiner,
formerly chief cultural officer for Wuerttemberg-
Baden, who recently revisited Germany to report
on the effects of American ideas on German educa-
tion, wrote :
Wherever tlie American policy revealed magnanimity
and intelligent understanding, there was a correspond-
ingly good reaction. One of the German opponents to
American ideas said that what unseated him the most
was the knowledge that whereas we had the power as a
victorious nation to impose our will, we actually foreliore
to use this power. Therefore, almost against his will,
he found himself in agi'eement with many new ideas.
He said this attitude of magnanimity was an abiding
force in the development of school reforms.
As concrete evidence of progress made by the
German school system toward democracy, more
money is being spent per child in Germany's
public schools than ever before. This improved
financial status is a reflection of an increasingly
responsible attitude on the part of both public
officials and private citizens toward the young, of
a growing sentiment that their children deserve
the best. A bright child of poor parents has a
greater chance of getting the kind of education
that was previously denied him because of his
financial status, and the ]irinciple of coeducation
is gaining ground. Many more German schools
are free of tuition and provide free textbooks than
ever before and, with each passing year, each
teacher has slightly smaller classes to deal with.
In 1946 the average Y olhsHchide teacher in Wuert-
temberg-Baden taught 87 pupils; by late 1951 the
average was 43. As teachers become less harried
and overworked, teacher-student relations natu-
rally become warmer, more informal. Generally
speaking, teacher education is on a higher level.
All these things are symptomatic of the far more
important change that is taking place in Gei'man
educational philosophy.
A fresh wind is blowing through the new Ger-
man Federal Republic, dissipating the old mists
of illusion and delusion. Educators have had to
climb out of their ivory tower and come down to
earth. What teachers teach and children learn
in Germany today takes into account the world
around them as it is and Germany's actual posi-
tion in relation to that world. The drift of Ger-
man education is definitely away from the old
exaggerated nationalism and toward internation-
alism. German youth today is growing up in
peace and neighborliness, with democratic ideas
and practices and with a healthy interest in the
people and problems outside its own small world.
*Mr. DeLong^ avJthor of the above article, is
Officer in Charge of the Division of German Cul-
tural atul Social Affairs. Fie served as Chief of
Education and Cultural Relations in the State of
Hesse with the U. S. Office of Military Govern-
ment.
August 18, 7952
251
Agreement on Terms of Settlement for Prewar German Debts
Press release 627 dated August 8
Folloioing is the text of a com.rrmnique^ Commit-
tee A\s report^ and sitnnmaries of reports m^ide iy
Committees B, C, and Z>, on the German Debt Set-
tlement issued at London on August 8:
TEXT OF COMMUNIQUE
The London Conference on German External
Debts ended today with the adoption at a plenary
meeting of a conference report. This report
records the terms of settlement for German pre-
war external debts, which have been agreed
between creditors and debtors and which are rec-
ommended for the approval of the governments
concerned. Speaking for the Tripartite Com-
mission on German debts, representing the Gov-
ernments of France, the United Kingdom and the
United States of America, at whose invitation the
conference was called, Sir George Rendel (United
Kingdom), M. F. D. Gregh (France), and Mr.
John W. Gunter (United States) congratulated
the delegates on the completion of a successful
conference and thanked tliem for the hard work
which the solution of the problems confronting the
conference had entailed.
Information on the settlement terms agreed be-
tween creditors and debtors is contained in the at-
tached summary statement. It will be seen that,
broadly speaking, these terms adhere as closely as
possible to the terms of the original contracts and
do not, in most cases, entail any reduction of the
original principal amounts. Payments on loan
contracts containing gold clauses will be made as
though the values of the currencies of issue of the
loan had been defined in relation not to gold but
to the United States dollar. The Young loan
agreement contains an additional form of ex-
change guarantee. In the main, future interest
rates have been somewhat reduced from those pro-
vided in the original contracts. Amortization of
the principal of most of the debts will begin
after five years and maturity dates have been ex-
tended. Provision is made for more rapid re-
payment of capital and interest in certain types
of debt, if this is made in blocked deutschemarks
which can be utilized for investment in Germany.
The report of the conference provides for the
preparation of an intergovernmental agreement to
give international authority to the settlement plan
recommended in the report. Governments inter-
ested in the debt settlement will be invited to be-
come parties to the intergovernmental agreement.
At the final plenary meeting today, the Tripar-
tite Commission announced that work would pro-
ceed immediately on the drafting of the proposed
intergovernmental agreement. At the same time
bilateral agreements would be prepared provid-
ing for the settlement of the claims of the United
Kingdom, France and the United States in respect
of tlieir postwar economic aid to Germany. These
claims were the subject of earlier discussions last
December at which the three powers offered, sub-
ject to the conclusion of a satisfactory and equi-
table agreement on Germany's prewar debts, to
make important concessions in the priorities and
amounts of their claims.
Herr Hermann J. Abs, the head of the German
Delegation, said he associated himself with the
recommendations now before the Conference be-
cause it was his desire to meet the wishes of the
creditors to achieve a debt settlement which would
252
Department of State Bulletin
satisfy them. He expressed the hope that the re-
sults reached at the Conference would prove to be
bearable for the Federal Republic in spite of its
limited capacity. He pointed out that it would
be necessary to realize that the Federal Republic
was going to face a heavier burden not only during
the coming years, but over a long period. In this
connection Herr Abs declared the debt settlement
would be jeopardized if the Federal Republic were
asked to assume still further obligations from the
past.
In this respect he referred in particular to claims
by foreign countries which were at war with Ger-
many dating from the time of the two World
Wars, especially further reparation claims. In
conclusion, Herr Abs stated that measures neces-
sary to obtain Parliamentary approval for the debt
settlement plan would be expedited to the greatest
possible extent.
On behalf of the Creditors Committee, Baron
van Lynden (Netherlands) Acting Chairman, ex-
pressed his satisfaction at the conclusion of the
negotiations and thanked the Tripartite Commis-
sion, the German Delegation, and his colleagues
on the Creditors Committee for the spirit of whole-
hearted cooperation which .had helped to achieve
this result. A number of Government and private
creditor representatives whose names follow also
addressed tlie meeting: (1) M. E. de Graffenreid
(Switzerland), (2) Dr. Kurt Harrer (Austria),
(3) M. L. Smeers (Belgium), (4) Sir Otto Nie-
meyer (United Kingdom), and (5) Sir Edward
Reid (United Kingdom).
The Conference which ended today had been
preceded by more than two years of preparatory
work by the interested governments. In an ex-
change of letters of March 6, 1951,^ between the
Chancellor of the German Federal Republic and
the three Allied High Commissioners, acting on
behalf of the Governments of France, the United
Kingdom and the United States of America, the
Federal Government confirmed its liability for the
prewar external debt of the German Reich and
acknowledged in principle the debt arising from
the postwar economic assistance furnished to Ger-
many by the three powers, and its willingness to
accord this debt priority over all other foreign
claims against Germany.
In May, 1951, the three governments set up the
Tripartite Commission on German Debts.^ In
June and July, 1951, the commission held prelim-
inary discussions with representatives from Ger-
many and from the principal creditor countries.
The Tripartite Commission has also been respon-
sible for the organization of the London Confer-
ence and has represented the three governments
" For text, see S. Exec. Q and R, 82d Cong., 2d sess.,
p. 6,3.
' For previous statements on work of the Conference on
German External Debts, see BtrLi,EnN of June 4, 1951,
p. 901 ; Aug. 27, 19.51, p. 358 ; Dec. 24, 1951, p. 1021 ; Feb.
11, 1951, p. 206 ; Mar. 24, 1951, p. 473.
throughout the negotiations. The members of the
Tripartite Commission are Sir George Rendel,
K. C. M. G., (United Kingdom), M. F. D. Gregh
France) and Ambassador Warren Lee Pierson
U. S. A. ) . In the recent absence of Mr. Pierson,
the United States has been represented by Minis-
ter John W. Gunter. The German Delegation has
been led throughout by Herr Hermann J. Abs.
The Conference held its first plenary meeting
at Lancaster House, London, on February 28, 1952.
In carrying out its work, the Conference was
guided by certain principles, which appear in the
report. They include the principle that the Fed-
eral Republic's economic position and limited ter-
ritorial jurisdiction should be taken into account,
to avoid dislocation of the German economy, un-
due drain on Germany's foreign exchange, or ap-
preciable additions to the financial burden of any
of the three governments. A further principle
was that the settlement should ensure fair and
equitable treatment of all interests affected and
that it should provide for appropriate action on
the reunification of Germany.
Twenty-two creditor countries sent delega-
tions to the conference composed of govern-
mental, and, in many cases, private creditor rep-
resentatives. The private creditors of France,
the United Kingdom and the United States of
America were represented by separate delega-
tions. Three countries sent observers, while the
Bank for International Settlements was repre-
sented as a creditor in its own right. The delega-
tion from the Federal Republic of Germany con-
tained both governmental and private debtor
representatives.
To facilitate its work, the Conference set up a
steering committee composed of the three mem-
bers of the Tripartite Commission, 13 representa-
tives of creditor interests from Belgium, Brazil,
France, Italy, the Netherlands, Sweden, Switzer-
land, the United Kingdom and the United States,
and 5 members representing the public and pri-
vate debtor interests of the Federal Republic.
The steering committee was charged with the or-
ganization of the Conference and with ensuring
that all recommendations submitted to plenary
meetings were such as to achieve an equitable
overall settlement and equal treatment for all
creditors within each category of debts.
The creditors committee which was established
to coordinate the views of the various groups of
creditor interests and to appoint members of the
negotiating committees was composed of repre-
sentatives from each creditor country.
Four negotiating committees were set up with
representatives of both creditor and debtor inter-
ests as well as observers from the Tripartite Com-
mission. They dealt respectively with : Reich
debts and debts of other public authorities — med-
ium and long-term German debts resulting from
private capital transactions, standstill debts and
commercial and miscellaneous debts.
August 18, 7952
253
FULL TEXT OF COMMITTEE A REPORT
I. Debts of tlie Reich and of Other Public
Authorities.
The Government of the Federal Republic of
Germany (hereafter referred to as the Federal
Government) will undertake to offer to the bond-
holders to pay and transfer the following
amounts:
1. The 7 Percent External (Dawes) Loan 1924
(A) As on the first coupon date following the
31st March 1953 interest at five and one half per-
cent per annum on the American issue and 5 per-
cent per annum on the other issues.
(B) As on the first coupon date following the
31st March 1958 a sinking fund of 3 percent per
annum on the American issue and 2 percent per
aimum on the other issues shall be added to the
above interest payments and constitute with them
a cumulative annuity.
(C) The maturity date shall be extended to the
year 19G9.
(D) Arrears of interest outstanding shall be
recalculated at 5 percent simple interest, and in
respect of the resulting total the Federal Govern-
ment will issue 20-year bonds carrying 3 percent
per annum interest and after 5 years 2 percent
sinking fund. On bonds for so much as repre-
sents arrears due to the 31st December 1944 pay-
ment will be made as from the 15th April 1953 :
bonds for the balance will not be issued until the
unification of Germany when payment on these
bonds will begin.
(E) In all respects other than those indicated
above, the terms of the original loan contracts
shall be maintained.
(F) All expenses incidental to carrying out
tlie above modifications of the original contracts
sliall lie borne by the Government of the Federal
Government.
2. The Five and One-half Percent International
(Young) Loan 1930
(A) As on the first coupon date following the
31st March 1953 interest at 5 percent per annum
on the American issue and four and one-half per-
cent per annum on the other issues.
(B) As on the coupon date following the 31st
March 1958 a sinking fund of 1 percent per an-
mun shall be added to the above interest pay-
ments and constitute with them a cumulative
annuity.
(C) The maturity date shall be extended to
the year 1980.
(D) Arrears of interest outstanding shall be
recalculated at four and one-half percent simjile
interest and in respect of the resulting total the
Federal Government will issue 20-year bonds
carrying 3 percent per annum interest and after
5 years 1 percent sinking fund. On bonds for
so'much as represents arrears due to the 31st De-
cember 1944 payment will be made as from the
15th April 1953. Bonds for the balance will not
be issued until the unification of Germany when
payment on these bonds will begin.
(E) The amounts due in respect of the various
issues of the five and one-half percent interna-
tional loan 1930 are payable only in the currency
of the country in which the issue was made. In
view of the present economic and financial posi-
tion in Germany, it is agreed that the basis for
calculating the amount of currency so payable
shall be the amount in U. S. dollars to which the
2)ayment due in the currency of the country in
which the issue was made would have been equiv-
alent at the rates of exchange ruling when the
loan was issued. The nominal amount in U. S.
dollars so arrived at will tlien be reconverted
into the respective currencies at the rate of ex-
change current on 1st August, 1952. Should the
rates of exchange ruling any of currencies of
issue on 1st August, 1952, alter thereafter by 5
percent or more, the installments due after that
date while still being made in the currency of the
country of issue, shall be calculated on the basis
of the least depreciated currency (in relation to
the rate of 1st August 1952) reconverted into the
currency of issue at the rate of exchange current
when the payment in question becomes due.
(F) In all respects other than those indicated
above, the terms of the original loan contracts
shall be maintained.
(G) All expenses incidental to carrying out the
above modifications of the original contracts shall
be borne by the Govermnent of the Federal
Republic.
3. The 6 percent external (Match) loan 1930—
(A) As on the first coupon date following the
31st March 1953 interest at 4 jiercent per annum.
(B) As on the first coupon date following the
31st March 1958 a sinking fund of one ancf one
quarter jjercent shall be added to the above in-
terest payments and constitute with them a
cumulative anmiity.
(C) Arrears of interest to be recalculated at
4 percent simple interest but otherwise to receive
the same treatment as the arrears in respect of
the Young loan.
(D) The maturitv date shall be extended to the
year 1994.
(E) As long as the service of the Match loan
is effected according to the provisions of the Lon-
don agreement, the payment for interest and
amortization of the loan will be made at the office
of the Skandinaviska Banken in Stockholm,
Sweden, in Swedish kronor equivalent to the
amount due in U.S. dollars at the rate of exchange
on the due date.
(F) In all other respects other than collateral
the Match loan shall have the same treatment as
the Young loan.
4. Konversionskasse bonds —
The Federal Govermnent will undertake to
254
Department of State Bulletin
make the following payments in respect of Kon-
versionskasse bonds and scrip :
(A) As on the first coupon or interest date fol-
lowing after the 31st March 1953 interest at the
original contractual rates.
( B) As on the first coupon date following after
the 31st March 1958 a sinking fund of 2 percent
l)er annum shall be added to the above interest
jiayments and constitute with them a cumulative
annuity.
(C) The maturity dates of these bonds shall be
extended by 17 years from the existing maturity
dates.
(D) Two-thirds of the arrears of interest cal-
culated at the contractual rates shall be waived.
The remaining one-third shall be funded and carry
the same interest and sinking fund as the original
bonds.
(E) In all other respects the original contracts
of these bonds shall be maintained.
(F) All expenses incidental to carrying out the
above modifications of the original contracts will
be borne by the Federal Government.
(G) Reichsmark bonds and scrip will be con-
verted into Deutschemark at the rate of 1 : 1.
5. Certain small liabilities of the Eeichsbahn and
the Eeichspost in foreign currencies other than
those covered by Appendix 6 will be the subject
of negotiation between the Federal Government
and the creditors.
6. Debts in Reichsmarks of the Reich, the Reichs-
bahn, the Reichspost and the State of Prussia.
In response to the request of the creditors rep-
resentatives the Federal Government will under-
take:
(A) To extend at their request and in applica-
tion of the principle of national treatment to for-
eign creditors the benefit of the advantages and
compensations which have been or may ultimately
be granted in connection with the monetary re-
form to German creditors.
(B) To extend to foreign creditors at the time
for the enactment of any future German law rela-
tive to the conversion and settlement of debts the
benefit of the most favorable treatment provided
by this law for German creditors.
(C) If the law mentioned in paragraph (B)
above is not promulgated before 1st January 1954
or does not cover all categories of debts, to o])en
before the 1st April 1954 negotiations with the
foreign creditors representatives in course of
which these representatives reserve the right to
ask for a special settlement of these debts.
The present undertaking applies to all Reichs-
mark debts of the Reich and the Reichsbahn and
the Reichspost whether lepresented by bonds
(Treasury bills, obligations of the Ablosungsan-
leihen, etc.) or not so represented.
(D) The Federal (iovernment fuither under-
takes to extend the same treatment to the future
service of the Reichsmark liabilities of the state
of Prussia.
B. External Bonds issued or guaranteed by the
states (Laeruler), municipalities and similar pub-
lie bodies within the territory of the Federal Re-
■pidjlic of Germuny
7. The respective debtors shall pay to be trans-
ferred by the Federal Government the following
amounts :
(1) Bonds other than those of the State of
Prussia :
(A) As on the first coupon date following after
31st March 1953, 75 percent of the original con-
tractual interest (subject to a minimum of 4 per-
cent per annum and a maximum of five and one
quarter percent per annum) or the rate specified
in the original contract if less than 4 percent per
annum :
( B ) Interest at the same rates on two-thirds of
any arrears of interest (other than interest al-
ready covered by Konversionskasse bonds or sim-
ilar agreed arrangements). These arrears shall
be funded :
(C) As on the first coupon dates following after
the 31st March 195.S a sinking fund of 1 ijercent
per annum, to be increased on the 31st March
1963 to 2 percent in the case of loans maturing in
1968 or after shall be added to the above interest
payments and constitute with them a cumulative
annuity :
(D) The maturity dates of these loans shall be
extended by 20 years from the existing maturity
dates :
(E) In respects other than those indicated
above, the terms of the original loan contracts
shall be maintained unless otherwise agreed by the
creditor in special circumstances. \Vliere excep-
tional circumstances peculiar to a particular debt-
or are such as to satisfy the creditors representa-
tives that it is impracticable for that debtor to
conform to the general arrangement, such adjust-
ment as may seem necessary shall be made by
agreement between the debtor and the creditors
representatives.
(F) Bonds issued and payable outside of the
territory of the Federal Republic denominated in
Reichsmark shall be converted, at the rate of 10 :1,
into Deutschemark. They will can^y interest at
the original contractual rate. Arrears of interest
shall be funded on the same basis and shall carry
the same rate of interest. The bonds shall be ex-
tended for a period of 15 years after the maturity
date, and will be redeemable in equal annuities,
the first being due on the first coupon maturity
date in 1958. Interest and redemption moneys
will be transferred in the currency of the country
where the bondholder has his residence.
(G) Reference to an "original contract" or to
an "original contractual interest'' shall be read as
reference to the contract or the relative contrac-
tual interest subsisting between creditor and debt-
or at the time when the borrowing was first made
or the obligation was first incurred, unless a con-
version (herein called an "effective conversion")
August ?8, ?952
255
was made before the 9th June 1933 or was made
on or after that date on account of the insolvency
or threatened insolvency of the debtor or as a re-
sult of free negotiation — provided tliat —
(I) In disputed cases the decision shall lie with
a court of arbitration where the burden shall be
on the debtor to prove that the arrangement was
freely negotiated, and
(II) Arrangements made where the German
custodian of enemy property or a person ap-
pointed by a German authority in an occupied
territory represented the creditors or resulting
from mere acceptance by the creditor of a uni-
lateral offer made by the debtor shall be presumed
not to have been freely negotiated.
In calculating future interest and arrears of in-
terest under the general formula, the original con-
tractual rate shall apply. Wliere, however, an
effective conversion has taken place the converted
rate of interest shall apply — provided that in such
case the converted rate shall not be subject to any
reduction either as to arrears of interest or as to
future interest, unless the debtor prefers calcula-
tion on the basis of the original contractual rate
under the general formula.
(H) All expenses incidental to carrying out the
above modifications of the original contracts shall
be borne by the debtors.
(1) Where the remaining capital amount of the
total of all bond issues in foreign currency of a
particular issue is small, the debtor may oiler an
earlier repayment and final settlement of the entire
amount of such indebtedness and arrears of inter-
est without regard to the limitations and provi-
sions under (D) above relative to the prolonga-
tion of the indebtedness.
(J) (1) All corporate obligations guaranteed
by a state, city, municipality or other governmen-
tal body shall be settled in accordance with "agree-
ment for the settlement of medium and long term
German debts resulting from private capital trans-
actions" (Annex 4 to the Conference Report) pro-
vided that such guarantees shall continue in force
in accordance with its terms.
(2) Bonds of the State of Prussia: The Fed-
eral Government, on behalf of the several Laender
which succeeded to territory and assets formeidy
belonging to the State of Prussia, shall make pay-
ments as follows :
(A) As to external sinking fund six and one-
half percent dollar bonds of the 15th September
1926 due 15th September 1951 and external sink-
ing fund 6 percent dollar bonds of the 15th Oc-
tober 1927 due 15th October 1952:
(I) The Federal Goverimient will issue new
dollar bonds bearing first coupon dated the 1st
April 1953, and maturing in 20 years, in the same
denominations as the outstanding bonds of the
above issues bearing interest at the rate of 4 per-
cent payable semi-annually on the 1st April and
1st October. On the 1st April 1958 a sinking fund
of 1 percent per annum shall be added to the above
interest rate and constitute with it a cumulative
annuity. The debtor may call bonds by lot at par
or may purchase bonds in the open market or
otherwise and may provide additional amortisa-
tion as long as the service is maintained in accord-
ance with the contract;
(II) Outstanding coupons on the old issues
bearing dates from the 15th March 1933 to 31st
December 1936 will be extended for a period of 20
years, and ui^on such extended maturity 50 per-
cent of the amount thereof shall be paid in U.S.
dollars on the corresponding dates in 1953, 1954,
1955 and 1956;
(III) Coupons maturing on or after the 1st
January 1937 shall receive no payment until such
time as territories formerly belonging to the State
of Prussia and now outside the territory of the
Federal Republic shall be joined to the Federal
Republic, at which time payment shall be the
subject of negotiation ;
(IV) All expenses incidental to carrying out
the above shall be borne by the Federal Govern-
ment.
(B) As to the four and one-half percent Swed-
ish Crown bonds of the Lubeck state loan of 1923,
taken over by the State of Prussia in 1938 :
The outstanding bonds of this loan, for which
notice of repayment was given for the 1st
May/lst November 1944 will be redeemed
upon presentation at the current rate of ex-
change, subject to a discount of 50 percent of
the nominal amount and without payment of
any arrears of interest.
(C) Non-bonded indebtedness (other than that
covered by Appendix 6)
The terms of paragraph 7 (1) will apply,
mutatis mutandis^ service starting from 1st
January 1953. In the settlement of Mark
claims regard will be had to the relevant pro-
visions of Appendix 6.
I. Procedure for carrying out these proposals —
(A) The terms of the proposals may be enfaced
on existing bonds, or new bonds issued in exchange
for existing bonds, and new bonds or fractional
scrip issued for arrears of interest, depending upon
the convenience and custom prevailing in the sev-
eral markets in which the bonds were originally
issued. Such enfaced bonds or new bonds will
conform to prevailing market practice. The
debtors at their own expense will employ suitable
banking institutions for the purposes of carrying
out the details of the proposal. The debtors at
their own expense will meet all requirements of
governmental authorities and securities markets
in order to ensure maximum marketability.
Term of Offer
(B) The offer will be made in the respective coun-
tries as may be agreeable with bondholders
councils or analogous bodies and shall remain
256
Department of State Bulletin
open for acceptance by the bondholders for at
least five years. The debtors shall extend the
offer for a further period for reasonable canse.
Reservation of Rights
(C) If any debtor fails to fulfil the obligation
undertaken under the pi'esent agreement the
creditors shall be entitled to revert to their
original contractual rights.
Paying Agents and Tnistees Expenses
(D) Paying agents commissions and expenses and
trustees fees and expenses for the future will be
paid and transferred.
Other Expenses
(E) The creditors representatives reserve the
right to obtain payment from the respective
debtors of all expenses incurred by them in
connection with the London conference, and the
making of an offer hereunder shall be deemed
an acceptance by the debtor of this clause.
Nothing herein contained shall preclude any
creditors' representative for making and collect-
ing such reasonable additional chai'ge as it may
deem appropriate from the bondholders or
creditors in accordance with established prac-
tice or otherwise.
Validation
(F) The Federal Government undertakes to do
all in its power in order to establish, on the
basis of the German validation law passed by its
Parliament and about to be enacted, an appro-
priate procedure for the validation of Ger-
man foreign currency bonds, which procedure
shall be effective in the several creditor countries
as soon as possible but not later than on Feb-
niary 1st, 19&3.
Payment on bonds or coupons which require
validation under the German validation pro-
cedure shall not be made until such bonds or cou-
pons shall have been validated pursuant thereto.
9. The Bondholders Councils concerned or anal-
ogous bodies will recommend these terms to the
acceptance of their bondholders.
C. Mixed Claims Bonds
10. The German Delegation on External Debts,
on the one hand, and the representatives of the
American Awardholder Committee Concerning
Mixed Claims Bonds on the other hand, have
agreed as follows :
The German Federal Republic will propose
to the Government of the United States, and
the Awardholders Committee will recommend
to the Government of the United States and to
the individual awardholders, the settlement on
the following terms of the obligation of the Fed-
eral Republic of Germany to the United States
on behalf of private United States nationals for
Augosf 18, 1952
218544—52 3
whose benefit mixed claims bonds were issued by
Germany in 1930 and which bonds are in de-
fault :
(1) The payment by the Federal Republic on
the 1st April 19.53 and on the 1st April of
each succeeding year during the period
described of the following amounts:
For each of the first five
years $3, 000, 000
For each of the next five
years $3, 700, 000
For each of the next six-
teen years $4,000,000
Payment will be nuide in U. S. currency
dollars to the United States for distribu-
tion to the awardholders.
(2) Any installment not paid when due will
bear interest at 3% percent from due date
to date of payment.
(3) Bonds denominated in dollars aaid ma-
turing in the amounts and on the dates of
tlie payments will be issued in evidence of
the obligations of the Federal Republic and
upon issuance a proportionate number of
old mixed claims bonds will be cancelled
and returned to the Federal Republic.
(4) The terms of the settlement will be em-
bodied in a bilateral agreement between the
Federal Repul>lic and the United States.
(5) Full performance of this agreement by the
Federal Republic and by any successor gov-
ernment and payment of the amounts due
under this agreement shall constitute ful-
fillment by the Federal Republic and by any
successor government and as full discharge
of each of them of their respective obliga-
tions under the agreement of June 23rd 1930
and bonds issued pursuant thereto in re-
spect of awards of the mixed claims commis-
sion. United States and Germany made on
behalf of nationals of the United States, any
thiiig in the exchange of letters of the 23rd
October 1950 and 6th March 1951 between
Chancellor Adenauer and the Allied High
Commissioners for Germany or in the mem-
orandum of December 1951 prepared by the
Tripartite Commission to the contrary not-
withstanding.
11. Greco-German Arbitral Tribunal Claims
A preliminary exchange of views has taken place
between the Greek and German delegations in re-
gard to claims held by private persons arising out
of decisions of the mixed Greco-German arbitral
tribunal established after the first world war.
This will be followed by further discussions, the
result of which, if approved, should be covered in
the intergovernmental agreement.
D. Miscellaneous
The following settlements are recommended :
257
12. Lee Higginson Credit
(A) Participants to receive new 2-year notes of
the Federal Government for full principal amount
of their respective participations. (2-year notes,
as original period of the credit when granted in
1930 was 2 years.)
( B ) No back interest.
( C ) No gold clause.
(D) New notes to bear interest from effective
date of agreement at rate of three and one half
percent per annum payable in advance monthly.
(E) Collateral fund to be reconstituted in form
of a deutschemark dej^osit in the Bank Deutscher
Laender, in the name of the German Federal Debt
Administration as trustee — such fund to be calcu-
lated to be the equivalent of the notes in deutsche-
marks at official rates of exchange, and to be built
up by the Federal Ke]3ublic in 24 equal monthly
installments from date of the notes.
(F) Participants to be entitled to receive pre-
payment of the whole or part of their notes, if
they wish, in deutschemarks converted at official
rate and to constitute full discharge of dollar or
sterling obligation pro tanto — such payment to be
made at participant's option as and when Ger-
man laws and regulations so permit. Any such
payment to be made out of the collateral fund to
the extent the participants proportionate interest
in the collateral so permits, any balance to be paid
in deutschemarks directly by the Federal Gov-
ernment.
13. Bank for International Settlements credits
(A) The Federal Government will pay to the
Bank for International Settlements as from the
1st January 1953 in respect of current interest on
the claims of the bank an annual sum of 5,600,000
Swiss francs.
(B) In consideration of the payment of this
annuity the bank has agreed to maintain its credits
at their present level until the 31st March 1966.
It has also agreed to postpone luitil that date the
settlement of arrears of interest.
For full text of the agreement see Appendix
A.l.
14. Konversionskasse Eeceipts
(A) The Federal (iovernment agrees to assume
liability for full payment in the due currencies to
the Foreign Creditors of the sums paid into the
Konversionskasse by debtors in the Saar in respect
of which the Foreign Creditors have not received
foreign exchange payments or been otherwise
satisfied.
(B) The Federal (lOvernment agrees to assume
liability for payment in the due currencies to the
foreign creditoi-s of GO percent of the sums paid
into the Konversionskasse by debtors in Austria,
France, Belgium and Luxemburg in respect of
which the foreign creditors have not received for-
eign exchange payments or been otherwise satis-
fied.
(C) The Federal Government will negotiate
with the foreign creditors representatives before
the end of December 1952 as regards the imple-
mentation of these undertakings.
15. Liability in Respect of Austrian Governmen-
tal Debts
The creditoi's have been unable to arrive at a
settlement on this question, which will be the sub-
ject of further negotiations at an early date.
16. Agi-eement Between Belgium and the German
Federal Republic
(1) The Govermnent of the German Federal
Republic recognizes that a sum amounting to RM
107,856,835.65 was. on 10th May, 1940, placed to
the credit of the Belgian Government in respect
of the annuities provided for in the German-Bel-
gian agreement of 13th July, 1929, and paid into
the Konversionskasse up to the 15th November,
1939.
On the other hand, the following were not paid
into the Konversionskasse and are still owing to
the Belgian Government :
(A) The monthly portions
of annuities due between
15th December, 1939, and
10th May, 1940, namely— RM 10, 833, 333. 33
(B) The monthly portions
of annuities due between
10th ]\Lay, 1940, and 8th
May, 1945, namely RM 105, 908, 502. 32
Total RM 224, 598, 502. 32
(2) Being willing to compromise on the settle-
ment of the above-mentioned debt, the Govern-
ment of the German Federal Republic undertakes
to pay, and the Belgian Government undertakes
to accept, a lump sum equal to forty million (40)
Deutschemarks, payable in fifteen ( 15 ) annual in-
stallments falling due on the 1st July of each of
the years 1953 to 1967, namely :
5 annuities, from 1953 to
1957, amounting to DM 2 million each
10 annuities, from 1958 to
1967, amounting to DM 3 million each
The Belgian Government agrees to accept the
above payments in final and definitive settlement
of the Belgian claims concerned up to 8th May,
1945.
(3) Each of the above-mentioned annuities shall
be represented by a bond of the German Federal
Republic, expressed in Deutschemarks, and shall
be transferred in Belgian currency at the mean
official rate of tlie Bank Deutscher Laender in
operation on tlie daj' before the bond becomes due.
The bonds shall be delivered to the Belgian Gov-
ernment on 1st April, 1953, at the latest.
(4) Any bond not paid at the date when it
becomes due shall bear interest at the rate of 3
percent per annum for the benefit of the Belgian
Government.
258
Department of State Bulletin
SUMMARY OF COMMITTEE B REPORT
II. Medium and long-term debts resulting from private capital transactions
The main provisions of the agreement reached are:
Settlement terms:
Principal No reduction.
Arrears of interest Two-thirds of outstanding interest calculated up to the
31st December, 1952, to be funded and added to the
principal.
Future rate of interest Three-quarters of the interest rate provided in the existing
contract.
Maturity The due date of indebtedness to be extended from 10 to
25 years from the 1st January, 1953, the period depend-
ing on the nature of the debtors business and his present
financial situation.
Amortisation Amortisation to commence on the 1st, January, 1958, and
to bo at the rate of 1 percent per annimi for 5 years, and
thereafter 2 percent per annum.
Konversionskasse The German Delegation and the creditor representatives,
(Nazi Exchange Control Office) while maintaining their respective views as to the legal
position of payments made into the Konversionskasse,
have agreed to the principle that where such payments
were not received by the creditor they are regarded as
an outstanding obligation still due and payable. How-
ever, a debtor is to be reimbm-sed by the German
Federal Republic for any double payments.
Procedure: It is provided that each individual debtor shall make an
offer of settlement to his creditors for their approval
and acceptance, which offer shall provide for an accept-
able maturity, and for adequate security with protective
provision satisfactory to the creditors. In cases where
debtors and creditors cannot reach agreement on the
terms of offer by negotiation, an arbitration committee
has been established to which such disagreements shall
be referred for decision.
Provision for the special treatment of unusual situations (so-called hardship cases) has been made.
In general, each debtor corporation is to arrange for individual settlement with his creditors within
the over-all provisions of the report.
The creditor committees which have sent delegates to the London Debt Conference will recommend
to the individual creditors the acceptance of such settlements.
SUMMARY OF COMMITTEE C REPORT
III. Standstill indebtedness.
The main provisions agreed are:
1. No provision for reduction of the principal of the indebtedness by periodical foreign exchange
payments during the period of the agreement.
2. Credits to be recommercialized as far as possible, i. e., to be re-activated so as to finance Ger-
many's current trade with other countries without loss of foreign exchange to Germany.
3. Creditors who make additional foreign exchange facilities available to the Gemian economy,
by granting new credit lines to German banks and industry outside the agreement, to be entitled to
repayment of existing indebtedness to the extent of 3 percent of each three months availment of such
new lines of credit.
4. No repayment facilities in DM (such as were provided in previous agreements) with the excep-
tion of those existing under the present regulations.
5. All arrears of interest, calculated at 4 percent P. A. (simple), either to be added to principal or
to be postponed (subject to any voluntary arrangement for payment in DM under 4 above).
6. Current interest acceptance commissions to be payable in the currencies of the debts at rates
not exceeding those ruling in the respective markets.
7. Consideration of credits to debtors in the eastern zone of Germany (about 20 percent of the total)
is postponed.
8. Payments received by creditors from other sources in respect of German indebtedness (e. g.
August 18, 1952 259
under U. K. distribution of German enemy property act) unless applied against other German debts,
to be applied in reduction of standstill indebtedness to the extent required by law or elected by creditors.
9. In view of its temis and in accordance with the practice prevailing since 1931, the agreement
to be for a period of one year.
SUMMARY OF COMMITTEE D REPORT
IV. Commercial and Miscellaneous Debts.
The Main Provisions Agreed Are:^
Transfers in foreign exchange.
(A) On amounts due in respect of goods
(B) On amounts due in respect of wages,
salaries, pensions, etc.
(C) On amounts due in respect of forms of
debts under this heading, other than cap-
ital claims.
PajTnent in German currency
Arrears of interest
Future interest rates after January 1st, 1953
other than for capital claims
Miscellaneous Capital Claims
Arrears of interest:
Future rate of interest:
Repayment of principal with interest due up
to Dec. 31st, 19.52.
(A) No repayment of capital until Jan. 1st,
(B) From Jan. 1st, 1958 to Dec. 31st, 1962:
(C) From Jan. 1st, 1963 to Dec, 31st. 1967:
(D) From Jan. 1st, 1968 to Dec. 31st, 1970:
Transfer to be granted for interest after Jan
General provisions
Procedure
One thud of the amount to be paid as soon as individual
agreements under the plan are concluded. The balance
to be paid after 1 year in 10 equal annuities.
To be paid in 5 equal annuities.
To be paid in 10 equal annuities.
Within a limited period creditors may option for pay-
ment, in deutschemarks. In this event the debt will
be discharged more rapidly but the utilization of such
receipts will be subject to German exchange control
and other regulations which shall in principle not be
more restrictive than those at present in force.
Ji of the arrears, calcidated at simple interest, to be
added to the capital.
No payment of interest until 1958. Thereafter, 75 per-
cent of contractual rate, with a minimum of 4 percent.
Two % of outstanding interest calculated up to the 31st
December 1952 to be funded and added to the prin-
cipal.
Tliree quarters of the interest rate provided in the existing
contract. Minimum rate of interest to be 4 percent
rising in the case of some claims to 6 percent.
1958.
3 percent per annum.
8 percent per annum.
15 percent per annum.
1953 and capital repayments.
In appropriate cases, the agreements provide for arbi-
tration machinery and for the treatment of hardship
cases, where a German private debtor is unable to
meet his full obligations.
The plan contemplates that individual settlements will
be concluded between creditors and debtors on the
basis of the agreed terms.
260
Department of State Bulletin
Aid to Escapees From Iron Curtain Countries
hy George L. Warren
The arrival in New York of the General Taylor
on August 16 signaled the fact that the Escapee
Program, authorized by the President on March
22, 1952,^ and administered by the Department of
State under the provisions of the Mutual Security
Act of 1951, is well under way. Forty-four
refugees who recently escaped from Iron Curtain
countries — many under dramatic circumstances —
were on board this vessel of the Military Sea
Transport Service. Their passage was provided
by funds made available under the program.
In anticipation of the termination of the In-
ternational Refugee Organization (Iro), which
finally took place in January 1952, various efforts
were made to organize continuing services for the
refugees who remained in Europe and whose num-
bers were being constantly augmented by escapees
from the Communist-dominated countries of East-
ern Europe. The United Nations established the
Office of the High Commissioner for Refugees in
1951 and elected G. J. van Heuven Goedhart as
High Commissioner. Mr. Goedhart's task is to
secure the protection of refugees by intervening
with governments to establish, on behalf of
refugees, the conditions under which they may
make progress toward self-dependence, particu-
larly through the acquisition of citizenship. In
December 1951 the Provisional Intergovernmental
Committee for the Movement of Migrants from
Europe (Picmme) was established under U.S. ini-
tiative at Brussels. This Committee, which now
has a membership of 20 governments, had moved
a total of 50,000 migrants and refugees out of
Europe by June 30, 1952.=
' For text of the President's letter to the Congress au-
thorizing this program, see Bulletin of Apr. 14, 1952, p.
602.
' For articles by Mr. Warren on the Committee's work,
see BuLLBjriN of .Jan. 14, 19.'52, p. 50 ; Feb. 4, p. 169 ; Mar.
24, p. 458 ; Apr. 21, p. 638; July 21, p. 107.
Additional Services Needed
In the course of organizing the foregoing inter-
national efforts, it became apparent that addi-
tional services for refugees would be required.
Although Iro had resettled over 1,000,000 ref-
ugees out of Europe between 1947 and 1952, some
thousands remained who required assistance either
in resettlement overseas or in establishing them-
selves in their countries of residence in Europe.
Many were obliged to continue living in camps
in Germany, Austria, Italy, Trieste, Greece, and
Turkey in the absence of other housing accom-
modations. The standards of subsistence pro-
vided in these camps were inadequate, even though
they represented the maximum that the countries
of first asylum could provide, in view of the bur-
dens already imposed upon them by their own
excess populations and by other refugees of the
same race and culture.
Not only were these conditions demoralizing to
the refugees who had risked their lives to escape
to the free world; they also did not in any sense
reflect the hospitality which the Western democ-
racies desire to accord to those willing to sacrifice
so much to regain their own self-respect and to
live in a free and democratic society. To remedy
this situation, the Department of State, in collabo-
ration with other interested Federal agencies, es-
tablished the Escapee Program in April under the
authority contained in the Mutual Security Act
of 1951.
The chief objectives are to establish better facil-
ities of reception for refugees in the countries of
first asylum ; to supplement the care and mainte-
nance already provided by those countries and by
voluntary agencies ; and to assist the new refugees
either to emigrate abroad or to re-establish them-
selves in Europe. An over-all purpose is to estab-
lish such conditions of reception and care as to
August 18, 1952
261
keep alive, throiifili various forms of assistance,
the ho])e for a better life until self-sufficiency can
be achieved under more normal living conditions.
Organization
To accomplish these objectives, the staff of the
Adviser on Refugees and Displaced Persons in
the Bureau of U.N. Affairs of the Department of
State has been augmented to provide policy guid-
ance and direction. Small country units, com-
posed of persons experienced in this field, have
been attached to the U.S. Missions in Germany,
Austria, Italy, Trieste, Greece, and Turkey.
These country units will be directed in the field
by a regional coordinating unit at Frankfort at-
tached to the U.S. Mission in Germany. The
function of the coordinating unit will be to stand-
ardize policies and procedures in the field and to
secure coordination of efforts with international
organizations, such as the Migration Committee
and the Office of the U.N. High Commissioner for
Refugees, and with the interested voluntaiy agen-
cies. It is the aim of the Escapee Program to
achieve its objectives to the maximum extent
through existing facilities and to keep its own staff
and organization to that niininnnn required to
su]ip]y jiolicy guidance, examination and ajiproval
of projects of assistance, and the administrative
services required for the proper control of the
funds to be expended.
Even while the program was being organized,
the most obvious and emergency needs were met.
For instance, the refugees at Camp Lavrion in
Greece were found to be living in unsanitary con-
ditions and to need shoes and clothing badly. Ac-
tion was autliorized immediately to improve the
living conditions of the camp and to secure the
needed clothing. In Turkey, where the diet of
hundreds of refugees was found to be seriously
inadequate, action was taken to provide supple-
mentary food and a balanced diet. In Germany,
Austria, Italy, and Trieste, the assistance of volun-
tary agencies was solicited to determine the re-
quirements for supplementary food and clothing,
which are being supplied, and to exploit every pos-
sible opportiniity for emigration. Services such
as medical and dental care and vocational and lan-
guage training, which will assist individual refu-
gees to qualify for emigration opportunities, are
already being provided.
One Inindred and twenty-two refugees had been
assisted to leave P^urope by August 6, 195:2.
Others were booked for early passage, and it was
anticipated that by the end of August, close to 700
refugees would be on their way to overseas coun-
tries. The number of departures will increase as
processing procedures are imjiroved, and tlie high
degree of cooperation formerly developed between
the Iro and the voluntary agencies is re-estab-
lished in this new effort to improve the lot of
refugees.
Reduction of Quotas Causes Lull
An initial allocation of $4.o00,000 has been made
to the program by tlie President under the Mutual
Security Act. For various reasons, the chief
countries of immigration have reduced the quotas
of immigrants to be received during the remainder
of 1952. The procedures involved in movements
to tlie Latin American countries must be devel-
oped, and better facilities for reception and place-
ment must be organized in these countries if the
maximum How of refugees out of Europe is to be
achieved. The reduction in immigration oppor-
tunities means that the cost of supplementing ex-
isting arrangements for care and maintenance in
Europe will be higher than originally anticipated
because the refugees awaiting emigration will
need care for longer periods of time. It is an-
ticipated, however, that the lull in movements
overseas will prove temporary and that the finan-
cial support which the jsrogram can provide for
movements will operate to secure the emigration
of larger numbers in 1953.
Apart from the modest achievements of the pro-
gram to date, its significance lies rather in the re-
building of hope among the refugees, particularly
through evidence that they are not forgotten by a
free world preoccupied by other concerns. They
are no longer doomed to remain indefinitely in
overcrowded camps where tlie will to exist is
threatened by frustrations and skills acquired
through industry and perseverance are lost
through disuse. Equally important, ways and
means are now provided to give practical and con-
structive expression to the good will and hospital-
ity which the free world desires to extend to those
whose faith in democratic ideals has induced them
to flee from the Iron Curtain countries.
• Mr. Warren, author of the above article, is
Ad riser on Refugees and Displaced Persons, De-
partment of State.
U.S. Informed of American's
Escape From Czech Prison
I'ress release 62.S dated August N
After repeated and sustained representations by
the Embassy at Prague in behalf of John Hvasta,
an American citizen imprisoned in Czechoslovakia,
the Czechoslovak ]\Iinistry of Foreign Affairs in-
formed our Embassy that Mr. Hvasta had escaped
from prison on January 2, 1952, and that the
Czechoslovak authorities do not know his present
whereabouts.
Previously, a story appeared in a refugee i)ubli-
cation in London stating that Mr. Hvasta had
escaped on January 2, together with several other
l)risoners. Efforts were made to determine the
262
Department of State Bulletin
reliability of the report, but the Department was
unable to establish its authenticity. The Depart-
ment has no information which would contirm or
contradict the accuracy of the statement of the
Czechoslovak Government. However, this Gov-
ernment, which has actively pressed for the release
of Mr. Hvasta since his arrest in October 19-48,
will continue its efl'orts to ascertain Iiis where-
abouts.
Soviet Reply to Suspension
of "Amerika"
Press release GIS dated August 5
The Department of State on July llf. announced
in a note to the U.S.S.R. that the Russian-lan-
guage magazine Amerika loould Tie forthwith sus-
pended and directed the U.S.S.R. to suspend
Soviet EmTja-'isy publication.s in the United States.^
The Soviet Government in reply delivered a note
on July 30 to the American Emhassy at Moscow.
F ollowing is the text of remarks concerning this
Soviet response, made hy Wilson Compton, Ad-
ininiUrator of the Departments Internatio'nal In-
formation Ad/nrinistration, together with an un-
official translation of the Soviet note:
TEXT OF MR. COMPTON'S REMARKS
The Soviet attempt to assert that our Russian-
language magazine Amerika suffered loss of read-
ership because its pages contained propaganda
unfriendly to the Soviet Union is without any
foundation since the U.S.S.R. precensored every
story in the magazine.
Pravda and other official Soviet organs made
more than 40 vitriolic attacks on the magazine in
order to frighten away Soviet readers. American
jjersonnel stationed in the U.S.S.R. during this
period reported that the magazine suddenly be-
came unavailable outside of Moscow and that only
fi few kiosks (newsstands) in the city were al-
lowed to continue sale of the magazine. These
facts do not sustain the Soviet allegation that it
permitted free and unfettered distribution of the
magazine A7nerika.
In contrast, the Federal Government has never
placed any restrictions in the way of distribution
•of the U.S.S.R. Information Bulletin in the
United States. All that ever happened was that
some subscribers canceled tlieir subscriptions.
If the Soviet Government is genuinely inter-
ested in a free flow of information between both
countries, it would not have sabotaged Amerika,
and it would not continue its notorious efforts to
' For a hackgrounii .study on the Department's action,
also text of the July 14 note, see Bulletin of July 28,
in.52. p. 127.
jam the Voice of America. Nor would it ban vir-
tually all foreign commercial magazines and news-
pajaers.
TEXT OF SOVIET NOTE
The Ministry of Foreign Affairs of the U.S.S.R.,
acknowledging receipt of the note of the Embassy
of the U.S.A. of July 14, deems it necessary to
state the following:
The Embassy of the U.S.A., conveying in its
note the decision of the Government of the U.S. to
stop publication of the magazine Amerika, and
insisting on the discontinuation of publication and
distribution by the U.S.S.R. Embassy in Washing-
ton of its U.S.S.R. Information Bulletin and also
distribution of pamphlets published by the Soviet
Government and its organs, attempts to justify
this decision by alleging that the Soviet Goverii-
nient restricts distribution and free sale of the
magazine Amerika in the Soviet Union. That
statement of the Government of the U.S.A. how-
ever, is completely groundless and can mislead
public opinion as "to the real reasons for the dis-
continuation of publication of the magazine.
The Ministry of Foreign Affairs considers it
necessary to recall that the magazine Amerika,
beginning from 1945, that is, from the moment of
its publication, has been distributed by means of
free sale by the trade organization Soyuzpechat.
That organization distributes all periodical pub-
lications in the Soviet Union, so that distribution
of Amerika in the U.S.S.R. has been conducted
on an equal basis with all publications.
If the number of copies of Amerika distributed
in the U.S.S.R. has declined in the past, that was
by no means because Soviet authorities took any
kind of restrictive measures in respect to distribu-
tion of the magazine Amerika, as the Embassy of
the U.S.A. attempts to assert in its note, but be-
cause during recent years the U.S.A. Embassy in
the U.S.S.R. increased propaganda unfriendly to
the Soviet Union in the pages of this magazine,
which naturally could not but resnlt in the maga-
zine Amerika losing its demand on the part of
Soviet readers.
Statements of the U.S.A. Embassy regarding
some sort of obstacles or restrictive measures to
the distribution of the magazine Amerika do not
correspond to reality. The impression is created
that such statements were needed as a pretext for
preventing the Soviet Embassy in Washington
from distributing the U.S.S.R. Information
BuJletin and pamphlets published by the Embassy.
The Embassy's references to some sort of reci-
procity in respect to jniblication by the U.S.S.R.
Embassy of the U.S.S.R. Information Bulletin in
the U.S.A. and distribution by the U.S.A. Em-
bassy in the U.S.S.R. of Amerika also do not cor-
respond to reality. Publication and distribution in
the U.S.A. of tlie U.S.S.R. Information BuJletin
August 18, J952
263
never depended on distribution in the U.S.S.R. of
the magazine Amerika. In that connection it is
necessary to note that the U.S.S.R. Infonrmtion
Bulletin began to be published in the U.S.A. in
1941, that is, long before the magazine Amerika
began to be distributed in the U.S.S.R. The Em-
bassy also has no basis for referring to any kind
of privileges allegedly enjoyed by the Information
Bulhthi of the Soviet Embassy in Washington. It
enjoys no privileges. On the contrary, as is well-
known, to the Government of the U.S.A., the
American press, and various members of the
U.S.A. Congress for a long time have been con-
ducting a campaign against the U.S.S.R. Infor-
mation Bidlethu and American officials system-
atically hinder in every way the distribution of
that bulletin on the territory of the U.S.A.
In view of the foregoing, the Ministry of For-
eign Affairs cannot consider the decision of the
U.S.A. Government to prevent the U.S.S.R. Em-
bassy in Washington from publishing and dis-
tributing in the U.S.A. the U.S.S.R. Information
Bulletin, and also pamphlets published by the Em-
bassy, other than as a measure designed to prevent
the dissemination in the U.S.A. of truthful infor-
mation about the Soviet Union.
Challenges Facing
the World's Scientists
by John P. Hickerson
Assistant Secretary for V.N. Affairs ^
It is an honor to address this, the eighth General
Assembly and the seventeenth International Con-
gress of tlie International Geographical Union.
It is a pleasure to welcome to America those of
you who have come here from more than 50 other
countries.
You are here to exchange scientific information
of vital concern to all peoples and all nations.
You are here to compare notes on the most recent
developments in the field of geography. You are
here in the interest cf furthering your home
country's scientific progress.
Each of these objectives is of high importance.
But, to my way of thinking, your being here has
an even deeper significance which is fundamental
to all announced objectives.
Goethe, the great German poet and philosopher,
expressed it very well more than a century ago
when he said, "Science and art belong to the whole
world, and before them vanish the barriers of na-
tionality." I am sure that Goethe did not mean
to imply that national sovereignty was a thing of
the past. What he did mean is that science — an
' Excerpts from an address made before the Interna-
tional Geographical Union's Assembly and Congress at
Washington on Aug. 8 and released to the press (No. 623)
on the same date.
honest, judicious science — is the servant of all
peoples regardless of nationality.
The International Geographical Union has
clearly demonstrated that it is doing its share to
make true science the servant of all humanity.
As you will recall from the Chairman's intro-
duction, my primary concern at present is with
America's role in U.N. affairs. As one who has
spent his adult life in the field of international
affairs. I have always taken a hearty interest in
eflForts designed to make for better understanding
among peoples and for a more stable world. I
know that the modern science of geography can
contribute much to that stability and progress
which a future of peace and justice demands.
The Importance of Geographic Studies
Think of the many ways in which you geog-
raphers can contribute to a better world. Think
of the many ways in which you have contributed.
Take the problem of natural resources, and it is
a problem. Only a few weeks ago, I was shocked
to read a report on the extent to which my own
country is facing a scarcity of many key strategic
materials. America, the report stated, is using up
its natural resources at a tremendous pace. Amer-
ica needs these resources. We need them not only
to preserve our own economic stability. We need
them to meet our obligations to our free-world
neighbors.
You geographers concern yourselves regularly
with natural resource studies, with research into
land use and water use. These studies and re-
search are the pathways to better conservation of
resources as well as to new sources of supply.
We Americans will surely benefit from what
your studies reveal. But even more important the
world as a whole will benefit. Those who develop
natural resources, those who transjiort them, and
those who use them — all will benefit. And ours
will be a richer world because of it.
Take the problem posed by the inadequate stand-
ard of living which plagues some two-thirds of
the world's peoples. Disease, illiteracy, and hun-
ger do not make for contentment. They do make
for political instability. This is not difficult to
understand.
You geographers are well aware of the threat
posed by this problem. You are doing something
about it. You are helping the United Nations —
mankind's best hope for peace — to meet the
problem.
Your concern with industrial development, with
the relationship between geographic boundaries
and ethnic movements, with demography — all of
these are contributing to the means by which the
less fortunate peoples are being helped to help
themselves.
Take the question of defensive strength for the
free world. Is not the geographer, through his
study of land barriers, map-making, climatology,
264
Department of State Bulletin
and coastal changes, collecting and systematizing
information which has a definite bearing on mili-
tary strategy and tactics?
Of course, he is. But the making of a con-
tribution to material well-being is not in itself
enough. Not nearly enough. Such would be the
case whether we spoke of geographers or his-
torians, physicists or political scientists, chemists
or economists.
For it seems to me that the crucial challenge the
scientist faces today lies in the spiritual and moral
sphere. It seems to me that free man who would
remain free must sti'engthen that sense of spiritual
and moral responsibility without which the great-
est of concrete achievements means very little.
I will not deny that there is such a thing as pure
science. But the purest of sciences has little
meaning in a vacuum. Science is generally meas-
ured by the amount of good it does.
The Scientist-Statesman Equation
The scientist's responsibility in today's world
is a tremendous one. This is a tense, troubled
world, and the miracle of modern technology has
made it a small world.
Perhaps the task before the diplomat might be
easier if he were also a topflight scientist. This
matter of moral responsibility might be less of a
])roblem if there were more diplomats like Hans
W. Ahlmann, the Swedish Ambassador to Norway,
who, I understand, is scheduled to speak at your
official banquet next Wednesday. But Ambas-
sador Ahlmann, I fear, is an exception to the rule.
By and large, one does not find the scientist and
the diplomat rolled into one. That makes it im-
perative that the cooperation between scientist
and diplomat be close if we are indeed to meet the
moral responsibility of which I speak. The true
scientist owes it to mankind to help the diplomat
meet the problems we face in the political sphere.
The diplomat owes it to mankind to help the sci-
entist carry on his work in an atmosphere of free-
dom and encouragement.
If either party to this equation defaults, hu-
manity is the loser.
Tlie International Geographical Union made it
clear at Lisbon in 1949 that it was not going to
default. You made it clear when your sixteenth
congress adopted a resolution pledging the Union
to full cooperation with the United Nations and
its specialized agencies.
In that resolution, you stated with unmistakable
clarity your recognition of the relationship be-
tween your work and the objectives of the United
Nations. You made plain your awareness of your
moral responsibility for fostering peace and de-
cency. You pointed up the fact that it was no
longer feasible to seek to erect a barrier between
the physical sciences and the social.
I was very much pleased when the United
Nations, through Unesco, accepted your coopera-
tion in the spirit in which it Avas offered. I was
pleased to find the United Nations giving financial
and other support to various of your projects.
This, to me, represented the scientist-statesman
equation at its best. The scientist could and did
join the statesman in furthering the cause of peace.
Technological progress was geared to a genuine
sense of social responsibility.
This relationship between the physical and po-
litical sciences is one in which free men can see
great hope. We Amei'icans are determined to do
everything possible to nurture that hope. In play-
ing host to this congress of the International Geo-
graphical Union, we hope and believe that we are
serving the cause of international understanding
as well as that of scientific progress.
That makes for pride. It also makes for
humility. With a feeling of pride, 1 urge you to
see, know, and understand America as she really
is. With a feeling of humility, I say : We Ameri-
cans recognize how directly our own progress and
well-being are related to the scientific achieve-
ments of other nations, and we are ever ready to
give others the understanding and the respect
which we ourselves seek to merit.
Arrival of King Faisal 11 of Iraq
Press release 625 dated August 7
King Faisal II of Iraq will arrive in New York
City August 12, aboard the liner Queen Mary.
King Faisal has accepted an invitation to visit
the United States informally from August 12
until September 10, during which time he will
meet the President and tour the United States
from coast to coast. The 17-year-old heir to the
throne of Iraq will be accompanied by his \mcle,
the Regent of Iraq, His Royal Highness Prince
Abdul Ilah. Also among the royal party are Col.
Mohammed Yahya, Col. Mohammed Jassam,
Deputy Ahmed Ajil al-Yawar, and Qais Ali
Rubiya.
The King and his party will visit New York,
Washington, Detroit, and Chicago. From Chi-
cago the party will travel farther west to Denver,
Estes Park, San Francisco, and Los Angeles. On
the return journey they will stop at the Imperial
Valley, Las Vegas, Phoenix, Muscle Shoals, and
Fort Knox, completing the visit on return to New
York September 9. The King and his party will
stay in New York for an additional week before
their departure aboard the Queen Elizaheth- on
September 17.
The serious young. King is interested particu-
larly in the reclamation and irrigation projects of
the American Southwest, as the problems there
are repeated in the geographically similar country
of Iraq. As Iraq's development expands from
utilization of its new oil revenues, the Salt River
.Aogusf 18, 1952
265
Valley of Arizona and the Imperial Valley of Cal-
ifornia will have their counterparts along the his-
toric Tigi'is and Euphrates Rivers in Iraq. How-
ever. Kin<j; Faisal will complete his American trip
by attending; a baseball pjame, seeing "South
Pacific," and enjoying a Western chuck-wagon
dinner.
The King will ascend the throne of Iraq on
his 18th birthday, May 2, 1953. He finished his
studies at Harrow School in England this July
and will return to Iraq this fall.
of the United States pursuant to Section C, para-
graph 1 of the aforesaid Agreement, I have the
honor to projwse that, from the latter date the
obligations contained in paragraph 4 of Section C
of the aforesaid Agreement respecting the pur-
chase or importation of tin shall no longer be bind-
ing upon the Government of the United States.
If the United Kingdom Government is in agree-
ment with this proposal, I have the honor to sug-
gest that Your Excellency's reply in that sense
should, together with the present note, be regarded
as constituting an agreement between our two Gov-
ernments in this matter, effective upon the receipt
of the reply note.
Accept [etc.].
Dean Acheson
U.S., U.K. Agree To Resume
Importation of Tin
Press release 605 dated July 31
On January 18 the Govemm'ents of the United
States and the United Kingdom reached an agree-
m-ent on steel, alumimnn, and tin} Under that
agreement the United States had an ohiigation to
prevent private ■im.portation of tin during the
period of the agreement unless conmiJtation be-
tween the two Governments took place.
On July 21). notes were exchanged between the
Department of State and the British Enibassy
which have the effect of releasing the Government
of the United States from- this obligation. This
e.rrhinige of notes prepared the ivay for action hy
the National Production Authority and the De-
fense Materials P rocurement Administration., an-
nounced by those agencies on. August 1, to permit
resu7nption of tin importation for private account.
Following are the texts of Seci^etary Acheson's
note, addressed to the British. Amhassador^ Sir Oli-
ver Franks, and of Sir Chri.sfopher SteeVs reply:
Excellency :
I liave the honor to refer to conversations be-
tween representatives of our two Governments
concerning the establishment of more normal ar-
rangements for the conduct of the trade in tin. as
envisaged in Section C paragraph 6 of the Agree-
ment on Mutual Assistance in Raw Materials
signed at Washington on January 18, 1952.
Since these conversations have disclosed that the
Government of the United States of America in-
tends in the near future to permit the private
importation of tin to be resumed, and that the
United Kingdom Government expects, by August
1, 1952, to have completed or virtually completed
the purchase of tin for delivery to the Government
' F(ir text of comnmiiiqin's on this agrppment, i.ssued by
President Truman and Primp Minister Churchill on Jan. 9
and 18, see Bulletin of Jan. 21, 1052, p. 83 and ihid.,
Jan. 28, 1952, p. 115.
British Embassy,
Washington, D. C.
^2Uh July, 1953
Sir : I have the honour to acknowledge receipt
of your note of 24 July, 1952, in the following
terms : —
I have the honor to refer to conversations be-
tween representatives of our two Governments
concerning the establishment of more normal ar-
rangements for the conduct of the trade in tin, as
envisaged in Section C, paragraph 6 of the Agree-
ment on Mutual Assistance in Raw Materials
signed at Washington on January 18. 1952.
Since these conversations have disclosed that
the Government of the United States of America
intends in the near future to permit the private
importation of tin to be resumed, and that the
United Kingdom Government expects, by Au-
gust 1, 1952, to have completed or virtually com-
pleted the purchase of tin for delivery to the Gov-
ernment of the United States pursuant to Section
C, paragraph 1 of the aforesaid Agreement, I have
the honour to jn-opose that from the latter date
the obligations contained in paragraph 4 of Sec-
tion C of the aforesaid Agreement respecting the
purchase or importation of tin shall no longer be
binding upon the Government of the United
States.
If the United Kingdom Government is in agree-
ment with this proposal. I have the honour to
suggest that Your Excellency's reply in that sense
should together with the present note, be regarded
as constituting an agreement between our two
Governments in this matter, effective upon the re-
ceipt of the reply note.
I have the honour to inform you that Her Maj-
esty's Government are in agreement with the fore-
going.
Please accept [etc.]
Christopher Steel
Her Britannic Majesty's Minister.
266
Department of State Bulletin
U.S., Venezuela Conclude
Trade Agreement Discussions
Press rek'ase C2'j ilatt'd August S
The Governments of tlie United States of
America and Venezuela began formal nep;otiations
for the revision of the Reciprocal Trade Agree-
ment of 1939 on April 18 at Caracas. Following
the initial phase of the negotiations, the tallvs were
transferred to Washington, beginning July 16.
Formal discussions having now been concluded,
the Venezuelan delegation, headed by Manuel
Keyna, Director of Economic Policy in the Minis-
try of Foreign Atl'airs, will soon return to Caracas.
The two Governments will now take under con-
sideration the recommendations of the negotiators.
It is expected, once final approval by the respec-
tive Governments is forthcoming, that the revised
airreement will be signed at Caracas.
be desirable in order to facilitate the operation
of television stations in the two countries in the
areas concerned. In particular, the amendments
to the agreement call for increasing the effective
radiated power of stations assigned channels 7,
8, 9, 10, 11, 12, and 13 from 200 kw to 325 kw,
and include changes for television fi-equency
channels assigned under tables A and B of the
original agreement.^
For Mexico under table A, television channel
11 mimis has been added for Chihuahua.
In the United States under table B, channel 3
minus has been added for Santa Barbara, Calif.
Channel 9 plus has been added for Abilene, Tex.
Channels 4 plus and 5 minus have been assigned
for Harlingen and Weslaco in addition to Browns-
ville, with the provision that these channels may
be used in any community within the triangle
formed by Brownsville. Harlingen, and Weslaco.
For Monahans, Tex., Channel 9 minus has been
substituted for channel 5 minus. In New Mexico,
channel 10 plus has been added for Silver City.
British Establish 12 Scholarships
for American Students
Press release 604 dated July 31
Foreign Secretary Anthony Eden announced on
July 31 in the House of Commons that the British
Government, in demonstration of its gratitude to
the United States for the European Recovery Pro-
gram, proposed to establish at British universities
12 scholarsliips to be competed for annually by
American students. The scholarships are to be
known as Marshall scholarships in honor of Gen.
George C. Marshall, former Secretary of State
and founder of the Marshall Plan.
The generous offer made by the British Govern-
ment is received with sincere appreciation and
gratitude by the Government of the United States.
It is not only a splendid expression of British
friendship for the United States but is also one
more important step in the furtherance of mutual
understanding between our two countries.
U.S., Mexico Revise Agreement
on TV Channels
Press release 598 dated July 30
The Department of State announced on July
30 that agreement had been reached with the
Government of Mexico for modifications and ad-
ditions to the previous agreement between the
United States and Mexico for the assignment of
frequency channels to television stations along the
U.S.-Mexican border.
The modifications and additions were found to
Earthquake Reconstruction Credit
for Ecuador Approved
The Export-Import Bank on August 5 an-
nounced approval of a credit of 165 thousand
dollars to the Republic of Ecuador to assist in
financing tlie reconstruction and enlargement of
the water-supply system and for the construction
of a sewer system for the town of Guano. Guano
is a community of approximately 4,500 popula-
tion located in the Province of Chimborazo, which
is one of the areas of Ecuador devastated by the
earthquake of August 5, 1949. The credit forms
a part of the earthquake reconstruction commit-
ment made by the Bank in December 1949.
The credit will be used exclusively for financing
the purchase and transportation to Ecuador of
U.S. materials, supplies, and equipment. Local
costs will be borne jointly by the town of Guano
and the Reconstruction Board of Chimborazo.
The U.S. Institute of Inter-American Affairs
rendered technical assistance in the development
of the plans for both the water and sewer systems
for the town of Guano and has been requested by
the Ecuadoran Government to assist in supervising
construction. The plans call for 500 private con-
nections and a system of fire hydrants. The pres-
ent system has no private connections or secondary
pipelines in the streets. It serves only a few public
fountains.
The credit will be repayable in quarterly install-
ments over a 20-year period. Interest will be paid
at the rate of 31/2 percent per annum.
^ For a summary of the agreement announced on Oct.
26, 1951, see Bulletin of Nov. 20, 1951, p. 865.
August 18, 1952
267
U.S., Turkey Terminate
1939 Trade Agreement
Press release 619 dated August 5
On July 18 the Department of State gave public
notification of the termination of the 1939 trade
agreement between the United States and Twrhey
as a result of that cov/ntry^s accession to the Gen-
eral Agreement on Tariffs and Trade.'- Ter-
minatio'ii of this agreement was effected by an
exchange of nates dated Jidy 5 between the two
Govemm,ents at Ankara.
The President signed a proclamation on July
18 ^ terminating on August jf, 1962., two presiden-
tial proclamations.! dated April 5, 1939, and No-
vember 30, 1939, which proclaimed the United
States-Turkish trade agreement.
Following is the text of the note from George G.
McGhee, U.S. Ambassador to Turkey, to the
Turkish Foreign Minister, Fuad Kopndu, and
the Turkish reply;
Text of U.S. Note of July 5
Excellency :
I have the honor to confirm that the Government
of the United States of America and the Govern-
ment of the Republic of Turkey, both being con-
tracting' parties to the General Agreement on
Tariffs and Trade, have agreed to terminate the
trade agreement between the United States of
America and the Republic of Turkey signed at
Ankara on April 1, 1939, with an accompanying
exchange of notes, and as affected by the exchange
of notes of April 14, 1944, and April 22, 1944.
The termination shall be effective on the
thirtieth day following the date of this note.
I shall be glad if \ our Excellency will confirm
this understanding on behalf of your Government.
Please accept. Excellency, the renewed assur-
ances of my highest consideration.
George C. McGhee
Text of Turkish Reply
Excellency :
I have the lionor to refer to your Your Excel-
lency's note No. 14 of this date, which reads as
follows :
[See text above]
I have the honor to inform you that my Govern-
ment agrees to the foregoing.
Please Accept, Excellency, the renewed assur-
ances of my highest consideration.
For the Minister of Foreign Affairs :
The Assistant Secretary General
A. Haydar Gork
' Bulletin of Aug. 4, 1952, p. 179.
'Ibid.
Danish Gift for Virgin Islands
Press release 615 dated August 4
In celebration of the 150th anniversary of the
establishment of diplomatic relations between the
United States and Denmark and as an expression
of Danish friendship toward this country, the
Government of Denmark on August 4 presented
to the United States replicas of some of the orig-
inal furnishings of the Banquet Hall at Govern-
ment House, Christiansted, St. Croix, V.I. The
gift, which consists of mirrors, chandeliers,
bracket lanips, and taborets, was presented by
Henrik de Kauffmann, Danish Ambassador to the
United States, and was accepted for the United
States by Morris F. de Castro, Governor of the
Virgin Islands.
When the United States purchased the Virgin
Islands from Denmark in 1917, the 18th century
furniture of Government House was returned to
Denmark. The furnishings which were presented
on August 4 will be placed in the banquet hall in
the same positions as their original counterparts.
Current Legislation on Foreign Policy
Insurgency in Prisoner-of-War Camps in Korea and Com-
munist-Inspired Disturbances of the Peace in Japan.
H. Rept. 2131, 82d Cong., 2d sess. [To accompany H.
Res. 664] 2 pp.
Report Pursuant to House Resolution 664. Letter from
Acting Secretary, Department of State, Transmitting
a Report Pursuant to House Resolution 664, 82d
Cong. H. doc. 529, 82d Cong., 2d sess. 4 pp.
Mutual Security Appropriations for 1953. Hearings Be-
fore the Subcommittee of the Committee on Appro-
priations, House of Representatives, 82d Cong., 2d
sess., part 2. Committee print. 25 pp.
Extension of the Rubber Act of 1948. Hearing Before a
Subcommittee of the Committee on Armed Services,
United States Senate, S2d Cong., 2d sess. on H. B.
6787— An Act To Extend the Rubber Act of 1948 (Pub-
lic Law 469, SOth Cong. ) . as Amended, and for Other
Purposes. Committee print. 30 pp.
Puerto Rico Constitution. Hearing before the Committee
on Interior and Insular Affairs, Hou.se of Representa-
tives. 82d Cong., 2d sess. on H. .T. Res. 430 — A Joint
Resolution Approving the Constitution of the Com-
monwealth of Puerto Rico, Which was Adopted by
the People of Puerto Rico on March 3, 1952. Serial
No. 17. Committee print. 40 pp.
Defense Production .\ct, ProKress Report No. 20. Alumi-
num Proirram by the Joint Committee on Defense
Production, Congress of the United States, 82d Cong.,
2d sess. S. Itept. 1987. 16 pp.
Suspension of Deportation of Certain Aliens. H. Rept.
2410, 82d Cong., 2d sess. [To accompany S. Con.
Res. 81 J 2 pp.
Concerning Certain Rights of Canal Zone Employees
Under the Federal Employees' Compensation Act.
H. Rept. 2425, 82d Cong., 2d sess. [To accompany
S. 1271] 2 pp.
Supplemental Appropriation Bill, 1953. H. Rept. 2494,
82d Cong., 2d sess. [To accompany H. R. 8370]
11 pp.
Mutual Security Appropriations for 1953. Hearings Be-
fore the Subcommittee of the Committee on Appro-
priations, House of Representatives, 82d Cong., 2d
sess. Committee print. 858 pp.
268
Department of State Bulletin
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
U.S. Views on Self-Determination
Statement by Isador Luhin
U.S. Representative in the U.N. Economic and Social Council ^
With the opening of this discussion, the Eco-
nomic and Social Council is setting foot upon un-
familiar territory. The problem of promoting
self-government is one which was entrusted under
the U.N. Charter primarily to other bodies of the
United Nations. Therefore, when we move into
this field of activity we must do so, in the opinion
of my delegation, with a good deal of caution lest
in our inexpertness we make a misstep which
would harm the peoples we want to help.
The object of the United Nations in this field
is to find the best ways by which all of us, work-
ing together, can assist other peoples to achieve
the political maturity which will enable them to
govern themselves. We will do well if we keep
that objective foremost in our minds for each of
us knows that wliere questions of national inde-
pendence are discussed emotions are very near the
surface.
These are the times to remember the words of
the Charter, in article 2 where it first speaks of
self-determination, that our fundamental goal is
"To develop fi'iendly relations among nations
based on respect for the principle of equal rights
and self-determination of peoples. . . ."
In approaching the resolutions before us, I
think each delegation here, and the world at
large, knows that the United States brings to this
Council a long history of consistent action de-
signed to bring about the steady development of
self-government. Our own national story is that
' Made on July 31 before Ecosoc, which had before it
Resolution A (Plebiscites) and Resolution B (Political
Information from Non-Self -Governing Territories) of the
Human Rights Commission (see Report of the Eiijhth Ses-
sion of Commission on Human Rights, U.N. doc. E/2256,
p. 64) ; released to the press by the U.S. Mission to the
U.N. on the same date.
of a struggle for indejiendence. I think the dele-
gate of the Philippines will agree with me that
the close friendship that exists between his Gov-
ernment and mine is a result of a long association
in the valiant efforts of the Philippine people to
achieve their political aspirations. This associa-
tion included the bitter conflict against a common
enemy and an equally bitter conflict against the
disasters brought by that battle. Only last week
the people of Puerto Rico celebrated their new
Constitution under which, as a commonwealth,
they take over the full job of governing themselves.
It is almost needless to assert, therefore, that
the United States supports — has supported in the
past and will continue to support — the principle
of self-determination, in deed as well as in word.
The Dynamic Trend Toward Self-Government
I do not intend to imply, however, that we are
by any means alone in this respect among metro-
politan powers having within their spheres people
who have not yet attained full self-government.
The trend I speak of is a dynamic trend in all parts
of the world. It is a trend which represents one
of the great movements of this mid-century — a
movement toward self-government which will not
be denied ; indeed, a movement in whicli all of us
in the United Nations are participating and
assisting.
Under the Charter of the United Nations, ter-
ritories being administered by other countries are
enjoying an ever-larger degree of self-government.
Each of the eight administering countries has
accepted the obligations of the Charter relating to
the territories which tliey administer. Each of
these countries is promoting the political, eco-
August 78, 1952
269
noniic, and social advancement of the territories
under its administration.
The rate of progress, naturally, will vary. It
depends on the obstacles the people must over-
come— obstacles of climate and terrain and geo-
graphic location; the presence or absence of nat-
ural resources; the amount of assistance that can
be j^rovided from outside sources; the spirit and
the interest of the people themselves in grappling
with these jiroblems. But in each case thei-e is
jjrogress, and the peoples of these non-self-govern-
ing territories are assuming an increasingly
greater degree of responsibility in taking care
of their own affairs.
The policy of the United States is to assist,
through the United Nations and otherwise, in
making this progi'ess move rapidly, yet surely.
Now let me turn to Resolution A, the hrst of
the two resolutions listed under the heading
"recommendations concerning international re-
spect for the self-determination of peoples." The
United States wants to vote in favor of this reso-
lution because we believe its broad objective is
to encourage metropolitan countries to improve
the ways by which they ascertain the wishes of
non-self-governing peoples as to their political
future. That, we feel, is worthwhile. We find,
however, that some provisions of it do not meet
the basic criteria we have set for ourselves in the
Charter — the object of promoting friendship while
seeking progress toward self-government. I refer
chiefly to the firet two preambular paragraphs
which speak of "the slavery of peoples."
Slavery is a strong word. It is perhaps the
strongest word in tlie English language to denote
the subjection of one human being to the power
of another. We have in progress in this Council
an investigation of the entire subject of slavery.
We have another investigation of "forced labor,"
and in this instance, in spite of overwhelming evi-
dence of the most flagrant use of tliis form of labor
in certain countries, this Council did not use the
word slavery. There is no basis for using it here.
Its use in this resolution distorts the picture of
non-self-governing peoples beyond any resem-
blance to reality. Such language, used in a U.N.
resolution, would be insulting to the people and
the administrators alike in areas where undeni-
able progress is being made in political develop-
ment. Moreover, it is inflannnatory language, ill-
suited to a temperate, reasonable discussion of the
self-determination of peoples. We feel that the
resolution e.xpresses our intentions adequately
without those two paragraphs and we therefore
suggest their deletion.
Our second suggestion is in relation to the sec-
ond operative paragraph dealing with plebiscites.
The United States feels that the ])aragraph un-
duly restricts the methods by which the wishes of
non-self-governing people might be ascertained in
the future by placing virtually sole reliance upon
the U.N. supervised plebiscite. The adoption of
the U.N. Charter does not require all nations to
conduct all their foreign affairs through the
United Nations ; other means of international deal-
ings have distinct advantage. Similarly, in the
dealings between an administering country and
the non-self-governing people, these people them-
selves may desire direct methods of contact which
may not always be associated with the United
Nations.
For example, the United States recently ar-
ranged to determine the wishes of the people of
Puerto Rico, Alaska, and Hawaii, without a U.N.
plebiscite. It is sometimes feasible and desirable
to consult the legislative body representative of the
people of a territory. Or the action of the people
at the polls, in one of their own elections, may be a
useful criterion of the wishes of the people. The
amendment of the United States in this respect is,
therefore, designed to provide greater flexibility.
In addition, my delegation proposes the addi-
tion of the phrase "in conformity with the provi-
sions of the United Nations Charter" after the
word "administration" in this second operative
paragraph. This addition would have two ad-
vantages. First, it would specify that the recogni-
tion and jiromotion of the realization of the right
of self-determination shall be in accordance with
the high principles of the Charter ; and second, it
would bring the language of this resolution into
closer conformity with the language of the article
on self-determination in the draft Covenants on
Human Rights.
The change pi'oposed by my delegation in the
latter part of this paragraph is designed to meet
several ^joints.
Developmental Stages of Self-government
The members of the United Nations have under-
taken to develop self-government in the territories
under their administration. The Charter specifies
that this will be done by taking into consideration
the particular circumstances of each territory and
its peoples and their varying stages of advance-
ment. It is recognized, therefore, that the de-
velopment of self-govermnent, while an urgent
problem, is a continuing process and nuist be ac-
complished progressively.
Now, I would like to explain briefly the position
of my delegation with I'egard to Resolution B on
self-determination which is concerned with the
transmission of political information on non-self-
governing territories.
The question of the transmission to the United
Nations of political information by states respon-
sible for the administration of non-self-govern-
ing territories has had a long history in the United
Nations. The responsibility of states to transmit
information with regard to non-self-governing
territories derives from article 73 (e) of the
Charter. In article 73 (e) information relating
270
Department of State Bulletin
to economic, social, and educational conditions
are specified, whereas reference to political infor-
mation is omitted. The history of this provision
leaves no doubt that the omission of political in-
formation was deliberate. The question was care-
fully examined and fully discussed at San Fran-
cisco and eventually, all factors liavin<j; been taken
into consideration, the existing languafre of article
73 (e) was a]iproved for insertion in the Charter
and accepted by all signatories.
My Government has voluntarily transmitted po-
litical information on the governmental institu-
tions of its territories and will continue to do so
in the future. We have been pleased to note that
other administering countries have from time to
time voluntarily submitted such information.
However, we feel it unwise for efforts to be made
to place this matter on a basis of ''recommenda-
tions" to the authorities concerned. As I have
said, the transmission of political information was
not set out as an obligation under the Charter.
"We have accordingly opposed resolutions which
would recommend the transmission of political
information.
Two other considerations are also of significance
in our view. The first is that whereas the prob-
lem of self-determination is a universal one — one
of significance for all states and not only states
administering non-self-governing territories — this
resolution singles out only those states which have
responsibilities in regard to non-self-governing
territories. The second consideration is the re-
lated point that for matters relating to the colo-
nial field, the General Assembly has established a
special body to deal with these problems regularly.
This organization is the Assembly's Committee
on Information from non-self-governing terri-
tories. My delegation feels that it is open to some
objection to consider problems in relation to non-
self-governing territories on a piecemeal basis and
without reference to the bodies specially created
for that area of the work of the United Nations.
Inasmuch as other delegations have entered into
a discussion of the substance of Kesolutions A and
B on self-determination, we have taken this occa-
sion to set forth briefly our own views. We have
pointed out that, while my Government has sup-
ported and will continue to support the principle
of self-determination, it has serious reservations
as to these two resolutions.
Nevertheless, we are prepared not to press for
a decision on their substance, and in particular on
our amendments to Resolution A, at the present
time, and to vote for the Polish proposal to trans-
mit these two resolutions to the General Assembly,
provided that the Cuban amendment is adopted.
Adoption of this amendment would make it un-
mistakably clear that this action was purely pro-
cedural and that the Council was not taking a
position one way or the other on the substance of
the two resolutions.
If the Cuban amendment is not adopted, my
delegation would feel obliged to vote against the
Polish resolution.
If the Polish resolution, as amended by Cuba,
is adopted, as we hope it will be, this will mean
that the discussion of the substance of these two
resolutions will be shifted from this Council to
the General Assembly, where my delegation will
take occasion to set forth its position in appro-
priate detail.
U.S. Delegation to
International Conference
Sixth Grassland Congress
The Department of State on August 7 an-
nounced that the U. S. delegation to the sixth
International Grassland Congress, to be held at
the Pennsylvania State College, State College,
Pa., August 17-23, is as follows : ^
Delegates
Philip V. Cardon, director, Graduate School, and research
administrator emeritus, Department of Agriculture,
Chairman
William A. Minor, assistant to the Secretary, Department
of Agriculture, Vice Cliairman
Mason H. Campbell, dean of agriculture and director of
the agricultural experiment station, U. of R. I.
Wilbur G. Carlson, A. O. Smith Corp., Milwaukee
Lero.v E. Hoffman, associate director of agricultural ex-
tension, Purdue U.
Malcolm H. Jones, head, resources development section.
Food, Agriculture and Resources Development Staff,
Technical Cooperation Administration, Department
of State
Arthur S. King, chief, fertilizer, seeds, and pesticides
branch. Food and Agriculture Division, Mutual Secu-
rity Agency
Gerald M. Kerr, chief. Division of Range Management,
Bureau of Land Management, Department of the
Interior
The U.S. in the UN.
a weekly feature, does not appear in this issue.
' For background information on the congress, see
Bulletin of Feb. 2.5, 1952, p. 309, and ibid.. Aug. 11, 1952, p.
230.
August 18, 1952
271
Report of U.N. Command Operations in Korea
FORTY-FIFTH REPORT: FOR THE PERIOD
MAY 1-15, 1952 '
U.N. doc. S/2715
Transmitted July 21, 1952
I herewith submit report number 45 of the United Na-
tion.s Command Operations in Korea for the period 1-15
May l!t."i2, inclu.sivp. United Nations Command com-
muniques numlvers 1251-1265 provide detailed accounts of
these operations.
As stated in United Nations Command report number
forty-four. Executive Plenary Sessions were resumed on
28 April. The United Nations Command Delegation had
proposed executive sessions in the hope that both sides
could approach the remaininij problems in the light of logic
rather than in an atmosphere of tension created by Com-
munist propaganda. By 7 May it was clear that no prog-
ress was being made. Consequently both sides agreed to
resume open plenary sessions on 8 May.
Tlie United Nations Command's fair and reasonable pro-
posal of 28 April, if accepted by the Communist side, would
have resulted in the rapid consummation of the armistice
agreement. Because of the importance of this United
Nations Command proposal it is hereafter quoted in full :
"For more than nine months our two delegations have
been negotiating for an armistice which will bring a cessa-
tion to hostilities in Korea. We have progressed to the
point where only three issues remain between us and
final agreement on an armistice. These three issues con-
cern, first, whether there will or will not be restrictions
on the rehabilitation and construction of military airfields ;
second, the basis of exchange of Prisoners of War; and
third, the nations to compose the Neutral Nations Super-
visory Commission.
"As for the first issue, for many weeks the United Na-
tions Command Delegation has stated that in order to
maintain the stability of the armistice and prevent the
creation of tension that might lead to a resumption of
hostilities it is highly desirable that restrictions be placed
on the rehabilitation and construction of military air-
fields. Tour side has opposed this limitation on what
would be a manifest increase of offensive potentiality
upon the ground that it would constitute interference by
one side in the internal affairs of the other. Yet, if your
'Transmitted to the Security Council by the acting
representative of the U.S. to the U.N. on July 21. Texts
of tlie 30th, 31st, and 32d reports appear in ti)e Bulletin
of Feb. 18, 1952, p. 266 ; the 33d report, md.. Mar. 10, 1952,
p. .395 ; the 34th report, iUd.. Mar. 17, 1952, p. 430 ; the 35th
report, ibid., Mar. 31, 19.52, p. 512; the 36th and 37th
reports, ihid., Apr. 14, 1952, p. .594 ; tlie asth report, ibid..
May 5, 1952, p. 715; the .39th report, ibid., Mav 19, 19.52,
p. 7&8 ; the 40th report, ibid., .Tune 23, 19.52, p. 998 ; the 41st
report, ibid., June 30, 19.52, p. 1038 ; the 42d report, ibid.,
July 21, 19.52, p. 114; the 43d report, ibid., Aug. 4. 1952, p.
194 : and the 44th report, ibid., Aug. 11, 1952, p. 231.
side is moving in good faith toward an armistice, you
should have no hesitation in agreeing not to build up your
military air potential.
"As for the second issue I have referred to, for many
weeks the United Nations Command Delegation has stated
that all Prisoners of War must be released but that only
those should be repatriated or turned over to the other
side who can be delivered without the application of force.
Your side has opposed this principle and has, instead,
insisted that certain Prisoners of War must be repatri-
ated even if physical force is necessary, asserting that
to accord respect to the feelings of the individual prisoner
is unprecedented and deprives a Prisoner of War of his
rights. Y'our current attitude on this question is incon-
sistent with the historical facts that during the Korean
War your side has followed the practice of inducting cap-
tured personnel into your armed forces, and that you have
in this and other ways disposed of approximately four-
fifths of the military personnel of our side who fell into
your custody.
"The United Nations Command holds as Prisoners of
War 116,000 North Koreans and Chinese People's Volun-
teers ; 59,000, or more than fifty percent of this number
held by our side, will return to your side without being
forced. In addition, some 11,000 citizens of the Republic
of Korea, now in our custody, have elected to go to your
side under the principle of free choice. This Is in marked
contrast to the 12,000 captured personnel of our side whom
you have stated you will repatriate, a figure which is less
than twenty percent of those you have admitted having
taken into your custody.
"The foregoing figures are now a basic factor in the
Prisoner of War question. It was with the full conair-
rence of your side that the Prisoners of War in our custody
were screened to determine their attitude as regards
repatriation. Once screened. Prisoners of War had to be
segregated in accordance with their individual determi-
nation. No action can now be taken by either side to
alter materially this situation. It is an accomplished
fact. For you to pretend otherwise would be completely
unrealistic.
"Moreover, our side has indicated our willingness to
send to your side any Prisoners of War who may change
tlieir views on repatriation between the time of the initial
determination and the completion of the exchange of
Prisoners of War. We have also informed you that, if
you wish, you may verify the results of our screening
processes after the armistice is signed. Your side can at
that time interview those persons held by the United Na-
tions Command who have indicated that they would
violently oppose being returned to your side. If any
indicate that tliey are not still so opposed, the United
Nations Command will return them promptly to your side.
"Lastly, in regard to the third issue, although both
sides agreed to nominate mutually acceptable nations to
272
Department of State Bulletin
comjwse the Neutral Nations Supervisory Commission
you have continued to insist on membership for a nation
which tlie United Nations Command will not accept.
"The issues are clearly drawn. The discussions of
the past several months have clearly defined the differ-
ences on the issues, but such discussions have failed to
develop any common meeting ground for resolving these
differences. Witliin the limit of these discussions each
side has indicated that its position is tirm and unshake-
able. We believe that becau.se of the strong views already
set forth by both sides in the respective meetings, we will
only prolong the staleiiiate on each of the three differ-
ences if we attempt to di.scuss them further or to settle
them separately. Therefore, we believe it absolutely es-
sential that the three remaining issues be settled together.
It is evident that if both sides remain adamant in their
present position on the three issues, these negotiations
will be deadlocked indefinitely. If an armistice agreement
is to result from our efforts here, if we are to bring about
the long-awaited cessation of hostilities In Korea, if we
are to build the bridge which is to lead to a solution of
the Korean problem, the three issues must be resolved at
the earliest practicable date. There are two ways to
accomplish this objective : either one side could con-
cede on all issues, or each side could concede to the posi-
tion taken by the other side on some of the remaining
issues. The only alternative to the foregoing is for these
delegations to admit that they have failed to accomplish
their mission.
'I .state categorically that the United Nations Com-
mand will not accede to your demands on all matters at
issue. I assume that you would make a similar state-
ment on behalf of your delegation. It is clear, then, that
unless you are willing to accept the entire respon.slbility
for the failure of these negotiations, you must Join us
in seeking a compromise solution which both sides may
accept in the interest of reaching an early agreement on
an armistice.
"The United Nations Command has carefully reviewed
the positions taken by both sides on the three issues. It
remains our conviction that the stability of an armistice
would be increased by restricting rehabilitation and con-
struction of military airfields. We are fully aware that
you consider that any such restriction constitutes inter-
ference in your internal affairs. We utterly disagree with
your contention in this regard, since this is a military
armistice, designed to freeze the military situation in
status quo pending a final peaceful settlement. How-
ever, in the interest of reaching an early armistice agree-
ment, we are willing to accede to your stand that no
restriction be placed on the rehabilitation and construc-
tion of airfields.
"I must make it absolutely clear, however, that our
acceptance of your position regarding airfields is con-
tingent upon your acceptance of our positions regarding
Prisoners of War and the composition of the Neutral
Nations Supervisory Commission. As you know, our posi-
tion regarding Prisoners of War is the exchange of 12,100
Prisoners of War of our side for approximately 70,000 of
your side. You also know that our ixjsition regarding the
Neutral Nations Supervisory Commission is that this
Commission shall be composed of representatives from the
four neutral nations which are acceptable to both sides.
"The United Nations Command Delegation submits a
draft wording for the entire armistice agreement. This
draft wording incorporates all the agreements hitherto
reached on agenda items 2, 3, 4, and 5. It omits any
restriction on the rehabilitation and construction of mili-
tary airfields. It provides a specific agreement on the
nations composing the Neutral Nations Supervisory Com-
mission. Lastly, it provides a practical and realistic
basis for the exchange of Prisoners of War.
"We formally propose that this draft armistice wording
he approved in toto by our delegations and that the liaison
ofiicers be directed to prepare the formal armistice agree-
ment documents for signature by our respective com-
mands. Our liaison oflScers will be prepared to discuss
details concerning minor changes in wording and neces-
sary administrative matters.
"The United Nations Command has now made its final
offer in an effort to reach an armistice. The United Na-
tions Command Delegation desires to make it unmistak-
ably clear to you that we will not agree to any substantive
change in this proposal, and that we are absolutely firm
that this proposal must be considered as a whole. The
fate of this armistice conference, and future iieace in
Korea, now rest fully and exclusively with you."
It will be noted that the United Nations Command con-
cession concerning restriction on the building of airfields
is a substantive matter of the first magnitude since it
directly and .substantially affects the military situation
subsequent to an armistice. On the other hand, the
United Nations Command proposal calling for the Com-
munist side to withdraw the Soviet Union as a member
of the Neutral Nations Supervisory Commission does not
in fact call for a concession since it was agreed by both
sides in the first place that nations so nominated must
be acceptable to both sides.
Meetings .subsequent to the United Nations Command
28 April proposal have been characterized by Communist
tirades unequaled in their distortion of truth and in their
ambiguity, insincerity and insulting language. In fact,
their tedious flagrant propaganda would be ridiculous if
the issues were not so vital to world peace and the well
being of all people.
In contrast to the attitude and actions of the Commu-
nist side, the United Nations Command has patiently but
firmly maintained its irrevocable iwsition. Typical of the
statements made by the Senior United Nations Com-
mand Delegation is the one hereafter quoted from the
Plenary Session of 11 May :
"We have been meeting here daily at your request since
the second of May. In nine consecutive meetings, nothing
has been accomplished. No progress has been made
simply because your side is not yet willing to face accept-
ance of the inherent rights of the individual.
"The longer your side delays acceptance of the United
Nations Command compromise proposal of April 28, the
more the world is convinced that you will not face the
truth. Tour side even fears the results of a joint, open
verification of the screening of Prisoners of War. Tour
fear of this rcscreenlng process can stem from only one
consideration : your side knows it cannot face up to truth-
ful results of such rescreening, even when verified by your
own representatives. Therefore, you are guilty of de-
laying these negotiations because you dare not face the
facts. Let me say once again, the equitable compromise
proposal of the United Nations Command is firm, final and
irrevocable. We shall not recede from it. Any delay in
reaching agreement is due entirely to the refusal of your
side to recognize this fact. We shall not vary or recede
from this position."
Since June 1951, the Communist Prisoners of War, in-
stigated by their fanatical senior officers, have been try-
ing to wrest control of the Prisoner of War and civilian
internee compounds from the United Nations Command
authorities and hinder the proper administration of these
compounds. Without reference of their purported griev-
ances to the International Committee of the Red Cross,
the internationally recognized supervisory body for mat-
ters of this nature, the Prisoners of War have taken
matters into their own hands. The Prisoners of War have
completely ignored the articles of the Geneva Convention
which govern the care, treatment and behavior of Prison-
ers of War and civilian internees. The United Nations
Command has at all times endeavored to comply fully
with these articles in administering the several camps
and compounds in Korea.
The Prisoners of War culminated a long series of inci-
dents, disorders and demonstrations against the United
Nations Command on 7 May 19.'')2 by forcibly seizing
Brigadier General Francis T. Dodd, the United Nations
Command Commander of Koje-Do. It is considered that
August 18, 1952
273
this action was taken primarily to offset the announce-
ment bv the United Nations Command that all but ap-
proximately TO.fMX) of the 132,000 Prisoners of War would
forcibly resist return to Comnninist control. The Com-
munist Prisoner of War leaders issued a set of prepos-
terous demands which specified the conditions under
which Brisadier General Dodd would be released shortly
after his seizure. To avoid the bloodshed and needless
killing of Prisoners of War which could have resulted
from the employment of force to secure the release of
Brigadier General Dodd, Brigadier General Colson, the
Acting Commander of Ko,ie-Do, acquiesced to the Com-
munist Prisoners of War's demands. Brigadier General
Colson, without proper authority, issued a ransom note
which has been deliberately misconstrued by the Com-
munists as admitting the guilt of the United Nations
Command to certain Communist allegations of abuse and
mistreatment when no such guilt existed. It was only
after the receipt of this note, obtained illegally through
duress involving the physical threat to the life of Brig-
adier General Dodd, that the Communist Prisoners of
War released their hostage. Commander-in-Chief, United
Nations Command, immediately refuted the contents of
the ransom note and pointed out to the world at large
the unprecedented and illegal methods used to obtain the
note. This incident demonstrates forcibly the extremes
to which the Communists will go in an effort to achieve
their ends,
A full investigation of the violent and treacherous kid-
napping of Brigadier General Dodd from the time of his
capture to his ultimate release, as well as several of other
incidents and disorders, is under way at the present time.
The results of the investigation will be released as they
become available.
On 12 May, a three-day orientation conference was con-
vened in Pusan, Korea, for the Red Cross representatives
of the National Societies who are to serve on the .Toint
Red Cross teams if, and when, an armistice is obtained.
The orientation arranged by the United Nations Connnand
inchuled a discussion of the procedures to he followed by
the representatives to insure the successful accomplish-
ment of their mission. It went into such details as the
care, feeding, and relief of the prisoners, with particular
emphasis on the medical aspect. Sufficient medical doc-
tors are included among the designated representatives to
insure proper medical care of the Prisoners of War. It
was generally agreed by the representatives present that
the benefits accruing from this orientation would insure
that the .Toint Red Cross representatives from the na-
tional Red Cross societies of countries represented within
the United Nations Command are ready to perform their
mission on short notice in an efficient manner.
General Mark W. Clark. United States Army, succeeded
General JIattbew R. Ridgway, United States Army, as
Commander-in-Chief of the United Nations Command.
The change of command took place on 12 May 19.'i2.
Enemy action along the United Nations Command front
was minor in nature with hostile units directing their
effort towards turning back United Nations Command
patrolling and probing forces. Two aggressive enemy
attacks were launched in the Kigong Sector on the west-
ern fr(mt. These actions, the largest reported by United
Nations Command imits during this period, were both one-
company attacks and were repulsed. In addition to the
company attacks in this sector, numerous squad and pla-
toon strength probes were attempted by the enemy, all
of which were repulsed. A United Nations Command
company-size tank-infantry patrol maintained contact
with an enemy battalion south of Punji for eleven hours
on 9 May. The United Nations Command forces in-
flicted heavy casualties on the enemy, damaged trenches
and other defensive installations and forced one enemy
platoon to withdraw.
Along the central and eastern front, the enemy em-
plo.ved .squads or platoons to launch scattered exploratory
attacks against United Nations Command forward posi-
tions, usually during the hours of darkness. United Na-
274
tions Command elements along the entire front continued
to protect their main battle positions by constant and
effective patrols and ambushes.
Hostile units continued to expend liberal amounts of
artillery and mortar fire. Although numerous tanks were
sighted in enemy forward positions, from Punji east-
ward to Tuchon, none participated in the battle action
during the period. Enemy front lines and capabilities
remained unchanged. On the central front tlie relief of
a Communist Army by one that was in reserve was con-
sidered a routine operation.
United Nations Connnand fast carriers operating In
the Sea of Japan launched attacks against North Korean
transportation facilities and supply routes. The jet and
propeller driven aircraft concentrated their attacks on
the vulnerable rail lines along the Korean East Coast
where rail lines were cut and bridges, by-passes, locomo-
tives and rail cars were destroyed or damaged. Addi-
tional destruction and damage were inflicted on build-
ings hovising militai'.v supplies and i>ersonnel, boats, trucks,
and numerous supplies, barracks, gun positions, and mine
equipment.
United Nations Command carriers continued operating
in the Yellow Sea. Their planes provided cover and air
support for the surface units on blockade patrols and anti-
invasion stations. They also flew reconnaissance mis-
sions and offensive strikes as far north as Yongyu, and
into the Chinnampo area, the Hwanghae Province, and
in close support of the front line troops. Buildings of
military value received the brunt of the attacks, with
additional destruction and damage inflicted on supplies,
bunkers, warehouses, box cars, vehicles and supply routes.
United Nations Command naval aircraft based ashore
in Korea flew interdiction and close support missions.
These planes made rail cuts and inflicted many casual-
ties. In addition they destroyed bunkers, trucks, mortar
positions, gun and artillery positions, troup shelters, and
numerous supplies, bridges, anti-aiicraft weapons and
rail equipment.
Patrol planes based in Japan and Okinawa conducted
daylight reconnai.ssance missions over the Sea of Japan
and the Yellow Sea. They also flew day and night anti-
submarine patrols and weather reconnaissance missions
for surface units in the Japan and Yellow Seas. One air-
craft on reconnaissance in tlie Yellow Sea was attacked
by two MIG-15 type aircraft which made five firing passes.
Only minor material damage was suffered by the patrol
aircraft as a result of this attack.
The naval blockade continued along the Korean East
Coast from the bombline to Chongjin with surface units
making day and night coastal itatrols firing on key rail
targets along the coastal MSR daily to maintain rail cuts,
and blocked tunnels at these several specific points. The
siege by surface units continued at the major ports of
Wonsan, Hungnam, and Songjin, subjecting the enemy
forces in these ports to virtually continuous fire. The
Communists were denied the use of coastal waters for
shipping and fishing, as all attempts to go to sea were
taken under fire and broken up. Fire support vessels at
the bombline pmvided gunfire on call for the front line
troops. Many military buildings, bunkers, guns and gun
positions, box cars, locomotives and numerous vehicles
were destroyed or damaged by the bombardment along
the East Coast. The MSR was cut in several places and
many casualties were inflicted.
Shore batteries continued active along the coast, with
increasing frequency and accuracy. One United Nations
Command vessel firing on rail yards in the Songjin area
was taken under fire by an estimated ten-gun battery of
seventy-five millimeter guns and larger. She received
eight counter hits and many near misses. Two crew
members were killed and seven injured. In the Wonsan
area a destroyer received one hit in an hour long duel
with shore batteries. In this case there were no casual-
ties, and material damage was light.
In the areas just ncnth of Hungnam, a destroyer and
two minesweepers launched their motor whale boats
Deparfment of Sfafe Bulletin
which made close Inshore anti-boat patrols and succeeded
in capturing 104 prisoners and many boats. In many
cases the motor whale boats also searched out enemy
targets of opportunity and furnished support for the
firing ship, to materially aid in the effectiveness of the
Interdiction of the coastal MSR. One motor whale boat
raiding party discovered large nets at Singhang-Ni, with
the dual purpose of harbor closure and fishing. They
sank 130 floats, cut all the shore connections and anchors
and sank the 6,600 foot net. It is estimated that salvage
is virtually impossible.
On tile Korean West Coast, the United Nations Com-
mand surface units manned anti-invasion stations along
the coast from Chinnampo to the Han River Estuary, in
support of the friendly islands north of the battle line.
Daylight firing into enemy positions started many fires
ami secondary explosions, destroyed military buildings
and inflicted 150 casualties. A United Nations Command
vessel supported a guerrilla rai<l on an enemy position in
the Haeju approaches. Friendly raiders overran a com-
pany position, killed the company commander and cap-
tured documents and twelve prisoners.
PT l)oats of the Republic of Korea Navy made an attack
wltli forty millimeter gims and mckets on the Haeju
Port. They fired on troops and a rublier factory. Smoke
obscured most of the results, tint a twelve story brick
building was observed to collap.se. Other vessels of the
Republic of Korea Navy conducted clo.se inshore patrols
and blockade along both coasts and assisted United Na-
tions Command forces in minesweeping duties.
The United Nations Command minesweepers continued
operations to keep the channels, gunfire support areas
.■md anchorages free of mines of all types. Sweepers also
enlarged areas as needed by the operating forces.
Naval auxiliary vessels. Military Sea Transportation
Service and merchant vessels under contract provided
personnel lifts and logistic support for the United Nations
Command Air. Naval and Ground Forces in Japan and
Korea.
Aircraft of the United Nations Command Air Force
carried out their threefold mission in Korea with the
interceptors maintaining air superiority while the light
bombers and fighter bombers attacked rail and highway
transportation targets and flew missions In close support
of the United Nations Command ground units. The
medium bombers continued to destroy key railroad bridges
In furtherance of the interdiction program.
Enemy MIG-15's were sighted on thirteen days and
were engaged on eleven days. Of the 2.52 airborne MIGs
observed by United Nations Command pilots, nineteen
were destroyed, four probably destroyed and eight dam-
aged. The United Nations Command lost three aircraft
during these engagements.
United Nations Command interceptors kept the north-
western part of Korea so well patrolled and protected
that conventional fighter bombers were able to strike rail
targets almost on the Manchurlan Border without being
attacked by the enemy aircraft.
The Sinaniu-Sinuiju and Kunurl-Kanggye rail lines
have been considered as the most Important In North
Korea. Well-timed attacks by United Nations Command
fighter bomber, light bomber and meiliura bomber aircraft
kept these routes unserviceable a majority of the time.
Reports continued to show the effectiveness of concen-
trated strikes liy large numbers of fighter bombers on
short stretches of track. In addition to the numerous cuts
inflicted in the rails, the.se attacks tore out extensive
sections of the roadlied. The cumulative effect was to
create a much more dlflicult repair problem than that
which resulted from scattered rail cuts.
United Nations Command fighter bombers flew in .•^U|i-
port of the United Nations Command ground units, de-
stroying or damaging many gini positions and bunkers
and inflicting numerous casualtie.s.
A special fighter bomber mission was conducted against
a large supply installation near Suan-Myon after Intelli-
gence reports and reconnai.ssance of the area revealed a
concentration of supplies and vehicles in the area. The
large scale attacks resulted in extensive destruction of
the installation. Aircraft on night intruder missions In
the area report fires and explosions long after the fighter
bombers completed their mission.
Light bombers continued to conduct night armed recon-
naissance of the main supply routes in North Korea and
made regular attacks on the rail lines at points where
the fighter bombers had made cuts during daylight. This
created additional damage and interfered with the enemy's
repair operations.
Medium bombers attacked rail bridges on the two prin-
cipal routes used by the enemy and on enemy airfields
to maintain tliem in an unserviceable condition as well as
dropping leaflets and flying in support of the front line
positions.
Aerial reconnaissance was conducted to determine the
status of bridge.?, airflelds, rail lines and supply Installa-
tions in enemy territory.
United Nations Command leaflets and broadcasts have
explained in complete detail the United Nations Command
overall proposal for settlement of the remaining armis-
tice issues. Communist evasion of all efforts to reach an
early agreement have been reported to Chinese and North
Korean troops and civilians to show how enemy leaders
have consistently and unscrupulously prevented the res-
toration of peace and conspired to prolong the agony of
the Korean People. Particular emphasis was given to the
firm refusal of the United Nations Command to force
Communist Prisoners of War to return to face slaughter
or slavery at Communist hands. United Nations Com-
mand media vigorously exposed the desiierate Communist
efforts to hide the truth by their callous rejection of
International Committee of the Red Cross and World
Health Organization offers to inspect areas of alleged
disease outbreaks and by their craven refusal to join in
verifying prisoner opposition to forced repatriation.
An indication of the effectiveness of the United Nations
Command immunization and sanitation program in South
Korea Is strikingly Illustrated liy figures compiled from
available reports on the incidence of communicable disease
as shown below :
Jan 1- Jan. 1-
Apr. 31. 1951 Apr. 15, 1952
Smallpox 26,000 576
Typhoid 48,000 1,847
Typhus 23, 500 543
Since the start of the Immunization program In 19.50 a
total of 23,369,648 smallpox vaccinations and 22,906,848
typhus immunizations have been given. These figures in-
clude duplication during the second smallpox program and
typhus "booster" shots.
It is to be noted that no cholera or plague has appeared
in South Korea to date. Special emphasis Is being given
presently to the cholera program In friendly areas adja-
cent to the battle line.
With respect to housing, the advent of warmer weather
has removed deterrents and steady progress is being made
in the building and rehabilitation program.
Appointment of Officers
Roy Richard Rubottom, Jr., as Director of the Office of
Middle American Affairs, Bureau of Inter-American
Affairs.
Jack Davis Neal as Deputy Director of the Office of
Middle American Affairs.
William Belton as Oflicer in Charge of Mexican Affairs,
Bureau of Inter-American Affairs.
August 18, 1952
275
August 18, 1952
Vol. XXVII, No. 686
Index
Agriculture
Sixth Grassland Congress, U.S. delegation . .
American Republics
ECUADOR: Earthquake reconstruction credit
approved .
MEXICO: U.S., Mexico revise agreement on
TV channels
VENEZUELA: U.S., Veneznjela conclude trade
agreement discussions
ANZUS Council
Communique on first meeting
Pacific Area Relationships: Anztjs Council
meets in Hawaii
Asia
Report of U.N. Command operations in Korea
(45th report)
TURKEY: U.S., Turkey terminate 1939 trade
agreement
Congress
Current legislation on foreign policy ....
Education
German education in transition (DeLong) . .
Europe
CZECHOSLOVAKIA: U.S. informed of Ameri-
can's escape from Czech prison ....
DENMARK: Danish gift for Virgin Islands . .
GERMANY:
Agreement on terms of settlement for German
prewar debts (text of communique) . .
German education in transition (DeLong)
German elections commission adjourns in-
definitely
U.K.:
British establish 12 scholarships for Ameri-
can students
U.S., U.K. agree to resume importation of tin
(text of notes)
271
267
267
267
243
243
272
268
268
246
262
268
252
246
245
267
266
Check List of Department of State
Press Releases: Aug. 4-8, 1952
Relea.ses ma.v be obtained from the Office of the
Special A.ssistant for Press Relations, Department
of State, Washington 25, D. C.
Press releases issued prior to Aug. 4 which appear
in this issue of the Buli^btin are Nos. 597 of July
30, 598 of July 30, 604 of July 31, and 605 of July 31.
No. Date Subject
*612 8/4 Irish newsman selected for award
*(il3 8/4 American to lecture in Liberia
*614 8/4 American specialists go to Germany
615 8/4 Danes present gift to U.S.
(116 8/4 Acheson : Anzus opening ses.sion
*617 8/4 Consultation on geography
618 8/5 Soviet note on Amerika suspension
619 8/5 U.S., Turkey end 1939 trade agree-
ment
t620 8/7 Fso assignments (rewrite)
*621 8/6 Diplomatic immunity of chauffeur
622 8/7 U.S. del., Grassland Congress
623 8/7 Hickerson : Geographic develop-
ments
624 8/7 Communique on Anzus
625 8/7 Visit to U.S. of King Faisal II
♦626 8/7 Hickerson to welcome lou
627 8/8 German debt communique, attach-
ments
628 8/8 Hvasta's escape from Czech prison
629 8/8 Revision of Venezuelan trade agmt.
tHeld for a later issue of the Buu.EmN.
*Not printed.
U.S.S.R. : Soviet reply to suspension of
"Amerika"
Finance
Agreement on terms of settlement for German
prewar debts (text of communique) . . .
Earthquake reconstruction credit for Ecua-
dor approved
Human Rights
U.S. views on self-determination (Lubin). . .
International Information
Soviet reply to suspension of "Amerika" . . .
International Meetings
Challenges facing the world's scientists (Hick-
erson)
Communique on first meeting of ANZtrs . . .
U.S. DELEGATION: Sixth Grassland Congress .
Mutual Aid and Defense
Pacific Area Relationships: Anzus Council
meets in Hawaii
Near East
IRAQ : Arrival of King Faisal II
Protection of U.S. Nationals and Property
U.S. informed of American's escape from
Czech prison
Refugees and Displaced Persons
Aid to escapees from Iron Curtain countries
(Warren)
State, Department of
Appointment of ofiBcers
Strategic Materials
U.S., U.K. agree to resume importation of tin
(text of notes)
Telecommunications
U.S., Mexico revise agreement on TV channels .
Trade
U.S., Turkey terminate 1939 trade agreement .
U. S., Venezuela conclude trade agreement dis-
cussions
Treaty Information
U.S., Mexico revise agreement on TV channels .
U.S., U.K. agree to resume importation of tin
(text of notes)
U.S., Venezuela conclude trade agreement dis-
cussions
United Nations
German elections commission adjourns indefi-
nitely
Report of U.N. Command operations in Korea
(45th report)
U.S. views on self-determination (Lubin) . .
Virgin Islands
Danish gift for Virgin Islands
263
252
267
269
263
264
243
271
243
265
262
261
275
266
267
268
267
267
266
267
245
272
269
268
Name Index
Acheson, Secretary 243, 266
Belton, William 275
Cardon, Philip V 271
Casey, Richard G 243
Compton, Wilson 263
DeLong, Vaughn R 246
Eden, Anthony 267
Faisal II, King of Iraq . 265
Hickerson, John D 264
Hvasta, John 262
Lubin, Isador 269
Marshall, George C 267
Neal, Jack Davis 276
Rubottom. Roy Richard, Jr 275
Steel, Christopher 266
Warren, George L 261
Webb, T. Clifton 243
U, S, SOVERKIIENT PFINTIM* OFflCl! 1*11
y '^^^. / n^^o
tJ/ve/ z!/)eha/i^oneni/ /(w t/taie^
'ol. XXVII, No. 687
August 25, 1952
'^Htes o*
A DEFINITION OF DEMOCRACY FOR UNDECIDED
PEOPLE • by Francis H. Russell 279
U.S., U.K., FRANCE PROPOSE PLAN TO LIMIT ARMS
BY TYPE AND QUANTITY • Statement 6y Benjamin
V. Cohen 290
U.S. VIEWS ON DEALING WITH GERM WARFARE
ELIMINATION AS A SEPARATE PROBLEM • State-
ment by Benjamin V. Cohen .•......•• 294
TEXT OF GERMAN ELECTIONS COMMISSION'S
FINAL REPORT 298
A REVIEW OF ECOSOC'S 14TH SESSION • Article
by Isador Liibin 288
For index see back cover
U. S, SUPERINTENDENT OF DOCUMENTS
SEP. 9 la52
M
e
9,.^^^ bulletin
Vol. XXVII. No. 687 •Publication 4682
August 25, 1952
For Bale by t e Superintendent of Documents
U.S. Government Printing Office
Washington 25, D.C.
Prick:
62 Issues, domestic $7.60, foreign $10.25
Single copy, 20 cents
The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1952).
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Dkpaktuent
Of State Bollktin as the source will be
appreciated.
The Department of State BULLETIN,
a weekly publication compiled and
edited in the Division of Publications,
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relations and on the work of the De-
partment of State and the Foreign
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selected press releases on foreign pol-
icy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
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special articles on various phases of
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tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
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eral interfuitioruil interest.
Publications of the Department, as
well as legislative material in the field
of interruitioTUil relations, are listed
currently.
A Definition of Democracy for Undecided People
hy Francis H. Russell
Director^ Ofjice of Public Affairs ^
You have asked me to speak to you on some cur-
rent problems of our American foreign policy.
I know that I do not need to point out to you the
salient fact of our time, that something precious
has come into serious danger.
This brings us immediately to one of the prob-
lems I would like to discuss with you.
We are finding it more and more essential these
days to define what it is that is in jeopardy. Our
first reaction may be that of St. Augustine when
he was asked to define "time." "When nobody
asks me," he said, "I know." But each of us is
having to determine for himself as a practical mat-
ter to what extent the sacrifice that is being exacted
in Korea is worthwhile ; at what point high taxes
become "too high."
We are having to sharpen our definition of de-
mocracy, also, because hundreds of thousands of
American citizens are coming face to face with
people from outside our borders who want to know
just how we, the leaders of the free world, visualize
the present world struggle. This year over a third
of a million American tourists are going abroad.
Last year well over half a million people from
abroad came here. Many of these people in other
countries are involved in this struggle even more
immediately and more desperately than we are,
and they are interested in where we draw the line
on what is vital and what is not vital.
The problem is coming up daily in a hundred
different ways. An American was traveling in the
Far East a short while ago. He met a leader of
one of the islands of Indonesia who, in the course
of the conversation, said to him :
My people are being showered with propaganda by the
Communists, being told that communism alone has the
answers to the problems of this part of the world. How
can I best explain your democracy to my people? How
can I tell them what the free way of life offers for them?
' Excerpts from an address made before the Richmond
Rotary Club, Richmond, Va., on Aug. 12 and released to
the press (No. 637) on the same date.
Anyone who buys bonds or has friends fighting
in Korea has a stake in seeing that the best possible
answer is given to that question; for it is rising
not only among Indonesians, but day after day in
the minds of the one-third of the world's popula-
tion who are as yet uncommitted in the present
struggle and whose decision may well turn the
balance one way or the other.
How do we answer it ?
We can lay down certain tests that should gov-
ern us. In the first place our answer must accu-
rately reflect the principles and objectives that
fuide our national life. Secondly, it should in-
icate at what points they come into conflict with
the principles of communism. Thirdly, our an-
swer should show whether, and how, the principles
by which we live have any validity, any practical
application, or are of any interest to other peoples
of the world.
Various possible answers come quickly to mind.
We could stress our high economic level, our
standard of living. But if this is the thing that
distinguishes us, these uncommitted people, who
for the most part live in desperate poverty, will
feel that they have little in common with us.
And the agents of the Kremlin capitalize upon
this by saying that the Communists have come
from, and therefore can best represent, the down-
trodden elements of the world's populations.
We might talk about our capitalist free enter-
prise system. But any definition of democracy
that excludes democracies whose econoniie.s differ
in varying degrees from ours, such as Britain,
Sweden, France, or Australia, is going to raise
more questions than it settles.
We might tell these people about our pattern
of government. How it is premised upon a wide
dissemination of powers, responsibilities, and
functions. How we maintain a separation, as far
as possible, between our political, economic, and
religious organizations. How we separate the
executive, legislative, and judicial functions of
Augusf 25, 1952
279
our Government. How we even divide up our
executive powers, from the President to the village
dog catcher, not permitting any to encroach upon
the others' fields. But will that really interest
those Indonesian villagers?
We could extol freedom to them, but if you
offer a starving man his choice between the four
freedoms and a sandwich, he is likely to take the
sandwich and let the freedoms go for a while.
All of these concepts are vital to our way of
life, but none of them really hits the particular
nail in front of us squarely on the head.
Well, what is the answer?
Perhaps Lincoln started us on the right track in
this search with his "government of the people,
by the people, for the people." The American peo-
ple, by clasping that phrase to their hearts and
echoing it countless millions of times, have made
it their ideological standard. And that, we can
tell our Indonesian friends, means, for the Indo-
nesian people, "government of the Indonesian peo-
ple, by the Indonesian people, for the Indonesian
people" ; and not, as the people of Eastern Europe
and other parts of the world have found out, "gov-
ernment of the people, by the Kremlin, for the
purposes of the Kremlin."
Well, that gives us a start. It sets the objective.
It brings us together with all those who say human
life, human happiness, as we put it in our Declara-
tion of Independence, is the ultimate value. It
rules out those who say man is made for the party
and for the state.
But how do we carry out that objective ?
A son of Virginia gave us a great deal of help
on this question when he addressed himself, in
an essay, to the question of "The Nature of Ameri-
can Democracy." Here (if I may shorten and
paraphrase it slightly) is what Woodi'ow Wilson
said:
The forces of democracy reside not in doctrines of
revolutionary writers but in educational forces which
elevate the masses to a plane of understanding and of
orderly intelligent purpose.
Liberty is not something that can be treated by a docu-
ment. It is an organic principle of life.
Democratic institutions are like living tissue, always
a-making.
It is a strenuous thing, living the life of a free people ;
and success depends upon training, not upon clever in-
vention.
Such a government is a form of conduct, and its only
stable foundation is character.
The people who successfully maintain such a govern-
ment must have self-reliance, self-knowledge, and self-
control, soberness and deliberateness of judgment, vigi-
lance of thought and fjuickness of insight, purged alii<e
of hasty barbaric passions and of patient servility to
rulers.
Dictatorships may be made ; democracies must grow.
So the essence of our democracy is that it is a
growing, living, developing thing, built on the
gradual, painstaking accumulation of mankind's
experience and wisdom in the things that separate
him from (he lower animals.
Communist Rejection of Accumulated Wisdom
The Communists throw this accumulated wis-
dom out the window and pretend to offer the
quick, the easy way : a dictatorship. But exper:'
ence has amply shown that that way leads throng'
quicksand and winds up in disaster.
The Conununists started out by uprooting th(
institution of marriage; by turning children awaj
from their parents toward the party; by abolish
ing the individual's right to own property, ana
the idea of pay as a reward for service ; by elimi-
nating sports as a part of the fun and recreation
of life and by using them solely to strengthen the
military power of the state ; by converting drama,
literature, and art from their time-honored roles
into instruments for the aggrandizement of the
party.
They have in some cases already, in a single
generation, come face to face with the realities
and laws of human nature, and have had to revise
the rules of their society in a reluctant and par-
tial compliance with these realities. For example,
they have been forced to change some of their
laws governing the family. They now give pay
on the basis of reward for service and in fact have
now gone to the other extreme; the present dis-
crepancy between the pay of their workers and
that of their managers, greater than in capitalist
countries, has created a rigidly stratified society.
They recently found it expedient to inaugurate a
state program of sports and to send a team to the
Olympic games at Helsinki.
Frequently in such cases they make no real
change. They just go through the motions. For
instance, in their revised constitution of 1936
they felt it expedient to make a genuflection toward
freedom of speech and freedom of the press. But
on careful reading you find that these freedoms
exist only insofar as they "strengthen the socialist
system."
In any event the Soviet position has been
clearly set forth by Vyshinsky : "In our state, nat-
urally there is and can be no place for freedom of
speech, press and so on for the foes of socialism."
Stalin made it doubly plain : "We have never
pledged ourselves to grant freedom of the press to
all classes, to make all classes happy." Devia-
tionism is the cardinal sin and it is grievously
punished.
Whereas, of course, real freedom of speech, as
Justice Holmes said, includes "freedom for the
thought we hate" as well as for that we agree
with. Freedom only to say what is "right" ac-
cording to what someone in power at the moment
says is "right" is the opposite of freedom. It is
intellectual tyranny and it lowers the curtain on
man's further progress. Jefferson branded "as
cowardly the idea that the human mind is inca-
pable of furtlier advances. To preserve the free-
dom of the human mind and freedom of the press"
he said, "every spirit should be ready to devote
itself to martyrdom ; for as long as we may think
280
Department of State Bulletin
as we will, and speak as we think, the condition
of man will proceed in improvement."
In most respects the Soviets are still battling as
ferociously as ever against the advancing stream
of civilization. Their eifort to abolish the spir-
itual element in life continues unabated. "Dialect-
ical materialism," they say "is incompatible with
religion. If a Communist goes to church, believ-
ing in God, he fails to fulfill his duties."
Incidentally, the people of Asia know some-
thing about this spiritual area of life and will un-
derstand what we are talking about, for the great
religions of the world all arose on Asiatic soil.
Stalin proclaims that in communism he has a
"science" of human society which makes possible
the engineering of the course of history. But he
falls flat at the first step because he cannot, in his
scheme, produce the kind of human beings that, as
Wilson pointed out, are indispensable to a good
society, a workable society. He has ruled out "the
things of the spirit." And while our religious in-
stitutions, our educators, our industrial experts,
our psychologists, anthropologists, and other sci-
entists, working hand in hand, have been busy
building up a treasure house of knowledge about
human beings, their wants, desires, hopes, and
needs, and while we have been creating a society
that will increasingly meet them, the Communists
have made it crystal clear that that is not even
their goal and have destroyed the institutions that
provide the necessary human ingredients of a
good society.
Communist "Cement-Mixer" Approach
There are two ways of building a better human
society just as there are basically two ways of
making a better radio. One way of constructing
a better radio is to find out all that has been ac-
complished up to the present time in radio build-
ing, what has worked and what has not, and go
forward from there. That, "Wilson told us, is the
way to go about achieving a society of individuals
possessed of the inward happiness which the sign-
ers of the Declaration of Independence had in
mind.
The second way to make a radio is to say that
existing radio science is evil, and to put a wheel-
barrow, a waffle iron, and a copy of Karl Marx
into a cement mixer, turn on the power and then
make a decree that what comes out is the latest
thing in radio sets. That is the Communist way :
building society solely on "the doctrines of revolu-
tionary writers," as Wilson put it. It is the "ce-
ment-mixer" approach.
You can hear the Communist "cement mixer"
grinding away every time the Communists take
part in an international conference and try to dis-
rupt it, as they did at the Red Cross Conference
at Toronto last month.
We have no objection to individuals holding
such a "cement-mixer" type of j)hilosophy and
operating their own ati'airs on that basis if they
want to ; what we do object to is the present effort
of the men in the Kremlin to force the entire civil-
ized world into the Communist "cement-mixer."
So the question, in essence, that faces the im-
decided people of the world is whether they wish
to get into the stream of life, the vast cooperative
effort, that has acquired this store of knowledge
and experience about government by and for the
people; knowledge of how society can best create
the conditions that make for the greatest inward
happiness of its people — or whether they prefer
the doctrinaire, "cement-mixer" type of society
with its inevitable end-products of conflict, slave
labor, enforced mass migrations, prison camps,
and, as in China recently, executions ruraiing into
the millions.
It is to the preservation of the democratic ap-
proach to society, as I said, that our foreign policy
is devoted. And that, in turn, has created the
problem of definition I have been discussing.
There are other problems.
Real and False Problems of Foreign Policy
Perhaps the first task of anyone interested in
foreign policy is to discover what the real prob-
lems are. Some people never get around to dis-
cussing the real problems because they waste their
time on false, unrealistic, or nonexistent questions.
For instance, there have been some voices raised
recently saying we should turn our back on the
United Nations, or weaken our ties with it, or
scale way down our contributions to it. There
have also been efforts to undermine our relations
with our Nato partners. In fact, a much discussed
resolution was introduced in the Senate this year
calling for measures that would cripple this coun-
try in all its foreign relations.
The search for an alternative policy, by the more
logical of these people, has resulted in some edi-
torializing such as this : "The task of America at
this moment must be to erect a bastion of civiliza-
tion in the Western Hemisphere ;" and has resulted
in a most eminent American agreeing : "The foun-
dation of our national policies must be to preserve
this Western Hemisphere Gibraltar."
Now superficially an effort to crawl under a
hemispheric shell, as these neo-isolationists would
do, makes a certain amount of sense. It ought to
be easier to cope with the problems of half a
sphere than with those of a whole sphere. Lord
knows there are enough problems in the one sixty-
fifth of the world sphere that comprises the United
States; or even in the one five-thousandth that
constitutes Virginia ! Why look for trouble ?
But these people are bold ! They are willing to
take on an entii'e half sphere !
But immediately they run into a problem. Take
a globe of the earth and fit over it a paper cap that
just covers half the globe, a paper hemisphere.
You can place that hemisphere cap so that it
Augosf 25, 7952
281
covers everything north of the equator. Or you
can place it in such a way tliat it covers North
and South America plus the Pacific and Atlantic
Oceans, the so-called Western Hemisphere. Or
you can place it so it covers, not only all of North
America and the northern part of South America,
but also in the same hemisphere all of Europe,
all of Asia, and all of Africa. This might be
called the North America-Eurasia- African hemi-
spliere.
In fact if you move this hemisphere cap around
long enough, having it always cover all of conti-
nental United States, you find you have at one
time or another covered all of the earth's surface
except a patch of Indian Ocean wasteland having
a population of a few dozen people and no natural
resources. The people in that patch of wasteland
are the only people in the world not in "our hemi-
sphere." Everybody else in the world is in "our
hemisphere" — everybody.
"Well, maybe so," some people may say, "but
let's pick out one hemisphere and concentrate on
that."
All right, but which one ? The hemisphere with
95 percent of the free world's population, 98 per-
cent of the free world's oil, 99 percent of its steel,
and 92 percent of the free world's industrial pro-
duction; or should we base our hopes on thC)
"Western Hemispliere" with only one-fifth of the
present free world's people in it? Should we ex-
tend the hand of partnership in the hemisphere
with practically all of the free world's strategic
air bases, the strategic radio stations, the industri-
ally trained populations, the people with an an-
cient and treasured tradition in the ways of democ-
racy? Or only in the hemisphere approximately
83 percent of whose surface consists of watery
wastes and such marine life as exists in them.
Or should we base our policies on a combination
of hemispheres as we do at present?
You may sav I have been engaged in beating a
dead horse. Hopefully, I have perhaps. But it
is not a completely dead horse because, as I say,
there still are those who are attacking the United
Nations and are trying to isolate the United States
from the rest of the free world.
But in any event let us, finally, take a look at a
live horse. Here is a real problem. Wliat do we
do about this?
In the current industrial age the United States
uses each year two and a half billion tons of ma-
terials of all kinds.
Breaking that down to the individual, each of
us uses, on an average, 18 tons. This 18 tons in-
cludes about 14,800 pounds of fuel for heat and
energy — warming houses and offices, running auto-
mobiles and diesel engines, firing factory boilers;
about 10,000 pounds of building materials — lum-
ber, stone, sand, gravel ; plus 800 pounds of metals
winnowed from 5,000 pounds of ores. Each of
us eats nearly 1,600 pounds of food. This to-
gether with cotton and other fibers for clothing.
pulpwood for paper, and miscellaneous products
amounts to 5,700 pounds of agricultural products
per individual.
These are the materials it takes to meet our
needs and wants. With less than 10 percent of
the free world's population and 8 percent of its
land area, we consume close to half its materials.
This country does not have all these materials.
The U.S. Bureau of Mines recently published a
chart of the 38 minerals essential to industrial
production. Of the total, the United States is
self-sufficient in only nine. We go all over the
free world to find the others.
Some of these materials we never had. Nature
just did not bestow them upon us. Others — cop-
per, lead, and zinc — we had in the past but have
consumed at such a rate that our original store is
depleted.
It may come with something of a shock but we,
the United States, are today a "have not" nation
in many of the materials upon which our way of
life is based. This would be a sobering situation
even in times of peace. In today's emergency it
presents a serious problem.
Fortunately for us, and for the world, the
United States together with the other free na-
tions does have the materials necessary for our
common strength. What one lacks the other has.
But it is a question of sharing and of maintaining
our unity.
So the first objective of the foreign policy of
the United States today is that our enemies shall
not divide the free world community. We are de-
termined that its potential strength shall be built
to its maximum reality.
I said "potential" strength because in many areas
material wealth is still in the ground. It is there,
but before it is ready for use, certain preliminary
steps must be taken. We are working with the na-
tions and peoj^les involved to hasten those steps.
Manganese in Brazil, for instance, should be avail-
able in a few years. Some of it is already coming
to our shores. But not enough. Not if we are to
continue to keep steel, for both defense and peace-
time use, rolling from our mills. We need to con-
tinue our supplies of manganese from India.
The Unrealistic Attitude of Economic Chauvinism
In the present world situation, indeed, an in-
creased flow of imports into the United States is
absolutely essential if we are to build our strength
to a point where our enemies must relinquish all
hope of realizing their world ambitions and permit
the building of a free world.
This question of tlie togetherness of the free peo-
ples has other angles which must give us all con-
cern.
In the last several months there has been a grow-
ing uneasiness abroad about the direction in which
our international trade policy is moving. The
282
Department of State Bulletin
situation these people see is this. Our foreign aid
has been reduced. Our private foreign invest-
ments are but a trickle in relation to the need. The
flow of dollars, in other words, from the United
States to the other free nations has been seriously
reduced.
These peoples, however, need our dollars. They
can — and they do — earn some of them by selling
us their raw materials. They cannot, however,
earn enough exclusively through these sales to pay
for the goods and materials they must have from
us and which we want to sell to them.
They can earn them, however, by selling us their
goods. They want to make these sales. But cer-
tain segments of American business unfortunately
have resumed the old fight to keep out foreign
goods.
The impact of this abroad is dangerous, not only
economically but psychologically. We have urged
increased production upon these people as a way
out of their economic and social difficulties. We
have talked increased production as a weapon in
the fight to preserve freedom.
It doesn't make sense to them for us to talk in
this fashion and then, when it comes to coopera-
tive action on our part, to drag our feet. Or,
worse, to tlirow barriers in their path.
This has not been a unified attack, the attack in
this country against a workable foreign economic
policy. It has consisted largely of a long list of
minor actions, legislative amendments, and the
like.
Let me be specific. There is, for one thing, the
"cheese amendment" to the Defense Production
Act. We have tried to get that dropped — but un-
successfully.
We had hoped to ease the flow of goods from
friendly countries by legislation simplifying cus-
toms procedures. The bill died in the Senate.
There was a campaign to kill the International
Materials Conference. It was unsuccessful, but it
has been harmful to us abroad for others to see
the Conference hampered and attacked by Ameri-
cans.
There can be no more unrealistic attitude today
on the part of any American than economic chau-
vinism. It needs very little research to reveal the
desperate need on our part of many materials
important to defense. These materials are in
short supply throughout the free world. If the
defense program is to be a success — and it must
be — they must be used as efficiently as possible. A
shipment of cobalt for example, at the right time
and at the right place, might make all the dif-
ference in the world in the jet aircraft available in
Korea.
The Tariif Commission has been beset by appli-
cations for "protection" for this and that industry.
Investigation frequently discloses that this protec-
tion is entirely unnecessary. But the fact that the
request was made confirms our friends abroad in
their suspicion that America is not willing to do
its part in this world-wide emergency.
From their point of view, the ultimate irony is
our outspoken criticism of any trade with Com-
munist countries after they have found they can-
not trade with us. The Communists made the
most of this situation in their recent trade confer-
ence in Moscow. That conference was a phony.
But M'e Americans — some of us — lent it reality by
our actions.
These questions we have been discussing are
first of all, of course, questions of patriotism, but
more than that, of common sense, for all of us are
involved in this struggle. If the free nations
should not achieve their goal — strength — no
American, no matter how foolhardy, could con-
template the future with equanimity. The Soviets
are not following a quartersphere or hemisphere
policy nor are they concerned primarily with
marine life.
You will have noticed, as we have been going
along in this discussion, that we have been talking
about foreign policy in three widely different
areas: the ideological, the geopolitical, and the
economic, to give fancy names to the simple and
the obvious.
And I hope it struck you that whichever path
you take you come out at the same point: that
today's threat to civilization is a threat to all men ;
but that with strength and with enlightened self-
interest, there is no limit to the future of the cause
we serve — the continuing progress of men who
"live strenuously the life of free peoples."
U.S. Sends Third Note to Soviets
on Austrian State Treaty
The United States on August 11 through the
Ainencan Embassy at Moscow delivered to the
Soviet Ministry of Foreign Affairs a third note
on the subject of an Austrian state treaty. The
British and French Embassies at Moscow trans-
mitted similar notes. Following is the text of an
explanatory press conference statement by Secre-
tary Acheson together with the text of the U.S.
note:
Press Conference Statement by Secretary Acheson
Press release 635 dated August 12
We have sent another note to the Soviet Minis-
try of Foreign Affairs reminding them that they
have not rejjlied to our previous notes of March
13 and May 9 concerning the Austrian state
treaty.'
' For texts of these notes, see Bulletin of Mar. 24,
1952, p. 448 and iUd., May 19, 1952, p. 778.
Augusf 25, 1952
283
You will recall that the note of March 13 pro-
posed an abbreviated treaty upon which we hoped
Soviet agreement would be more readily obtained
than on the old draft treaty.
The note of May 9 reminded the Soviets that we
had received no reply. The note, which was de-
livered in Moscow on Monday of this week, again
reminds them of the absence of any reply and
expresses our hope that this silence does not indi-
cate a renunciation by the Soviet Government of
the commitment it made by signing the Moscow
declaration of November 1, 1943.
The British and French representatives in Mos-
cow delivered similar notes on all the occasions
I have mentioned.
U.S. Note of August 11
Press release 638 dated August 12
The Government of the United States of Amer-
ica refers to its note of March 13, 1952, which con-
tained proposals designed to permit the immediate
resumption of negotiations with a view to the final
fulfillment of the promise made to Austria as long
ago as 1943, that her freedom and independence
would be restored.
In a further note of May 9, 1952, the Govern-
ment of the United States of America drew the
attention of the Soviet Govermnent to the fact that
an immediate and just settlement of the Austrian
problem would eliminate one cause of constant
tension in Europe.
Having so far received no reply to these two
notes, the Government of the United States of
America, in the hope that this silence is not to be
interpreted as a renunciation by the Soviet Gov-
ernment of the commitment which it inidertook by
signing the Moscow Declaration of November 1,
1943, once more urges the Soviet Government to
make known its views on the proposals for a settle-
ment of the Austrian problem contained in the
note of March 13, 1952.
Soviets Reject Abbreviated
Treaty for Austria
Press release 645 dated August 15
The Soviet Government, replying after 5
months and two reminders to the United States,
United Kingdom, and French notes, has rejected
an abbreviated treaty for Austria proposed on
March 13, 1952, after 258 meetings at which un-
successful attempts were made to secure Four
Power agreement to the Austrian draft treaty.
The full text of the Soviet note has not been
received as yet in AVashington. However, the pre-
liminary information received indicates that what
the Soviets actually propose is yet another review
of the entire Austrian treaty question based upon
a return to the punitive spirit of 1945.
The Soviet Government, according to the sum-
mary of its note received from the U.S. Embassy
in Moscow, is awaiting word from the Three
Western Powers of their readiness to conclude the
treaty on which work has been proceeding since
1946.'
The Three Western Powers have always been
ready to conclude an Austrian treaty based on the
principles set forth in the Moscow Declaration of
November 1, 1943. Inasmuch as the Soviet repre-
sentatives failed to appear at a Four Power meet-
ing called in London in January 1952 to continue
negotiations on the full treaty, the mystery of over
18 months of Soviet failure to negotiate remains
unclarified. The last full meeting of the treaty
deputies took place in December 1950 at London.
As soon as the full text of the Soviet reply has
been received and studied, it will be released.
Secretary Reviews Results
of 1st ANZUS Council Meeting
Press conference statement 'by Secretary Acheson
Press release 634 dated August 12
I had a very successful meeting with the Aus-
tralian and New Zealand Foreign Ministers at
Kaneohe Bay in Hawaii. We met to organize the
Anztts Council created under the security treaty
between our three Governments. I believe the
work of the Council will lead to even closer re-
lationships with our two good friends "down
under."
The Council will meet annually, while our depu-
ties will meet as often as necessary here in Wash-
ington to provide for continuing consultation and
to provide a focus where existing channels and
agencies may be utilized in the implementation
of the treaty. I have designated Under Secretary
David K. Bruce as the U.S. deputy, and Aus-
tralia and New Zealand have designated their
Ambassadors here to serve in the same capacity.
The Council will have the advice of appropriate
military officers, and Admiral Arthur W. Rad-
ford, Commander-in-Chief, Pacific and Pacific
Fleet, will serve as U.S. military representative.
He will meet at Pearl Harbor soon with his oppo-
site numbers to work out the details of the mili-
tary machinery.
The Council reaffirmed the need for collective
security in the Pacific area but concluded that it
was premature at this early stage in its formation
to attempt to widen its relationships with other
states or regional organizations.
During the meeting we also took the opportu-
nity for a full and frank exchange of views on the
world situation with particular emphasis on the
Pacific.
284
Deparfmenf of State Bulletin
I want to point out again as our communique
emphasized at the end of the meeting ^ that we
neither reached any decisions nor undertook any
commitments regarding matters of direct con-
cern to our friends in the Pacific or elsewhere.
As you know, the United States has a mutual-
defense treaty with our sister Kepublic, the Philip-
pines. In addition, under our treaty with Japan,
we have American forces stationed in that
country.
These treaties are all part of our continuing
efforts to strengthen the peace and security of the
Pacific. The United States has a deep and con-
tinuing interest in the peace and security of all
the free nations of the Pacific area. We hope to
continue to work with them as they may desire
to work with each other and with us to the
end that all of the nations of the Pacific may live
in freedom.
Secretary Acheson Comments
on Hvasta Case
Press release 636 dated August 12
Secretary Acheson at his netvs conference on
August 12 made the foUoiving extemforaneous
reply when asked xohether there xoas anything to
add to the story of John FIvasta's escape from a
Czechoslovak jail:
I think you know all the facts that we know.^
I think this points up again the outrageous conse-
quences that flow from the refusal of Czechoslo-
vakia and other satellite countries to perform
their treaty duties, which is to allow our consuls
to see our citizens who are in custody. They have
refused us permission to see this man. Now they
tell us he escaped last January. Maybe he did and
maybe he did not. We have no information that
confirms or contradicts that. But if we had been
accorded the right which every civilized country
accords to other countries to visit their people who
are in custody, we would know about this. Now
we just have to rely on people who are not too
reliable.
Letter of Credence
Bolivia
The newly appointed Ambassador of Bolivia,
Victor Andrade, presented his credentials to the
President on August 11, 1952. For the text of the
Ambassador's remarks and the text of the Presi-
dent's reply, see Department of State press release
630 of August 11.
' Bulletin of Aug. IS, 19.o2, p. 244.
'For a previous statement regarding Mr. Hvasta, see
Bulletin of Aug. IS, 1952, p. 262.
Aogosf 25, 1952
Inauguration of European
Coal and Steel Community
Statement hy Secretary Acheson
Press release 632 dated August 11
The inauguration yesterday in Luxembourg of
the European Coal and Steel Community by its
High Authority was an important event in the
history of Europe. On this occasion the peoples
of six European nations began to exercise a
part of their sovereignty through a common
supranational authority. Henceforth, Belgium,
France, the Federal Republic of Germany, Italy,
Luxembourg, and the Netherlands, will, in ac-
cordance with the treaty ratified by their national
Pai'liaments, pursue common objectives in all coal
and steel matters through the common institutions
of the Community.
It is the intention of the United States to give
the Coal and Steel Community the strong sup-
port that its importance to the political and
economic unification of Europe warrants. As ap-
propriate under the treaty, the United States will
now cleal with the Community on coal and steel
matters.
The six nation Coal and Steel Community rep-
resents the first major step toward unification in
Europe. I am confident that in the near future
we will see these nations take additional strides
in this direction — ratification of the treaty insti-
tuting the European Defense Community and ac-
tion to develop a supranational European political
authority.
All Americans will join me in welcoming this
new institution and in expressing the expectation
that it will develop as its founders intended ; and
that it will realize the hopes that so many have
placed in it.
Final Report of Anglo-American
Council on Productivity
The Anglo-American Council on Productivity
on August 10 released its final report on what it
terms "an entirely new form of international pub-
lic relations and adult education."
Under the auspices of the Anglo-American
Council — a nongovernmental organization repre-
senting labor and business interests on both sides
of the Atlantic— 911 British industrialists, techni-
cians, and workers in the past 4 years have visited
nearly 2,000 American plants and other places of
business in search of the means of reaching greater
productivity in the industries of the United King-
dom.
The Council was conceived in 1948 by Sir Staf-
ford Cripps, then British Chancellor of the Ex-
chequer, and Paul Hoffman, Administrator of the
285
Economic Cooperation Administration (Eca).
Divided into U.S. and U.K. sections, the Council
was headed up on the U.S. side by Philip D. Reed
of General Electric Company and Victor Reuther
of the CIO, and on the U.K. side by such British
leaders as Sir Greville Mapiness (past president
of the British Employers' Confederation), Lincoln
Evans (General Secretary of the Iron and Steel
Trades Confederation — a union), and Sir Archi-
bald Forbes (President of the Federation of Brit-
ish Industries).
Financed throufih Eca (and later Mutual
Security As:ency (Msa)) funds, plus fjrants from
the United Kingdom's sterling Marshall Plan
counterpart fund and contributions from British
industries, the Anglo-American Council's program
of dispatching specialized teams to the United
States for intensified studies of the U.S. industrial
scene proved a pattern upon which the system of
team studies for all Marshall Plan countries could
be based.
Most of the 66 study teams which came to the
United States under Anglo-American Council
sponsorship have now published the reports on
what they observed in those visits and how they
believe the United Kingdom can benefit by them.
As evidence of the popularity of these reports the
Council cites the more than half a million copies
which have been printed and distributed to date.
Demand for most of the reports continues.
The reports, the Council states, "have been the
means of stimulating firms to re-examine all the
factors which improve productivity and effi-
ciency— from the methods of training, organiza-
tion, and control to the important function of
packaging."
The influence of the reports has not been con-
fined to the United Kingdom, the Council noted.
"Other Western European countries, notably
France and Germany, have shown the greatest in-
terest in the findings and have published transla-
tions of the reports. At least one has been trans-
lated into Japanese. Many extracts and sum-
maries have appeared in the foreign technical
press. The reports have also been read with wide
interest in the United States."
While the Anglo-American Council formally
went out of existence on June 30 of this year (it
was set up to operate only during the original life^
span of the Marshall Plan) much of the work will
be continued. A British Productivity Council is
being formed with industrial and lalaor backing,
and arrangements have been made for a book to
be published which will include the chief factoi-s
affecting productivity. The U.S. section also has
under consideration the formation of a group to
foster continuance of interchanging productivity
knowledge.
In its final report on its own activities, the Coun-
cil stated :
We believe that one of the most important benefits of
the Council's work lies in the improvement of the climate
of opinion about productivit.v. The teams which wrote
the reports found a different attitude of mind in the U.S.
from tliat prevailing in many quarters of the U.K. Nine
hundred and eleven individuals comprising 66 teams have
experienced this for themselves. Each of these men and
women has both industrial and social contacts. Through
these contacts they are spreading over widening circles a
new attitude to the importance of increasing productivity.
As a result, also, of the considerable attention
paid to the program by the British Press (more
than 12,000 press clippings received in the London
office) and by the British Broadcasting Company,
"there is now an increased public awareness of
productivity" in Britain, the Council report notes.
The report states further that :
The program of team visits has made a valuable con-
tribution to increasing international understanding.
Thousands of American and British people have had the
experience of meeting, understanding more clearly each
others' problems and way of life, and reporting their own
personal observations and conclusions to their neighbors
and fellow-workers. The Council believes that this ex-
perience in international, industrial and human relations
will result in tangible and intangible benefits for years to
come.
The Council reported that while no facts were
available upon which to record statistically the ef-
fect of the program upon British production per
man hour, official figures show that "between the
years 1948 and 1951 industrial productivity in the
United Kingdom increased substantially."
Examples cited of this increase include the U.K.
Steel Founding industry, whose Productivity
Team's visit to the United States "has had marked
eflPect." An increase of 15 percent in over-all pro-
ductivity in the industry is estimated while "in
some foundries there have been increases of as
much as 30 percent."
The specialized team on the subject of materials
handling has made a report which has proved
"one of the 'best sellers' of the series" and nearly
every team report has had a section on this subject.
More important even than the interest raised in
more and better materials handling equipment,
the Council feels, "has been the closer attention
now given throughout (British) industry to the
fundamental problems of handling materials and
to layout."
"The results that have accrued are often quite
remarkable in individual companies," the Council
states. "By changes in layout and improvement
in handling, some companies have reported in-
creases in output ranging up to 30 percent without
any additional labor force."
The entire program carried out under Anglo-
American Council sponsorship to date is esti-
mated to have cost $2,364,500 at current rates of
exchange. Of this the dollar costs, $1,467,500,
were provided by Eca and Msa. Of the total of
320,400 pounds (equivalent to $897,000) provided
by the U.K. section, the equivalent of $453,000
was in the form of grants by the British Govern-
ment from the counterpart funds acquired as a
286
Department of Stale Bulletin
result of Marshall Plan aid. British industrial
and union organizations and U.K. industries send-
ing teams to the United States made direct con-
tributions of the balance.
The costs to U.K. industries are in addition to
money spent on continuing the salaries and wages
of team members during their absence and addi-
tional funds supplied team members in many cases
to supplement allowances from Eca/Msa while in
America.
The American cost figures on the other hand,
the Council noted, "take no account of the con-
tributions in time made by representatives of
American industry and labor unions in showing
the team members techniques and methods of
procedure, and the hospitality which nearly all
the firms and labor unions provided."
Expressing the confidence of the Council that
the "many man hours and much money" devoted
to this joint effort has been justified, the Council
report states:
Only through increasing productivity can we maintain
and expand the benefits of our way of life. Our philos-
ophy about its attainment may differ in some respects.
Yet we all agree upon the essential importance of the
task. Our objective must be to raise the standards of
living not only of our own peoples but of the other nations
of the world as well. This can be achieved by higher pro-
ductivity, the benefits of which will be shared by the
consumers in lower prices, by the workers in increased
remuneration, and by the shareholders in a greater reward
for risks successfully taken.
MSA Concludes Guaranty
Agreement With Yugoslavia
Under an agreement announced on August 18
by the United States and Yugoslavia, the Mutual
Security Agency (Msa) is now ready to offer
currency convertibility guaranties covering new
private American credits for Yugoslav investment
projects.
The agreement between the two Governments,
concluded in an exchange of notes, makes Yugo-
slavia the 15th country in which convertibility
guaranties are available from Msa.
This means that an American businessman or
firm financing an investment in Yugoslavia may
obtain from Msa a contract insuring the creditor
that local currency repayments of such credits can
be converted into dollars.
It should be noted that investments involving
ownership of industrial enterprises are not pos-
sible in Yugoslavia under that country's national-
ization laws.
However, Yugoslav authorities have indicated
that private investments in Yugoslavia could take
other forms, such a.s providing machinery or equip-
ment, services, techniques or processes to Yugo-
slav enterprises with payment either in the form
of goods produced by such enterprises or in dinars,
the Yugoslav currency.
If the payments were in dinars, the Yugoslav
Government would undertake to convert the funds
into dollars. Msa would guarantee this conver-
sion in case unforeseen circumstances should pre-
vent the currency exchange.
There is further the possibility of making some
use of Msa's authority to provide guaranty pro-
tection against expropriatory actions of foreign
governments with respect to American investnient
credits. Msa is prepared to discuss the possible
application of guaranties of this type to invest-
ments which may be acceptable in Yugoslavia.
It is understood that Yugoslavia would be most
interested in investments in such industries as min-
ing, cement manufacturing, power development,
and various export industries which Yugoslavia
wants to expand. Such expansion would con-
tribute to the common defensive strength against
aggression and to the strengthening of peace.
Officials of the Yugoslav Embassy in Washing-
ton said that they will welcome discussions with
American businessmen or company representatives
interested in investment opportunities in Yugo-
slavia. They stated that even before the exchange
of notes between the United States and Yugoslav
Governments, there had been serious interest on
the part of several American firms in investments
of this kind.
Under guaranty legislation and the agreement,
the investor must secure approval of the proposed
investment from the Yugoslav Government, as
well as from Msa, before Msa can issue a guaranty.
The exchange of notes between the United States
and Yugoslavia defines the treatment to be ac-
corded by the Government of Yugoslavia to cur-
rency or claims which the U.S. Government might
acquire if Msa guaranties should be invoked. In
the case of convertibility guaranties, the U.S. Gov-
ernment would acquire the investor's dinars,
should they be blocked. This currency would then
be available for administrative expenses of the
U.S. Government in Yugoslavia.
Under the terms of the agreement, claims ac-
quired by the United States as a result of the
guaranty would be negotiated on the diplomatic
level rather than through the Yugoslav courts.
If no settlement were reached through diplomatic
channels, the next step under the agreement would
be arbitration of the claims by a person selected by
mutual agreement, or, failing that, by an arbitra-
tor selected by the President of the International
Court of Justice.
Only new investment, including additions to
existing investments, may be covered by Msa
industrial guaranty contracts.
Under the Mutual Security Act of 1952, Msa
may extend its guaranty program to investments
in any country participating in the Mutual Se-
curity Program, of which the Point Four Program
is a part.
August 25, 1952
287
A Review of ECOSOC's 14th Session
hy Isador Lubin
The most urgent economic task of our time is
the job of increasing the rate of progress against
hunger and disease, against low living standards
and underemployment.
Year by year, each session of the Economic and
Social Council will vary in the extent to which it
moves toward these objectives. The fourteenth
session, held May 20 to August 1, was not the most
successful. It was nevertheless a session which
adopted new jDrograms and spurred the older ones
so that important progress was achieved. For
example :
1. As a result of Council action, a vmit will be
established in the Secretariat to promote inter-
national action for the more effective use of
water resources and the utilization of arid lands.
This work will include the promotion of basic
water resource data, the exchange of informa-
tion among countries, and reports on the ac-
tivities of international organizations and na-
tional governments. The subject will be kept
under continuous surveillance by the Council.
2. Utilizing the resources of the United Na-
tions and the spex^ialized agencies, a new attack
is being made upon methods of increasing pro-
ductivity. This is essentially a "bootstrap"
Editor's Note : The following statements and addresses
made by Mr. Lubin in the course of this session of Ecosoc
may be found printed in the Buixetin : "The World's
Awakening Peoples and Their Demand for Human Better-
ment," June 16, 1952, p. 934; "A Review of World Eco-
nomic Events and Defense Adjustment Problems," June
23, 1952, p. 989 ; "Answers to Soviet Distortions and Mis-
representations of U.S. Economy," June 30, 19.">2, p. 1032 ;
"U.S. Position on Propo.sed International Development
Fund," July 14, 1952, p. 73; "Planning for tlie Relief of
Famine Emergencies," July 21, 1952, p. Ill; "Relation
Between Domestic and International Economic Security,"
August 4, 19.52, p. 187. Also included in the BtrLLEriN are
statements made before the Council by Walter M. Kotsch-
nlg, Deputy U.S. Representative : "Soviet Propaganda,
Not U.S. Press, is Threat to World Peace," July 21, 1952,
p. 109 ; "Human Welfare : A Practical Objective," July
28, 1952, p. 142.
operation — using the tools and the resources
already available in a country in a more efficient
and productive manner. It is one of the main
hopes for progress in the underdeveloped coun-
tries.
3. The World Bank has been asked to explore
in greater detail the feasibility of an interna-
tional finance corporation designed to stimulate
the flow of private capital into business enter-
prises in underdeveloped areas. While the
studies thus far do not allow hard-and-fast con-
clusions, tlie proposal of the Bank holds forth
possibilities of great interest.
4. First steps were taken to call an interna-
tional conference of experts on population in
1954. The problems stemming from the rapid
increase in world population are in need of the
most painstaking study.
5. The administrative structure of the tech-
nical assistance program has been modernized
with the appointment of David Owen as full-
time chairman of the Technical Assistance
Board. Further, the entire program of technical
assistance has been surveyed in the most careful
manner. The U.N. program is growing in size
and competence and in its usefulness to under-
developed countries. Its program for 1953 is
based on a contributions goal of $25,000,000.
As reports on the operation of this program
accumulate, I am convinced that popular under-
standing of its merits will increa.se and that it
will be utilized on an ever-broadening scale.
6. Stand-by machinery is being created to
fight famine. The Food and Agriculture Or-
ganization (Fao) is establislied as the warning
agency, working on methods of detecting in
advance the probability of acute food shortages.
Governments are asked to take the preparatory
steps of designating the appropriate ministries
to cope with a national famine disaster, en-
couraging national voluntary relief organiza-
288
Department of State Bulletin
tions, and planning transport and distribution
systems. The Secretary-General of the United
Nations is asked to coordinate the plans and
operations of intergovernmental organizations,
governments, and volimtary agencies.
World Economic and Social Situations
These and other actions are solid bricks in the
world economic structure we are seeking to build
together.
In addition to the economic development prob-
lem, the Council's annual survey and debate of the
world economic situation was productive and use-
ful. Until the Secretariat's report was issued,
misunderstandings were widespread as to the ef-
fect of the rearmament program on economic
development and on standards of living. Com-
munist propaganda has tried to distort those mis-
understandings even further.
Now, however, as a result of the U.N. report and
the Council's debate, it is clear to all that materials
for economic development have gone forward to
imderdeveloped countries in increasing — not de-
creasing— quantities, and that standards of living
have been maintained.
The Council continued its watchfulness over the
possibility of economic recessions in conformity
with its continuing objective of maintaining full
employment.
In the field of social affairs, the Council had
before it for the first time a comprehensive report
on the world social situation. This is one of the
most important documents of recent years, describ-
ing conditions and trends affecting the way people
live everywhere.
This report is significant in two main respects.
First, it presents to the world in a single picture
the grim life among most of the world population :
— Population is growing at a rate that brings
into being each year the equivalent of a new nation
the size of Spain.
— Half the world's people live in Asia, but they
receive only 11 percent of world income; North
America, on the other hand, with but 10 percent
of the population, has nearly 45 percent of world
income. In this diversity lies great danger.
— Food production per person in the world is
still less than it was before the war.
Second, the report marks a turning-point in
human affairs among these people — the end of
fatalistic acceptance of their poverty, disease, and
ignorance, and the rise of an insistent demand for
improvement.
This rennaissance, in turn, places before the
people of these countries a critical decision. As
Walter M. Kotschnig, U.S. Deputy Representative
on the Council, pointed out in debate on tlie report,
in their efforts toward improvement, tliey have
the choice of the way of the free, which we believe
leads to the greatest benefits, and the way of the
unfree, of the oppressed.
It is apparent now from the Social Report and
from our discussions of it that not only the United
Nations but individual countries will be better able
to isolate the most urgent problems they must
attack. People the world over will have a better
understanding of the problems they must cope
with.
Progress in Specific Social Fields
Progress also is being made in specific social
fields. A conference is to be called to draft and
adopt a protocol on the limitation of the produc-
tion of opium. A resolution asks the General
Assembly to open for signature a convention on
the political rights of women. Through a ra/p-
porteur, the Council will keep in touch with world
developments in the field of freedom of informa-
tion. The latter arrangement is on a one-year-
trial basis.
Discussion of the affairs of Unicef showed con-
tinued general support of the world-wide work of
this organization. The Soviet Union and its satel-
lites continue their earnest nonparticipation in
this humanitarian program.
The Council, in addition, has reviewed the pro-
grams of the specialized agencies and has found
that their work is being carried on satisfactorily
and in coordinated fashion. Much important
work was done on the matter of priorities — to see
that first things come first in programs of these
agencies.
Soviet strategy in this session of the Council has
been directed along three principal lines:
1. To undermine world confidence in the eco-
nomic strength and stability of the United
States;
y. To broadcast the impression that American
standards of living — in fact the living standards
of all the free countries — have been falling pre-
cipitately.
3. A line which appears to be taking on in-
creased importance in the Soviet propaganda
picture, attributing to modern America the
views of the 18th century British economist
Malthus, that population is increasing faster
than the world can feed it. The United States,
it is claimed, therefore advocates the mass ex-
termination of large populations in Asia, the
Middle East, and Africa. This attack seems to
have risen in vehemence since the outlandish
charges of germ warfare in North Korea and
Communist China were first propagated.
Answers and denials of these preposterous at-
tacks must be reiterated time and again — and re-
inforced by facts and programs of action. The
facts are that the American economy is stable and
strong (the figures behind this story have been
given to the Council). The facts are that stand-
Aygosf 25, ?952
289
ards of living in the non-Communist world, by
and large, are rising and can rise further. The
facts are that no country in the world has devoted
a larger share of its resources and energies, as a
matter of national policy, to the alleviation of the
suffering and underprivileged in all parts of the
globe than the United States. The facts con-
clusively disprove the oft-repeated Communist
charges.
• Mr. Lubin, author of the above article, is the
U.S. representative on the UJV. Economic and
Social Council.
U. S., U. K., and France Propose Plan To Limit Arms by Type and Quantity
Statement by Benjamin V. Cohen ^
On May 28, 1952, the United States joined with
France and the United Kingdom in submitting a
tripartite working paper,^ in which it was pro-
posed that effort should be directed toward fixing
ceilings for the armed forces of all states as one
important item in a comprehensive disarmament
program. It was suggested that the ceilings for
the United States, the Soviet Union, and China
should not exceed 1,000,000 or 1,500,000 and those
for the United Kingdom and France should not
exceed 700,000 or 800,000. It was suggested that
if tentative ceilings could first be agreed upon for
the Five Great Powers, then, having regard to the
ceilings fixed for the Five Great Powers, com-
parable ceilings could be agreed upon for all other
states having substantial military forces. It was
suggested that such ceilings should be fixed with
a view to avoiding a disequilibrium dangerous to
international peace and security in any area of the
world, thus reducing the danger of war and fear
of aggression. It was further suggested that ten-
tative agreement on such ceilings should greatly
simplify and facilitate the task of limiting and
restricting armaments to those necessary and ap-
propriate to support the permitted armed forces.
The sponsors of the tripartite working paper
attached great importance to this paper and hoped
that it might be an opening wedge to serious dis-
cussion and substantial progress in the field of
disarmament. We were disappointed when the
Soviet Union indicated its unwillingness to give
' Made in the U.N. Disarmament Commission on Aug. 11
and released to the press by the U.S. Mission to the U.N.
on the same date. Ambas.sador Cohen is deputy U.S.
representative in the Disarmament Commission.
= Bttlletin of June 9, 1952, p. 910.
290
consideration to our proposals even as a basis of
discussion. The Soviet representative explained
to us that the Soviet Union regarded the tri-
partite paper as fatally deficient because, in its
opinion, it did not deal with the distribution of
the armed forces among the land, sea, and air
services and did not limit or restrict the arma-
ments which might be available to support per-
mitted armed forces.
As representative of the United States, on June
10, in replying to the statement of the Soviet rep-
resentative on the same date directed against the
tripartite statement, I stated : ^
Our position, Mr. Chairman, is clear . . .
In the first place, the ceilings on the armed forces
which we propose are only one element of a comprehensive
disarmament program.
In the second place, the ceilings which we propose ex-
tend to all armed forces, including air, sea, under-sea,
land, and all other forces which are employed to propel
armaments of any kind or nature, indeed, more clearly
than does the Soviet proposal regarding a third reduction
in the armed forces.
In the third place, the ceilings which we propose are
not intended to exclude or divert attention from other
essential components of a comprehensive disarmament
program, which must as a minimum include :
(a) The reduction of armaments to t.vpes and quan-
tities necessary and appropriate to support permitted
armed forces and the exclusion and elimination of all
other weapons and armaments.
(b) In particular it should cover the elimination of
atomic weapons and the control of atomic energy to in-
sure its use for peaceful purposes only and the elimina-
tion of all ma.ior weapons adaptable to mass destruction,
including bacteriological.
(c) It should include adequate and effective safeguards
to insure the observance of the agreements and the pro-
tection of the complying states from the hazards of viola-
tions and evasions.
' Ibid., June 30. 1952, p. 1030.
Department of State Bulletin
Today the U.S. delegation joins with the dele-
gations of France and the United Kingdom in
presenting a supplement to our tripartite working
paper. This supplement makes clear that we pro-
pose not only to fix numerical ceilings on all armed
forces but to limit armaments in type^ and quan-
tities to those necessary and appropriate to sup-
port permitted armed forces and also to prevent
undue concentration of the permitted armed
forces in any particular category or categories of
service in any manner which might prejudice a
balanced reduction. This supplement makes clear
that procedures must be worked out to facilitate
the development of mutually agi-eed programs
not only fixing numerical ceilings on all armed
forces but determining their distribution within
stated categories, limiting in types and quantities
the armaments to be allowed in support of per-
mitted armed forces, and bringino; all essential
components of the programs into balanced rela-
tionship. For purposes of discussion, the supple-
ment suggests a procedure which, it is hoped, will
facilitate the working out of such mutually agreed
programs to be comprehended within the treaty
or treaties referred to in the General Assembly
resolution of January 11, 1952.*
We recognize that the needs and responsibilities
of states are different. Some states with overseas
responsibilities need more naval forces, others do
not. Some states may require certain types of
forces and armaments for their defense and other
states may have different needs and requirements.
Considerable flexibility in negotiation will be nec-
essary to obtain concrete anct satisfactory results.
The important thing is to obtain the greatest
practicable reduction in armed forces and arma-
ments in order to reduce the danger and fear of
war, bearing in mind the necessity of avoiding
any serious imbalance or disequilibrium of power
dangerous to international peace and security in
any part of the world.
If our proposals for fixing numerical limitations
on all armed forces are accepted and the powers
principally concerned are prepared to undertake
in good faith serious negotiations looking toward
their implementation, the procedure we are sug-
gesting is as follows :
Five Power Conference Proposed
Arrangements might be made for a conference
of the Five Great Powers which are permanent
members of the Security Council with a view to
reaching tentative agreement among themselves
by negotiation on :
(a) the distribution by principal categories of
the armed forces that they would consider neces-
sary and appropriate to maintain within the
agreed numerical ceilings proposed for their armed
forces ;
' lUd., Mar. 31, 1952, p. 507.
August 25, J952
(b) the types and quantities of armaments
which they would consider necessary and appro-
priate to support permitted armed forces within
the proposed numerical ceilings;
(c) the elimination of all armed forces and
armaments other than those expressly permitted,
it being understood that all major weapons adapt-
able to mass destruction should be eliminated and
atomic energy should be placed under effective
international control to insure its use for peaceful
purposes only.
Necessarily these agreements would be tenta-
tive because they would have to be reviewed in
light of similar agreements which would have
to be reached with other states. Necessarily, the
kind of limitations which one state may be will-
ing to accept on its armed forces and armaments
would depend upon the kind of limitations other
states would be willing to accept. It would be our
hope that allowing scope for negotiation would
make possible greater progress toward disarma-
ment than might be possible by exclusive reliance
on abstract formulae.
Importance of Timing and Coordination
Wlien the Five Great Powers succeed in reach-
ing tentative agreement among themselves on the
size and distribution of their armed forces and
the kind and quantities of their armaments, it is
proposed that regional conferences should be held
under the auspices of the Disarmament Commis-
sion as provided in paragraph 6 (b) of the Gen-
eral Assembly resolution. It is proposed that
these regional conferences be attended by all gov-
ernments and authorities having substantial mili-
tary forces in the respective regions. In light of
the tentative agreement reached by the Five Great
Powers, the regional conferences would endeavor
to reach similar tentative agreement on :
(a) the over-all numerical ceilings for the
armed forces of all governments and authorities
in the region;
(b) the distribution of permitted armed forces
within stated categories;
(c) the types and quantities of armaments neces-
sary and appropriate to support the permitted
armed forces; and
(d) the elimination of all armed forces and
armaments other than those expressly permitted,
it being understood that all major weapons adajDt-
able to mass destruction will be eliminated and
atomic energy would be brought under effective
international control to insure its use for peaceful
purposes only.
When such tentative agreements regarding the
size and the armaments of the armed foi-ces of all
states with substantial armed forces have been
reached, it is proposed that these agreements should
be incorporated into a draft treaty comprehending
and bringing into balanced relationship all essen-
tial components of the disarmament program.
291
The supplement to the tripartite paper also
makes clear what is meant by balanced relation-
ship among the essential components of the pro-
gram. We make clear that the timing and coordi-
nation of the reductions, prohibitions, and elimina-
tions should insure the balanced reduction of over-
all armed strength and should avoid creating or
continuing any disequilibrium of power danger-
ous to international peace and security during the
period that the reductions, prohibitions, and elim-
inations are being put into effect. In particular,
the initial limitations or reductions in armed forces
and permitted armaments and the initial steps
toward elimination of proliibited armaments
should commence at the same time. Subsequent
limitations and reductions should be synchronized
with subsequent progress in elimination of pro-
hibited armaments.
An international control authority should be
established at the commencement of the program,
and it should be in a position to assume progres-
sively its functions, in order to insure the carrying
out of the limitations, reductions, curtailments
and prohibitions. Thus when the limitation and
reduction in armed forces and armaments pro-
vided by the treaty or treaties are completed, pro-
duction of prohibited armaments will have ceased,
existing stockpiles of prohibited armaments and
facilities for their production will have been dis-
posed of, atomic energy will have been utilized for
peaceful purposes only, and the international con-
trol authority will have assumed its full functions.
In this connection, I should emphasize again the
necessity of our working out effective machinery
to safeguard and police whatever programs of
disarmament may be mutually agreed upon under
the procedures we are suggesting. Indeed it is re-
grettable that we have not been able to make
greater progress in clarifying our ideas as to how
the necessary controls are to operate. Some states
may hesitate to commit themselves even tentatively
to drastic reductions and eliminations before they
are satisfied that we are in fact able to establish
international controls which will protect and safe-
guard complying states from the hazards of eva-
sions and violations. In any event it should be
clearly underetood that the programs of disarma-
ment which may be agi-eed upon under the pro-
cedures we are proposing cannot be put into effect
until we have agreed upon the safeguards neces-
sary to insure their faithful execution and contin-
ued observance.
Mr. Chairman, the sponsors of the tripartite
working paper and its supplement have tried hard
to break ground in order to make it possible for the
Commission to progress in its work. The tripar-
tite paper with its supplement is a working paper.
It is not in final or definitive form. It is sub-
mitted for discussions. The sponsors, as well as
other membei-s, may have changes to suggest as
a result of further thought and discussion. But
the sponsors of the paper do believe that the pro-
cedures suggested constitute a constructive ap-
proach and are entitled to serious consideration.
Disarmament cannot be achieved by talk or even
by simple resolution. Disarmament cannot be
achieved without good will and painstaking work.
The sponsors of the tripartite proposals have sug-
gested procedures which if followed through, in
good faith and with honest effort, should advance
us on the road to disarmament and peace. Tlie
sponsors have faced and not dodged tlie many dif-
ficult problems which confront us. The sponsors
of the tripartite proposals sincerely hope that tl\e
proposals they have made and the procedures tliey
have suggested may provide a basis of cooperative
work on the part of all of us. Tliey sincerely
hope that their proposals will make possible real
progress toward relaxation of international ten-
sions, settlement of major political issues, and
genuine disarmament and peace.
U. N. doc. DC/12
Dated Aug. 12, 1952
SUPPLEMENT TO TRIPARTITE WORKING
PAPER SETTING FORTH PROPOSALS FOR
FIXING NUMERICAL LIMITATION OF ALL
ARMED FORCES
I. It is contemplated that any agreement for the nu-
merical limltatioQ of armed forces would necessarily
comprehend :
(a) provisions to ensure that production of arma-
ments and quantities of armaments bear a direct rela-
tion to the amounts needed for permitted armed forces ;
(b) provisions for composition of permitted armed
forces and armaments in order to prevent undue con-
centration of total permitted armed forces in a manner
which might prejudice a balanced reduction ;
(c) procedures in conformity with the directive con-
tained in paragraph 6 (b) of the General Assembly
Resolution of January 11, 1952, for the negotiation
within overall limitations of mutually agreed programs
of armed forces and armaments with a view to obtaining
early agreement on these matters among states with
substantial military resources.
Procedures should be worked out to facilitate the de-
velopment under tlie auspices of the Disarmament Com-
mission of mutually agreed programs of armed forces and
armaments to be comprehended within the treaty or
treaties referred to in the General Assembly Resolution
of Januaiy 11, 1952.
II. One possible procedure, advanced for the purpose
of initiating discussions, might be :
(a) Upon acceptance of the proposals set forth in
Working Paper DC/10 with respect to fixing numerical
limitation of all armed forces, arrangements might be
made for a conference between China, France, the Union
of Soviet Socialist Republics, the United Kingdom and
the United States of America with a view to reaching
tentative agreement among themselves, by negotiation,
on (1) the distribution by principal categories of the
armed forces that they would consider necessary and
appropriate to maintain within the agreed numerical
ceilings proposed for their armed forces; (2) the types
and quantities of armaments which they would consider
292
Deparfment of State Bulletin
necessary and appropriate to support permitted armed
forces within the proposed numerical ceilings; (3) the
elimination of all armed forces and armaments other
than those expressly permitted, it being understood
that provision will be made for the elimination of all
major weapons adaptable to mass destruction, and for
the effective international control of atomic energy to
ensure the prohibition of atomic weapons and the use
of atomic energy for peaceful purposes only.
The distribution of armed forces within stated cate-
gories iind the types and volumes of armaments would
not necessarily be identic, even for states with substan-
tially equal aggregate military strength, inasmuch as
their needs and responsibilities may be different. The
objective of the agreements would be to reduce the pos-
sibility and fear of aggression and to avoid a disequi-
libriiun fif power dangerous to international peace and
security. Such agreements would necessarily be tentative,
as they would have to be reviewed in the light of further
tentative agreements to be reached, as indicated iu the
following paragraph.
(b) When tentative agreement is attained at the
conference referred to in paragraph II. (a), regional
conferences might be held, to be attended by all govern-
ments and authorities having substantial military forces
in the respective regions, for the purpose of reaching
similar tentative agreement on (1) the overall nu-
merical ceilings for the armed forces of all such govern-
ments and authorities, as proposed in paragraph 5 (b)
of the Tripartite Working Paper on numerical limita-
tions, (2) the distribution of the permitted armed
forces within stated categories, (3) the type and volume
of armaments necessary and appropriate to support the
permitted armed forces, and (4) the elimination of
all armed forces and armaments other than those ex-
pressly permitted, it being understood that provision
will be made for the elimination of all major weapons
adaptable to mass destruction, and for the effective
international control of atomic energy to ensure the
prohibition of atomic weapons and the use of atomic
energy for peaceful purposes only.
(c) Thereafter a draft treaty might be worked out,
as contemplated in operative paragraph 3 of the General
Assembly Resolution of January 11, 1952, comprehend-
ing and bringing into a balanced relationship all es-
sential components of the program.
III. The timing and coordination of the reductions,
prohibitions and eliminations should ensure the balanced
reduction of overall armed strength and should avoid
creating or continuing any disequilibrium of power dan-
gerous to international peace and security during the
period that the reductions, prohibitions and eliminations
are being put into effect. In particular, the initial limi-
tations or reductions in armed forces and permitted arma-
ments and the initial steps toward elimination of
prohibited armaments should commence at the same time.
Subsequent limitations and reductions should l)e syn-
chronized with subsequent progress in elimination of
prohibited armaments. An international control authority
should be established at the commencement of the program
and it should be in a position to assume progressively its
functions in order to ensure the carrying out of such
liiiiitafions, reductions, curtailments and prohibitions.
Thus, when the limitations and reductions in armed forces
and permitted armaments provided by the treaty or
treaties are completed, production of prohibited arma-
ments will have ceased, existing stockpiles of prohibited
armaments and facilities for their production will have
been disposed of, atomic energy will be utilized for peace-
ful purposes only, and the international control authority
will liave assumed its full functions.
U.S. Delegations
to International Conferences
Conference on Universal Copyright Convention
(UNESCO)
On August 15 tlie Department of State an-
nounced that an intergovernmental conference to
complete and sign a universal copyriglit conven-
tion will convene at Geneva on August 18, 1952,
under the auspices of the U.N. Educational, Scien-
tific and Cultural Organization (Unesco).
The U.S. Government will be represented at the
Conference by the following delegation :
Chairman
Luther Evans, Librarian of Congress
Congressional Advisers
Joseph R. Bryson, House of Representatives
Shepard J. Crumpacker, House of Representatives
Advisers
Roger C. Dixon, Chief, Business Practices and Technology
Staff, Department of State
Arthur Farmer, General Counsel, American Book Publish-
ers' Council, New York
Arthur Fisher, Register of Copyrights, Library of Congress
Herman Finkelstein, General Counsel, Ascap, New York
Sydney Kaye, General Counsel, Broadcast Music, Inc.,
New York
John Schulman, Attorney for the Author's League, New
York
Copyright laws of various countries, as well as
the provisions of numerous intergovernmental
agreements concerning copyright, are so divergent
and, in some instances, so conflicting that it is often
impossible for an author or publisher in one coun-
try to protect his interests in other countries.
The forthcoming diplomatic conference repre-
sents the culmination of 5 years of work on an
international copyright arrangement, the last 2
years having been under the leadership of Unesco.
A draft of the proposed convention was prepared
by UNESCO's Committee of Copyright Experts, in
a meeting held at Paris in June 1951, on the basis
of suggestions submitted by 25 countries. The
draft was then submitted to all the governments of
the world, as well as to several international or-
ganizations, with a request for their comments.
This draft, together with proposed revisions
submitted to Unesco by governments, will serve as
the basis for the work of the Conference which,
if successful, will constitute the most important
step ever taken to bring uniformity to the pres-
ently confused body of law on this subject.
The convention, if concluded and signed at the
Conference, will enter into force only after ap-
proval by interested governments in accordance
with their respective constitutional processes.
>*ugusf 25, 7952
293
U.S. Views on Dealing With Germ Warfare Elimination as a Separate Problem
statement hy BenjaTnin V. Cohen '
While we are waiting for the observations of the
member governments to the tripartite supplement
to the tripartite working paper, I should like to
refer to the question of the elimination of germ
warfare and its place in a comprehensive dis-
armament program. It is not my pui'pose to re-
open the debate started by the improper intro-
duction into this forum of the false charges re-
garding the use of germ warfare in Korea. But
as I have heretofore indicated, the elimination
of germ warfare as well as the elimination of mass
armies and atomic warfare must be an essential
part of a comprehensive disarmament program to
reduce the danger of aggression and the fear of
war. Before we make our report to the General
Assembly, I want to make clear that such elimina-
tion is called for and contemplated by the pro-
posals we have made.
During the recent discussion of the Geneva pro-
tocol in the Security Council, it was pointed out
by the U.S. representative. Ambassador Gross, as
well as by the representatives of other members of
the Council that the matter of the prohibition and
elimination of bacteriological warfare was clear-
ly within the terms of reference of the Disarma-
ment Commission and should be considered in con-
nection with the proposals which the General As-
sembly has directed the Commission to prepare
for the elimination of all major weapons adaptable
to mass destruction.
To avoid any possible misunderstanding of the
position of the United States, I should like to
state again our position in regard to the elimina-
tion of all weapons adaptable to mass destruction,
including poisonous gas and bacteriological weap-
one. I want to emphasize that it is the view of
my Government that the matter of germ warfare
must be included as an essential part of a com-
prehensive and balanced disarmament program
' Made before the U.N. Disarmament Commission on
Aug. 1.5 and released to the press b.y the U.S. Mission to
the U.N. on the same date. Ambassador Cohen is deputy
U.S. representative in the Commission.
and cannot be satisfactorily dealt with as a sep-
arate or isolated problem. I
It would be a grave mistake to assume that, be- ■
cause the United States has not ratified the Geneva
protocol, the United States is opposed to the gen-
eral objective of the treaty, the effective outlawing
of poisonous gas and biological weapons directed
against human beings. Indeed the United States
signed and took an active part in the drafting of
the Geneva protocol of 1925, and earlier, in 1922,
in drafting the AVashington treaty from which the
principal provisions of the Geneva protocol were
derived. The United States is not unmindful
that the ratification of the Geneva protocol by 42
States is a significant manifestation of mankind's
desire which the United States also shares, to see
these hideous weapons, along with all other weap-
ons adaptable to mass destruction, banned from
national armaments.
Those who attempt to explain America's failure
to ratify the protocol in terms of Marxist mate-
rialism may know their Marxism, but they are
woefully ignorant of American life and history.
Wlien the Geneva protocol was submitted to the
Senate for ratification, America was retreating
rapidly into isolationism and neutralism and
feared any involvement with the League and any
treaties originating from Geneva. It is ridicu-
lous and absurd for Mr. Malik to think that the
nation which a few years later was to attempt to
ban any shipments of arms to any belligerent
failed to ratify the Geneva protocol because of the
profit motives of its ruling classes.
Our sympathy with the general objective of the
Geneva protocol should not blind us to the fact
that intervening events have demonstrated the
protocol to be inadequate and ineffective to achieve
its objective. The hope entertained at the end of
World War I that states could rely upon treaty
promises and treaty declarations without safe-
guards to insure their observance has turned out
to be illusory. Mussolini was no more deterred
from using poisonous gas in Ethiopia in the 1930's
294
Deparfmenf of State Bullel'm
by the Geneva protocol, which Italy had accepted,
than was Germany deterred from using poisonous
gas in World War I by The Hague conventions,
which Germany had accepted.
It was shocking to hear the Soviet represent-
ative in the Security Council suggest that Hitler
was deterred from using poisonous gas and bac-
teriological warfare in World War II by the
Geneva protocol, when we know that Hitler and
his henchmen adhered to no treaty or law of God
or of man whicli they believed they could success-
fully ignore. Would the Soviet representative
have us believe that the men who consigned
defenseless women, old men, and little children to
the gas chambers would have respected the Geneva
protocol, save for their fears of reprisals? Win-
ston Churchill did not think so. Marshall Voro-
shilov did not think so when he stated on Febru-
ary 22, 1938 :
Ten years ago or more the Soviet Union signed a con-
vention abolishing the use of poison gas and bacteri-
ological vifeapons. To that we still adhere but if our
enemies use such methods against us I tell you we are
prepared and fully prepared to use them also and to use
them against aggressors on their own soil.
It was the fear of reprisals and not the con-
science of mankind which deterred Hitler.
U.S.S.R.'s Supplementary Protocol of 1928
Events since the signing of the Geneva protocol
have made increasingly clear the inadequacies of
the protocol which the Soviet Union was among
the first to point out. It was the Soviet Union
which submitted on March 23, 1928, a supple-
mentary protocol to the Preparatory Commission
for the Disarmament Conference which empha-
sized, as the United States now empliasizes, prac-
tical proposals to insure the elimination of gas
and germ weapons from national armaments.
The supplementary protocol proposed by the
Soviet Union provided :
Article 1 — All methods of and appliances for chemical
aggression (all asphyxiating gases used for warlike pur-
poses, as well as all appliances for their discharge, such
as gas projectors, pulverizers, balloons, flame-throwers
and other devices) and for bacteriological warfare,
whether in service with troops or in reserve or In process
of manufacture, shall be destroyed within three months
of the date of the entry into force of the present Con-
vention.
Article 2 — The industrial undertakings engaged In the
production of the means of chemical aggression or bacte-
riological warfare indicated in Article 1 shall discon-
tinue production from the date of the entry into force
of the present Protocol.
Article 3 — In enterprises capable of being utilized for
the manufacture of means of chemical and bacteriological
warfare, a permanent labour control shall be organized
by the workers' committees of the factories or by other
organs of the trade unions operating in the respective
enterprises with a view to limiting the possibility of
breaches of the corresponding articles of the present
Protocol."
It was also the Soviet Union which in 1932 re-
quested the rapporteur to include in the Report
of the Special Committee on Chemical and
Bacteriological Weapons the following pertinent
observation :
The Committee on Chemical and Bacteriological Weap-
ons' reply to the General Commission's questions regard-
ing qualitative disarmament is given mainly from the
point of view of the prohibition of the use of chemical
weapons in war time. This is tantamount to re-stating
with a few supplementary details the essential ideas con-
tained in the Geneva Protocol of June 17th, 1925, which
up to the present is unfortunately still awaiting the rati-
fication of several states.
Such legal prohibitions are, however, inadequate and of
merely secondary importance. The Soviet Delegation has
alicays attached and continues to attach paramount im-
portance, not to the prohibition of the use of chemical
weapons in -war time, tut to the prohibition of preparations
for chemical ivarfare in peace time. Consequently efforts
should be directed not so much to the framing of latcs and
usages of war as to the prohibition of as many lethal stib-
stances and appliances as possible. This is the point of
view which the Union of Soviet Socialist Republics will
continue to represent in the General Commission.'
We regret that the Soviet Union has given so
little attention to this point of view in the Disarma-
ment Commission.
We have pointed out that the Soviet Union and
other states which ratified the Geneva protocol re-
served the right to employ poisonous gas and germ
warfare in reprisal. We have pointed out that the
Soviet Union and other states which have ratified
the Geneva protocol have conducted research work
and made other preparations for the use of poison-
ous gas and bacteriological warfare. In view of
the proved inadequacies of the Geneva protocol we
do not criticize the Soviet Union or other states
parties to the protocol for these precautionary
measures.
But we do criticize the ruling classes of the
Soviet Union for attacking the United States for
taking the same precautionary measures. We do
criticize and condemn the ruling classes of the
Soviet Union for making false charges that the
United States is using bacteriological warfare in
Korea. We do criticize and condemn the ruling
classes of the Soviet Union for conducting a hate-
mongering campaign against the United States,
which is, as I have previously stated, sadly reminis-
cent of Hitler's hate-mongering campaign against
the Czechs before Munich.
We do not criticize the humane and worthy ob-
jective of the Geneva protocol. But we do not
trust the promises of those who foreswear on paper
the use of germ warfare save in reprisal and then
make deliberate and false charges that others are
using germ warfare. We do not trust the paper
promises of those who bear false witnesses against
their neighbors. We do not trust the paper prom-
ises of those who do not hesitate to break tlieir
treaty promises when it serves their ideological
ends. We have no reason to believe that those who
= A/AC.50/3, p. 43, Disarmament Conference docu-
ments, vol. I, p. 135.
August 25, 1952
' Disarmament Conference documents, vol. i, p. 212 fif.
295
have made deliberately false charges against ns
would have been loath to make the same false
charges against us if we had ratified the Geneva
protocol. And that is particularly true when their
false charges provide false excuses for breaking
their own promises on alleged grounds of reprisals.
U.S. Record on Germ Warfare
Our purpose is not to discredit the worthy ob-
jective of the Geneva protocol but to find means
adequate and effective to attain its objective. The
United States has never used germ warfare. The
United States has never used gas warfare save in
retaliation in the First World War when it was
first used by Germany. In the last World War,
President Koosevelt condemned the use of poison-
ous gas and issued strict orders that it should not
be used except in retaliation. The United States
has not used gas or germ warfare in Korea. The
charges that it has are monstrous falsehoods and
those that make them are unwilling to have them
investigated by an impartial body. The record of
the United States is clear and clean, and no state
that keeps its Charter obligations has anything to
fear from the United States in this regard.
It is not witliout significance that in both of the
two wars in the Twentieth Century in which poison
gas was used, its use was inaugurated by states
which had bound themselves on paper not to use
it. If the history of the last half century teaches
us anything, it teaches us that aggressor states
which start wars in violation of their treaty obli-
gations cannot be trusted to keep their paper
promises regarding the methods of waging wars
if they find that the keeping of those promises
stands in the way of their accomplishing their
aggressive designs.
If men fight to kill, it is not easy to regulate
how tliey shall kill. Moreover, there is the danger
that if we prohibit tlie use of some weapons, even
more hideous weapons may be discovered and used.
We want to eliminate, and we have submitted pro-
posals for the elimination of, all weapons which
are not expressly permitted as necessary and ap-
propriate to support the limited number of armed
forces which may be permitted to states to main-
tain public order and to meet their Charter
obligations.
In civilized communities the deliberate and un-
provoked killing of man by man is murder regard-
less of the kind of weajion used to kill. In a
civilized world, deliberate and unprovoked ag-
gression which causes the killing of masses of men
should be regarded as mass nnu'der regardless of
the kinds of weapons used. That is the theory of
the Charter of the United Nations and that is the
rule of law which we here in the Disarmament
Commission should seek to implement. That is
the way we can best attain the unrealized objective
of the (reneva protocol.
All members of the United Nations have agreed
to refrain in their international relations from
the threat or use of force against the territorial
integrity or political independence of any state
or in any other manner inconsistent with the pur-
poses of the United Nations. The United States
as a member of the United Nations has committed
itself, as have all other members, to refrain from
not only the use of poisonous gas and the use of
germ warfare but the use of force of any kind con-
trary to the law of the Charter. And by that
commitment the United States intends to abide
and has a right to expect other members to abide.
The United States condemns not only the use of
germ and gas warfare but the use of force of any
kind contrary to the law of the Charter.
Let it not be said that there is no way to deter-
mine when force is being used contrary to the law
of the Charter. If the Security Council does not
act, the sentiments of the civilized world can be
recorded in the General Assembly as the Uniting
for Peace resolution provides.
Function of the Disarmament Commission
W^e hope here in this Disarmament Commission
to agree upon measures of disarmament to reduce
the possibility of aggression and make war in-
herently, as it is constitutionally under the Char-
ter, impossible as a means of settling disputes be-
tween nations. That is why throughout our dis-
cussions, as representative of the United States,
I have insisted that we must approach the prob-
lem of disannament from the point of view of pre-
venting war and not from the point of view of
regulating the armaments to be used in war. The
conception of disarmament as a means of prevent-
ing war is the first principle in the proposal which
the United States has formally sulDmitted to this
Commission setting forth the essential principles
which should guide the work of the Disarmament
Commission.
My Government hopes we are going to work out
here measures of disarmament as a means of pre-
venting war. My Government does not believe
that we should interrupt this work to inform any
would-be aggressor state which may contemplate
using force contrary to its Charter commitments,
what kind of force law-abiding states will or will
not use to suppress aggression.
I hope my remarks will not be misundei'stood.
We are issuing no ultimatums. We are making
no thi-eats. We will support effective proposals
to eliminate all weapons adaptable to mass de-
struction, including atomic, chemical, and bio-
logical weapons from national armaments. We
believe, as the Soviet delegation maintained in
1932, that paramount importance should be at-
tached, "not to the pi-ohibition of chemical weap-
ons in war time, but to the prohibition of chemical
warfare in peace time" and that "efforts should
be directed not so much to the framing of laws
and usages of war as to the prohibition of as many
lethal substances and appliances as possible."
296
Department of State Bulletin
But we do not intend, before such measures and
safeguards have been agreed upon, to invite ag-
gression by informing, or committing ourselves to
would-be aggressors and Charter-breakers that
we will not use certain weapons to suppress ag-
gi'BSsion. To do so in exchange for mere paper
promises would be to give would-be aggressors
their own choice of weapons. For certainly there
is no assurance tliat aggressors, which break their
Charter obligations not to go to war, will keep
their paper promises not to fight with certain
weapons if they have them and need them to
achieve their evil designs.
The task of the Disarmament Commission is, as
the United States points out in its proposals set-
ting forth the Essential Principles of a Disarma-
ment Programme, to devise measures to insure
that "armed forces and armaments will be re-
duced to such a point and in such a thorough fash-
ion that no state will be in a condition of armed
preparedness to start a war," and that "no state
will be in a position to undertake preparations for
war without other states having knowledge of
such preparations long before the offending state
could start a war." We do not believe that it is
the function of the Disarmament Commission to
attempt to codify the laws of war. But obviously
if it attempted to do so, it would have to deal with
the whole range of weapons and methods of war-
fare to be prescribed, the machinery necessary to
secure the observance of the rules, and the mat-
ter of sanctions, reprisals, and retaliation in case
of violation.
The Soviet representative has suggested that
there are no effective safeguards to insure the
elimination of bacteriological warfare and con-
tends in effect that it is therefore necessary for
us to rely on the moral force of paper promises
prohibiting its use in war. We do not agree. Nor
did the Soviet delegation agree with that position
in 1928 or in 1932, as we have shown. It may be
true that there are no theoretically fool-proof safe-
guards which would prevent the concoction of
some deadly germs in an apothecary's shop in the
dark hours of the night. But when the United
States proposes the establishment of safeguards
to insure the elimination of germ warfare along
with the elimination of mass armed forces and all
weapons adaptable to mass destruction, it de-
mands what is possible and practical, not the im-
possible. The United States is seeking action to
insure effective and universal disarmament, not
excuses for inaction. Bacteriological weapons to
be effective in modern warfare require more than
the dropping at random of a few infected spiders,
flies, or fleas. They require industrial establish-
ments, facilities for maintaining the agents, trans-
port containers, and disseminating appliances.
Such arrangements and facilities will not readily
escape detection under an effective and continuous
system of disclosure and verification of all armed
forces and armaments which the General As-
sembly has declared to be a necessary prerequisite
of any comprehensive disarmament program.
It is unfortunate that the Soviet representa-
tive has indicated so little interest in the develop-
ment of an effective and continuous system of dis-
closure and verification. It is unfortunate that
the Soviet representative has insisted on regard-
ing any effort of the Commission to give serious
consideration to such a system as only an effort
to collect information for intelligence purposes.
It is as the General Assembly has declared an es-
sential part of "a system of guaranteed disarma-
ment." If we want to make progress toward
effective disarmament, we must all be willing to
lay all our cards on the table.
If an effective and continuous system of dis-
closure and verification of armed forces and arma-
ments becomes operative along the general lines
suggested in the working paper submitted by the
United States, we would then have at hancl the
necessary safeguards to make possible the elimina-
tion of bacteriological weapons. The United
States proposes that, at appropriate stages in such
an effective system of disclosure and verification,
agreed measures should become effective providing
for the progressive curtailment of production, the
progressive dismantling of plants, and the pro-
gressive destruction of stockpiles of bacteriological
weapons and related appliances. Under this pro-
posal, with good faith cooperation by tlie principal
states concerned, all bacteriological weapons, and
all facilities connected therewith, could be com-
IDletely eliminated from national armaments and
their use prohibited.
The position of the United States is clear and
unequivocal. We are here not to engage in a
battle of propaganda but to find effective ways
and means to abolish mass armed forces, to elimi-
nate all weapons adaptable to mass destruction,
including atomic and biological, and thereby to
reduce and so far as possible eliminate the pos-
sibility of war. The only effective way to prevent
the horrors of war is to prevent war.
August 25, 1952
297
German Elections Commission Submits Final Report to U. N. Secretary-General
On August 5 the U.N. Information Center at
Geneva announced the intention of the U.N. Ger-
man Elections Coinmission to adjourn sine die fol-
lowing submission of its final report to the U.N.
Secretary-General. Following is the text of the
Commission Chairman^s letter transmitting the
final report., together tvith the text of the report
covering the xoorh of the Commission for the period
May-August 1952:
LETTER OF TRANSMITTAL
U.N. doc. A/2122/add. 2
Dated Aug. 11, 1952
Palais des Nations, Geneva
5 August 1952
Sir, I have been directed by the United Nations
Commission to investigate Conditions for Free
Elections in Germany to submit to you herewith
its supplementary report covering the period from
May 1952 to August 1952. This report, signed in
Geneva on 5 August 1952, is being submitted in
accordance with the direction given to the Com-
mission by the General Assembly in paragraph 4
(d) of the resolution it adopted on 20 December
1951 on item 65 of its agenda.
I have been further directed by the Commission
to state that, while with the submission of the
attached report the Commission has decided to
adjourn its sassion sine die, it nevertheless will
continue to remain at the disposal of the United
Nations and all the parties concerned to carry
out its task during such time as the mandate en-
trusted to it remains in force, and at such time as
it seems likely to the Commission that it can do
so with a prospect of positive results.
I avail myself of this opportunity to renew the
assurances of my highest consideration.
M. KOIINSTAMM
Chairman, United Nations Commission to Investi-
gate Conditions for Free Elections in Germany
COMMISSION'S WORK FROM
MAY TO AUGUST 1952
U.N. doc. A/2122/add. 2
Dated Aug. 11, 1952
1. The United Nations Commission to investi-
gate Conditions for Free Elections in Germany
submits to the Secretary-General the present re-
port covering its work during the period from
May to August 1952 in pursuance of the direction
given to it by the General Assembly of the United
Nations.
2. In compliance with the direction given to it
under the terms of paragraph 4 (a) of the resolu-
tion adopted by the General Assembly on 20
December 1951 (resolution 510 (VI))' on the
agenda item entitled "Appointment of an impar-
tial international commission under United Na-
tions supervision to carry out a simultaneous in-
vestigation in the Federal Republic of Germany,
in Berlin, and in the Soviet Zone of Germany in
order to determine whether existing conditions
there make it possible to hold genuinely free elec-
tions throughout these areas", the Commission sub-
mitted on 1 May 1952 its report ^ on the results of
its efforts to make the necessary arrangements
with all the parties concerned to enable it to under-
take its work according to the terms of the said
resolution.
3. This first report of the Commission con-
tained an account of its activities from 11 Febru-
ary 1952, the date when the Commission first met
and organized itself, to 30 April 1952, the date by
which the Commission considered it was obliged to
submit its first report, after having made in that
preliminary period every reasonable effort to make
the necessary arrangements with all the parties
concerned to enable it to undertake its work.
4. The present report, which supplements the
first and is in a sense a postscript to it, contains a
brief account of the work of the Commission in
the three-month period subsequent to the submis-
' See Offleial Records of the General Assembly, Sixth
Session, Supplement No. 20, p. 10.
' U.N. doc. A/2122 dated May 5, 1952.
298
Department of State Bulletin
sion of the first report, including; a brief summa-
tion of the views of the Commission as regards
developments in the Gei'man situation in so far as
they may be regarded as having had a bearing on
the specific task the Commission was required to
carry out.
5. The report is being submitted in accordance
with the direction to the Commission contained in
paragraph 4 (d) of General Assembly resolution
510 (VI), which "directs the Commission in any
event to report, not later than 1 September 1952,
on the results of its activities to the Secretary-
General, for the consideration of the four Powers
and for the information of the other Members of
the United Nations".
6. At its 24th meeting held on 31 July 1952 in
Geneva, the Commission decided that the final
report it was required to submit according to the
terms of paragraph 4 (d) of the resolution quoted
above should not be delayed any longer, as, in its
view, there appeared at the time hardly any fur-
ther possibility of its being able to carry out its
task of simultaneous investigation throughout
the whole of Germany of conditions for free elec-
tions in that country. Throughout the period of
three months during which the Commission has
had to remain in Geneva at no little sacrifice to the
Member Governments concerned, in constant ses-
sion and ready to go into action at any time it
could do so or it appeared feasible to make an at-
tempt to do so, it had become increasingly evident
that the unwillingness to co-operate with and as-
sist the Commission to discharge its task dis-
played at the sixth session of the General Assem-
bly by the representatives of the Union of Soviet
Socialist Republics and of the German authori-
ties in the Soviet Zone of Germany, remain
undiminished.
7. It will be recalled that the Commission in its
first report stated the then existing position in
paragraphs 67 and 68, which for the sake of ready
reference are reproduced below :
While the Commission has been successful in carrying
out its preliminary task in the Federal Republic of Ger-
many and in the Western Sectors of Berlin, it has not
thus far been able to establish reciprocal contact with
the authorities in the Soviet Zone of Germany and in the
Eastern Sector of Berlin even by correspondence. The
Commission consequently has not thus far been able to
make with the authorities concerned in the Soviet Zone
of Germany and in the Eastern Sector of Berlin the ar-
rangements deemed necessary by It to enable it to under-
take its work in accordance with its terms of reference.
Bearing in mind the infructuous efforts it has made on
four separate occasions to appeal to the Soviet Control
Commission for Germany to facilitate it in the discharge
of its duties, the Commission, to its regret, is obliged to
conclude that at present there is little prospect of its
being able to pursue its task.
However, in view of the fact that sub-paragraph 4 (c)
of General Assembly resolution 510 (VI) "directs the
Commission, if it is unable forthwith to make these ar-
rangements, to make a further attempt to carry out its
task at such time as it is satisfied that the German
authorities in the Federal Republic, in Berlin, and in the
Soviet Zone will admit the Commission, as it is desirable
to leave the door open for the Commission to carry out its
task," the Commission will remain at the disposal of the
United Nations and the parties concerned, and will make
a further attempt to implement its mandate at such time
as it seems likely to the Commission that new steps may
lead to positive results.
8. In all the period that the Commission has had
to remain in session in Geneva since the submission
of its first report in order to make an effort to im-
plement, if feasible, the directions given to it by
paragraphs 4 (c) and 4 (b) of General Assembly
resolution 510 (VI), the Commission had hoped
that the authorities of the U.S.S.R. as well as the
German authorities in the Soviet Zone of Germany
would ultimately see their way clear to co-operate
with the Commission, an impartial, international
body set up by the United Nations with the posi-
tive support of forty-five out of its sixty Members,
and one that had already received every assurance
of co-operation from the authorities representing
by far the greater portion of the German people.
This hope was entertained by the Commission be-
cause of its understanding that the authorities of
the U.S.S.R. as well as the German authorities in
the Soviet Zone of Germany, were as anxious as
the three Western Powers and the authorities in
the Federal Republic of Germany and the Western
Sectors of Berlin to bring about a peaceful solu-
tion to the German question by way of the forma-
tion of a freely elected all-German government
with which the four occupying Powers could pro-
ceed to negotiate a peace treaty. It seemed clear
to the Commission that the four occupying Powers
were agreed that an essential preliminary to the
formation of an all-German government was that
it should be formed on the basis of free elections,
and further that, prior to the formation of such
a government, an investigation by an impartial
body was necessary to determine whether existing
conditions throughout Germany admitted of the
possibility of genuinely free elections. It was the
Commission's hope that the Government of the
U.S.S.R. anxious as it was for a quick and just
solution to the German question, would ultimately
be persuaded to repose faith in a body that had
been set up by an overwhelming majority of its
colleagues in the United Nations.
9. In the period between the submission of its
first report and before it could make a further at-
tempt to carry out its task, the Commission con-
sidered that it would have to be reasonably certain
that, at whatever time it did make the further at-
tempt, it would be attended with some prospect of
success. The Commission, therefore, was perforce
concerned to consider closely developments in the
German situation arising out of the exchange of
Notes between the U.S.S.R. on the one hand, and
France, the United Kingdom and the United States
of America on the other, as well as significant de-
velopments inside Germany itself.
10. The series of Notes on the German question
exchanged between the U.S.S.R. and the three
Western Powers, it will be recalled, commenced
August 25, 7952
299
with one from the U.S.S.R. dated 10 March 1952,
by which date the Commission had been in exist-
ence and at work for a month. By the time the
Commission submitted its first report on 1 May
1952, the U.S.S.R. had addressed two Notes to the
three AVestern Powers (on 10 March and 9 April
respectively), and tlie tliree Western Powers had
rei^lied on 25 March to tlie first Soviet Note. Be-
tween 1 May and 5 August 1952, the date on which
the present report was adopted by the Commission,
three further Notes ' were exchanged between the
four occupying Powers. In none of the six Notes
could the Commission discern any agreement
whatsoever between the U.S.S.R. and the three
Western Powers as to utilization of the Commis-
sion in carrying out an investigation in all of Ger-
many to determine whether existing conditions
there made it possible to hold genuinely free elec-
tions in that country. Indeed, what became more
obvious as a result of the exchange of the series of
Notes was the following: (1) that the three West-
ern Powers, while they continued to maintain more
or less strongly their preference for the present
United Nations Commission, were nevertheless pre-
pared at the same time "to consider any other prac-
tical and precise proposals for an impartial com-
mission of investigation which the Soviet Govern-
ment may wish to put forward, on the one condi-
tion that they are likely to promote the early hold-
ing of free elections throughout Germany" ' and
(2) that the U.S.S.R. continuing to maintain its
objection to the competence of the United Nations
to concern itself with the German question, re-
jected investigation by the present Commission,
while it was agreeable to an investigation by an-
other impartial commission formed by the four
Powers occupying Germany.
11. The Commission, at this point, would like
to make certain observations. While on the one
hand, the Commission derives its mandate solely
from the General Assembly of the United Nations,
it is, on the other hand, entirely dependent on the
willingness of all the parties concerned to co-oper-
ate unreservedly with it for the execution of its
mandate. It has so far been unable to secure this
co-operation from the authorities in the Soviet
Zone of Germany, and it could see at the time of
the adoption of the present report little prospect
of its being able to do so in the near future. The
Commission, as a United Nations body, is anxious
above all for an early, just and peaceful solution
of the German question, regardless of whether the
steps contributing to such a solution are to be
worked out under the auspices of the United
Nations or not. The United Nations, the Com-
' The three Western Powers replied to the second
U.S.S.R. Note on 1.3 May 1952. The U.S.S.R. .iddressed
its third Note to the three Western Powers on 24 May 1952.
The three Western Powers replied to the third U.S.S.R.
Note on 10 .Tuly 10.52.
* Quoted from the text of the Note of the three Western
Powers dated 13 May 1952 addressed to the U.S.S.lt.
mission is confident, would at all times be pre-
pared to heed any appeal for its assistance in the
finding of a peaceful solution to this question.
This being its view, the Commission would not de-
sire to suggest that it alone affords the only im-
partial means of investigating existing conditions
in all of Germany. The Commission would con-
sider its existence and its work hitherto justified,
and its mission in substance fulfilled, if, by agree-
ment among the four occupying Powers, another
equally impartial body were to be set up which
could and would carry out the essentials of the
mandate entrusted to the present United Nations
Commission.
12. Apart from its consideration of the situa-
tion arising out of the exchange of the series of
Notes between the U.S.S.R. and the three Western
Powers, the Commission, during the last three-
month period, has also been watching with con-
cern reports of internal developments in Ger-
many. These have been such as to afford no hope
to the Commission that the German authorities
in the Soviet Zone of Germany will co-operate
with it in the execution of its task.
13. At its 23rd meeting held on 11 July, the
Commission felt that it might perhaps be well
for it to wait to consider the U.S.S.R. reply to the
Note of the three Western Powers dated 10 July
before deciding to submit the present report and
adjourn its session si7ie die. However, after fur-
ther prolonged deliberation, it decided that, if
past events provided any indication of the nature
of things to come, there was little prospect of its
being able to carry out its task any further beyond
what it had been able to do in the preliminary
period of its activity. At its 24th meeting held
on 31 July, the Commission decided, therefore,
to submit its final report and adjourn its session
sine die, desiring, however, to maintain its head-
quarters and secretariat in the Palais des Nations,
Geneva, until the expiry of its mandate. "Wliile
with the adjournment sine die of its session the
Commission has left its representatives free to
resume duty with their respective Govermnents,
the Commission as a body wishes, however, again
to lay stress on the fact that, in compliance with
the resolution of the General Assembly, it will
continue to remain at the disposal of the United
Nations and all the parties concerned to carry out
its task during such time as the mandate entrusted
to it remains in force, and at such time as it seems
likely to the Commission that it can do so with a
prospect of positive results.
14. The following four representatives on the
Commission, whose signatures are appended be-
low, unanimously adopted the report at the 25th
meeting of the Commission held on 5 August 1952
in the Palais des Nations, Geneva.
Signed : Brazil A. Mendes Vianna
Iceland Kristjan Ai,bektson
Netherlands M. Kohnstamm
Pakistan A. H. Abbasi
300
Department of State Bulletin
Ambassador IVIuccio Nominated
to U.N. Trusteeship Council
Wbite House press release dated August 13
To succeed Francis B. Sayre as U.S. repre-
sentative on the U.N. Trusteeship Council, the
President will nominate John J. Muccio, now
Ambassador to Korea. Mr. Sayre, who had held
the position since 1949, resigned in June of this
year.
It will not be possible for Mr. Muccio to take
up his duties on the Trusteeship Council until
January, as his services will be needed in the De-
partment of State for several months. To undei'-
take these interim duties in the Department of
State. Mr. Muccio will come to Washington
shortly.
Mr. Muccio was named special representative
of the President with the personal rank of am-
bassador on July 28, 1948. He was appointed
ambassador on April 7, 1949, following U.S.
recognition of the Republic of Korea on Janu-
ary 1 of that year.
T?he President personally awarded Mr. Muccio
the Medal of Merit for his devotion to duty.
The medal, presented to Mr. Muccio on Wake
Island in October 1950, cited Mr. Muccio's
"courageous and effective performance of duty."
Mr. Muccio's efforts in the Republic of Koi-ea
contributed greatly to the morale of the people
of the Republic of Korea and the United States
during the dark days of 19.50. He has served as
the first U.S. Ambassador to the Republic of
Korea. The last 2 years of his service have been
an arduous ordeal, and his performance repre-
sents the finest traditions of Americans in the
service of their country abroad.
Congress of Anthropological
and Ethnological Sciences
Press release 642 dated August 15
William N. Fenton, Executive Secretary of the
Division of Anthropology and Psychology of the
National Research Council, will represent the
United States at the Fourth International Con-
gress of Anthropological and Ethnological Sci-
ences, to be held at Vienna, September 1-8, 1952.
The International Congress was established in
1933 for the purpose of stimulating the study of
anthropological and ethnological sciences —
branches of study which contribute to the knowl-
edge of man through their application to the study
of races, peoples, and ways of life — by developing
these sciences and coordinating research in them.
The Congress, which normally convenes every 4
years, enables research scientists from many na-
tions to meet for the free exchange of information
on new developments and research techniques.
Physical anthropologists, sociologists, ethnolo-
gists, folklorists, linguists, prehistorians, and
archaeologists of all nations are invited to attend
the sessions of the forthcoming congress.
The third congress was held at Brussels in 1948-
Communiques Regarding Korea
to the Security Council
The Headquarters of the United Nations Com-
mand has transmitted communiques regarding
Korea to the Secretai'y-General of the United
Nations under the following United Nations doc-
ument numbers : S/2689, July 3 ; S/2690, July 3 ;
S/2695, July 10; S/2696, July 10; S/2697, July
14; S/2698, July 11; S/2699, July 11; S/2703,
July 14; S/2704, July 15; S/2708, July 17;
S/2709, July 17; S/2711, July 21; S/2713, July
21; S/2714, July 22; S/2716, July 23; S/2717,
July 23; S/2718, July 23; S/2719, July 24;
S/2720, July 25; S/2723, July 28; S/2725, July
29; S/2726, July 30; S/2728, July 31; S/2729,
August 1; S/2730, August 4; S/2731, August 5;
and S/2732, August 6.
Current United Nations Documents:
A Selected Bibliography^
Economic and Social Council
Pull Employment. Implementation of Full Emplo.vment
Policies. Replies of governments to the full employ-
ment questionnaire covering tbe period 19.51-."i2, sub-
mitted under resolutions 221 E (IX), 290 (XI) and
371 B (XIII) of the Economic and Social Council.
B/2232/Add. 1, June 10, 19.52. 46 pp. mimeo;
E/2232/Add. 2, June 23, 1952. 39 pp. mimeo.; and
E/2232/Add. 4, July 7, 1952. 46 pp. uiimeo.
Migration. Report by the Director-General of the Inter-
national Labour Office to the Economic and Social
Coimcil in accordance with Council resolution 396
(XIII) of 25 Augu-st 1951 on methods of international
financing of European emigration. E/223.5/Add. 1,
June 13, 1952. 41 pp. mimeo.
Production and Distribution of Newsprint and Printing
Paper. Report by the Secretary-General. E/2241,
June 16, 1952. 17 pp. mimeo.
^ Printed materials may be secured in the United States
from the International Documents Service, Columbia Uni-
versity Press, 2960 Broadway, New Yorls 27, N. Y. Other
materials (mimeographed or processed documents) may
be consulted at certain designated libraries in the United
States.
The United Nations Secretariat has established an Offi-
cial Records series for the General Assembly, the Security
Council, the Economic and Social Council, the Trustee-
ship Council, and the Atomic Energy Commission, which
includes summaries of proceedings, resolutions, and re-
ports of the various commissions and committees. Infor-
mation on securing subscriptions to the series may be
obtained from the international Documents Service.
August 25, 7952
301
Economic Development of Under-Developed Countries :
Integrated Economic Development and Commercial
Agreements (General Assembly Resolution 523 (VI) ).
Replies from governments of Member States in re-
sponse to General Assembly resolution 523 (VI) on
action taken concerning production, distribution and
prices of commodities and measures to combat infla-
tion. E/2243/Add. 1, June 12, 1952. 7 pp. mimeo;
and E/2243/Add. 2, June 17, 1952. 20 pp. mimeo.
Narcotic Druss. Resolutions of 22, 27 and 2:S May 1952.
E/2250, June 20, 19.'32. 8 pp. mimeo.
Plight of Survivors of Nazi Concentration Camps. Third
Progress Report by tbe Secretary-General. E/2259,
June 18, 1952. 7 pp. mimeo.
Economic Development of Under-Developed Countries.
Methods To Increase World Productivity. Working
Paper by the Secretary-General. E/2265, June 24,
1952. 25 pp. mimeo.
Second Progress Report of the Ad Hoc Committee on
Forced Labour to the Economic and Social Council
and to the Governing Body of the International
Labour Office. E/2276, E/AC.36/13, July 3, 1952.
15 pp. mimeo.
Social Activities. Housing and Town and Country Plan-
ning. (General Assembly Resolution 537 (VI)).
E/2284, July 3, 1952. 14 pp. mimeo.
Programme of Conferences nt Headquarters and Geneva.
Memorandum submitted by the Secretary-General to
the Economic and Social Council and the Trusteeship
Council. E/2298, T/1025, July 15, 1952. 5 pp. mimeo.
Draft Calendar of Conferences for 1953. Memorandum
by the Secretary-General. B/2299, July 15, 1952.
12 pp. mimeo.
Expanded Programme of Technical Assistance. Fifth Re-
port of the Technical Assistance Committee to the
Economic and Social Council. E/2304, July 18, 1952.
38 pp. mimeo.
Social Activities. Standards of Living. Report of the
Social Commission (Eighth Session). Housing and
Town and Country Planning (General Assembly Reso-
lution .537 (VI)). Report of the Social Committee.
E/2305, July 23, 1952. 12 pp. mimeo.
Economic and Social Council. Thirteenth Session, 30 .July
to 21 September (Geneva) and 18 to 21 December 1951
(Paris). Disposition of Agenda Items. E/INF/48,
May 26, 1952. 101 pp. mimeo.
Economic and Social Council, Thirteenth Session, 30 July
to 21 Septemlier (Geneva) and 18 to 21 December 1951
(Paris). Disposition of Agenda Items. Index to
Speeches. E/INF/48/Add. 1, June 5, 1952. 88 pp.
mimeo.
Implementation of Recommendations on Economic and
Social Matters. Note by the Secretary-General.
E/L. 403, July 8, 1952. 63 pp. mimeo.
International Labor Organization
Ad Hoc Committee on Forced Labor, Second session. Re-
plies from Governments to the Questionnaire on
Forced Labour. Reply received from the Federal
People's Republic of Yugoslavia. E/AC.36/ll/Add.
14, June 17, 1952. 8 pp. mimeo.
Security Council
Letter from the Permanent Representative of the Union
of Soviet Socialist Republics, President of the Se-
curity Council, Dated 30 June 1952. Annex I Inter-
national Association of Democratic Lawyers, Secre-
tariat : 70 Avenue Legrand, Brussels. Appeal to the
Security Council adopted unanimously by the Council
of the International Association of Democratic
Lawyers, at its session held in Vienna from 16 to 18
April 1952. S/2684/Add. 1, June 30, 1952. 53 pp.
mimeo.
Admiral Kirk Appointed Director
of Psychological Strategy Board
White House press release dated August 14
Admiral ALtn G. Kirk, former U.S. Ambassa-
dor to the U.S.S.R. has been named Director of the
Psychological Strategy Board, effective about Sep-
tember 15, 1952. He will succeed Raymond B.
Allen, former president of the University of
Washington, whose commitment to government
service was for limited duration. Mr. Allen will
continue to serve in the capacity of a senior con-
sultant until it becomes necessary for him to as-
sume his new duties as Chancellor of the Univer-
sity of California at Los Angeles.
The new executive of the Psychological Strategy
Board served as Ambassador to Belgium prior to
his Moscow assignment in 1949. He will resign the
position he now holds as chairman of the American
Committee for the Liberation of the Peoples of
Russia. A privately financed committee of citizens
with headquarters in New York City, this organi-
zation has worked to unify Russian and minority
emigre groups in their opposition to the Soviet.
Admiral Kirk has headed this Committee for the
past 7 months.
The Pisychological Strategy Board was created
in mid-1951 to coordinate foreign information and
psychological policies of the major departments
and agencies of government concerned with for-
eign affairs.
The Board consists of three members, the Under
Secretary of State, the Deputy Secretary of De-
fense, and the Director of Central Intelligence.
Not only does it provide policy guidance but it
likewise assists the Department of Defense in its
Ssychological warfare against the enemy in North
^orea. At the same time, it helps guide the exten-
sive information program of the Mutual Security
Administration abroad.
The Board confines its activity to broad policy
guidance and planning.
Mr. Allen succeeded Gordon Gray, former Sec-
retary of the Army, as head of the Board in Jan-
uary 1952.
THE FOREIGN SERVICE
Appointments
William W. Greulich and Richard T. Arnold as science
advisers to the Office of the High Commissioner for Ger-
man.v at Bonn.
Harald H. Nielsen as science attach^ to the Elmbassy
at Stockholm.
302
Depariment of State Bulletin
President Rejects Tariff Commission's Recommendations
on Garlic and Swiss Watches
The President on July 21 and August 14- sent
identical letters to Walter F. George, Chairman,
Committee on Finance, United States Senate, and
Rohert L. Doughton, Chairman, Committee on
Ways and Means, House of Representatives.
Texts of the letters follow:
Letter of July 21 Relating to Garlic Imports
White House press release dated July 21
On June 6, 1952, the Tariff Commission recom-
mended that I shoukl limit imports of foreign
garlic into the United States by establishing re-
strictive quotas, in order to protect our domestic
garlic industry from serious injury. The Tariff
Commission's recommendation, which was not
unanimous, was made under Section 7, the so-
called escape clause, of the Trade Agreements
Extension Act of 1951. The recommendation of
the Commission followed an investigation it was
required to make on petition. Section 7 provides
that in the event the action recommended by the
Tariff Commission is not implemented by the
President within sixty days, he shall submit a re-
port to the House Committee on Ways and Means
and to the Senate Committee on Finance, setting
out the reasons for not doing so.
After a careful study of the Tariff Commission's
report, I find myself unable to accept its recom-
mendations. For I can find in the report noth-
ing to justify the conclusion that the producers of
garlic in the United States are suffering serious
injury as a result of garlic imports.
The purpose of the Trade Agreements Act is
to allow the President to enter into agreements
with other countries to reduce trade barriers to
the mutual advantage of the United States and
the other countries concerned, and to make the
necessary changes in United States duty rates to
carry out such agreements. The so-called escape
clause is a standard provision in these agreements,
to be applied when and if it later becomes clear
that a particular tariff is causing or threatening
to cause serious injury to a domestic industry.
Obviously, it should be invoked only when it can
be shown that the conditions specified for its use
actually exist. The burden of proof rests with
those who contend that its use is needed.
In this case, it seems to me that the burden of
proof has not been sustained. The evidence is
tenuous and unpersuasive. The claim that Amer-
ican producers of garlic have been seriously in-
jured by imports is mere assertion. The view of
the minority Commissioners that no serious injury
has been sustained is far more persuasive than the
contentions of the majority. If the standards em-
ployed by the majority were to be applied gen-
erally to American imports, I am confident that
our trade agreements program would soon be im-
paired beyond all possible remedy, and gains of
the negotiated tariffs completely nullified.
Approximately 90 percent of our domestic gar-
lic is grown in California. About 90 j^ercent of
this California production is in three of the rich-
est agricultural counties in the country. Only
about 60 farmers in these counties grow garlic
regularly, and four of these 60 farmers grow half
of all the garlic produced in these counties.
Garlic farmers, for the most part, grow garlic
as an incidental part of a much bigger vegetable
and sugar beet business. For example, about 90
percent of the revenue of the four large garlic-
producing farms has come from products other
than garlic. Garlic is a convenient crop to plant
in rotation with these other crops.
These farmers have been putting less acreage
into garlic since the war, yet they have been get-
ting a higher yield per acre than before the war.
As a result, average garlic production in the five
post-war years 1947 to 1951 has been only slight-
ly lower than average garlic production from 1935
to 1939 — 158,000 sacks per year in the post-war
years against: 164,000 sacks per year in the pre-
war period. Year by year, there has been a nota-
ble variation in the acreage planted to garlic.
The price of garlic has been several times higher
in the last few years than it was before the war,
although not as high as the phenomenal peak
prices which existed during and immediately after
the war.
It is not known just how well or how badly
farmers have fared in the sale of their garlic.
August 25, 1952
303
The report of the majority observes that growers
have received from S14 to 10 cents a pound in re-
cent years, and states that at present levels of
wages and with a normal yield per acre growers
must receive 12 cents a pound in order for the
business to be "remunerative". But the report
does not say what the word "remunerative"
means — whether it includes a margin of profit,
and, if so, how large a margin.
Nor does the report have anything to say about
the concept of "normal yield" to which it refers.
The figures show that yields since the war have
been much higher than pre-war. Does this mean
that these yields have been "abnormal", and that
the garlic business has been i-emunerative, after
all 'i The report does not say.
What the report does indicate clearly is that
farmers who wei-e dissatisfied with their financial
return from garlic had ample opportunity to in-
crease their production of other crops. The re-
port also indicates that these other crops enjoyed
good markets. Thus, I cannot understand how
these farmers can be suffering "serious injury"
from imports. Therefore, I cannot accept the pro-
posal that the United States should limit the quan-
tities of foreign garlic which can be imported into
this country each year.
Foreign garlic which enters the United States
is now subject to a duty of % of a cent per pound.
This rate was IV^ cents a pound under the Hawley-
Smoot Tariff Act of 1930, but under the reciprocal
trade agreements program, the United States
agreed to reduce the rate on garlic and other prod-
ucts as part of a larger bargain in which other
countries also reduced, rates on various products
which American producers were interested in sell-
ing to them.
A quantity of garlic is imported from Mexico,
and smaller amounts from Chile and Argentina.
Since most of this garlic is marketed during the
first half of the year, before our own producers
have harvested their crops, these imports appar-
ently are not of particular concern to our domestic
growers. Moreover, the Mexican imports are of
lower quality and do not command as high a price
as our domestic garlic.
The competition which does concern our domes-
tic producers comes from Italy. High quality
Italian garlic has been entering our East Coast
ports and Puerto Rico in increasing volume since
the end of the war. Because of transportation
costs, little of this garlic moves very far inland;
for example, no Italian garlic was sold in Chicago
during the year 1951. Furthermore, the markets
in which Italian garlic has been selling are mar-
kets in which demand has been expanding. The
new garlic-dehydrating industry, which has devel-
oped rapidly in California and which now absorbs
over a third of our domestic production, prefers
the fresh domestic product to the dried imported
variety. As a result, our domestic garlic growers
face virtually no competition in marketing that
portion of their crop. Nevertheless, it is true that
in the East Coast and Puerto Rico markets the
domestic producers are meeting increasing com-
petition.
The Trade Agreements Act provides no guaran-
tee to American producers against increased com-
petition from imports. All that the escape clause
provides for is protection against "serious injury".
There is no evidence in this case that these in-
creased imports are causing serious injury to
American producers of garlic and that resort to
an escape clause action would be justified.
On the contrary, there are many reasons for
welcoming the increase in imports of Italian garlic.
The United States has a stake in the strength and
prosperity of Italy. We have recognized that
fact in the aid we have given to Italy under the
European Recovery Program and under the Mu-
tual Security Act.
Italy has done a good job with that aid. Her
production has increased. The strength of her
Communist Party has declined. But Italy still
needs to find ways of earning more dollars, and
she is trying earnestly, and with some success, to
earn them. Every obstacle the United States puts
in her way in these efforts is a step harmful to our
mutual security and costly in the end to the con-
sumer and American taxpayer.
Yet, lately our laws have forced us to put a
good many obstacles of this sort in Italy's way.
We recently raised our tariff on hats and hatters
furs, which the Italians sold us in considerable
quantity. We recently put a large import fee on
foreign almonds, most of which come from Italy.
Our cheese amendment to the Defense Production
Act, which restricts imports of foi'eign cheeses,
has been hurting Italy more than any other single
country, and Italy sees more trouble ahead in some
of the escape clause applications which the Tariff
Commission is now studying. All this seems to
I'un contrary to a sensible policy toward Italian
im]Jorts.
As jiointed out earlier, the Tai'iff Commission
proceedings on garlic imports have taken place
pursuant to the escape clause provisions of Sec-
tion 7 of the Trade Agreements Extension Act of
1951. Wliile tlie idea of an escape clause in the
trade agreements program is not new, it was not
written into the law until the Trade Agreements
Extension Act of 1951 was enacted. When I
signed that Act, I was disturbed by the protec-
tionist overtones of this provision and a number
of other provisions which it contained. I said
this at the time I signed the Act.
Those misgivings now seem to have been justi-
fied. It is my understanding that the Tariff Com-
mission has been flooded with escape clause
applications — applications on blue-mold cheese,
motorcycles, glaced cherries, clothespins, and a
host of other products. Each one of these, of
course, will be for determination on its merits —
with the principles and objectives of the Trade
304
Deparfmenf of Stafe Bulletin
Agreements Act as the fundamental guide. In
this connection, however, it must be borne in mind
that the Trade Agreements Act is for the promo-
tion of foreign trade, not for its contraction. It
was enacted by the Congress "for the purpose of
expanding foreign markets for the products of
the United States ... by affording corre-
sponding market opportunities for foreign prod-
ucts in the United States . . ." Escape clauses,
peril points, and the like, must be realistically
administered in the light of this general objective,
despite protectionist pressures that may be brought
to bear against the Commission.
This is all the more important in view of the
international crisis we face today. Normal eco-
nomic life in the form of the exchange of goods,
is an essential requirement of friendly interna-
tional relations. If we are restrictive in our trade
with other countries, they must find other areas
with which to trade. Cooperation in the economic
field is fundamental to other forms of cooperation.
Just as important is the fact that a way must be
found for these countries to carry their share of
defense costs without continued reliance on our
aid. It is to their own benefit — and to the benefit
of the American taxpayer — that we find ways and
continue to improve them, as quickly as possible, to
the end that substantial foreign imports may be-
come a substitute for direct foreign aid. In the
total economy of the United States and, it seems
to me, in the economy of the several domestic
producers, garlic plays a minor part; to restrict
imports of garlic under the circumstances por-
trayed in this repoi't would violate the spirit as
well as the intent of our trade agreements pro-
gram.
Very sincerely yours,
Harry S. Truman
Letter of August 14 Relating to Swiss Watches
White House press release dated August 14
The Tariff Commission has sent me its report
and recommendations on an investigation con-
ducted by the Commission concerning the tariff
on watches, watch movements, watch parts and
watch cases. The Commission conducted this in-
vestigation under section 7 of the Trade Agree-
ments Extension Act of 1951, the so-called "escape
clause", which provides that restrictions on im-
ports may be imposed, in certain circumstances,
when the imports are causing or threatening seri-
ous injury to a domestic industry. Under the
provisions of that Act, I may accept or reject the
recommendations of the Tariff Commission. If
I do not accept its recommendations, the law pro-
vides that I shall report to your Committee the
reasons for my action.
A majority of the Commission concluded that
American producers of watch movements are
threatened with serious injury as a result of in-
creased imports and recommended that the tariff'
on such imports be raised. I have examined the
evidence which they developed in support of their
position, and I am unable to agree with their
conclusion. Kather, I am of the opinion that the
weight of evidence does not support the claim that
our domestic watch industry has been seriously
injured, or that there is a threat of serious injury.
The consequences of imposing the proposed in-
crease in the tariff on watches would be so serious
that such action should not be taken in the absence
of a clearly demonstrated need. Consequently, I
have concluded that I should not put into effect the
adjustments recommended by the majority of the
Coirmiission.
In 1936, Switzerland and the United States en-
tered into a reciprocal trade agreement under
which each country agreed to reduce its tariff's on
a range of products which the other was interested
in exporting. Switzerland reduced her tariff's on
such products as lard, prunes, and office machines,
products which American producers sell in sig-
nii^cant quantities to the Swiss. On our part, the
most important concession we made was to reduce
our duties on various kinds of watch movements.
Despite the reduction, our rates of duty on watch
movements have still been substantial. Based on
1950 imports, for example, they were equivalent
to an ad valorem rate of approximately 37 jiercent.
Under the rates established by the 1936 agree-
ment, there has been a large increase in the number
of watch movements imported from Switzerland.
This increase in imports is the main ground on
which domestic watch industry based its claims
before the Tariff Commission that it is suffering
or is threatened with serious injury.
The Tariff Commission reported its findings to
me in a letter of June 14, 1952. Three Commis-
sioners found that the domestic industry is suffer-
ing serious in j ury. The other three Commissioners
found that the industry has suffered no such in-
jury. There is therefore no majority finding on
the question of whether the industry is now suffer-
ing serious injury. As to whether a threat of
serious injury exists, two Commissioners found
that there is no such threat, while the four others
found that such a threat does exist. To avoid this
threat of serious injury, the latter recommend that
certain rates of duty affecting the most significant
items among our watch imports be increased by
50 percent but in no case exceeding the level of
the 1930 rates.
The Tariff Commission's report on the case is a
full report, and it provides an accurate basis for
judging the present state of the watch industiy.
The data show that consumption of watches in the
United States has nearly quadrupled in the 16
years during which the concessions have been in
effect. In that time, a mass demand for watches
has been developed, both for relatively inexpensive
watches and for high-quality, expensively-cased
Aogusf 25, 1952
305
watches. Men have switched from pocket watches
to wrist watches; women buy smaller watches than
formerly; and both men and women have shown
increasing preference for watches of high jewel
count.
With the greatly increased consumption of
watches has gone a radical change in the methods
of merchandising. Department-store, mail-order
and drugstore sales of watches are now far more
important. Mark-ups are smaller.
The initiative of the American importers of
Swiss watch movements has had a great deal to
do with these trends, and the importers have ob-
tained the largest share in the increased consump-
tion. But the stronger demand for watches has
benefited domestic producers also. Their produc-
tion of jeweled watches had nearly doubled in
1951 as compared with annual average for the
period 1936-40. The output of the pin-lever in-
dustry has been maintained by larger wrist watch
and clock production in spite of declining produc-
tion of pocket watches. Domestic watchmakers
have been employing more workers than before,
and over 90 percent of them work in the manu-
facture of watches and clocks. Wages in the in-
dustry compare favorably with wages in all manu-
facturing industries. In the period 1946-50,
profits of jeweled-watch manufacturers before
taxes averaged around 12 percent of their net
worth and profits of pin-lever watch manufac-
turers averaged from 10 to 12 percent of their net
worth.
One may well ask how, in this situation, three
Commissioners found serious injury. The an-
swer seems to lie almost entirely in the signifi-
cance which they attached to the fact that the ex-
pansion of domestic jeweled watch production has
not kept pace with expansion of imports, so that
the industry today enjoys a smaller share of the
larger market. Because of the dangerous prece-
dent which would be involved in accepting this
share doctrine as the determinant of serious in-
jury, I should like to emphasize its far-reaching
implications. Serious injury, by any definition,
means a loss to someone. Declining production,
lower employment, lower wages, lower returns or
losses in capital invested — any of those things
might indicate some degree of injury. But the
share doctrine goes much further. In fact, it finds
that serious injury exists when the domestic indus-
try fails to gain something it never had, even
though the industry may be prospering by all of
the customary standards of levels of production,
profits, wages and employment. This is the doc-
trine on which the claim of injury by three Com-
missioners appears to be based.
Anotlier development in the watch industry on
which the three Commissioners' finding was based
is the shift from production of watches with 17
jewels or less to production of watches with more
than 17 jewels. To some of the Commissioners,
this shift is an evidence of injury, even though the
industry profited from its shift to greater produc-
tion of the more expensive watches containing 17
jewels or more. It is difficult to see how any
serious injury is evidenced by a shift from the pro-
duction of one product to the production of an-
other which can be produced with equal or greater
profit by the same labor and equipment. Here,
the shift is not even from one kind of product to
another kind, but from 7 or 15 jewel watches to
17 or 21 jewel watches. The same man sitting at
the same bench and using the same tools can make
both. Such a shift, if it is a shift, is no evidence
of serious injury to anyone. The escape clause
was not intended to give domestic industry free-
dom to ignore the changing pattern of domestic
demand or to provide an escape from normal,
healthy competition.
In this connection, I would like to emphasize
that the fundamental purpose of the trade-agree-
ments program is to expand exports and imports.
Under present world conditions, the limiting fac-
tor on the expansion of United States exports is a
general lack of dollars in the hands of the people
who are anxious to buy United States goods.
Expansion of our imports is thei'efore an objective
of high priority and the Trade Agreements Act
is an important means to that end. In order to
provide against unfair burdens on any particular
segment of the economy, provision has been made
for safeguarding domestic industry against seri-
ous injury as a result of trade-agi-eement conces-
sions. However, the primary purpose of the
program remains the expansion of foreign trade
in the national interest. It was never mtended
that the program be limited by a requirement that
domestic production must double whenever im-
ports double.
Various arguments have been adduced in sup-
port of the view that the domestic watch making
industry is threatened with serious injury even
though such injury has not yet been sustained.
It appears to me that such a threat has not been
shown with anything like the degree of certainty
that would justify invoking the escape clause.
To be sure, the record of domestic watch pro-
ducers has not been without its ups and downs in
this post-war period. When the fighting broke
out in Korea, the watch trade stocked up heavily.
Eemembering the scarcities of World War II they
built up inventories of watches and watch move-
ments. This provided a temporary bonanza for
the watch industry but it has been followed by
the inevitable reaction. There have been a good
many promotion sales aimed at working off exist-
ing inventories. This kind of development is
typical of business in products such as watches.
Very much the same thing liappened in items such
as radios and television sets, kitchen equipment,
and so forth. It did not seem to two of the Com-
missioners and it does not seem to me that this
temporary adjustment affords any occasion for
great alarm on our part.
306
Department of Stale Bulletin
One aspect of the watch situation which the
Tariff Commission report points out is that de-
fense contracts are supplying some business which
may not be available in the future. There appears,
however, to be no reason for special concern on
this account in the watch industry. The situation
is one which faces the whole of the American
economy in some degree. Moi'eover, as far as
watch manufacturers are concerned, their defense
work has not i-equired much shift out of watches
into other products. In 1951, production of items
other than watches and clocks accounted for less
than 6 percent of employment in the jeweled watch
industry and for less than 9 percent in the pin-
lever watch industry.
All of these considerations support the conclu-
sion of the minority of the Tariff Commission
that no serious injury or threat thereof has been
shown. This, in itself, would be a sufficient basis
for rejecting the recommendation for increased
tariff protection. As a matter of fact, however,
there are additional cogent reasons of an inter-
national character which also argue against ac-
ceptance of the recommendation.
The escape clauses were included in our inter-
national tariff agreements largely because these
clauses were desired by the United States. At the
time, considerable skepticism was expressed re-
garding the use we might make of the clause.
Apprehension abroad concerning the course of
United States trade policy has been heightened
within the past year or so by various events. We
adopted and extended the amendment to the De-
fense Production Act requiring restrictions on
the importation of cheese, and we have used Sec-
tion 22 of the Agricultural Adjustment Act to
impose quotas on almonds. There has been agita-
tion for countervailing duties and for new tariffs.
These events do not mean we must never use the
escape clause again. They do mean, however, that
if we wish to avoid a serious loss of confidence in
our leadership, any new restrictive action on our
part must be clearly justified.
The impact which the tariff increase now pro-
posed would have on Swiss-American relations
would be extremely serious. United States im-
ports from Switzerland in 1951 totalled only $131
million of which over 50 percent were watches.
Thus, tariff action on watches would strike at
Switzerland's most important export to us, affect-
ing adversely an industry tailored in large part
to the United States market and employing one
out of every ten industrial workers in the country.
In addition, the industry is concentrated in a part
of Switzerland where there is relatively little
other industry and the possibilities for transfer
of employment small.
During 1951, Swiss imports from the United
States totalled over $216 million and were com-
prised of a long and varied list of commodities
such as wheat, cotton, tobacco, automobiles,
machinery, office appliances, and pharmaceuticals.
United States exports to Switzerland are therefore
almost double our imports from Switzerland and
the Swiss market is one of the very few that re-
mains free of restrictions against dollar imports.
If, in these circumstances, we should erect new
barriers against the importation of Swiss watches,
we would at the same time be erecting barriers
against our own export markets. More than that,
we would be striking a heavy blow at our whole
effort to increase international trade and permit
friendly nations to earn their own dollars and pay
their own way in the world.
In reaching my decision on this matter, I have
been mindful of the importance of maintaining a
domestic watch industry adequate to meet our de-
fense needs. For the reasons I have indicated, T
believe we can expect a healthy, vigorous watch
industry to be maintained in this country — an in-
dustry that will be adequate for defense needs.
And, if special measures should be necessary to
preserve the watch industry for defense purposes,
it is by no means certain that an increase in import
duties constitutes an effective approach to that
objective.
For all these reasons, I have concluded that I
shall not adopt the recommendations of the
majority of the Tariff' Commission.
Sincerely yours,
Harry S. Truman
Check List of Department of State
Press Releases: Aug. 11-15, 1952
Releases may be obtained from the Office of the
Special Assistant for Press Relations, Department
of .State, Washinston, 25, D. C.
Press release issued prior to Aug. 11 which ap-
pears in this issue of the Bulletin Is No. 620 of
Aug. 7.
Subject
Bolivia: Letter of credence (rewrite)
Military equipment to Israel
Acheson : Coal, steel community
Exchange of persons
Acheson : Anzus Council meeting
Acheson: U.S. note on Austrian treaty
Acheson : John Hvasta case
Russell : Foreign policy problems
Text of latest U.S. note on Austria
Escapees from Iron Curtain
Trujillo inauguration
Copyright convention (Unesco)
Anthropological, ethnological cong.
Exchange of persons
Newsmen selected for awards
Austrian treaty rejected by Soviets
t Held for a later issue of the Bulletin.
* Not printed.
No.
Date
030
8/11
t631
8/11
632
8/11
•633
8/11
634
S/12
635
8/12
636
8/12
637
8/12
638
8/12
•639
8/13
•640
8/14
641
S/15
642
8/15
•643
8/15
*644
8/15
645
8/15
The U. S. in the U. N.
A weekly feature, does not appear in this issue.
August 25, 1952
307
August 25, 1952 Index
American Principles
Democracy for undecided people (Russell) . . 279
American Republics
Letter of credence (Bolivia) 285
ANZUS Council
Secretary reviews results of 1st Anzus Council
meeting 284
Asia
KOREA: Communiques regarding Korea to the
Security Council 301
Communism
Democracy for undecided people (Russell) . . 279
Disarmament
U.S., U.K., and France propose plan to limit arms
by type and quantity (Cohen) 290
U.S. views on dealing with germ warfare elimi-
nation as a separate problem (Cohen) . . 294
Europe
AUSTRIA :
Soviets reject abbreviated treaty for Austria . 284
U.S. sends third note to Soviets on Austrian
State Treaty (Acheson statement, text of
note) 283
CZECHOSLOVAKIA: Secretary Achesou com-
ments on Hvasta case 285
GERMANY : Elections Commission submits final
report to U.N. Secretary-General (letter and
text of report) 298
Inauguration of European coal and steel com-
munity (Acheson) 285
U.K.: Final report of Anglo-American council
on productivity 285
U.S., U.K., France propose plan to limit arms by
type and quantity (Cohen) 290
YUGOSLAVIA: Msa concludes guaranty agree-
ment 287
Foreign .Service
Appointment of officers 302
International Meetings
Congress of Anthropological and Ethnological
Sciences 301
Review of Ecosoc's 14th session (Lubin) . . . 288
U.S. DELEGATIONS: Conference on Universal
Copyright Convention (Unesco) 293
Mutual Aid and Defense
Inauguration of European coal and steel com-
munity (Acheson) 285
Secretary reviews results of 1st Anzus Council
meeting 284
Mutual Security Agency
Pinal report of Anglo-American council on
productivity 285
Msa concludes guaranty agreement with Yugo-
slavia 287
Vol. XXVII, No. 687
Presidential Documents
CORRESPONDENCE: President rejects Tariff
Commission's recommendations on garlic
and Swiss watches 303
Protection of U.S. Nationals and Property
Secretary Acheson comments on Hvasta case . . 285
State, Department of
APPOINTMENTS: Admiral Kirk appointed di-
rector of Psychological Strategy Board . . 302
Trade
President rejects Tariff Commission's recom-
mendations on garlic and Swiss watches . . 303
Treaty Information
Msa concludes guaranty agreement with Yugo-
slavia 287
Soviets reject abbreviated treaty for Austria . . 284
U.S. sends third note to Soviets on Austrian
State Treaty (Acheson's statement, text of
note) 283
United Nations
Communiques regarding Korea to the Security
Council 301
Current U.N. documents; a selected bibliog-
raphy 301
ECOSOC: Review of Ecosoc's 14th session
(Lubin) 288
German elections commission submits final re-
port to Secretary-General (letter and text
of report) 298
TRUSTEESHIP COUNCIL: Ambassador Muccio
nominated to Trusteeship Council .... 301
UNESCO: Conference on Universal Copyright
Convention 293
U.S. views on dealing with germ warfare elimi-
nation as a separate problem (Cohen) . . 294
Name Index
Acheson, Secretary 283, 284, 285
Ainold, Richard T 302
Cohen, Benjamin V 290, 294
Evans, Luther 293
Penton, William N 301
Greulich, William W 302
Hvasta, John 285
Kirk, Admiral 302
Lubin, Isador 288
Muccio, John J 301
Nielsen, Harald H 302
Russell, Francis H 279
Sayre, Francis B 301
Truman, President 303
U. S. GOVERNMENT PRINTINS OFFICEi I9S2
4--
73^
^yAe^ -iJeha^menl/ /(w trtaie^
ol. XXVII, No. 688
September 1, 1952
.^AeN"^ o*.
THE SOVIET HARASSMENT CAMPAIGN IN GER-
MANY: Correspondence Between Allied and Soviet
Representatives 311
CREATION OF MUTUAL UNDERSTANDING • by
Joseph B. Phillips 324
PROVISIONAL AGENDA FOR SEVENTH GENERAL
ASSEMBLY 334
LATEST SOVIET NOTE ON THE AUSTRIAN STATE
TREATY:
Department's Critique 321
Text of the Soviet Note 322
For index see back covo"
,^WW» oj^
'■*TKa o*
*.^^^*. bulletin
Vol. XXVII, No. 688 • Publication 4687
September 1, 1952
For sale by the Superintendent of Documents
U.S. Goverament Printing Office
Wasliington 25, D.C.
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Note: Contents of this publication are not
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edited in the Division of Publications,
Office of Public Affairs, provides the
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selected press releases on foreign pol-
icy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.
Publications of the Department, as
well as legislative material in the field
of interruitional relations, are listed
currently.
U. S. SUPERINTENDENT OF DOCUMENTS
SEP 19 1952
The Soviet Harassment Campaign in Germany
CORRESPONDENCE BETWEEN ALLIED AND SOVIET REPRESENTATIVES
The folloxoing documents relate to the campaign
of harassment which Soviet authorities and the
Communist regime in the Soviet area of occupa-
tion of Germany have heen conducting in recent
months. They concern incidents which occurred
during the period from April 29, when Soviet
fighter planes attacked a French civil aircraft, to
July S, when Dr. Walter Linse ivas kidnapped
from the American Sector of Berlin. (Only the
first protest made hy American authorities in the
Linse case is printed here.)
General Coleman to General Chuikov, April 29
A French aircraft flying between Frankfort and
Berlin was attacked this morning, 29th April, by
two Soviet fighters in the southern air corridor im-
mediately above the city of Konnern at an altitude
of 7,000 feet.
The Soviet fighters fired three times on the
French aircraft with both cannon and machine
guns. The aircraft carries several shell holes and
the marks of numerous machine gun bullets. Two
passengers were severely injured. The material
damage is considerable, and it was only with the
greatest difficulty that the aircraft made its way
to Berlin.
In the name of their respective High Commis-
sioners and in their own, the British, United States
and French Commandants in Berlin protest ener-
getically against this unwarrantable attack by
Soviet fighters on a French aircraft. This attack
was all the more outrageous since the aircraft was,
in conformity with quadripartite agreements in
force, flying within the air corridor.
The three High Commissioners and the British,
United States and French Commandants in Ber-
lin, request that an investigation be undertaken
immediately by the Soviet authorities, that those
responsible for this most serious incident be pun-
ished, and that due reparation be made for mate-
rial damage to persons and property.
General Trusov to Colonel Meyer, April 29
I have been informed that on the 29th April an
aircraft of the type B.54 left the air corridor north
of the city of Gotha and reached the city of Merse-
burg, situated 35 Km. south-east of the line of the
air corridor.
Having detected the aircraft, the Soviet fighters
took off at 1032 hours and intercepted it at an
altitude of 2,500 m. The aircraft did not reply to
Editor's Note. The salutation and complimentary close
have been omitted from the letter.? and the date has been
incorporated in the heading. Following is a list of the
persons principally concerned :
Brig. Gen. Pierre L. Carolet, French Commandant in
Berlin
General of the Army Vassily I. Chuikov, Commander-in-
Chief of Soviet Occupation Forces ; Chairman of the
Soviet Control Commission for Germany
Maj. Gen. C. F. C. Coleman, British Commandant in
Berlin ; Chairman of Allied Kommandatura for April
19.52
S. T. S. Dengin, Berlin representative of the Soviet Control
Commission in Germany
Sir Ivone Kirlipatrick, British High Commissioner for
Germany
Andr4 Fran<;ois-Poncet, French High Commissioner for
Germany
Maj. Gen. Thomas T. Handy, Commander of U.S. troops
in Germany; novi' U.S. Commander-in-Chief, Europe
John J. McCloy, U.S. High Commissioner for Germany
until his resignation July 31
Maj. Gen. Lemuel Mathewson, U.S. Commandant in Berlin
Colonel Meyer, Deputy Chief of StafC of the French Oc-
cupation Forces
Samuel Reber, Director of Political Affairs, Hicog ;
Acting High Commissioner during Mr. McCloy's absence
from Bonn
Maj. Gen. Nikolai Mikhailovich Trusov (sometimes trans-
literated Trussov, Trousov), Assistant Chief of Staff,
Soviet occupation troops
Sources of the documents include telegrams from Berlin
and Bonn, press releases issued by the Otfice of the U.S.
High Commissioner for Germany and by the Berlin Ele-
ment (if HicoG, anil minutes of Allied Kommandatura
meetings. Translations of Soviet documents are un-
official.
September 1, J952
311
"An Indication of the Threat Technique"
Now, I have spoken about the weight of the Com-
munist propaganda, and It moves, of course, in every
form. It is a blandishment at one time, and It Is a
threat the next.
The recent harassments in Berlin are an indica-
tion of the threat technique. Recently the propa-
ganda that is flooding the west. West Germany, is
mainly directed against the United States, and the
vituperative character, the vilifying nature of it
really is astounding. It seems to be more and more
directed toward us.
It reached its highest form just before the signa-
ture of these conventions, and I suppose it will be
intensified and continue to be intensified up until the
ratification.
— John J. McCloy, U.S. High Commissioner
for Germany, testifying before the Senate
Foreign Relations Committee on the Ger-
man Contractual Agreements.
the sip;nals ordering it to land but continued deeper
into D. D. E. [^Deutsche Demokratische Repuhlik]
territory in the direction of the city of Leipzig.
In order to force it to land, one of the Soviet
pilots gave a warning burst toward the front of
the aircraft. After that the aircraft went into
cloud and disappeared. Later observation re-
vealed that it had landed at 1102 hours on Tempel-
hof airfield. It was later possible to ascertain
that this aircraft belonged to a French air
company.
I protest against the brutal violation of the air
traffic rules above the territory of the D.D.R. and
I insist that measures be taken to prevent such
happenings occurring again in the future.
General Coleman to General Chuikov, April 30
Tlie attention of the three High Commissioners
and of the British, United States and French
Commandants in Berlin has been drawn to a
letter which your Assistant Chief-of-Staff ad-
dressed on 29th April to the French Assistant
Chief-of-Staff, in an apparent effort to justify
yesterday morning's outrageous attack on a
French aircraft.
All the evidence confirms that the facts of the
incident are as stated in the letter which was ad-
dressed to you yesterday; that the aircraft was
repeatedly tired on by Soviet fighters and severely
damaged ; and that it is not the case that the air-
craft was outside the air corridor when it was at-
tacked. Quite apart from these questions of fact,
to fire in any circumstances, even by way of warn-
ing, on an unarmed aircraft in time of peace,
wherever that aircraft may be, is entirely inad-
missible and contrary to all standards of civilized
behavior.
In the name of their respective High Commis-
sioners, and in their own, the British, United
States and French Commandants in Berlin must
therefore reiterate their vehement protest against
this unwarrantable and brutal attack. They must
also reiterate their request for an immediate in-
vestigation, for the punishment of those respon-
sible and for due reparation for the damage
caused.
The three High Commissioners and the British,
United States and French Commandants in Berlin
await an early communication from you.
General Mathewson to General Chuil(Ov, May 8
The three High Commissioners and the United
States, French and British Commandants in Ber-
lin have decided to ask the United States, French
and British representatives on the Air Safety
Center ^ to determine the material damage caused
by Soviet aircraft to the French aircraft, (DC-4,
F.B.E.L.I.) on the 29th of April.
It would be appreciated if you would give the
necessary instructions to the Soviet representa-
tive to take part in this inquiry with his American,
French and British colleagues.
In order that the aircraft may be repaired and
return to France as soon as possible, the inquiry
will take place on Friday, the 9th of May, at 3 : 00
p.m. at Tempelhof airfield where the aircraft in
question is located.
General Mathewson to Mr. Dengin, May 9
At approximately 5 : 30 p.m. on May 8, 1952, two
United States military vehicles containing United
States military personnel were refused permission
by the Soviet authorities at Babelsberg to proceed
along the autobahn to Helmstedt. At approxi-
mately 9 : 30 a.m. on May 9, 1952, a British mili-
tary vehicle containing British military personnel
was also refused clearance by the Soviet authori-
ties at Babelsberg. The latter have continued
despite repeated requests to refuse clearance to the
British and United States military vehicles in
question. The members of the United States and
British forces concerned were documented in ac-
cordance with the procedure established in the
early days of the Allied occupation of Germany
and accepted by all concerned ever since.
The three High Commissioners and the United
States, French and British Commandants in Ber-
lin protest strongly against this vinwarranted ac-
tion of the Soviet authorities in refusing to permit
the passage of the members of the Allied occupa-
tion forces between Berlin and the Western zones
of occupation. This restriction on communica-
tions between Berlin and the zones constitutes a
violation of the quadripartite agreements of May
4, 1949 ^ and June 20, 1949 " concerning the free-
dom of communications with Berlin.
' A quadripartite organization functioning in Berlin and
responsible, chiefly, for settling the problems of air traffic
between Berlin and the Western zones.
' BtriXETiN of May 15, 1949, p. 631.
' Ibid., July 4, 1949, p. 857.
312
Department of State Bulletin
The three High Commissioners and the United
States, Frencli and British Commandants in Ber-
lin demand that immediate steps be taken to re-
move this restriction and to restore the right of
free passage for all Allied military vehicles and
personnel between Berlin and the Western zones
of occupation.
General Mathewson to General Chuikov, May 14
As indicated in the letter dated May 8th which
I addressed to you on behalf of the three High
Commissioners and the United States, French, and
British Commandants, United States, French, and
British representatives were instructed to deter-
mine the material damage caused by Soviet fight-
ers to the French aircraft (DC-4, F.B.E.L.I.) on
April 29th. You were invited to appoint a Soviet
representative to take part in an inquiry on the
9th of May. Since a Soviet representative failed
to appear at the appointed time, the three other
representatives had no choice but to proceed with
the inquiry.
In the meanwhile no reply has been received
from you to the three letters addressed to you on
April 29th, April 30th, and May 8th; and no
explanation has been offei'ed of this unwarrantable
attack on a French aircraft. The three High Com-
missioners and the United States, French, and
British Commandants can only regard j'our silence
as an imi^licit acknowledgment of the full re-
sponsibility of the Soviet authorities for this out-
rageous incident. They assume therefore that the
Soviet Govermnent will be prepared to meet the
claims for material damage caused to persons and
propei'ty which will be forwarded in due course.
General Handy to General Chuikov, May 29
On May 14, 1952, your Deputy Chief of Staff,
General Trusov, forwarded a letter* to General
Williams of my staff alleging that United States
Military authorities carried out illegal attempts
to organize armed patrol of the Berlin-Marien-
born autobahn. This letter was an obvious at-
tempt to justify repeated acts, shortly before that
date, by members of the Soviet forces, of unwar-
ranted interference with U.S. Army vehicles in
their performance of routine functions on the
Berlin-Marienborn autobahn.
You are well aware that the U.S. Army military
police are strictly military, are an integral part
of the U.S. Army, and are not under the control
of any outside agency. Further, yoix know that
these orthodox military police vehicles have been
performing their regularly assigned and routine
functions along this highway for the past several
years, and that during this period no important
alterations have been made in either their mission
or their basic items of equipment and armament.
* Not printed.
In view of your knowledge of these facts, I con-
cluded that these repeated acts of interference
were malicious as well as completely without justi-
fication. When the interference ceased, however,
I assumed that you had reconsidered and ordered
these indefensible actions stopped. Accordingly,
I did not consider it necessary to address you of-
ficially.
Now, the same type of interference has been
resumed. This action confirms and reinforces my
original conclusions and indicates in addition an
ill-considered disregard for necessary internal
operations of occupation forces. Such interfer-
ence with my forces in the execution of their in-
structions cannot be condoned. I insist, therefore,
that you initiate without delay whatever action
is necessary to insure that members of your com-
mand cease to interfere with the normal, routine
military operations of my forces.
General Mathewson to Mr. Dengin, June 4
On 4 June 1952 at 0930 hours, U.S. Military
Police in an Army vehicle, while engaged in
routine official patrol duty on Machnower Strasse
where it crosses the U.S. sector/Soviet zone bound-
ary, were fired upon by one of the Volkspolizei
on duty at the checkpoint without warning or
provocation whatsoever. The bullet penetrated
the vehicle, wounded the driver in the leg, and
passed into the motor, which it damaged consid-
erably.
I protest in the strongest terms this latest ex-
ample of barbaric and undisciplined violence by
the police under Soviet control. I have had simi-
lar occasion in the past to remind you that the
Volkspolizei have no jurisdiction over members
of the U.S. Occupation Forces, and I renew that
reminder now. Also on more than one occasion
in the past I have denounced the use by East zone
officials of naked and extreme force entirely dis-
proportionate, from any civilized viewpoint, to
the alleged misdemeanor it was intended to cor-
i-ect, and I renew that denunciation.
I expect immediate assurances from you that the
guilty policeman has been severely punished, and
that such deplorable incidents will not occur in
the future.
Generals Carolet, Coleman, and Mathewson
to Mr. Dengin, June 6
It was reported in the press of 5 June that the
areas of West Staaken and Kauchfangswerder
have been incorporated in the Soviet zone of occu-
pation and that access to them requires the same
documentation as access to other parts of the So-
viet zone.
As you are aware, the district of West Staaken
formed part of the British sector of Berlin under
the European Advisory Commission Protocol.
It was handed over to the administration of the
September 1, J 952
313
Noucr Gutshof-Frohnau
West Sraakcn
Babel stxrrg
Steinstucken
KIcin-Machnow
Lichtcrft'lJe-Wcst
Irner'^ectfon of
Berlinersirasse and
Schwellmerstrassc
Rauchfangswerder
GREATER BERLIH
Sectors of Occupation
Soviet authorities in Berlin under an agreement
which was ratified by tlie Allied Kommandatura
on 27 September 1945. As from 1 February 1951
it came under the effective administration of
Bezirk Mitte.
Rauchfangswerder, part of Bezirk Koepenick,
formed part of the Soviet sector under the Euro-
pean Advisory Commission Protocol.
It is hoped that the reports in the press do not
reflect action taken or intended by the Soviet
authorities, although the facts suggest that they
are not devoid of truth at least as regards West
Staaken. Such action would be a bi-each of the
intergovernmental agreements on the occupation
of Berlin, which cannot be modified by the Soviet
authorities acting alone.
General Chuikov to Mr. Reber, June 9
In connection with your letter of May 29, 1952 °
regarding the question of patrolling the autobahn
Berlin-Marienborn I must state as follows :
The Soviet occupation authorities in Germany
have frequently called attention of the American
authorities to the inadmissible violations of the
established regulatioiLS of the movement of the
American troops along the communication lines,
which are under the control of the Soviet author-
ities, between Berlin and Western Germany.
"Bulletin of .June 9, 1952, p. 902.
printed is erroneously dated May 30.)
(Tlie letter as
However, claiming these violations are continu-
ing [sic]. Specifically several attempts have been
made by the American and British authorities to
establish army patrolling on the Berlin-Marien-
born autobahn. Despite warning made to the
representatives of the ^Vmerican and British troops
on the spot and also despite a protest by Major-
General Trusov which was addressed on May 13,
1952 " to the deputy chiefs of staff of the American
and British occupation forces, no measure to ter-
minate these attempts to patrol have been taken
by the command of these forces.
These actions are contrary to the agreement
reached at the conference at the headquarters of
the Soviet occupation forces on June 29, 1945
which was attended from the American side by
General Clay and from the British side by General
Week. You must be aware of the fact that it was
decided at the conference that security measures,
commandants service (military police functions),
and regulations on the Berlin-Marienborn auto-
bahn would be provided by the Soviet troops. No
military patrolling by the western occupation
powers on the autobahn was contemplated.
In connection with the above I decline your
groundless protest and insist that you take meas-
ures to discontinue immediately all attempts of
armed patrolling of the Berlin-Marienborn auto-
bahn.
I must state that the Soviet military authorities
' Not printed.
314
Department of State Bulletin
-will also in the future take all measures stemming
from the responsibilities of the Soviet forces to
provide security commandants services (military
police functions) and regulations for the auto-
bahn.
Mr. Dengin to General Mathewson, June 11
I hereby acknowledge receipt of your letter of
4 June 1952.
As a result of a thorough investigation made by
me, the following has been established :
On 4 June 1952, about 9 o'clock in the morning,
an American automobile, driving at high speed,
disregarded signposts at the outer boundaries of
Berlin and, although not in possession of neces-
sary authorization, penetrated into territory of
the German Democratic Republic in the area of
Klein-Machnow.
In reply to a request to stop, military person-
nel who occupied the car pointed their weapons
at a member of the People's Police and threatened
him. The policeman was forced to fire warning
shots in the air, after which the car mentioned
above disappeared in the direction of the U. S.
sector.
In my letter of 12 January 1952, 1 have already
drawn your attention to violations liy U.S. mili-
tary personnel of the order established at the outer
border of Berlin. Up to now, no answer to the
above mentioned letter has been received. The
above-mentioned incident testifies to the fact that
no appropriate measures have been taken on the
part of U.S. authorities to put an end to those
violations.
In view of the above, I am forced to express
my regret concerning the acts of U.S. military
personnel that took place on 4 June 1952 and re-
quest you again to take measures in order to avoid
such acts in futui'e.
Generals Carolet, Coleman, and Mathewson
to Mr. Dengin, June 12
We have the honor to register a formal protest
against the occupation by units of the Soviet army
and the Volkspolizei of the Eastern zone of the
Neuer Gutshof-Frohnau farm property, and
against the expulsion by force of its inhabitants.
Whatever the status of this territory is under
German law and administrative right, it is indis-
putable that an inter-Allied agreement was con-
cluded regarding this matter.
Indeed, at the time of the delimitation of the oc-
cupation sectors, settled by common agreement in
1945, the Soviet authorities themselves included
this territory within the limits of the sector allo-
cated to the British authorities in the first instance
and then to the French authorities.
Until now the inhabitants have always carried
Berlin identity cards and have always paid their
taxes to the Reinickendorf Bezirk.
We consider that this agreement between occu-
pation authorities has exactly the same weight as
any other similar provision pursuant to which
the Soviet authorities or one of the other three
Allies, were granted a right over some territory
belonging to another.
Whatever the circumstances, it is disgraceful
that the owner, whilst he was cultivating the
ground which was his under these arrangements,
should have been despoiled of his cattle and his
equipment purchased in West Berlin and brought
by him from the French sector.
We have the honor to request you to take the
necessary steps in order to ensure that the agri-
cultural equipment and the cattle which were
taken away be restored forthwith to their owner
and that the convention in force since 1945 be
applied again.
General Chuikov to Mr. Reber, June 19
In your letter of 29 May 1952 you go so far as
to assert that the measures recently undertaken by
the government of the German Democratic Re-
public, in the defense of the interests of the pop-
ulation of that republic, do not allegedly serve the
attainment of German unity and are in violation
of the quadripartite agreement among the occupa-
tion authorities.
It is well known, however, that it was the oc-
cupation authorities of the Western Powers and
the Adenauer Bonn government, dependent iipon
them, who had turned down the offer of the Ger-
man Democratic Republic Peoples Chamber, of
15 September 1951, concerning the holding of all-
German elections to a National Assembly for
the purpose of establishing a unified peace-loving,
democratic Germany as well as to expedite the
conclusion of a peace treaty with Germany.'
' It is also well known that a resolution was adopted
by the United Nations on December 20, 1951, resulting
in the appointment of an impartial commission composed
of representatives of Brazil, Iceland, the Netherlands,
Pakistan, and Poland (who declined to designate a
representative), whose purpose was "to carry out a si-
multaneous investigation in the Federal Republic of
Germany, in Berlin, and in the Soviet zone of Germany
in order to determine whether existing conditions will
make it possible to hold genuinely free elections through-
out these areas." On three separate occasions, commu-
nications have been addressed l>y the Commission to
Western Allied and German authorities in West Ger-
many and Berlin and to Soviet and East German au-
thorities. The former officials expressed complete co-
operation in facilitating the Commission's task, while
the Soviet and East German officials have made no re-
sponse to any of the communications transmitted to
them. On August .5, 1052, the Commission announced its
intention to submit a final report to the Secretary-General
of the U.N. and then adjourn sine die. (For text of this
final report, see Bii.i.etin of Aug. 25, p. 298; see also ibid.,
Apr. 14, 1052, p. .5G3, for a compreliensive article on the
subject of German unity by Henry B. Cox.)
September 1, 7952
315
Similarly, offers made by the Soviet govern-
ment concerning a peace treaty with Germany
and the establishment of an all-German govern-
ment, widely acclaimed and supported by the
German people, met with no positive reaction on
the part of the three powers. On the contrary,
acting in violation of four-power agi-eements on
Germany, the U.S.A., Great Britain and France
have agreed to sign, with tlie revenge-seeking
Adenauer government, a separate treaty which
enslaves Western Germany, draws it into the ag-
gressive North Atlantic block, which is preparing
a new war and constitutes an obstacle on the road
to German unity and a peaceful solution of the
German question.
It is quite obvious that the attempt, made in
your letter, to shift the responsibility for the sit-
uation ci-eated in Germany, from the shoulders
of the "Western Powers, is utterly without
foundation.
As regards the remarks, contained in your let-
ter, concerning the closing of certain checkpoints
along the demarcation line between the German
Democratic Kepublic and Western Germany, they,
too, are devoid of any serious foundation.
As already stated to the U.S. authorities, the
functioning of the road checkpoints at Vacha,
Ahrenshausen and Oebisfelde has been terminated
owing to the inconsiderable amount of automobile
traffic. These checkpoints had been handling an
average of 10 to 15 cars per month each, thus fail-
ing to justify the continued retention of servicing
personnel at those checkpoints.
The railroad traffic, formerly passing through
the Herrenberg checkpoint, has been transferred
to the Schwanheide checkpoint. Operations at
the Bergen and Ellrich road checkpoints were dis-
continued as the approach roads are undergoing
repairs.
Changes in the checkpoint service along the rail-
roads and highways do not in any way affect the
volume of shipments between West Berlin and
West Germany, which of late has even increased.
The assertion made in your letter that the meas-
ures being carried out by the government of the
German Democratic Republic, to strengthen the
security along the demarcation line between East
and West Germany, are opposed to the interests of
the German population, is entirely without foun-
dation. As you are aware, these measures have
been called forth as a result of the terrorist diver-
sionist, spying and other subversive activities on
the part of foi'eign intelligence agents, who are
being sent into the German Democratic Republic
from Western Germany and West Berlin.
Legal proceedings recently carried out against
terrorist and diversionist bands, in Berlin and
Dresden, and the reports from government agen-
cies of the German Democratic Republic about
similar criminal bands, uncovered by state secu-
rity agencies, have shown that in Western Ger-
many there has been set up a widespread network
of criminal organizations, whose aim it is to carry
out acts of terror, diversion, sabotage and other
forms of subversive work against the German
Democratic Republic.
A special role, in this connection, has been as-
signed to West Berlin, which has been turned into
a hotbed of spying, diversion and provocation di-
rected against the German Democratic Republic
and carried out under the guidance of the intel-
ligence agencies of U.S.A., Great Britain and
France. Legal pi-oceedings have shown that, in
carrying out their criminal activities, western di-
versionist and spy centers have been making full
use of the lack of adequate security measures on
the part of the German Democratic Republic,
along the demarcation line between East and West
Germany, as well as in Berlin.
I deem it necessary, at the same time, to remind
you that the Western zones of Germany had, as
far back as the summer of 1951, carried out a series
of measures along the demarcation line with a view
to isolating those zones from Eastern Germany,
and creating a system which normally exists only
along the borders of different countries. It is suf-
ficient to point out that as a result of the Bonn law
on border security of 16 March 1951, Western Ger-
many had established along the demarcation line
a 30 kilometer deep border area, in which there are
concentrated numerous British and American mili-
tary units, as well as units of West German border
police, who are implementing strict control meas-
ures in that region.
At the same time, there was set up in the border
regions along the German Democratic Republic a
widespread network of centers for the purpose of
sending into the German Democratic Republic
spies, diversionists, smugglers, terrorists and sabo-
teurs.
It is obvious on the face of it that, under such
conditions, the government of the German Demo-
cratic Republic was forced to take steps in the
defense of the population of the Republic, steps
which have become particularly necessary in view
of the signing of the separate treaty in Bonn.
You are aware, of course, that the decree issued
by the government of the German Democratic Re-
public states that the measures for the strengthen-
mg of supervision along the demarcation line, will
be lifted as soon as an agreement has been reached j
concerning the holding of all-German elections for
the purpose of establishing a united, democratic
and peaceloving Germany. Thereby, the govern-
ment of the German Democratic Republic con-
firmed once more its offer to hold free all-German
elections, an offer which, nonetheless, still remains
unanswered.
In view of the aforesaid, I must consider as en-
tirely unfounded, and as the result of pure inven-
tion, your statements directed at the government
of the German Democratic Republic, which is
merely fulfilling its duty toward the population in
316
Department of State Bulletin
September 7, 7952
317
taking steps to secure the safety of the German
Democratic Republic.
I emphatically reject your protest and your pro-
posals, as directed against the interests of the
German population, and the peace and unity of
Germany.
Mr. McCloy to General Chuikov, June 23 '
I wish to acknowledge receipt of your letter of
9th June, 1952, in reply to the U.S. Acting High
Commissioner's letter of 29th May, 1962, concern-
ing the recent restrictions imposed by the Soviet
authorities on the free use of the Berlin-Helm-
stedt Autobahn by Allied occupation personnel.
In your letter you attempt to justify these re-
strictions by making the allegation that the Amer-
ican and British patrols on the autobahn "are con-
trary to the agreement reached at the conference
at the headquarters of the Soviet Occupation
Forces on 29th June, 1945. ..." I have made
a careful examination of the records of that con-
ference. They indicate clearly that not only was
no agreement reached which in any way limited
the right of the three Western Occupation Forces
to maintain patrols on the autobahn in question,
but furthermore no attempt was made by the So-
viet representatives at that conference to challenge
such right.
It is apparent to me from your letter that you
are not informed as to the actual character and
purpose of the Allied military patrols along the
aiitobahn. The sole purpose of these patrols,
which are an integral part of the Allied military
forces, is to provide assistance where necessary to
Allied officials and personnel traveling along the
autobahn in case of motor trouble or other diffi-
culty. (An indication of their actual character
is the fact that they are frequently referred to as
"courtesy" patrols.) At no time during the many
years that these courtesy patrols have operated
have they been charged with any responsibilities
remotely encroaching on Soviet functions. These
patrols do not establish traffic regulations, control
traffic conditions, or have any other administrative
function on the autobahn. These facts should suf-
fice to dissipate any possible misunderstanding.
I wish to stress that the agreement of 29th June,
1945, guaranteed free and unrestricted use of the
autobahn to all properly documented Allied ve-
hicles and personnel. It also appears significant
that until recently the Soviet authorities have
never taken specific exception to the long estab-
lished practice of maintaining Allied courtesy pa-
trols along the autobahn. Reference was in fact
made to this practice in the correspondence be-
tween Major General Hays and General Dratvin
in April 1948, on the subject of U.S. mobile auto
' Identical notes were sent by the British and French
High Commissioners.
repair units. In his letter of 16th April, General
Hays stated that he intended to establish such
units "to supplement our mobile patrols." In his
reply of 19th April, General Dratvin took no ex-
ception whatever to General Hays' mention of
the use of Allied mobile patrols, which he accepted
as a matter of course.
Furthermore, the recent measures taken by the
Soviet authorities to restrict the right of Allied
forces to the use of the autobahn appear to be in
clear violation of the Four-Power agreements of
4th May and 20th June, 1949, regarding access to
Berlin and the re-establishment of all normal com-
munications between the various zones of occu-
pation and between the zones and Berlin.
I must therefore insist, on the basis both of
quadripartite agreements and of a practice fol-
lowed over a period of many years, on the right
of unrestricted access for all properly documented
Allied vehicles and personnel to the Berlin-Helm-
stedt Autobahn.
In conclusion, I request that you re-examine
this question in the light of the foregoing and
that you do not delay in canceling the arbitrary
measures against which a protest was made in
the letter of 29th May referred to above.
Mr. McCloy to General Chuikov, June 26 »
I wish to remind you of the letter which was
sent to you on April 29, 1952 protesting against
the inexcusable attack in which Soviet fighters
opened fire on a French aircraft, wounding two
persons and seriously damaging the airplane itself.
This letter requested that an investigation be
undertaken immediately by the Soviet authorities,
that those responsible for this outrage be pun-
ished, and that due reparation be made for ma-
terial damage to persons and property.
No answer has been received to this letter.
I should be gi-ateful if you would devote your
personal attention to this serious question and
hasten its settlement.
General Mathewson to Mr. Dengin, June 28
I have noted with growing concern the succes-
sive measures which the East German authorities
under Soviet control have taken in the last few
weeks to hinder the normal freedom of movement
hitlierto enjoyed by the inhabitants of Berlin.
For instance, as a i-esult of these measures, Berlin-
ers are now denied free access to that part of Ber-
lin known as West Staaken and, unless they are
residejit tliere, to the West Berlin enclave of Stein-
stuecken. In addition, an announcement has re-
cently been published in the East German press
which suggests that West Berliners who have prop-
erty or business in the Soviet zone will not be per-
' Identical notes were sent by the British and French
High Commissioners.
318
Deparfment of Sfafe Bulletin
mitted in the future to visit that property or at-
tend to tlieir business unless they definitely cease
to reside in West Berlin.
The allegations against the Western Powers and
the Berlin authorities which have been made in
East German organs of propaganda in an attempt
to justify these obstructions to the freedom of
movement of the Berlin i:)opulation are so com-
pletely removed from reality as to merit no serious
rebuttal. The measures themselves, however. I
cannot ignore. In the first place, they are in viola-
tion of the four-power agreement reached at Paris
in June 1949 regarding travel and communications
between the zones of occupation and between the
zones and Berlin. Furthermore, these measures
are causing untold distress and substantial ma-
terial loss to thousands of innocent Berlinere of
modest means who wish no more than peacefully
to 23ursue their normal occupations or to visit
their friends and relations in the countryside.
If the Soviet authorities are not willing to se-
cure the reversal of this unconstructive and in-
humane policy, I must insist that they take steps
to ensure that prompt, adequate, and effective
compensation is paid to those inhabitants of the
British sector of Berlin who are suffering hard-
ship and material loss by reason of the recent un-
warrantable restrictions placed on their freedom
of movement.
Mr. McCloy to General Chuikov, June 30 '°
In his letter of May 29, 1952, the U.S. Acting
High Commissioner invited your attention to a
series of measures taken in the Soviet zone of Ger-
man}' as well as in the Soviet sector of Berlin, with-
out prior consultation with the authorities of the
Western zones, which applied serious restrictions
to the interzonal road, railroad, teleiahone and tele-
graph communication systems. Your reply of
June 19, 1952, deals only incidentally with the
measures taken and provides no justification
therefor.
As regards road traffic, you merely enumerate
the pretexts under which the various crossing
points have been closed by the authorities of the
Soviet zone. The number and variety of those
protests do not suffice to explain nor to justify the
fact that half of those roadcrossing points which
until then were open to interzonal traffic, were
simultaneously closed and the total number re-
duced to five along a demarcation line of more than
500 miles. As regards railroad traffic, your letter
makes no reference to two of the lines mentioned.
Your letter also fails to refer to the restrictions on
telephone and telegraph communications imposed
by authorities of the Soviet zone.
Instead of answering the questions raised in the
acting High Commissioner's letter, you expound at
^° Identical letters were sent by the British and French
High Commissioners.
considerable length the point of view of the Soviet
Government concerning the agreements recently
signed with the Federal German Government and
concerning the means by which the unity of Ger-
many may be achieved. As these problems at
present form the subject of correspondence be-
tween the Soviet Government and the Governments
of France, Great Britain, and the United States, I
do not propose to discuss them with you now.
You endeavor, on the other hand, to compare the
abnormal measures instituted by the Eastern au-
thorities along the demarcation line with a law of
the Federal Republic dated IMarch 16, 1951, which
you allege has created a border area 30 kilometers
wide designed to isolate the Western zones from
the Eastern zone.
The text of this law clearly establishes that the
only purpose of defining this area is to delimit the
region in which the Federal frontier police are
competent. As you must be aware, neither this
law nor any subsequent measure has imposed the
slightest restriction on freedom of movement. In
contrast to the conditions currently prevailing in
the prohibited zone created by the Soviet zone au-
thorities, there exists west of the demarcation line
not only complete freedom of travel but also free-
dom from the fear of being suddenly and violently
uprooted and deported to unknown destinations.
These facts are open for all to verify.
In your letter you attempt to excuse the arbitrary
treatment accorded to the population along the
eastern side of the demarcation line on the ground
that such measures are necessary for "security rea-
sons." According to you, the people of the Soviet
zone must be "clef ended" from "spies, diversionists,
smugglers, terrorists, and saboteurs." Such im-
jjlausible assertions do not merit serious consid-
eration.
The facts show that, if the security and welfare
of the East zone population are really in danger,
it is not because of any alleged threats from the
West but merely because of the measures taken in
the Soviet zone under pretext of protecting the
population. In addition to the mass expulsions
whereby so many families have been brutallj- sep-
arated and driven from their homes, thousands of
farmers and other workers, living in the Western
zones and working in the Eastern zone, have sud-
denly and in violation of their right to work been
denied access to tlieir livelihood. These actions
in effect completely subvert Allied control council
directive number 42 which is designed to facilitate
the movement across the demarcation line of Ger-
man frontier workers.
All of these measures, which stem from a de-
liberate desire to separate the two parts of Ger-
many and to prevent any contact between their in-
habitants, provide impressive evidence of the con-
tradictions between the actions of the Soviet zone
authorities and their frequent professions in favor
of German unity.
September 1, 1952
319
General Chuikov to Mr. McCloy, July 2
I confirm receipt of your letter of 23 June, 1952,
concerninji the patrolling of the Berlin-Marien-
born Autobahn by American and British military
police.
The assertion contained in this letter, that the
now prevailing procedure for the supervision of
automobile traffic along the Autobahn was al-
legedly not provided for in the decision of the
representatives of the Soviet, U.S. and British
military commands, at their meeting of 29 June,
1945, is not true to fact.
As already stated in my letter of 9 June, 1952,
the above mentioned meeting had adopted a deci-
sion providing that police functions and super-
visions along the Berlin-Marienborn Autobahn
should be regarded as being solely within the com-
petency of the Soviet military authorities, and
properly so owing to the sole responsibility accru-
ing to the Soviet authorities with regard to control
over German Democratic Republic territory. This
was never disputed by the Western occupations in
this respect.
As to your remark, that the Soviet authorities
have allegedly raised no objection to the patrolling
of the Berlin-Marienborn Autobahn by U.S. and
British military police and have treated such pa-
trolling as a matter of course, it is devoid of any
foundation.
You must be aware of the fact that in the past
there have also been instances when U.S. patrol
cars were removed from the Berlin-Marienborn
Autobahn. In particular, on 30 May, 1950, the
Soviet military authorities detained a U.S. mili-
tary car that was attempting to carry out patrol
duties along the above mentioned Autobahn. A
telety])e from the Chief of Staff of the Soviet
Military Kommandatura in Berlin, Colonel Ka-
linin, delivered to Colonel Davenport, Chief of
the U.S. military police, on 31 May, 1950, stated
that the actions of the U.S. military patrol repre-
sented a violation of the decision taken at the head-
quarters of the Soviet occupation forces, on 29
Jime, 1945, and would not be allowed in future.
There followed no comments from the U.S. side
in connection with this teletype.
With respect to Lieutenant General Dratvin's
letter of 19 April, 1948, to General Hays, to which
reference is made in your letter, I must state that
the letter in question dealt not with the patrolling
of the Berlin-Marienborn Autobalin, but with the
question of putting an end to the movement along
the Autobahn of U.S. auto-repair cars, the need
for which existed no longer owing to the setting-
up of permanent technical-assistance stations.
In view of the foregoing, I am compelled to de-
cline your request that the measures with respect
to not admitting U.S. and British military patrols
on the Berlin-Marienborn highway be canceled.
General Mathewson to Mr. Dengin, July 8
This morning at 7 : 30 o'clock as Dr. Walter
Linse, German resident in the American sector,
was leaving his residence at 12A Gerichtstrasse,
Berlin, Lichterfelde-West, he was overpowered
by three unidentified jDersons, forced into a wait-
ing taxi and carried off into the Soviet zone of
occupation. The taxi in which Dr. Linse was
abducted was pursued by a civilian car and by a
police radio car. Both were fired upon by the kid-
nappers who also threw sharpened hooks into
their wake in order to hinder pursuit. The taxi
proceeded at high speed and entered the Soviet
zone at the corner of Berlinerstrasse and Schwell-
merstrasse. The barrier marking the beginning
of the Soviet zone was raised by the Peoples
Police attending it so that the taxi could enter
the Soviet zone without reducing its speed.
I have been shocked not only by the outrageous-
ness of this crime, but by the evidence of collusion
of persons under Soviet conti'ol. I cannot believe
that the convenient raising of the usually so zeal-
ously guarded zonal barrier was purely accidental,
nor can I tolerate that the perpetrators of this
crime be allowed refuge in territory under your
control. Personal freedom and safety for indi-
viduals are basic principles of the policy of the
United States Government guaranteed to resi-
dents of areas for which it holds responsibility.
I must warn you that I regard this act, which
could only have been carried out with the direct
assistance of forces under your jurisdiction, as
intolerable and one which must be rectified.
I, therefore, insist that you utilize your powers
in the Soviet zone to see to it that Dr. Lmse is
returned in safety and without delay to his resi-
dence and the criminals responsible for this
abduction be apprehended and turned over to
proper Berlin authorities for prosecution.
320
Department of State Bulletin
Department Deplores Punitive Spirit of Latest Soviet Note
on Austrian Treaty
DEPARTMENT'S CRITIQUE
Press release 649 dated August 18
The full text of the Soviet Government's reply
to the U.S. note of March 13 concerning a state
treaty for Austria^ has been received by the
Department of State.
Although the Department is pleased to have a
reply to its many communications, it is unfortu-
nate that this note harks back to the suspicious
and punitive spirit of 1945. In addition it strays
from the point by making the reestablishment of
Austrian sovereignty dependent on a solution of
the Trieste question. This is not the first time
that the Soviet Government has thrown extra-
neous issues into the 258 meetings on the treaty.
In earlier discussions the settlement of the "dried
pea debt" was made the condition for granting
Austria her sovereignty. The Soviets claimed
that dried peas which they had given to the starv-
ing population of Vienna in 1945 had to be paid
for before any further discussions on the treaty
could take place. This "debt" was to be made the
subject of bilateral discussion with the Austrian
Government. Yet, despite repeated invitations
from the Austrian side, no Soviet representative
could even be found to engage in such discussions.
There is no guarantee that this "debt" will not at
any time bedevil future negotiations.
The Soviet communication is at pains to attack
the proposed "abbreviated treaty" ^ which was
suggested — after 258 meetings — as a basis for dis-
cussion by the three Western Powers in their notes
of March 13, 1952.
The Soviet note criticizes the "abbreviated
treaty" on specific grounds. The U.S.S.R. says
that the "abbreviated treaty" does not "guarantee
democratic rights and freedoms to the Austrian
people" and "does not envisage those measures
which would guarantee free activity to demo-
cratic parties and organizations and would not
permit the existence in Austria of organizations
hostile to democracy and peace."
The fact is that guaranties for free elections,
conducted through secret ballot, are provided for
in the Austrian Constitution. Three general elec-
tions have been held under these provisions in
Austria since 1945. It is from the popular sup-
port thus derived that the Austrian Govern-
ment— a coalition of the Socialist and People's
Parties — derives its power. Under these provi-
sions Austria has demonstrated her ability to
maintain a stable, popularly elected, and demo-
cratic Government for the past 7 years.
The fact further is that the Austrian Consti-
tution also contains guaranties of the basic human
rights and freedoms.
The Soviet note also rejects the short-form
treaty because it makes no specific provisions "for
the elimination of the National Socialist Party
and its affiliates and organs under its control in-
cluding political, military and quasi-military or-
gans on the territoi'y of Austria."
The fact is that the Austrian Government has
carried out its denazification program to such an
extent that it feels it can now grant amnesty to
certain categories of ex-Nazis. The Department
of State recently expressed its concern that this
was contemplated before adequate restitution had
been made to certain Nazi persecutees.^
In the second paragraph of their note the So-
viets clearly imply that, according to their belief,
the Austrian Government has not fulfilled Four
Power decisions concerning the demilitarization
of Austria. Yet in the ninth paragraph they crit-
icize the "abbreviated treaty" because it "also
passes over such an important question as the right
of Austria to have its own national armed forces
necessary for the defense of the country."
The fact is that Austria has been "demilitarized"
since 1945. As far as making provision for "na-
> Bulletin of Mar. 24, 1952, p. 448.
^ For test, see ibid., p. 449.
' See ibid., Aug. 11, 1952, p. 223.
September 7, J952
321
tional armed forces'' is concerned, the maintenance
of armed forces has long been considered one of
the inlierent attributes of sovereignty.
In tlie face of these simple facts it would seem
that the considerations raised in the Soviet note
are the considerations raised in submitting a treaty
of peace to a vanquished nation.
The United States was never at war with the
Republic of Austria.
In the Moscow Declaration of November 1, 1943,
the Allied and Associated Powers announced that
one of their primary war aims was to restore to
Austria — "the hrst victim of Nazi aggression" —
her sovereignty and independence. Yet she has
now been occupied for 14 years.
It would seem, therefore, not necessary that any
of these things be written into a treaty designed
simply to restore the sovereignty and independence
of Austria.
The Department of State is still at a loss to
understand why the Soviet representative failed
to appear at the last meeting of the treaty depu-
ties, which was called for at London on January
•21, 1952. His absence becomes the more mysteri-
ous in the light of the present Soviet communica-
tion.
The United States remains willing to explore
any channels of negotiation which will result in
the discharge of the clear moral obligation in-
curred at Moscow on November 1, 1943.
TEXT OF SOVIET NOTE OF AUGUST 14
Press release 646 dated August 18
The Ministry of Foreign Affairs of the Union of
Soviet Socialist Republics acknowledges receipt of
the note of the Embassy of the United States of
America of March 13 regarding the so-called "ab-
breviated treaty" for Austria and also the note on
the same question of May 9, and considers it neces-
sary to state the following :
As is known, in the declaration regarding
Austria accepted at the Moscow Conference of the
Ministers of Foreign Affairs of the Union of
Soviet Socialist Republics, the United States of
America and Great Britain of October 1943, to
which France also adhered, the Governments of
the mentioned countries stated "that they wish to
see re-established the freedom and independence
of Austria." After this, at the Potsdam Confer-
ence of 1945, there were defined principles of gen-
eral policy of the Union of Soviet Socialist
Republics, the United States of America and
Great Britain with regard to Austria which also
were later acknowledged by the French, which had
adhered to the decisions of the Potsdam Confer-
ence in accordance with the mentioned decisions of
the four powers, decision was taken at the Con-
ference of Ministers of Foreign Affairs of the
Union of Soviet Socialist Republics, the United
States of America, Great Britain and France in
December 1946 at New York City, regarding the
preparation of a draft state treaty with Austria
and at the Paris Conference of Ministers of For-
eign Affairs of the four powers in June 1949 agi-eed
important decisions were taken on both political
and economic questions regarding Austria. On
the basis of the mentioned decisions, a draft state
treaty with Austria, with the exception of certain
articles, was agreed to by representatives of the
Union of Soviet Socialist Republics, the United
States of America, Great Britain and France.
The Soviet Government many times has pro-
posed to discuss the remaining non-agreed articles
of the draft state treaty with Austria and also
simultaneously to carry out in all zones of Austria
quadripartite control of fulfillment by the Aus-
trian Government of decisions of the four powers
regarding the demilitarization and denazification
of Austria. In this connection the Soviet Govern-
ment has proceeded from the fact that it stands to
reason that the fulfillment by the Government of
Austria of the obligations placed on it by the deci-
sions of the four powers regarding demilitariza-
tion and denazification of Austria would corre-
spond to the problem of the reestablishment of an
independent and democratic Austria and would
create, among the states which are neighbors of
Austria, confidence that Austria will not again be
used by any power or group of powers for
aggi'essive purposes.
At the same time, the Soviet Government fre-
quently drew attention to the fact that, because
of circumstances which have arisen, the question
of the non-observance of international agreements
concluded between the Union of Soviet Socialist
Republics, the United States of America, Great
Britain and France cannot be ignored in examin-
ing the treaty with Austria and pointed out in
this connection the non-observance of the provi-
sions of the peace treaty with Italy regarding
Trieste. In such a situation when, in the course
of many years, intei'national obligations are not
fulfilled which have been assumed by the gov-
ernments of the three powers regarding Trieste,
there cannot be any guarantee that the peace
treaty with Austria will not meet the same sort of
fate. The Governments of the United States of
America, Great Britain and France have system-
atically declined the above-mentioned proposals
of the Soviet Government which were directed
toward concluding the preparation of the treaty
with Austria. Thus, responsibility for the situa-
tion which has been created regarding the prepa-
ration of the draft of the Austrian treaty is borne
entirely by the Governments of the United States
of America, Great Britain and France.
At the present time, the Government of the
United States of America and also the Govern-
ments of Great Britain and France, evading con-
clusion, of the state treaty with Austria based on
proposals earlier agreed upon by the Governments
of the four powers bring forward a proposal to
322
Department of Stale Bulletin
discuss a new draft of a so-called "abbreviated
treaty" for Austria prepared by them, which has
not been examined earlier by the representatives
of the four powers and which is not in accordance
with the Potsdam Agreement. Thus they at-
tempt to substitute for the state treaty with
Austria, which has the aim of guaranteeing ful-
fillment of the above-mentioned international
agreements and the re-establishment of an inde-
pendent and democratic Austria, mentioned so-
called "abbreviated treaty" for Austria although
this "abbreviated treaty" does not envisage any
kind of provisions which could further the re-
establishment of an Austrian state which is in
fact independent and democratic.
The proposed draft of the "abbreviated treaty"
for Austria does not guarantee democratic rights
and freedoms to the Austrian people. Thus it
does not envisage right of the Austrian people to
elect freely its own government on the basis of
universal and equal suffrage with secret balloting,
while such right is fully guaranteed by the draft
of the state treaty with Austria, as is evident from
Article 8 of the di-aft which was agreed upon by
the Governments of the Union of Soviet Socialist
Republics, the United States of America, Great
Britain and France, which says: "Austria will
have a democratic government elected on the basis
of universal equal suffrage with secret balloting
guaranteed to all citizens and also the right to
be elected to government position without distinc-
tion as to race, sex, language, religion or political
conviction."
The draft of the "abbreviated treaty" for Aus-
tria proposed by the Government of the United
States of America and also the Governments of
Great Britain and France likewise does not en-
visage those measures which would guarantee free
activity to democratic parties and organizations
and would not permit the existence in Austria of
organizations hostile to democracy and peace.
Meanwhile, the draft of the state treaty with Aus-
tria mentioned above contains appropriate provi-
sions. Thus Article 7 of the draft of state treaty
with Austria requires that there be taken "all
measures necessary to guarantee that all persons
under Austrian jurisdiction without distinction as
to race, sex, language or religion shall enjoy human
rights and basic freedoms, including freedom of
speech, press and publications, religious culture,
political convictions and public assembly."
Article 9 of the mentioned draft of the treaty re-
quired the Austrian Government to take measures
"for the elimination of the National Socialist
Party and its affiliates and organs under its control
including political, military and quasi-military
organs on the territory of Austria."
"Austria," it is said in this article, "also must
continue efforts to root out of Austrian political,
economic and cultural life all traces of Nazism,
must guarantee that above-mentioned organs will
not be revived in any form and prevent all kinds of
Nazi and militarist activity and propaganda in
Austi'ia."
It must also be noted that the draft of an "ab-
breviated treaty" for Austria also passes over such
an important question as the right of Austria to
have its own national armed forces necessary for
the defense of the country, while in the draft of
the state treaty with Austria there are provisions
agreed upon by the Governments of the four
powers giving Austria the right to have its own
national armed forces.
Thus, the so-called "abbreviated treaty" for Aus-
tria proposed by the Governments of the United
States of America, Great Britain and France does
not at all respond to those problems of the rees-
tablishment of a free, independent and democratic
Austria which were enunciated in the mentioned
declaration of the four powers on Austria and
which were reflected in the Potsdam decisions as
well as in other agreements of the four powers con-
cerning Austria. There is no doubt, however,
that non-fulfillment of international agreements
mentioned above is causing serious harm to the re-
establishment of a free, independent and demo-
cratic Austria.
The Soviet Government, adhering strictly to
international obligations re Austria which it has
taken upon itself, and confirming the content of
its note of January 18 re further examination of
the treaty with Austria, expresses readiness to
conclude preparation of this treaty.
At the same time the Soviet Government consid-
ers it necessary as a preliminary measure to ascer-
tain if the Government of the United States of
America as well as the Governments of Great
Britain and France are ready to withdraw their
proposal re the so-called "abbreviated treaty" for
Austria which, as is evident from the preceding,
cannot further the re-establishment of an Austrian
state which is in fact independent and democratic
and does not correspond to agreements in existence
between the four powers.
At the present time the Soviet Government con-
siders it all the more necessary to receive from the
Government of the U.S.A. agreement on with-
drawal of the proposal re the so-called "abbrevi-
ated treaty" and confirmation of its willingness to
conclude the examination of the state treaty with
Austria, because it is evident from the notorious
Austrian memorandum of July 31, 1952,* that the
Government of Austria refuses fundamentally to
recognize the state treaty with Austria which is
already prepared — with which the Soviet Govern-
ment cannot agree.
' Reference is presumably made here to the Austrian
memorandum submitted to United Nations members ap-
pealing for their support in restoring Austria's sovereignty
and ending the occupation; for text, see ibid., Aug. 11,
1952, p. 221.
September 1, 1952
323
Creation off Mutual Understanding
&y Joseph B. Phillips
Deputy Assistant Secretary for Public Affairs '
You are, I understand, to be here approximately
one year. You will work in some 36 states,
"swapping" jobs with American teachers who will
teach in the schools of Great Britain, France, and
Canada. This teacher exchange is, of course, just
one facet of the larger and more inclusive pro-
gram in which your countries and mine are now
engaged.
Our countries have launched upon a very am-
bitious plan to create understanding and sym-
pathy between our peoples. We believe, all of us,
that one of the best and surest ways to attain the
results we seek is to introduce our peo])le to each
other to give them the opportunity to know each
otlier by living and working together.
You may have thought, some of you, "Wliat
can I do — one person in the midst of a population
of some 156 million?"
My answer to that is that you can do a lot.
The boys and girls with whom you will come in
contact may be only a handful of Americans, but
they have families, friends. They live in com-
munities. Your influence will spread out, fan-
wise. It will touch hundi-eds, perhaps thousands.
The total will be in millions.
I ask you to think of your job in these terms. It
may frighten you a bit, but it will, I am sure, give
you a better perspective of wliat we — your Gov-
ernments and mine — are trying to do in this ex-
change-of-jDersons program.
At the end of this, your year in America, I hope
I will have the opportunity of meeting with you
again and to listen, not talk. I know you will
have interesting tales to tell. If you do not I will
have to revise seriously my opinion of young
America. Don't misunderstand me. I do not
' Excerpts from an address made before the Interchange
Committee at Washington, D.C., on Aug. 21 and released
to the press (No. 652) on the same date.
mean to infer that the boys and girls of America
are of some particular and special breed. They
are not. It is just that they are boys and girls
and the young of the species are always able to
teach us things.
The Kidd Doctrine
Some years ago — it was in the mid 1930's — I
picked up a book in a London bookshop. It was
The Science of Povyer written by the distinguished
British sociologist, Benjamin Kidd, and published
in 1918.
Kidd had a lot to say about what he regarded
as the failure of Western civilization. He
thought that we, the adults, had made quite a
mess of it. His only hope lay in the unspoiled
young. He had a number of other ideas into
which I will not go, but his ideas on youth im-
pressed me. They reoccurred to me in thinking
of my talk to you this evening — and of this
teacher-exchange program.
Kidd believed that it was possible, through
modern techniques of education and communica-
tion, in one generation to change the philosophy
of an entire nation, of the entire world. "Give
us," he said, thinking of himself as a teaclier, "the
Young. Give us tlie Young and we will create a
new mind and a new earth in a single generation."
That was a highly revolutionary idea at the
time it was first propounded. It isn't today. We
have seen what Hitler did with it. And we have
seen his efforts reduced to amateurish proportions
by the Soviet dictatorship.
The Communists have adopted the Kidd doc-
trine. If asked they would, I daresay, claim that
tliey invented it themselves. Adopted or in-
vented, they have made it their own. They mean
to create "a new mind and a new earth" "in this
generation— and it will be a Communist mind.
324
Departmenf of State Bulletin
Youth Campaigns Present a Challenge
We have had little opportunity, to date, to fully
evaluate the Communist youth campaigns. The
Iron Curtain shuts the youth of Kussia, as well
as the youth of the satellite countries, away from
us.
We did get a brief glimpse during the youth
demonstrations last summer in Berlin. I, per-
sonally, had several chilled moments watching
newsreels of that performance. Those thousands
of young people ! Wliat had been done to them?
There were, of course, the boys and girls who
disobeyed instnictions and slipped across the line
into West Berlin. I found those young people
encouraging. But they were, of course, far from
conclusive. They may have jiroved only that not
even communism can completely kill youthful
curiosity — or youthful contrariness.
But even if the Communist youth campaigns
are only partially successful, they are frightening.
And they present a challenge to the democracies
we cannot ignore. We are not ignoring it. That,
in part, is why you are here in the United States,
this year, why our teachers have gone to your
countries to teach your young people.
The democracies cannot, of course, adopt Com-
munist tactics in handling our young people. We
would not if we could. The basis of our whole
outlook on society is to encourage, not to stifle,
youth's natural desire to know. We prepare for
growth, not stagnation.
We of the democracies are not so convinced,
either, that adults are entirely hopeless. Hence,
the other elements of the exchange-of-persons
progi'am. We are exchanging not only teachers
and students but persons from practically every
walk of life, businessmen, writers, laborers and
labor leaders, civic leaders — the list is almost
endless.
It isn't, and can't be. entirely a government
program. To date, in fact, by far the greatest
contribution has been made by private organiza-
tions. In 1951 private American orgnnizations
arranged, roughly, something like 40,000 ex-
changes of their own. The 4-H Clubs have been
exchanging young farmers, the Rotary clubs have
been bringing over young students, the Girl
Scouts, "youth leaders" — the list encompasses
almost every kind of organization in American
community life.
Exchange of Technical Personnel
There is a growing and very successful ex-
change of technical personnel. The late Sir Staf-
ford Cripps was largely responsible for this.
As the story goes, he was talking in Paris in 1948
to Paul Hoffman, then head of Eca, about pro-
duction levels in this country and in Europe.
How — Cripps asked — did the Americans do it?
What was the secret of our high productivity?
Hoffman began going into detail but, in an in-
spired moment, suddenly asked, "Why not bring
some of your young people over and let them
see?]'
Sir Stafford agreed, and the Eca technical-
exchange program was launched. The objectives
of that program were, and are, technical. But
they did not stop there. The visitors, your
people, learned a lot more than just how to in-
crease steel production or make more automobiles.
They learned to know America.
That program continues. Under Point Four
it has been expanded to include other nations
besides our friends and allies of Europe. It has
fanned out through the entire free world. The
program, of course, meshes completely with the
other facets of the exchange-of-persons program.
It is a part of the over-all plan — just as is the
exchange-of -teachers program.
Most of us agree that this old world of oure
could stand a lot of improvement. We want, for
example, to get rid of war. We want to improve
the living standards of hundreds of millions of
people.
This is a tremendous task. No one nation,
working alone, could hope to accomplish it. But
all of us — all nations of good will — can. If we
work together, pool our resources, human and
material, there is little that we cannot accom-
plish.
To do this, however, we must work from a
basis of understanding and sympathy. All of
us have something to contribute. All of us have
something to learn. Only if we each add our bit
will the job be done. To find that understanding
and sympathy, however, is not an easy task. For
too many centuries our peoples have been sep-
arate, kept apart by age-old jealousies, animosi-
ties, and misunderstandings.
We, the free peoples, believe however that these
barriers are artificial. That they do not exist in
the hearts of men.
Personal Contacts Banish Misconceptions
We propose, therefore, to destroy them. We
think that they can be destroyed if our peoples
work, live together.
All of us cherish certain misconceptions of each
other. Any one of us can name a dozen. For
you — Americans may all be moneygrabbers, slaves
of the machine, soulless. For us— the British have
no sense of humor; the French are frivolous;
the Germans, the only good technicians in Eu-
rope ; the Italians, too romantic.
A person-to-person contact wipes out these no-
tions. Working and living with each other, we
find very shortly that the differences between
Americans, British, French, and so forth are
minor. That we are, after all, very much alike.
There are moneygrabbing British and French as
well as Americans. There are humorless and
frivolous Americans.
Sepfember 7, 1952
325
On the credit side of the ledger we find out that
most Americans, most Britisii, most French, are
none of these. That we are, individually and col-
lectively, all very liliahle people.
So, in this exchange-of-persons pi'ogram, we are
creating these person-to-person contacts. We are
bringing your people here to know us and sending
ours to you. This is the philosophy behind what
we are doing. It is the reason wliy you are here
today and why several hundreds of our own teach-
ers left week before last to live and work in your
homelands.
The emphasis upon students and teachers in the
program is understandable. We are building for
tomorrow. We are making an effort to create a
new generation to whom these old misunderstand-
ings, misconceptions, will be merely amusing folk-
lore of the past.
For the individuals lucky enough to be picked
for active roles in tliis program it can be lots of
fun. I like to think that each of you will enjoy
the year before you. You have, to be sure, an
important task to perform. But that is no reason
why you should not get some fun from it. I do
not mean to infer that you must like everything
you find in America. I am sure, in fact, that you
"will not. We are not perfect. We do not claim
to be.
Take note of our imperfections. It may be — I
am sure that it will be — that you can suggest, as
friend to friend, changes from which we will bene-
fit. I assure yon that your suggestions will be
accepted in good part. This is a program for our
mutual benefit. If we do not profit mutually, it
will liave failed of its purpose.
Tolerance is Needed
I ask you, however, to be patient with our faults
and patient with our differences. Look beneath
the surface. Underneath you will find how very
little different we are.
Be tolerant, please, of our lack of information
on your countries. Some of our misconceptions, I
am afraid, will startle you.
A friend of mine was telling me of two Chinese
boys she was entertaining in her home. Until
driven out by the Communists the lads had been
students in a Buddhist school near Peking. She
said to me, "I find it hard to see the difference be-
tween these boys and mine. Surface differences,
yes. But scratch that surface and they are just
boys."
She took the two Chinese lads and her own to
Monticello, the home of Thomas Jefferson. They
were interested, going through the mansion house
and out buildings, taking copious notes. One of
the young Chinese asked, "But where is the ga-
rage?" He found it hard to believe that Ameri-
cans 150-odd years ago did not have motor cars.
"You mean they had to use Aorses," he demanded.
I caimot believe that an English or French boy
would make just that mistake. But I am sure
that an American boy in China would have simi-
lar, if not identical, misconceptions of Chinese
life a hundred or so years ago.
One of these same two Chinese lads, inciden-
tally, was attending school in a small North Caro-
lina town. He complained to my friend's son,
"The people stare at me when I go to town."
Tlie young American thought. Then he grinned.
"Yi-Han," he said, "what would happen if I took
a walk in some little out-of-the-way Chinese vil-
lage?" The Chinese lad considered. Then he
laughed. "The children would follow you yelling
'foreign devil,' " he admitted.
Botli the Chinese boy and the American learned
from that little episode.
You will, of course, have specific subjects to
teacli your American students. I find those sub-
jects, however, rather unimportant. The real
lesson you must leave behind you next year must
go deeper. An Indian student several months ago
wrote to the Washington Post^ a Washington
newspaper. He said :
It is not only the professional skill that we take back
as we leave the shores of this country, but it is the good
will of the people. If we, students of today and likely
to be statesmen of tomorrow in our own countries, can
understand and appreciate each other so well, can we
not apply the same to the human family at large?
This boy had learned his lessons well in Amer-
ica. And they were not, as he said, solely, or even
most importantly, the subjects he had studied in
his classrooms.
One British teacher here last year at first found
her pupils rather undisciplined by her standards.
She thought them informal almost to the point of
rudeness. Later, after working with these boys
and girls, she confessed a change of heart. "You
have freedom," she said. "We have discipline.
We need them both."
We do. Perhaps our j'oung people could profit
by learning a little more discipline, perhaps
yours with a little more schoolroom freedom.
I have been interested in noting the list of cities
and towns to which you have been assigned. They
have been, I think, well selected. You are going
to have a variety of experiences. Wlien you re-
assemble next year, before your departure for
home, I would like nothing better than the oppor-
tunity of hearing of these experiences. I suspect
some of your ideas about American life and Amer-
ican ways will have undergone drastic revision.
Some Popular Misconceptions About Americans
You will find, I think, for one thing that all
Americans are not cut from the same pattern,
that we are not assembly-line products. That
is a popular misconception of the United States
in many countries. And nothing could be further
from the truth.
We do not, all of us, even speak the same lan-
326
Department of Stale Bulletin
guage. There are sections, for instance, of New
Orleans where you hear more French than
English. In many areas of the Southwest they
speak Spanish. Elsewhere it is German.
And what we do to English ! I would like to
take you on a tour of some of the Amish villages
of Pennsylvania, or certain of our mountain
regions in the South where the English is more
that of Elizabeth the First than Elizabeth the
Second. The Gullah negroes off the coast of
South Carolina have developed a language of
their own, basically English and French, but
understandable to neither.
I think you are particularly lucky to be here
this year — a presictential election year. If the
next few months do not shake your conviction that
all Americans think alike nothing else could. I
have seen elections in Great Britain, Canada, and
France. And 1 assure you, none are quite like
American elections. I ask you, however, not to be
misled by the ballyhoo and speeches. Do not over-
look the serious purpose behind all the uproar.
In conclusion I would like to impress on you
that the encouragement of personal contacts is
only one part of the effort that is being made to
strengthen the spiritual and intellectual bonds
of our world. The entire information program
conductecl by my Government consjclers the
strengthening of those bonds as its primary ob-
jective. An information program conducted by
a government naturally must reflect the foreign
policy of the government. The preservation of
the safety of the nation is the basic objective of
any sensible foreign policy. In our conception,
at this time in history we have reached the point
where our greatest security lies within a com-
munity of free nations.
The purpose of our information program and
the reason you are here is not just to show you
tlie good features of our country. It is to foster
and cultivate our mutual interest and our mutual
understanding. That is the underlying purpose
of our information program, whether it is using
the Voice of America, the printing presses, motion
pictures, or our overseas libraries. These are all
instruments for cultivating mutual understanding.
There is, however, one important difference
between these instruments and the program for
the exchange of personal visits. That difference
is that the impressions you get—'AwA the impres-
sion you give — will endure after the spoken word
or even the written word is forgotten.
We are not, any of us — your countries or ours —
interested in creating this mutual understanding
only for today. It is true that today we are
brought closer together by an awareness of a com-
mon danger. But we can look beyond that danger
and into the future in the belief that the seeds of
good will which we are sowing today will bear
fruit — through your own influence — and after
that through the influence of the children whom
you are now going to teach.
President Reaffirms U.N. Stand on Prisoner
Repatriation Question in Korea
White House press release dated August 20
Following are texts of letters exchanged be-
tween President Truman and U.S. Army Captain
Charles G. Ewing, fresently on duty with U.N.
Forces in Korea.
CAPTAIN EWING'S LETTER
Because the repatriation issue has come to seem
like a dull drag- weight on the Panmunjom talks,
making many people feel weary with the whole
thing, I thought you might care to hear from
someone who has talked with considerable nuin-
bers of those prisoners who are resisting repatria-
tion.
They have been brought to me still bleeding from
scratches from the barbed wires, some wounded
by stones flung by strong Communists trying to
Sep/ember 7, 7952
hold them back, some wounded by birdshot from
U.N. guards, but smiling and happy because they
have fought their way through to a chance for
permanent escape from a miserable life under the
Reds. I was not involved in the sci'eening — I've
only talked to many of the hundreds who have
broken away from work-details or bolted over or
under the fence. My job was not to educate them
to the merits of democracy, but to try to determine
if they were enemy agents. Each professed "anti-
Communist", therefore, was a headache to me and
to most of the junior officers who are charged with
extra administrative duties — messing, guarding,
and medical care for them.
But in spite of all these circumstances, these
desperately earnest men — ranging from semi-liter-
ate farm laborers, disillusioned by Communist
land-grants which, instead of giving them eco-
nomic freedom, made them serfs to the state
327
(which takes a hijjher percentage of their crops
than even the greediest landlord) to former North
Korean government officials whose original en-
thusiasm for theoretical communism lias been
reversed by their experience of political jailings
and beatings, use of kinfolk as spies, denunciations
of neiglibor by neighbor — all the things we've read
about until they seemed to belong to a world of
horror fiction — these men have convinced me that
we cannot force these poor devils to return to their
enslaved homeland.
Between wars I am a newspaperman — I covered
your visit to Fort Benning two years ago and
have a picture of you scanning the headline over
my story in The Colwmhus Lrdger, held up for
your scrutiny by Secretary Johnson — and I've
heard much lying and much conflicting testimony.
But I believe that most of these men who have
risked death to protest being sent back to their
homes are telling the truth when they say they
would rather die than live under communism
again.
I hope that, despite all pressure from defeatists,
our government and the U.N. will continue their
determination to preserve these unfortunate pris-
oners from being delivered up to the enemy, and
so provide hope for the hundreds of millions he
now holds or threatens in other parts of the world.
May God bless you, Mr. President, and keep
you strong in spirit and body.
Sincerely yours,
Charles G. Ewino
PRESIDENT TRUMAN'S REPLY
I read with great interest your observations on
your interviews with prisoners of war in Korea.
Your conversations with those men who prefer
death to life under a Communist regime point up
vividly the compelling humanitarian and moral
reasons for the stand which the United Nations
negotiators have taken on the repatriation ques-
tion. We must not use bayonets to force these
prisoners to return to slavery and almost certain
death at the hands of the Communists.
You soldiers in Korea can also well appreciate
the fact that behind the Iron Curtain there are
millions of people who yearn desperately to regain
their lost freedom and sense of dignity. These
people look to the free world as their only hope to
achieve this goal. This fact applies with special
foi-ce to those hundreds of thousands of Chinese
and North Koreans who have been impressed into
the Communist armies and forced to face suffering
and death to further the brutal ends of aggression.
Thank you for writing.
Sincerely yours,
Haert S. Truman
Displaced Persons Commission
Submits Final Report
In the final report of the U.S. Displaced Persons
Commission released on August 20, entitled "The
DP Story," the Commission reconunends a pos-
itive and forthright program to deal with refugees
from communism in Europe including the creation
of Fi-ee World Universities in Exile.
Out of its experience in dealing with 370,000
DP's, German expellees, Italian refugees, and re-
cent political escapees, the Commission concluded
that "the free world's refugee progi-am has lacked
something in this . . . area," the report states.
One of the three Displaced Persons Commis-
sioners, Harry N. Rosenfield, conducted an inten-
sive survey of the plight of those escaping the Iron
Curtain, and this survey along with the experi-
ences of Chairman John W. Gibson, and Com-
missioner Edward M. O'Connor in Europe led to
the formulation of recommendations in regard to
the problem.
Each of the proposals given in the final report
of the DPC is an implementation of the Presi-
dent's proposals of March 24, 1952, in a Message
to Congress.^
"First," the Commission recommends, "the
United States should provide the training and
education . . . for selected refugees from Com-
munism. The free world cannot afford to fritter
away this resource ... we must enable them
to continue their education and training, in the
broadest range of subjects, in order that the now-
enslaved countries may not later suffer a 'lost
generation.' "
This educational assistance to refugees from
communism would make it possible for the es- \
capees to "play a useful role in the fight for free- '.
dom," according to the report.
"In particular, the Commission believes that
the United States should assist in the establish-
ment of a series of free world universities in
exile, to be associated with existing universities
in Europe. The United States shoiUd also estab-
lish appropriate scholarships for such refugees
from communism at other regularly constituted
iUniversities, should develop a free world uni-
versity of the air to supplement the formal educa-
tional progi-ams, and should encourage student
exchanges," according to the report.
The Commission's second suggestion to imple-
ment this particular Presidential recommendation
is the establishment of cultural and research
institutes.
"If we are to preserve the morale of these
refugees, if we are to enable them and others to
keep alive the spirit of freedom which caused them
to flee to the Western Democracies, these institutes
can play an important role."
' Bulletin of Apr. 7, 19.')2, p. 551.
32&
Department of Stale Bulletin
The final report which covers all aspects of the
3-year DP program, concludes its section on
educational facilities for refugees with the
statement "the free world can effectively go all
out in the battle of ideas, by providing the educa-
tion and training for refugees from communism
which President Truman recommended to the
Congress."
Copies of the report may be purchased from
the Superintendent of Documents, Government
Printing Office, "Washington 25, D.C.
EXECUTIVE ORDER 103S2'
Pboviding fob the Liquidation of the Affairs of the
Displaced Persons Commission
By virtue of the authority vested in me as President of
the United States, and for the purpose of accomplishing
the liquidation of the outstanding affairs of the Displaced
Persons Commission after the termination of the Com-
mission, as provided by law, on August 31, 1952, it is
ordered as follows :
1. The Secretary of State shall make appropriate pro-
vision, effective September 1, 1952, for the taking of pos-
session by the Department of State of any remaining
records and property of the Commission and for the
designation of officials of the Department of State who
shall certify any vouchers which are payable from funds
of the Commission and which may require certification
after August 31, 1952.
2. When no longer needed for carrying out the provi-
sions of this order, the said remaining records and prop-
erty of the Commission shall be disposed of in accordance
with applicable laws and regulations.
Habet S. Teuman
The White House,
August 9, 1952.
Franco-American Memorial Ceremony
Press release 647 dated August 18
On the morning of August 20 a Franco-Amer-
ican memorial ceremony was held under the
Dome of Invalides in Paris. Tlie ceremony was
sponsored by the Kelly Memorial Committee,
which is named for the first American soldier who
reached Paris at the liberation. Staff Sgt. Law-
rence E. Kelly, Army of the United States, was
wounded on the bridge at Saint Cloud August 25,
1944. After being returned to hospitals in the
United States, he died at his home town, Altoona,
Pa., on October 1, 1946, as the result of his
wounds.
Founded "in memory of Americans who fell
for liberation of Paris," the Kelly Memorial Com-
mittee came into being mainly as a result of efforts
of Mile. Marcelle Thomas who operated the phar-
macy in Saint Cloud where Sergeant Kelly re-
ceived first aid. A 2-volume Kelly memorial book
composed of art work, messages, poems, and sig-
natures was contributed to by more than 8,000
Frenchmen in 1946. It was presented to Ambas-
sador Caffery for delivery to Sergeant Kelly, but
he died several hours before it reached him.
A wreath has been sent each year since 1949
by the committee to be placed in Arlington Ceme-
tery on Kelly's grave. The American Legion is
responsible for placing it in Arlington after hav-
ing received it at the Invalides Ceremony. Before
the American Legion receives the wreath, it is
exhibited for several days on the Altar of Kings
of France under the Dome of Invalides.
At the August 20 ceremony, talks were given by
Maurice Schumann, Secretary of State for For-
eign Affairs, as well as Gen. Marion Leschi, tech-
nical director of Kadio Diffusion Fran^aise,
which is one of the organizations which signed
the Kelly memorial book.
Theodore C. Achilles, U.S. Charge d'Affaires
at Paris, represented the U.S. Embassy at the
ceremony.
Death of Kurt Schumaclier
Statement ly John J. McCloy ^
Press release 654 dated August 21
I am deeply distressed to learn of the sudden
death of Kurt Schumacher, leader of the Social
Democratic Party of Germany .= Mr. Schumacher
has, of course, been in very bad health but his
death nevertheless comes as a shock.
In the course of my 3 years in Germany as U.S.
High Commissioner, I met and worked with Mr.
Schumacher on many occasions. I came to have
a close knowledge of the man and of his character
and abilities. Our association led me to have the
highest respect for this great German.
Mr. Schumacher has not, of course, always
agreed with policies which the United States has
pursued in Germany, but tliat has never lessened
my respect for him as a patriot and as an able
and long-time fighter for democracy. He fought
against the Nazis and suffei-ed deeply in conse-
quence. Freed by the end of the war to assume
political leadership, he was quick to understand
the postwar Communist program and menace in
Germany, and he has never wavered in his success-
ful fight against the encroachment of Communism.
Germany loses a vivid and outstanding p>olitical
personality with the passing of Mr. Schumacher.
' 17 Fei. Reg., 7323.
Sepf ember I, 1952
' Former U.S. High Commissioner for Germany, whose
resignation from that position became effective on July 31.
" Mr. Schumacher died on August 20.
i329
Legion of Merit Awarded
King Faisal II of Iraq
Press release 650 dated August 19
King Faisal II of Iraq was awarded the Legion
of Merit by President Truman at a White House
huicheon given tlie King on August 16. Tlie
citation whicli accompanied the award read as
follows :
The President of the United States of America, author-
ized by Act of Congress July 20, 1942 has awarded the
Legion of Merit, degree of Chief Commander, to His
Majesty King Faisal II al Hashimi of Iraq, in recogni-
tion of his outstanding devotion to the principles of duty
to his country, and for distinguished service in further-
ing the deep friendship between the people of Iriiq and
the people of the United States.
The Legion of Merit is a decoration given by
the President of the United States to American
citizens or important foreigners who distinguish
tliemselves by exceptional meritorious conduct in
the performance of outstanding services.
International Bank Activities
Japan, Gennany Become Members
On August 13 Japan became a member of the
International Monetary Fund and the Interna-
tional Bank for Reconstruction and Development
when the articles of agreement of these institu-
tions were signed in Washington on behalf of the
Government of Japan by His Excellency Eikichi
Araki, Ambassador to the United States.
Japan's quota in the International Monetary
Fund is 250 million dollars and its subscription
to the capital stock of the Bank is 2,500 shares
with a total par value of 250 million dollars.
The Federal Republic of Germany on August
14 became a member of the International Mone-
tary Fund and the International Bank for Re-
construction and Development when the articles
of agreement of these institutions were signed in
Washington on behalf of the Government of the
Federal Republic by Hans E. Riesser, Counselor
of the Diplomatic ^lission to the United States.
The quota of the Federal Republic of Ger-
many in the International Monetary Fund is
330 million dollars and its subscription to the cap-
ital stock of the Bank is 3,300 shares with a total
par value of 330 million dollars.
Fifty-three nations are now members of the
Fund and of the Bank. Admission of Germany
brought the total of members' quotas in the Fund
to $8,733,500,000. The total subscribed capital of
the Bank is now $9,033,500,000.
Joint Bank-U.N. Mission Arrives in Panama
The International Bank for Reconstruction and
Development has announced that a joint Bank-
U.N. mission arrived in Panama on August 18
for discussions with Panamanian autltorities.
His Excellency, Roberto M. Heurtematte, Pana-
manian Ambassador to the LTnited States, is ac-
companying the group.
Tlie mission consists of Federico Consolo of
the Bank's Loan Department, Pentti Pajunen, of
the Bank's Economic Department, and H. J. van
Mook, Director of the Public Administration Di-
vision of the U.N. Technical Assistance Admin-
istration. They expect to be in Panama about a
week.
In September and October of 1951 an Inter-
national Bank mission visited Panama at the in-
vitation of the Government to study Panama's
economic problems to ascertain how the Bank
could most fruitfully assist Panama in her eco-
nomic development. The report of the mission
has been transmitted to the Government through
Ambassador Heurtematte. The present group is
being sent as a result of tlie recommendations in
that report.
In the course of its stay in Panama, the mis-
sion will assist officials in planning the first steps
to be taken by Panama towards its further eco-
nomic development. TItey will also discuss the
kinds of technical assistance that will be needed
to carry out this development.
U.S. To Make Second Dollar
Payment to~ Korea
Press release 655 dated August 22
The LT.S. Government is taking the necessary
steps to effect in the near future a substantial
second dollar payment to the Republic of Korea
for won currency advanced by tlie Republic of
Korea to U.S. Forces in Korea for local expenses.
This payment, as well as subsequent settlements,
is governed bj' the terms of notes exchanged on
May 24, 1952, between representatives of the U.S.
Government and the Republic of Korea. ^
It is anticipated that these dollar i)ayments to
tlie Korean Government will materially aid that
Government in developing a balanced import pro-
gram which will supplement current U.S. and
U.N. contributions of consumer goods and essen-
tial raw materials for the Korean economy.
' For unofficial text of the agreement between the two
Governments, see Bulletin of June 16, 1952, p. 943.
330
Department of State Bulletin
Israel to Receive U.S. Military Aid
Press release 631 dated August 11
The Government of the United States and the
Government of Israel conchided an agreement on
July 23, whereby Israel became eligible to receive
military equipment on a reimbursable basis from
the United States under the provisions of the Mu-
tual Security Act of 1949, as amended.
Israel can now make application for the pur-
chase of equi])ment and materials from U.S.
stocks, in return for payment at fair value.
Israel presented its official request for military
assistance early in 1952.
Other governments in the Near East already
eligible to purchase equipment on a reimbursable
basis under the act mentioned are Egypt and
Saudi Arabia.
Lord Charnwood, the Autobiography of Benjamin
FranMin, and Jefferson, by Saul Padover.
The dangers of communism are powerfully
portrayed in Grossman's The God That Failed
and Edmund Steven's This Is Russia, TJnccnsored.
Other categories include books on American
philosophy, science, drama, self-improvement,
semantics, poetry, and humor.
Indian readers have ample chance to comliat the
Communist claim that America lacks culture
through such books as Ballet, by George Amberk,
Arts and the Man, by Irwin Edman, and The
Pocket Book of American Painting, by James
Thomas Flexner.
If this experiment with pocket libraries proves
successful in India, other countries throughout
the world may be sent similar libraries so that
English-reading peoples everywhere can learn
through these low-cost books the truth about the
United States and its people.
U.S. Sends Pocket Libraries
to India
Press release 653 dated August 21
Nearly half a million literary ambassadors of
good will are en route to India from the U. S. in
display crates of 102 paper-bound books each.
The small libraries are destined for 4,500 places
throughout India. The pocketbooks will be
placed in their attractive display cartons in such
places as municipal libraries, reading rooms, stu-
dent hostels, labor union reading rooms, schools,
and other public places.
The books were specially selected to present a
■well-rounded, vivid picture of life in the United
States to Indian readers, who will borrow the
books with no red tape. A printed sign on each
library carton carries this inviting message:
These books are available for your use. Take one.
Please return it when you are finislied. Your comments
will be welcomed. Please address them to the nearest
United States Information Library.
In this manner, the U.S. Information Service
Libraries, managed by the Information Center
Service of tlie International Information Admin-
istration, Department of State, hope to reach the
61/) million Indians who read English.
The colorful books were purchased by the De-
partment of State at best wholesale prices from
various publishers, including Bantam Books,
Pocketbooks, New American Library, and Avon
Books. Selections include such fiction titles as
Room on the Roiite, Saratoga Trunk, The Way
West, and David Hartim. The universally in-
teresting subject of child care is treated in such
works as Having A Baby, by Dr. A. F. Gutt-
macher, and Pocket Book of Baby and Child Care,
by Benjamin Spock. The lives of great Ameri-
cans are represented by Abraham, Lincoln, by
PUBLICATIONS
Recent Releases
For sale bii tlie Superintendent of Documents, Government
Printing Office, Washington 25, D. C. Address requests
direct to the Superintendent of Documents, except in the
case of free publications, which may be obtained from tlie
Department of State.
Telecommunications, Allocation of Television Channels
Along United States-Mexican Border. Treaties and
Other International Acts Series 2366. Pub. 4489. 8 pp.
50.
Agreement between the United States and Mexico —
Signed at Mexico Aug. 10 and Sept. 26, 1951 ; entered
into force Sept. 26, 1951.
Health and Sanitation, Cooperative Program in Colombia.
Treaties and Other International Acts Series 2368. Pub.
4493. 4 pp. 50.
Agreement between the United States and Colombia
supplementing agreement of Sept. 15 and Oct. 20,
1950— Signed at Bogotii Sept. 5 and Oct. 10, 1950 ; en-
tered into force Oct. 18, 1951.
Health and Sanitation, Cooperative Program in Honduras,
Additional Financial Contributions. Treaties and Other
International Acts Series 2371. Pub. 4498. 4 pp. 50.
Agreement between the United States and Honduras^
Signed at Tegucigalpa Aug. 7 and 14, 1951 ; entered
into force Aug. 14, 1951.
Education, Cooperative Program in Peru, Additional
Financial Contributions. Treaties and Other Interna-
tional Acts Series 2374. Pub. 4501. 4 pp. 50.
Agreement between the United States and Peru —
Signed at Lima Oct. 18 and 23, 1951; entered into
force Oct. 23, 1951.
Sepf ember I, 1952
331
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of fVieetings '
Adjourned during August 1952
UN (United Nations) :
Economic and Social Council:
Fourteenth Session of Council
Economic Commission for Asia and the Far East:
Worlving Party on Small Scale Industries and Handicrafts Mar-
keting: 2d Meeting.
Inland Transport Committee, Highway Subcommittee: 1st
Session.
UNESCO (United Nations Educational, Scientific and Cultural Organiza-
tion) :
International Center for Adult Education — Workers' Education. . .
Meeting of Committee to Draft Convention for the Protection of
Objects of Cultural Value in the Event of Armed Conflict.
Seminar on Education in World Citizenship, especially in Human
Rights.
Wmo (World Meteorological Organization) :
First Meeting of Commission for Maritime Meteorology
Eighteenth Conference of the International Red Cross
Eighth General Assembly of the Intor-American Commission of Women.
Paigh (Pan American Institute of Geography and History) :
Third Consultation on Geography
International Rubber Study Group: Working Party
First Australian-New Zealand-United States Council Meeting (Anzcs) .
Eighth General Assembly of the International Geographical Union . .
International Radio Scientific Union: 10th General Assembly ....
Sixth International Grassland Congress
Fourth International Congress of Onomastic Sciences
International Championships for 1952 Military Pentathlon
International Wine Office: 32d Plenary Session of the Committee . .
New York May 20-Aug. 1
Bangkok July 28-Aug. 1
Bangkok Aug. 18-23
Paris July 12-Aug. 31
Paris July 21-Aug. 9*
Woudschoten,
Netherlands.
Zeist, Aug. 3-27
London July 14-Aug. 5
Toronto July 23-Aug. 7
Rio de Janeiro .... July 23-Aug. 10
Washington July 2.5- Aug. 4
London July 30-Aug. 30*
Kaneohe, Oahu, T. H . Aug. 4-6
Washington Aug. 8-15
Sydney Aug. 11-21
State College, Pennsyl- Aug. 17-23
vania.
Uppsala Aug. 18-21
Brussels Aug. 18-22
Freiburg Aug. 19-23
In Session as of August 31, 1952
International Materials Conference
International Conference on German Debts
Twenty-sixth Biennial International Exhibition of Art
Inter-American Seminar on Vocational Education
International Conference on Agricultural and Cooperative Credit . . .
Thirteenth International Exhibition of Cinematographic Art ....
Sixth International Edinburgh Film Festival
UNESCO (United Nations Educational, Scientific and Cultural Organi-
zation) :
International Conference to Negotiate a Universal Copyright Con-
vention.
IcAO (International Civil Aviation Organization) :
Aeronautical Information Services Division: 1st Session
Itu (International Telecommunication Union) :
International Radio Consultative Committee (Ccir) : Study Group X .
UN (United Nations) :
Commission on Prisoners of War: 3d Session
Forty-first General Assembly of the Interparliamentary Union ....
Washington Feb. 26, 1951-
London Feb. 28-
Venice June 14—
University of Maryland . Aug. 2-
University of California, Aug. 4-
Berkeley
Venice Aug. 8-
Edinburgh Aug. 17-
Paris Aug. 18-
Montreal Aug. 19-
Geneva Aug. 20-
Geneva Aug. 25-
Bern Aug. 28-
Scheduled September 1-November 30, 1952
Fourth International Congress of Anthropological and Ethnological
Sciences.
Fao (Food and Agriculture Organization) :
Working Party of Experts to Study an International Emergency Food
Reserve.
Fao-Ecla Central American Seminar on Agricultural Credit ....
Second Meeting of the Technical Advisory Committee on Desert
Locust Control.
Vienna Sept. 1-
Rome Sept. 1-
Guatemala City .... Sept. 15-
Rome Sept.-
' Prepared in the Division of International Conferences, Department of State, August 22, 1952. Asterisks indicate
tentative dates.
332
Department of State Bulletin
Calendar oj Meetings — Continued
Scheduled September 1-November 30, 1952 — Continued
Eucalyptus Study Tour Australia Sept-
Latin American fleeting on Livestock Production Brazil Sept.-
Committee on Financial Control Rome October*
Fourth Session of the Indo-Pacific Fisheries Council Manila October*
UN (United Nations) :
Economic and Social Council:
Economic Commission for Asia and the Far East:
Second Regional Conference of Statisticians Bangkok Sept. 1-
Inland Transport Committee, Inland Waterway Subcommittee: Bangkok Sept. 16-
1st Session.
Working Party of Experts on Mobilization of Domestic Capital: Bangkok Sept. 22-
2d Session.
Subcommission on the Prevention of Discrimination and Protection New York Sept. 22-
of Minorities: 5th Session.
Committee on Industry and Trade, Subcommittee on Electric Bangkok Oct. 14-
Power.
Inland Transport Committee, Railway Subcommittee: 1st Bangkok Oct. 20-
Session.
Committee on Industry and Trade, Seminar on Power Alcohol . . Lucknow Oct. 23-
Ad Hoc Committee on Factors (Non-Self-Governing Territories) . . New York Sept. 4r-
Ecosoc: Restrictive Business Practices; 3d Session Geneva Sept. 8-
Committee on Information from Non-Self-Governing Territories . . New York Sept. 11-
General Assembly Committee on Administrative Unions New York Sept. 23-
Ad Hoc Committee on Forced Labour: 3d Session Geneva Oct. 14-
General Assembly: 7th Ses.sion New York Oct. 14-
Trusteeship Council: 11th Session (2d Part) New York October*
International Children's Emergency Fund:
Executive Committee New York November
Program Committee New York November
Seventh Annual Meeting of the Boards of Governors of the Bank for Mexico City Sept. 3-
Reconstruction and Development & the International Monetarv
Fund.
Eighth General Assembly of the International Astronomical Union . . Rome Sept. 4-
Second International Congress on Analytical Chemistry Oxford (England) . . . Sept. 4-
Conference of International Union of Family Organization Oxford (England) . . . Sept. 8-
Nineteenth International Geological Congress Algiers Sept. 8-
Thirteenth International Horticultural Congress London Sept. 8-
IcAO (International Civil Aviation Organization) :
Special Diplomatic Conference to Conclude a Convention on Damage Rome Sept. 9-
Caused by Foreign Aircraft to Third Parties on the Surface.
Statistics Division: 2d Session Montreal Sept. 16-
Air Navigation Commission: 11th Session Montreal Sept. 23-
Aerodromes, Air Routes & Ground Aids Division Meeting: 5th Montreal Oct. 21-
Session.
Standing Committee on Aircraft Performance: 3d Session North America .... Nov. 11-
Ilo (International Labor Organization) :
Chemical Industries Committee: 3d Session Geneva Sept. 9-
Petroleum Committee: 4th Session Scheveningen Oct. 14-
Governing Body: 120th Session Geneva Nov. 25-
Wmo (World Meteorological Organization) :
Third Session of the Executive Committee Geneva Sept. 9-
Unesco (United Nations Educational, Scientific and Cultural Organ-
ization) :
International Seminar on the Role of Museums in Education . . . Brooklyn Sept. 14—
International Congress of the Arts Venice Sept. 21-
Fourth Meeting of Representatives of National Commissions .... Paris Nov. 8-
General Conference: 7th Session Paris Nov. 18-
Paso (Pan American Sanitary Organization) :
6th Meeting of the Directing Council of Paso, and Fourth Meeting of Habana Sept. 15-
the Regional Committee for the Americas of Who.
17th Meeting of Executive Committee Habana Sept. 10-
18th Meeting of Executive Committee Habana Sept. 25-
First Inter-American Congress on Public Health Habana Sept. 26-
Fourth International Congress of African Tourism Lourengo Marques . . . Sept. 15-
International Sugar Council, Meeting of Special Committee London Sept. 29-
Who (World Health Organization) :
Fourth Meeting of the Regional Committee for the Americas (See also Habana Sept. 15-
Paso).
Western Pacific Regional Conference: 3d Session Saigon Sept. 25-
Twenty-first International Congress of Housing and Urbanization . . . Lisbon Sept. 21-
Fourth Meeting of the International Scientific Committee for Trypano- Lourengo Marques . . . Sept. 25-
somiasis Research.
International Council for the Exploration of the Sea Copenhagen Sept. 29-
Sepfember I, 1952 333
Calendar oj Meetings — Continued
Scheduled September 1-November 30, 1952 — Continued
Isi (Inter-American Statistical Institute):
Committee on Improvement of National Statistics: 2d Session . . .
Fourtli Meeting of tlie Executive Board of the International Council of
Scientific Unions.
Sixth General Assembly of the International Council of Scientific Unions .
Ittj (International Telecommunication Union) :
Telecommunications Plenipotentiary Conference
Gatt (General Agreement on Tariffs and Trade):
Seventh Session of the Contracting Parties to Gatt
International Conference on Legal Metrology, Meeting of Provisional
Committee.
South Pacific Commission: 10th Session
International Committee on Weights and Measures: Biennial Session. .
World Convention of Manufacturers of Paints and Inks
PiCMME (Provisional Intergovernmental Committee for the Movement of
Migrants from Europe) :
Meeting of Finance Subcommittee
Fourth Session of Picmmb
Paigh (Pan American Institute of Geography and History) :
Sixth Consultation of the Commission on Cartography
Eighth Pan American Congress of Architects
First Ibero-American Congress on Archives, Libraries and Copyrights .
Pan American Highway Congress: Extraordinary Session
Inter- American Economic and Social Council:
Third Extraordinary Meeting.
International Wool Study Group: 5th Meeting
Fourth Inter-American Congress of Radiology
West Indian Conference: 5th Session
Ottawa Sept. 29-
Amsterdam Sept. 30-
Amsterdam Oct. 1-
Buenos Aires Oct. 1-
Geneva Oct. 2-
Brussels Oct. 2-
Noum^a Oct. 6-
Sfevres Oct. 7-
Mexico City Oct. 8-
Geneva Oct. 9-
Geneva Oct. 13-
Ciudad Trujillo .... Oct. 12-
Mexico City Oct. 19-
Madrid Oct. 20-
Mexico City Oct. 26-
Undetermined October*
London October
Mexico City Nov. 2-
Jamaica Nov. 24-
Provisional Agenda for Seventh General Assembly
Following is a list of items appearing on the
provisional agenda of the seventh regular session
of the General Assembly, which is scheduled to
convene at New York on October llf.:
U.N. doe. A/2158
Dated August 15, 1952
1. Opening of the session by the Chairman of the delega-
tion of Mexico
2. Minute of silent prayer or meditation
3. Appointment of a Credentials Committee
4. Election of the President
5. Constitution of the Main Committees and election of
officers
6. Election of Vice-Presidents
7. Adoption of the agenda
8. Opening of the general debate
9. Report of the Secretary -General on the work of the
Organization
10. Report of the Security Council
11. Report of the Economic and Social Council
12. Report of the Trusteeship Council
13. Election of three non-permanent members of the
Security Council
14. Election of six members of the Economic and Social
Council
15. Election of two members of the Trusteeship Council
16. Korea :
(a) Reports of the United Nations Commission for
the Unification and Rehabilitation of Korea
(resolutions 376 (V) of 7 October 1950 and 507
(VI) of 5 February 1852)
(b) Reports of the United Nations Agent-General
for Korean Reconstruction (resolutions 410 A
(V) of 1 December 1950 and 507 (VI) of 5
February 1952)
17. Regulation, limitation and balanced reduction of all
armed forces and all armaments : report of the Dis-
armament Commission (resolution 502 (VI) of 11
January 1952)
18. Methods which might be used to maintain and
strengthen international peace and security in accord-
ance with the Purposes and Principles of the Charter :
report of the Collective Measures Committee (resolu-
tion 503 (VI) of 12 .January 19.52)
19. Admission of new Members (resolution 506 (VI) of
1 February 1952) :
(a) Status of applications still pending: report of
the Security Council
(b) Request tor an advisory opinion from the In-
ternational Court of Justice : draft resolution
propo.sed by Costa Rica. El Salvador, Guate-
mala, Honduras and Nicaragua at the sixth
session (A/C.1/70S)
20. Report of the Director of the United Nations Relief
and Works Agency for Palestine Refugees in the Near
East (resolution 302 (IV) of 8 December 1949)
21. Eritrea report of the United Nations Commissioner in
Eritrea (resolution 390 (V) of 2 December 19.50)
22. Treatment of people of Indian origin in the Union of
South Africa (resolution 511 (VI) of 12 January 1952)
23. Repatriation of Greek children: reports of the Secre-
taiy-General and of tlie international Red Cross or-
ganizations (resolution 517 (VI) of 2 February 1952)
334
Department of State Bulletin
24. Appointment of members of the Peace Observation
Commission (resolution 377 (V) of 3 November 1950)
25. Additional assistance to Libya for flnaneins its eco-
nomic and social development : report of tlie Economic
and Social Council (resolution 515 (VI) of 1 February
1952)
26. Economic development of under-developed countries:
(a) Financing of economic development of under-
developed countries : report of the Economic
and Social Council (resolution 520 A (VI)
of 12 January 1952)
(b) Methods to increase vporld productivity: re-
port of the Economic and Social Council (reso-
lution 522 (VI) of 12 January 1952)
(c) Land reform: report of the Secretary-General
(resolution 524 (VI) of 12 January 1952)
(d) Technical assistance for the economic devel-
opment of under-developed countries
27. Co-ordination between the United Nations and the
specialized agencies :
(a) Administrative and budgetary co-ordination:
reports of the Secretary-General and of the
Advisory Committee on Administrative and
Budgetary Questions
(b) Programme of conferences at Headquarters
and Geneva : report of the Secretary -General
(resolution 534 (VI) of 4 February 1952)
28. Report of the United Nations High Commissioner for
Refugees (resolution 428 (V) of 14 December 1950)
29. Draft Protocol relating to the Status of Stateless
Persons (resolution 5.39 (VI) of 4 February 1952)
30. Freedom of information :
(a) Problems of freedom of information, includ-
ing the study of the draft Convention on
freedom of information (resolution 541 (VI)
of 4 February 1952)
(b) Dissemination by governments of resolutions
adopted by organs of the United Nations and
communicated to them by the Secretary-Gen-
eral : item proposed by the Economic and
Social Council
31. Human rights :
(a) Draft International Covenants on Human
Rights and measures of implementation : re-
port of the Economic and Social Council
(resolutions 543 (VI), 545 (VI), and 547 (VI)
of 5 February 1952)
(b) Recommendations concerning international
respect for the self-determination of peoples :
report of the Economic and Social Council
(resolution 545 (VI) of 5 February 1952)
32. Administrative unions affecting Trust Territories :
special report of the Trustee.ship Council and report
of the Committee on Administrative Unions (resolu-
tion 563 (VI) of IS January 19.52)
33. The Evre and Togoland unification problem : special
report of the Trusteeship Council (resolution 555 (VI)
of 18 January 19.52)
34. Information from Non-Self-Governing Territories
transmitted under Article 73 e of the Charter : reports
of the Secretary-General and of the Committee on
Information from Non-Self-Governing Territories :
(a) Information on social conditions and develop-
ment (resolution .565 (VI) of 18 January 19.52)
(b) Information on other conditions (resolution
333 (IV) of 2 December 1949)
(c) Transmission of information (resolutions 218
(III) of 3 November 1948, 447 (V) and 448 (V)
of 12 December 19.50, and 551 (VI) of 7 Decem-
ber 19.51)
35. Question of the renewal of the Committee on Infor-
mation from Non-Self-Governing Territories (resolu-
tion .3.32 (IV) of 2 December 1949)
36. Participation of Non-Self-Governing Territories in the
work of the Committee on Information from Non-
Self-Governing Territories: report of the Committee
on Information from Non-Self-Governing Territories
resolution 566 (VI) of 18 January 1952)
September 1, 1952
87. Factors which should be taken into account in decid-
ing whether a territory is or is not a territory whose
people have not yet attained a full measure of self-
government : report of the Ad Boo Committee on
Factors (Non-Self -Governing Territories) (resolution
567 (VI) of 18 January 19.52)
38. Cessation of the transmission of information under
Article 73 e of the Charter in respect of the Nether-
lands Antilles and Surinam (resolution 568 (VI) of
18 January 19.52)
39. Question of South West Africa (resolution 570 (VI)
of 19 January 19.52) :
(a) Implementation of the advisory opinion of the
International Court of Justice: report of the
Ad Hoc Committee on South West Africa
(b) Examination of any report on the administra-
tion of South West Africa which may be trans-
mitted by the Government of the Union of South
Africa : report of the Ad Hoc Committee on
South West Africa
40. Financial reports and accoimts, and reports of the
Board of Auditors :
(a) United Nations, for the financial year ended
31 December 1951
(b) United Nations International Children's
Emergency Finid, for the financial year ended
31 December 1951
(c) United Nations Relief and Works Agency for
Palestine Refugees in the Near East, for the
financial year ended 30 June 1952
(d) United Nations Korean Reconstruction Agency,
for the financial year ended 30 June 1952
41. Audit reports relating to expenditure by specialized
agencies of technical assistance funds allocated from
the Special Account (resolution 519 (VI) of 12
January 1952)
42. Supplementary estimates for 1952: report of the
Secretary -General
43. Budget estimates for the financial year 1953 :
(a) Budget estimates prepared by the Secretary-
General
(b) Reports of the Advisory Committee on Admin-
istrative and Budgetary Questions
44 Report of the Negotiating Committee on Extra-
Budgetary Funds (resolution 607 (VI) of 29 January
1952)
45. Appointments to fill vacancies in the membership of
subsidiary bodies of the General Assembly :
(a) Advisory Committee on Administrative and
Budgetary Questions
(b) Committee on Contributions
(c) Board of Auditors
(d) Investments Committee: confirmation of the
appointment made by the Secretary-General
(e) United Nations Administrative Tribunal
(f) United Nations Staff Pension Committee
46. United Nations Joint Staff Pension Fund:
(a) Annual report of the United Nations Joint
Staff Pension Board for the year ended 31
December 1951
(b) Second actuarial valuation of the United Na-
tions Joint Staff Pension Fund : report of the
Actuary
■(c) Amendments to the regulations for the United
Nations Joint Staff Pension Fund: report of
the United Nations Joint Staff Pension Board
47. Scale of assessments for the apportionment of the
expenses of the United Nations : report of the Com-
mittee on Contributions (resolution 582 (VI) of 21
December 1951)
48 Headquarters of the United Nations: report of the
Secretary-General (resolution 589 (VI) of 2 February
1952)
49. United Nations Postal Administration : report of the
Secretary-General (resolution 454 (V) of 16 Novem-
ber 1950)
335
50. Staff regulations of the United Nations. Question
of a probationary jieriod : reports of the Secretary-
General and of the Advisory Committee on Admin-
istrative and Budgetary Questions
51. Measures to limit the duration of regular sessions
of the General As.sembly : report of the Secretary-
General (decision of the General Assembly at its
373rd plenary meeting held on 4 February 1952)
52. Report of the International Law Commission on the
work of its fourth session
53. International criminal jurisdiction : rejxirt of the
Committee on International Criminal Jurisdiction
(resolution 489 (V) of 12 December 1950)
54. Methods and procedures of the General Assembly for
dealing with legal and drafting questions : report
of the Spe<'ial Committee (re.solution 597 (VI) of
20 December 1951)
rtj. Question of defining aggression : report of the Secre-
tary-General (resolution 599 (VI) of 31 January
19.52)
56. Ways and means for making the evidence of cus-
tomary international law more readily available :
report of the Secretary-General (resolution 602 (VI)
of 1 February 1952)
57. Request of the Government of China for revi.sion of
the Chinese text of the Convention on the Prevention
and Punishment of the Crime of Genocide (resolu-
tion 605 (VI) of 1 February 19.52)
58. Draft Code of Offences against the Peace and Security
of Mankind: report of the International Law Com-
mission covering the work of its third session, Chap-
ter IV (decision of the General Assembly at its 341st
plenary meeting held on 13 November 1951)
59. Status of claims for injuries incurred in the service
of the United Nations : report of the Secretary-Gen-
eral (resolution 365 (IV) of 1 December 1949)
60. Giving priority to the codification of the topic "Dip-
lomatic intercourse and immunities" in accordance
with article 18 of the Statute of the International
Law Commission : item proposed by Yugoslavia
61. Award of the citation "Died for the United Nations"
to persons who, in certain circumstances, are killed
in the service of the United Nations : item proposed
by France
62. The Timisian question : item proposed by Afghanis-
tan, Burma, Egypt, India, Indonesia, Iran, Iraq,
Lebanon, Pakistan, the Philippines, Saudi Arabia,
Syria, and Yemen
63. The question of Morocco : item proposed by Iraq
64. Draft Convention on Political Rights of Women:
item proposed by the Economic and Social Council
65. Question of the adoption by the Economic and Social
Council and its functional commissions of Spanish
as a working language : item propcsed by the Eco-
nomic and Social Council
U.S. Delegations to
International Conferences
Aeronautical Information
Services Division (ICA0>
The Department of State, on August 18, an-
nounced tliat the Aeronautical Information Serv-
ices Division of the International Civil Aviation
Organization (Icao) will hold it.s first session at
Montreal beginning August 19, 1952, to develop
procedures and specifications for materials to be
used in the international dissemination of aero-
nautical information.
The U.S. delegation to this
follows :
meeting
IS as
U.S. Delegate
Edward R. SIcCarthy, Commander, U. S. N., Chief, Aero-
nautical Chart Branch, Division of Charts, U.S. Coast
and Geodetic Survey, Department of Commerce
Advisers
E. Thomas Burnard, International Specialist, Operations
Division, Air Transport Association of America, Inc.
George D. Childress, Chief, Aviation Extension Division,
Office of Aviation Development, Civil Aeronautics
Administration, Department of Commerce
Harland E. Hall, Chief. General Aeronautical Services
Section, Airways Operations Division, Office of Fed-
eral Airways, Civil Aeronautics Administration, De-
partment of Commerce
Richard G. Hoyer, Major, U. S. A. F., Chief, Aeronautical
Information Branch, Mats, Planning and Operations
Division, Aeronautical Chart and Information Serv-
ice, U.S. Air Force
Robert A. Mushet, Assistant Head for Production, Aero-
nautical Information Branch, Division of Air Navi-
gation, U.S. Navy Hydrographic OflSee
Jamie B, Stewart, Lt. Comdr., Plans and Projects Officer,
Division of Air Navigation, U.S. Navy Hydrographic
Office
Gerald F. Tise. Technical Adviser to the Chief, Aeronauti-
cal Information Branch, Aeronautical Charts and
Information Service, U.S. Air Force
This Division is one of the subcommissions
established for each of the major technical fields i
by the Icao Air Navigation Commission, which is
assisting the Icao Council in the preparation of
technical annexes to the Convention on Interna-
tional Civil Aviation and in the other technical
work of the organization.
At the forthcoming Division meeting, specialists
representing the governments which are members
of Icao will discuss (1) suitable international I
standards, recommended practices and procedures I
for aeronautical information services, including
languages, specifications, abbreviations, and otheri
items concerning publications; (2) improvement!
in the efliciency of Aeronautical Information Serv-
ices (Ais), including the development of a world-
wide plan for the gathering and distribution of
aeronautical information, the development of an
Ais manual for operational purposes, and the dis-
semination by Icao of intelligence concerning serv-
ices provided by Icao members for aeronautical
information; (3) facilitation of the exchange of '
aeronautical information among states, especially ;
the more effective use of air transport for this
purpose; (4) Notaji (Notices to Airmen) com-
munications, including the further development ■
of the NoTAM Code, and the requirements for dis-
tributing NoTAMs by wire or broadcast; (5) aero-
nautical charts, especially radio facility charts as
related to aeronautical publications and standard
specifications for display charts; and (6) j^lans
for future meetings of the Division.
336
Department of State Bulletin
President Proclaims Increased Import Duty on Dried Figs
White House press release dated August 16
STATEMENT BY THE PRESIDENT
I have today signed a proclamation increasing
tlie import duty on dried figs by two cents per
pound. This action was recommended unani-
mously by the Tariff Commission. It will be
effective August 29, 1952.
There is some indication that the necessity for
this step is due to abnormal crop and seasonal
factors and that the situation is of a temporary
nature.
In its report, the Tariff Commission has stated
that it will keep the domestic situation under sur-
veillance. I am, therefore, suggesting that the
Department of State also keep the foreign situa-
tion under surveillance, and, should developments
justify it. that the Department of State request
the Tariff Commission to review the facts next
year in time to make any appropriate recommen-
dations before the beginning of the 1953 marketing
season.
TEXT OF PROCLAMATION!
1. Whereas, pursuant to the authority vested in the
President by the Constitution and the Statutes, including
section 350 of the Tariff Act of 1930, as amended, on April
21, 1951, I entered into a trade agreement providing for
the accession to the General Agreement on Tariffs and
Trade of certain foreign countries, including the Republic
of Turliey, which trade agreement consists of the Torquay
Protocolto the General Agreement on Tariffs and Trade,
dated April 21, 1951, including the Annexes thereto, and by
Proclamation No. 2929 of June 2, 1951 (3 CFR, 1951 SUPP.,
27 ; TD 52739), I proclaimed such modifications of existing
duties and other import restrictions of the United States
of America and such continuance of existing customs or ex-
cise treatment of articles Imported into the United States
of America as were then found to be required or appro-
priate to carry out the said trade agreement on and after
June 6, 1951, which proclamation has been supplemented
by several notifications of the President to the Secretary of
the Treasury, including a notification dated October 2,
1951 (3 CFR, 1951 SUPP., 540; TD 52836) ;
2. Whereas, as set forth in the 7th recital of the said
Proclamation No. 2929, and in accordance with paragraph
3 of the said Torquay Protocol, Schedule XX contained in
Annex A of the said Protocol (hereinafter referred to as
' No. 2986 ; 17 Fed. Reg., 7567.
September 1, 1952
the "Torquay schedule") became a schedule to the General
Agreement on Tariffs and Trade relating to the United
States of America on June 6, 1951 ;
3. Whereas item 7-40 in Part I of the Torquay schedule
reads as follows :
Tariff Act
of 1930,
-paragraph Description of Products Rate of Duty
740 Figs, fresh, dried, or in brine— 2V2<* Per lb.
4. Whereas, pursuant to the said Proclamation No.
2929 and the said notification of the President to the
Secretary of the Treasury of October 2, 1951, duty at
the rate of 2V2 cents per pound has been applied to the
products described in the said item 740, entered, or with-
drawn from warehouse, for consumption since October 17,
1951, wliich duty reflects the prevailing United States
concession with respect to such products under the said
General Agreement on Tariffs and Trade as supplemented
by the said Torquay schedule;
5. Whereas the United States Tariff Commission has
submitted to me its report of investigation and hearing
under .section 7 of the Trade Agreements Extension Act
of 1951 ( Public Law 50, 82d Congress, approved June 16,
1951), on the basis of which investigation and hearing it
has found that dried figs described in the said item 740
are, as a result in part of the duty reflecting the conces-
sion granted thereon in the said General Agreement on
Tariffs and Trade as supplemented by the Torquay
schedule, being imported into the United States in such
increased quantities, both actual and relative, as to cause
serious injury to the domestic industry producing like or
directly competitive products, and as to threaten continu-
ance of such injury;
6. Whereas the said Tariff Commission has recom-
mended that the concession granted in the said General
Agreement as supplemented by the Torquay schedule with
respect to dried flgs described in the said item 740 be
modified to permit the application to such products of a
rate of duty of 41/2 cents ijer pound, whicli rate the Com-
mission found and reported to be necessary to prevent
the continuance of serious injury to the domestic industry
producing like or directly competitive products ;
7. Whereas section 3.">0 (a) (2) of the Tariff Act of
1930, as amended, authorizes the President to proclaim
such modifications of existing duties as are requiretl or
appropriate to carry out any foreign trade agreement that
the President has entered into under the said section
350 (a) ; and
8. Whereas, upon the modificatiou of the concession
granted in the said General Agreeanent as supplemented
by the Torquay schedule with respect to dried figs de-
scribed in the said item 740 in accordance with the recom-
mendation of the Tariff Commission mentioned in the 6th
337
recital of this proclamation, it will lie appropriate to carry
out tlie said General Agreement as supplemented by the
Torquay schedule to apply to the said dried figs the rate
of duty specified in the said 6th recital :
Now, THEREFORE, I, Harry S. Truman, President of the
United States of America, acting under the authority
vested in me by section 350 of the Tariff Act of 1930, as
amended, and by section 7 (e) of the Trade Agreements
Extension Act of 1951, and in accordance with the pro-
visions of Article XIX of the said General Agreement,
do proclaim
fa) That the provisions of item 740 of Part I of the
Torquay schedule shall be modified, effective at the close
of business August 29, 1952, so as to read as follows :
Tariff Act.
of 1930.
-paragraph
7-10
Description of Products
Figs:
Fresh or in brine . . .
Dried
Rate of duty
2H«i per lb.
4}^^ per lb.
(b) That, until the President otherwise proclaims, the
rates of duty specified in such modified item 740, as set
forth in paragraph (a) above, shall be applied to articles
entered, or withdrawn from warehouse, for consumption
after the close of business August 29, 1952. The said
Proclamation No. 2929 is modified accordingly. So long
as this proclamation remains in force, the provisions of
Proclamation No. 2867 of December 22, 1949 (3 CFR, 1949
SUPP., 55 : TD 52373) and Proclamation No. 2S74 of March
1, 1950 (3 CFR, 1950 SUPP., 21: TD 52423), insofar as
they provide for carrying out United States obligations
with respect to the rate of duty on dried tigs described In
item 740 of Part I of Schedule XX in Annex A of the
Annecy Protocol of Terms of Accession to the General
Agreement on Tariffs and Trade, shall be susiiended.
In Witness Whereof, I have hereunto set my hand and
caused the seal of the United States of America to be
atfixed.
Done at the City of Wa.shington this sixteenth day of
August, in the year of our Lord nineteen hundred
[seal] and fifty-two, and of the Independence of the
United States of America the one hundred and
seventy-seventh.
By the President :
David Bruce
Acting Secretary of State
Export- Import Bank Transmits
Semiannual Report to Congress
On August 19 the Export-ImiDort Bank of
Washington transmitted its semiannual report for
the half year which ended June .30, 1952, to the
Congress and the President. The report also
summarizes the Bank's activities for the whole of
the fiscal year which ended on tlie same date.
The Bank is one of the profitable financial ac-
tivities of the Government. It paid a dividend of
20 million dollars to the Treasury on July 1 out
of profits made during the fiscal year ending June
30; a similar dividend was paid in July 1951. At
the same time the Bank added 31.8 million dollars
to its accumulated earned reserves, which now
total 260.0 million dollars. The profits used for
the dividend and accruing to reserves arose out of
interest earnings of 70 million dollars, less acbnin-
istrative expenses of 1 million dollars and interest
payments of 17.2 million dollars to the United
States Treasury.
Tlie Bank pays interest to the Treasury under
the law at a rate determined by the Secretary of
the Treasury and based upon average cost to the
Treasury of funds borrowed in the market. The
current rate on new borrowings of the Bank from
the Treasury is 2 percent.
During the 6 months which ended on June 30,
the directors authorized new credits in the amount
of 413.3 million dollars and allocated approxi-
mately 30.5 million dollars to specific projects out
of credits previously authorized. In the same
period, the Bank paid out 185 million dollars to
borrowers and received repayments of principal
in the amount of 85 million dollars plus the interest
payments of 70 million dollars. As of June 30,
1952, there was owed to the Bank from borrowers
2.4 billion dollars, wliile it had on its books loan
commitments not yet paid out amounting to 911.9
million dollars, which brought the total of active
credits to 3,311.9 million dollars.
The Bank has authorization under the Export-
Import Bank Act of 1945, as amended, to have
outstanding loans and commitments in an amount
not in excess of 4.500 million dollars. Thus the
uncommitted lending authority as of the end of
the fiscal year stood at 1.2 billion dollars.
The Bank's activities during the fiscal year cov-
ered a wide geographical scope. Loans were out-
standing in 47 countries on all continents. Loans
were made during the year for economic develop-
ment purposes in distant countries and others for
scarce materials needed in the defense program
of the United States. Typical of the former class
was a loan of 20 million dollars to the National
Power Corporation, an agency of the Philippine
Government, for construction of a hydroelectric
power plant on the Agno Eiver north of Manila.
This loan will meet the pressure of increased de-
mand for power for industrial, household, and
farm uses and at the .same time will save the Phil-
ippines dollar exchange now being used to buy oil
to supply Diesel and steam electric-generating
plants.
Loans also were made to two important railroads
in Brazil, the Santos a Jundiai and the Paulista,
amounting together to 15.6 million dollars. The
loans were to buy new equipment and to modern-
ize the brake and coujiler systems sinuiltaneously
so as to permit the continued exchange of cars,
as well as the intercliange of traffic with the Cen-
tral Kailroad of Brazil. The Santos a Jundiai
connects the important city of Sao Paulo with
the seaport of Santos and also makes connection
with the Paulista, which serves the heart of the
338
Department of State Bulletin
very important agricultural state of Sao Paulo.
The Bank also made a commitment for loans in
the amount of 41 million dollars to seven operating
subsidiaries of the Brazilian Electric Power Com-
pany, which is in turn a subsidiary of the Ameri-
can and Foreign Power Company and represents
investments by a great many American stock-
holders.
Typical of the scarce materials credits were
loans for the production of tungsten and sulfur
in Latin America and for uranium production in
Africa. Another credit, even more directly con-
nected with National Defense, was for military
end-items for use by the Nato countries under
Defense Department contracts.
Included in the year's activities were short-term
loans in the amount of 173 million dollars to
finance the export of cotton and 10 million dollars
for tobacco exports.
The Bank continued during the year to act as
the agent of the Mutual Security Administrator
in administering credits and guaranties under the
Foreign Assistance and Mutual Security Acts.
At the fiscal year's end the Bank had under con-
sideration loans for strategic materials production
in both near and distant countries, including rail-
way and power projects allied to defense produc-
tion in Africa and strategic materials production
in Latin America, Africa, and Australia.
Institute of Pacific Relations. Report of tlie Committee
on the Jutiiciary, S2d Cong., 2il scss., I'nrsuant lo S.
Res. 366 (81st Congress) — A Resolution Relating to
the Internal Securit.v of the United States. Hearings
held July 25, 19.51-June 20, 1952 by the Internal Se-
curity Subcommittee. S. Rept. 2050, 82d Cong., 2d
sess. 244 pp.
Authorizing the Loan of Certain Naval Vessels to Gov-
ernment of Japan. S. Rept. 2074, S2d Cong., 2d sess.
[To accompany H. R. 8222] 3 pp.
The Katyn Forest Massacre. Interim Report of the
Select Committee To Conduct an Investigation and
Study of the Facts, Evidence, and Circumstances of
tlie Katyn Forest Massacre Pursuant to H. Res. 390
and H. Res. 539 (S2d Congress) — A Resolution To
Authorize the Investigation of the Mass Murder of
Polish Officers in the Katyn Forest Near Smolensk,
Russia. H. Rept. 2430, 82d Cong., 2d sess. 31 pp.
Annual Report of the Committee on Un-American Activi-
ties for the Year 1951. H. Rept. 2431. S2d Cong., 2d
sess. 30 pp.
An Act To Revise the Laws Relating to Immigration,
Naturalization, and Nationality ; and for Other Pur-
poses. Public Law 414, 82d Cong., Chapter 477, 2d
sess. H. R. 5678. 120 pp.
Federal Deposit Insurance — Puerto Rico. S. Rept. 1990,
S2d Cong., 2d sess. [To accompany H. R. 5120]
2 pp.
Prohibiting the Transportation of Lethal Munitions in
Interstate or Foreign Commerce. H. Rept. 2358, 82d
Cong., 2d sess. [To accompany S. 1429] 6 pp.
THE DEPARTMENT
Current Legislation on Foreign Policy Appointment of Officers
An Act Making appropriations for the Departments of
State, Justice, Commerce, and the Judiciary, for the
fiscal year ending June 30, 19.53, and for other pur-
poses. Pub. Law 495. 82d Cong., Chapter 651, 2d
sess., H. R. 7289. 26 pp.
An Act To extend certain privileges to rejiresentatives
of member states on the Council of the Organization
of American States. Pub. Law 486, 82d Cong., Chap-
ter 628, 2d sess., S. 2042. 1 p.
Supplemental Appropriation Bill, 1953. Hearings before
the Committee on Appro])riations, United States Sen-
ate. Eighty-second Congress, Second Session, on H. R.
8370, An act making supplemental appropriations
for the fiscal year ending June .30. 19.>!, and for other
purposes. Committee print. 573 pp.
International Convention for the High Seas Fisheries.
Hearing before the Committee on Foreign Relations,
United States Senate, Eighty-second Congress, Sec-
ond Session ; on Executive S, 82rt Cong., 2d sess.
International Convention for the High Seas Fisheries
of the North Pacific Ocean, Together With a Protocol
Relating Thereto, Signed at Tokyo, May 9, 19.52. on
Behalf of the United States, Canada, and Japan.
June 27, 1952. Committee print. 6t> pp.
An Act To authorize the loan of certain naval patrol-type
vessels to the Government of Japan. Pub. Law 467,
82d Cong., Chapter 591, 2d sess., H. R. 8222. 1 p.
Requesting the Secretary of Defense To Furnish to the
House of Representatives Full and Complete Infor-
mation With Respect to Insurgency in Prisoner-of-
War Camps in Korea and Communist-Inspired Dis-
turbances of the Peace in Japan. H. rept. 2129, 82d
Cong., 2d sess. [To accomiJany H. Res. 662] 13 pp.
Joseph M. Dodge as Consultant to the Secretary on
economic and financial matters afCecting Japan.
Check List of Department of State
Press Releases: Aug. 18-22, 1952
Releases may be obtained from the Office of the
Special Assistant for Press Relations, Department
of State, Washington 25, D.C.
Press release issued prior to Aug. 18 which ap-
pears in this issue of the Bulletin is No. 631 of
Aug. 11.
Subject
Text of Soviet note on Austrian treaty
Franco-American memorial ceremony
Aeronautical Information Services
Soviet attitude toward Austrian treaty
Legion of Merit to Faisal II
Exehany:e of persons
Phillips : Mutual understanding
Pocket libraries sent to India
McCloy : Death of Schumacher
U.S. dollar payment to Korea
Miss Truman's Visit in Sweden
Dodge: Consultant to Secretary (re-
write)
No.
Date
646
S/IS
647
8/18
648
8/18
649
S/18
650
8/19
*(i51
8/19
652
8/21
653
8/21
654
8/21
655
8/22
*656
8/22
657
8/22
*Not printed.
September 1, 1952
339
September 1, 1952
Vol. XXVII, No. 688
Asia
INDIA: U.S. sends pocket libraries to ... .
IRAQ : Legion ot Merit awarded King Faisal n .
JAPAN: Becomes member of International
Bank
KOREA:
President reafllrms U.N. stand on prisoner
repatriation question
U.S. to make second dollar payment to . . .
Aviation
Aeronautical Information Services Division
(ICAO)
Communism
President reafllrms U.N. stand on prisoner
repatriation question
The Soviet harassment campaign in Germany .
Congress
Current legislation listed
Export-Import Bank transmits semiannual re-
port
Europe
AUSTRIA: Department deplores punitive spirit
of latest Soviet note on treaty
FRANCE: Franco-American memorial cere-
mony
GERMANY:
Becomes member of International Bank . .
Death of Kurt Schumacher
The Soviet harassment campaign in ... .
U.S.S.R. : The Soviet harassment campaign in
Germany
Finance
Export-Import Bank transmits semiannual re-
port to Congress
International Bank activities
U.S. to make second dollar payment to Korea .
International Information
Creation of mutual understanding
U.S. sends pocket libraries to India
International Meetings
Aeronautical Information Services Division
(ICAO)
Calendar ot Meetings , , , , ,
Provisional agenda for seventh General As-
sembly
Index
Mutual Aid and Defense
331 Israel to receive U.S. military aid 331
330
Near East
330 ISRAEL: To receive U.S. military aid ... . 331
Presidential Documents
33g CORRESPONDENCE: President reaffirms U.N.
stand on prisoner repatriation question . 327
EXECUTIVE ORDERS: Displaced Persons Com-
mission submits fhial report (President's
executive order) 328
PROCLAMATIONS: Increased import duty on
dried figs 837
„„„ Publications
327
gj. Recent releases 331
Refugees and Displaced Persons
339 Displaced Persons Commission submits final
report 328
338
State, Department of
Appointment of OfBcers 339
„„.. Department deplores punitive spirit ot latest
Soviet note on Austrian treaty 321
329 Trade
330 President Truman proclaims increased import
„„. duty on dried figs 337
^^^ Treaty Information
3JJ Department deplores punitive spirit ot latest
Soviet note on Austrian treaty 321
United Nations
338 International Bank activities 330
330 General Assembly: Provisional agenda for
330 seventh session 334
Name Index
324
Dodge, Joseph M 339
Ewing, Capt. Charles 327
Faisal II, King 330
McCarthy, Edward R 336
336 McCloy, John J 311, 329
332 Phillips. Joseph B 324
Schumacher, Kurt 329
334 Truman, President 327, 328, 337
U S. GOVERNMENT PRINTIN5 OFFICE: 1982
Ae/ ^ehcoj^tmeni/ ,m tHat&
. XXVII, No. 689
September 8, 1952
^VlENT o^
i
CRUSADE OF IDEAS • by Wilson Compton 343
PRESENT DAY RELATIONSHIP BETWEEN MILI-
TARY POWER AND CIVIL AUTHORITY • Article
by Charles B. Marshall 348
DRAPER REPORT ON MAJOR EUROPEAN ECO-
NOMIC, POLITICAL, AND MILITARY DEVELOP-
MENTS 353
A COMMENTARY ON THE U.N. CHILDREN'S EMER-
GENCY FUND • Statement fay Walter M. Kotschnig . . 376
HUMAN NEEDS ARE WORLD NEEDS • Article by
Frances K. Kernohan ............. 369
For index see back cover
(5 S. SOPERINTENOEMT OF DOCUMENTS
SEP 221952
tJAe
^efia/)tim.€nt x)£^ t/iaCe
bulletin
Vol. XXVII, No. 689 • Publication 4701
September 8, 1952
For sale by the Superintendent of Documenta
U.S. Government Printing Office
Washington 25, D.O.
Price:
52 issues, domestic $7.60, foreign $10.25
Single copy, 20 cents
The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1952).
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
OF State Bdlletin as the source will be
appreciated.
The Department of State BULLETIN,
a weekly ptiblication 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
selected press releases on foreign pol-
icy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.
Publications of the Department, as
well as legislative material in the field
of international relations, are listed
currently.
CRUSADE OF IDEAS
hy Wilson Compton
Administrator, U.S. International Information Administration^
I AM GLAD for this occasion which has
brought me here today to meet with you in
a State which has been my second home for more
than 50 years. I want to discuss some urgent
public problems with you. Also, quite frankly,
I want your help in solving them. The voice of
America has been called the greatest pulpit in the
world for the preaching of democracy. If so,
I am asking you to share it with me. I speak to
you not as a professional publicist, nor as a pro-
fessional Foreign Service officer, nor as a profes-
sional diplomat, but merely as an American citi-
zen, proud of his country and wishing to help
preserve for his grandchildren and yours the
"promise of American life."
One hundi'ed and seventy-five years ago an
American jDatriot, Thomas Paine, said : "These are
times that try men's souls." I have often pon-
dered that statement as you have pondered it. I
have reflected on the events which have occurred
in our time — two world conflagrations in which
we had to fight to preserve our freedom in the
hope of a just and lasting peace. Seven years ago,
after the last of the great powers to oppose us in
World War II had laid down their arms a half
a world away, we thought peace had come. Now
it is clear that the ideals for which American boys
and their comrades fought and died have not
been won. Today 800 million people are captive
behind a wall of tyranny and fear — prisoners
in part of propaganda, in Russia, Eastern Europe,
and China. Another billion, many of whom are
' Address made before the Annual Convention of
AiivETS at Grand Rapids, Mich., on Aug. 29 and released
to the pre.ss (no. 073) on the same date. Also printed as
Department of State publication 4696.
war-ravaged and destitute, lie barely outside the
wall which separates them from servitude to a
ruthless state.
No thoughtful person who looks at the world
today can be complacent. No man can take com-
fort in turning his back on grim realities. In
every crisis of our national history, our courage
has been tested, our patience tried, our resources
strained. But this is different. These times also
try men's pocketbooks, but, more than that, they
try men's faith.
The present-day facts of international life re-
quire as much American heroism, as much Yankee
courage, and as much patriotic devotion as has
ever been required of the people of this country
from the days when our forefathers fought for
independence. So I am grateful for the oppor-
tunity to talk to you today — to you who so val-
iantly have defended your country in war and
who now are so actively working for peace.
Present World Crisis
A world crisis is upon us because of the lust for
conquest of a mighty imperialist power bent on
aggression. Euthless international communism
threatens the roots of free civilization and the
moral and spiritual foundations upon which it is
based. We face an aggressor, who, not content
with robbing men of their material wealth, seeks to
rob men of their souls, an aggressor who disclaims
religion, denies human dignity, makes of men
not the masters but the servants of the state. We
are engaged in a mighty contest between world
faith and world fear.
War veterans understand the implications of
the world crisis. You have not been content with
mere exhortations that we must win the peace
September 8, 1952
343
without another war. Your own "Operation
Friendship," conceived, as you put it, "in the
hearts of Americans who believe in the preser-
vation of the dignity of man, . . . who believe
that we must seek for our children the kind
of world we dreamed of but may never see,"
is already spreading its message of good will
overseas. I understand that, at your initiative
"Friendship Balls," bearing cards with the names
and addresses of American children, have been
sent to the children of Italy and that aiiother
shipment is in prospect. So in a way, I am speak-
ing to my own partners in a great enterprise.
You are helping to pave the highway to peace.
There is no better way, except by personal con-
tact, to encourage friendship and understanding
throughout the world than the way which you
have chosen — that of correspondence between the
youth of America and the youth of other nations.
The International Information Administration
commends your "Operation Friendshiii" and
hojDes that its forces will grow.
Basis of U.S. Foreign Policy
United States foreign policy is based on the
long-range objective of peace and freedom with
improved opportunity for all the peoples of the
world. It is a policy of the Golden Rule. We
know that only in such a world may the people of
the United States hope to maintain in peace their
own way of life — a way of life in which the state
is the servant of the people, where the individual
has a right to choose and a chance to choose — a
way of life which has provided the greatest free-
dom and the highest standard of living in world
history. We want a world in which no single
2:)ower may dictate how things are or how they
shall be. We want a world at peace. But we
want a just peace.
Communist Propaganda
We have now to deal with the most far-flung,
expensive, treacherous, and insidious propaganda
the world has ever known. Recently the Soviet
Union's "Campaign of Hate" against the United
States has been intensified. Now it is directed
not against "Wall Street," its favorite target,
or against the Government, but against the people
of the United States, against you and me — like
the practice of the international Communists in
Czechoslovakia of teaching even little children
344
to sing "songs of hate" of America. The Big
Lie has become the Big Black Lie. Let me cite
an example from an article which appeared in
Pravda, the official Communist Party newspaper
in Moscow, on August 9. The ink is scarcely dry
on this statement which I quote :
"The Korean press reports fresh facts of the crimes of
the American interventionists in Korea. During the tem-
porary occupation of . . . [the] south Pyongyang prov-
ince, the paper Minchu Chosen writes, American soldiers,
by threat of arms drove the inhabitants of the rural dis-
trict to a certain place on the pretext of a meeting for
welcoming the American forces. The occupiers then
picked all the young women out of the crowd and locked
them in empty warehouses. All the women were then
raped. The American butchers began to brand patches
on the women's bodies with heated irons and nails. All
the women who resisted the ravishers had a wire put
through their nose by the Americans and they were led
by this wire through the village. The monsters gouged
out the eyes of many women and hacked lumps of flesh
out of their bodies. The butchers disembowled several
pregnant women who fell into their hands during the
temporary occupation of the town of Sariwen.''
This propaganda by the Soviets reaches a new
low in the fabrication of so-called American
"atrocities." Tragically it is the kind of propa-
ganda about America and Americans to which
millions througliout the world are being regularly
exposed. It shows the unprecedented, political
immorality of the present leadership of inter-
national communism. Faced by this condition
do you think that the voice of America should be
silent, or that more power should be added to its
voice ?
On direct propaganda alone at home and abroad
the Soviet Union spends over a billion dollars a
year. Nearly a half billion more is spent in the
"satellite" countries. Nor does this include the
vast sums spent indirectly on subversive activities,
on popular front infiltrations, and on similar
campaigns where the Soviets have the help of an
active Communist Party. The international
Communists are spending, relative to the national
income of the countries which they dominate,
more than 10 times as much to maintain the Big
Lie as we are spending to sustain the Big Truth.
It takes more to maintain a big lie than to main-
tain a big truth. That is true. But this dis-
crepancy is too great and by this time we must
know that the world-wide aggression by interna-
tional communism is not a "feather duster" cam-
paign.
There are now 6,000 local propaganda schools
Department of State Bulletin
(liroughout tlie Soviet Union with an enrollment
of more than 185,000 students. There are 177 re-
gional schools with 135,000 students of advanced
propaganda techniques. There are a dozen higher
institutions which give so-called "graduate" in-
struction in propaganda to thousands of postgrad-
uate students. Some of these "graduate students"
in recent years have been Chinese, and we are well
aware of the present-day consequences of that fact.
Added to all this, nearly every citizen in the
Soviet Union is given propaganda training. Sur-
veys of information available to the Department of
State indicate that the greater part of the intelli-
gentsia of the Soviet Union, some five to ten million
persons, are trained propagandists, ti'ained, that is,
to carry out, along with their other duties, propa-
ganda objectives defined by the state.
Need for Armament of Ideas
Our program of rearmament, the North Atlan-
tic Treaty Organization, the Organization of
American States, under the Rio Pact, our mutual
security treaties in the Pacific — all of these, I am
proud to say, endorsed by your great organiza-
tion— are our immediate answer to the threat of
international Communist aggression. But that is
not enough. Wars have been won by arms and
armaments. But peace has never been won that
way, nor kept. If you have doubts, read your
history. It is said half cynically that "the Lord
is on the side of the heaviest battalions." But
that at most is a half-truth. "Not by might, nor
by power, but by My Spirit, saith the Lord."
Armies, it is true, have been able to destroy peo-
ples. But armies have never been able to destroy
ideas. In the long run, ideas are more powerful
than guns. The march of history has proven
that. Our own national history is essentially the
history of an idea — the idea of freedom, the free-
dom and the chance to choose. Why does every
American school boy know about the Declara-
tion of American Independence? Why do we
exact of every public officer a solemn pledge to
protect and defend the Constitution of the United
States? Wliy do we cling so tenaciously to the
Bill of Eights for which also our fathers before
us fought and bled and died? It is not merely
because these are honored historic documents. It
is because they embody what you and I know
as the "promise of American life," a promise
which we wish and intend to preserve for our
children.
We are making gigantic investments in arma-
ments. We ai'e doing this because we must. But
we should never forget that the only reason that
we make these investments in the means of war
is in the hope that by preventing war we may
have a chance to continue our investments in the
means of peace. If we want to try to avoid or
prevent a world-wide war of arms, we must make
a greater investment in the world-wide war of
ideas. There is no gain in winning a war and
losing a peace. We need an armament of ideas as
much as we need an armament of guns. Above
all, the whole free world needs a spiritual re-
armament, a renewed allegiance to the ideals which
have made the free world free, which are vital to
keep it free.
For these purposes the United States now has
in its arsenal for the war of ideas two principal
weapons : first, the International Information Ad-
ministration or, as it is commonly called, the
"Voice of America"; and second, the Technical
Cooperation Administration, commonly identified
as Point Four, which, with respect especially to
underdeveloped countries, is seeking to help others
to help themselves. Our combined yearly invest-
ment in these two related activities is less than
one-half of one percent of our yearly investment
in arms and armaments. This is not enough.
You remember the story of Nehemiah, one of
the greatest of the epics in the Old Testament.
Nehemiah was a Jew. When the Children of
Israel had been taken captive and the City of
Jerusalem destroyed by the armies of Babylon,
Nehemiah became a wine bearer in the palace of
the Babylonian King. Nehemiah asked the King
to permit him to return to Jerusalem to find out
what had happened to the "City of his fathers."
The King told him to go; and sent a guard of
soldiers with him. Nehemiah found the walls of
Jerusalem, he wrote, to be "broken down and the
gates thereof consumed with fire"; and he said
unto his people : "Let us rise up and build."
But the Ammonites in the surrounding plains
did not want Jerusalem rebuilt. They laughed at
Nehemiah and his little crew of helpers. But
Nehemiah kept on building the wall. Then they
tried cajolery, then propaganda, then threats.
But Nehemiah kept on building. He "set a watch
against them day and night," as the ancient story
goes. He "set in the lower places behind the wall,
and on the higher places, the people and their
families, with their swords, their spears, and their
September 8, 7952
345
bows. And it came to pass that half of the people
wrought in the work and the other half of them
held the spears, the shields, the bows and the
habergeons," and "everyone with one of his hands
wrought in the work and with the other hand
held a weapon."
Finally the Ammonites tried trickery. Sanbal-
lat, the chief of the plainsmen, sent a messenger
to Nehemiah saying : "Come down into the plains
of One and let us reason together" for they
thought to destroy him. But Nehemiah would not
be deflected from his purpose to rebuild the walls
of Jerusalem ; and the answer which he sent to
Sanballat still comes down through the ages of
history as a ringing challenge to you and to me
and to all those who would build a better world.
This was Nehemiah's answer: "I am doing a
great work and I will not come down. Why
should the work cease whilst I leave it and come
down to you ?" So they finished the wall !
My young friends, veterans of a great war which
we fought for a peace which we have not yet won,
if you want to fortify your own determination to
Tieep on keeping on" in the struggle for peace —
a just peace, peace with freedom — I suggest that
you read again in the sixth chapter of Nehemiah
this challenging story out of an heroic past. We
too have our present-day Sanballats. But we also
have our Nehemiahs. We too are living today,
as did our Pilgrim fathers, who each day went out
to till their fields with a hoe on one shoulder and a
musket on the other.
Today, we are spending 50 billion dollars a year
to provide the "spears, the shields, the bows, and
the habergeons" needed to protect us while with
other free peoples we rebuild the walls of democ-
racy. Comparatively we are neglecting the war
of ideas.
And yet, during the long years ahead, as we
build and maintain a defensive shield, the war of
ideas backed by positive programs of political,
social, and economic progress is one of our greatest
hopes for peace.
We have a better than even chance to win the
peace, if we do what we can do to win it. We have
great collective power on our side in the fight for
peace, potentially great military power, great eco-
nomic power, great resources of self-reliance. But
we have much more than that — great moral power
if we will harness it for the public good. There
is that spiritual force which springs from man's
innate belief in a God and in a moral law. This
belief is an important common denominator
of mutual interest between peoples who are free or
who hope for freedom. There is the historic su-
periority of truth over falsehood, the power of
love over hate, and of faith over fear; and there
are the miracles of humanity and justice which
have transformed the lives of peoples since the
beginning of time.
Americans are a religious people. We prize the
spiritual significance of our great political achieve-
ments as a nation — achievements which uphold the
dignity and the rights of the individual man. We
seek in our international relations to manifest
outwardly our inner spiritual beliefs.
We need to make more use of these powerful
spiritual forces. We need to point out to the
peoples of the world that we are missionaries not
conquerors, equals not superiors, helpers not mas-
ters ; and that we seek not empire but mutual op-
portunity and mutual security. If we do this, we
will not be thwarted by the reactionary and spir-
itually barren philosophy of international com-
munism. But it is not an easy road, nor will it
be traveled by easy-going men. If we are to live
in a dangerous world, there must be heroism in our
way of life.
The Campaign of Truth
In recent months the International Information
Administration has occasionally been pressed to
"take a leaf out of the book of the Big Lie" of the
international Communists. We have rejected this
advice and will continue to reject it. The "Voice
of America" will never be the voice of Americans
unless it is the voice of truth. If we were to model
ourselves after the treacherous pattern of inter-
national communism, we would lose even if we
won.
This great Campaign of Truth on which we are
engaged is no place for half-hearted Americans.
This is a mission and those who engage in it must
have a sense of inission. I have said to the thou-
sa-nds of my colleagues in this American mission-
ary enterprise throughout 88 countries of the
world that we must carry the flag, not merely on
the Fourth of July, but every day in our hearts.
Are we actually reaching the minds and hearts
of men in other lands? We may at least safely
say that the progress which has been made toward
the integration of Western Europe, militarily and
economically, would not have been made had it
346
Department of Sfa/e Bulletin
lot been for the help of our United States infor-
nation services in Europe. In West Germany the
jeople have stood staunchly by the democratic
deal despite the constant, poisonous, and threaten-
ng barrage of Communist propaganda. In
France the circulation of Communist newspapers
las dropped more than 50 percent during the past
') years, and the membership in Communist labor
mions even more. Communism has lost ground in
[taly.
We are holding our own in the Middle East,
nakirig some gains in Southeast Asia. We have
low no access to the people behind the Iron Cur-
j;ain except by radio. This puts a heavy respon-
'dbility upon our "Voice of America." We have
mmistakable evidences too that the Soviet Union
las not succeeded in jamming the "Voice of Amer-
ca" out of the air and, despite threats, reper-
:;ussions, and reprisals, that we do have a sub-
stantial regular listening audience behind the
[ron Curtain.
But your Government alone cannot do all that
leeds to be done. The assistance of private or-
ganizations is essential to the ultimate success of
3ur overseas information and educational ex-
change program. Our work must be supple-
mented and fortified by the efforts of mission-
minded private groups. After all the historic
voice of America, for over 170 years of the life of
the Republic, has been through normal trade and
travel and the exchange of communications, and
it should be our national purpose to restore these
normal contacts.
We have set up within the International Infor-
imation Administration a Private Enterprise Co-
operation Division at the service of any private
agency, business firm, nonprofit organization, or
individual who can contribute overseas to Amer-
ica's Campaign of Truth.
Your own organization has been one of the first
to help fill this gap in our effort toward world
understanding. I congratulate you on the courage
and leadership which you have shown and, in
behalf of your Government, I thank you. The
i World Veterans Federation which you joined not
llong ago may well become an effective multi-
national movement dedicated to freedom and
democracy.
There are no more convincing propagandists
for peace than the men who have themselves been
in war. A group of war veterans' organizations
representing every free country could be one of
the most powerful factors for peace, freedom, and
democracy in the world today. I hope you will
persevere in your effort to foster such an inter-
national movement.
The affirmative values of our society have been
deeply inspiring to those who have seen and felt
their creative force. That is why millions over-
seas are eagerly waiting at the gates for oppor-
tunity to come to America to live. But we do not
always present our best side to the world. In our
enthusiasms and in our impatience to get things
finished we do not always make ourselves under-
stood. Yet we expect others to recognize us for
the "good neighbors" that we really are.
It is the purpose of the "Voice of America" to
reach to all parts of the world with the facts about
what is happening in America and elsewhere in
the world. It is a part of our own democratic
faith that people, if informed of the truth, will
accept the truth and will live by it.
So each year we are bringing to this country, so
that they may see American life first-hand, thou-
sands of leaders of thought and opinion from other
countries. For the same reason we are sending
American leaders and students abroad as "mis-
sionaries," to carry to others a message of faith
and hope from America. That too is why we
are beaming the truth about the United States
every day in 46 languages over the radio networks
of the "Voice of America" to a potential world-
wide audience of nearly 300 million persons. That
is why we maintain information centers and li-
braries, showcases, so to speak, of American life
and thought, located in 150 strategic areas of the
world.
That is why we furnish 10,000 foreign news-
papers and government officials a daily wireless
news bulletin; and why we distribute each year
200 million pamphlets and booklets, giving to
other people the facts about America. That is
why we picture the American scene to 250 million
persons annually, in 43 languages, through mo-
tion-picture films.
No one is wise enough to foresee the end of the
present world-wide contest of ideas. It may last
indefinitely. International communism may be
expected to increase its aggressions, at least its
aggressive propaganda.
Our national security requires a continuing
voice overseas. We must not neglect the war of
ideas any more than we dare neglect the war of
armaments. The "Voice of America" throughout
September 8, 1952
347
the world must be clear enough and powerful
enough to rise above the tide of hateful propagan-
da of international communism. It must be a
voice of freedom — of faith and hope. It must be
the voice of truth; and it must have the undei'-
standing, the interest, and the support of the mil-
lions of Americans for whom it speaks.
There are few organizations in America which
collectively and individually can contribute as
much to these noble objectives as can this great
association of war veterans to which I am privi-|
leged to speak this afternoon. So I ask you agaiii|
to shoulder arms for your country, but this time
to shoulder arms in the battle for men's minds
If this is a crusade, it is a crusade in which all
Americans may join who are interested in pre
serving for all men the right to freedom of choicf
and for their own children and grandchildren, the
"l^romise of American life." It is the only road
to peace.
Present Day Relationship Between Military Power and Civil Authority
by Charles B. Marshall
I have been asked to discuss civil-military rela-
tions in the American constitutional framework.
Let me start with some simple definitions:
All government relates to the achievement of
results.
The capability to achieve results is power.
All government therefore involves power.
One form of such power is force.
By force I mean, first, the capacity to transmit
energy and so to expend it as to do vital harm to
an adversary and, second, the deterrent, compul-
sive effect exerted by the existence of this capacity.
The state involves the bringing to bear of force
in two distinguishable ways.
One relates to police affairs — involving the ap-
plication of force in particular, limited situations
to require submission to public authority.
The other relates to military affairs — involving
application of force in relation to general purposes
of state — its survival, its expansion, and the like.
The line of distinction is not always sharp. In
certain instances the differences may break down.
Particular defiances of public authority may
merge into general defiance, transforming a police
into a military problem. The opposite may also
occur.
Bather than dwell on this distinction between
force in its police and force in its military frame-
work, let me get on to the distinction between force
and other forms of power employed in the service
of the state.
Distinction Between Force and Other Forms of Power
The capacity for force is only one of many pos-
sible elements in the reservoir of power. The
others pertain to economic strength, to the integ-
rity of political position, to the degree of confi-
dence and good will commanded, and to many
other factors.
The force factore are susceptible of precision.
The elements are concrete. Within planned lira-
its of time and space absolute solutions can be
projected in tei'ms of exercise of force.
I'his is a source of temptation. It leads anxious
and ambitious rulers to turn to the wanton use of
force to compel a compliance denied to the use of
other means. This engrossment of other means
by force produces the police state.
By the same token it may lead to the quest of
absolute solutions of the peripheral frustrations
and anxieties of a political society. This produces
the militaristic state.
Very often these two things go hand in hand.
The anxieties and afflictions producing hatred of
responsibility in one frame of reference usually
operate in the other as well.
348
Department of State Bulletin
Instances From Our Historic Past
A central and persistent problem of the state is
low to organize and control the factors of force
,io as to prevent those in command from so using it
is to escape responsibility in the use of power.
: This problem was relevant in the rebellion
ligainst the Crown. The peacetime deployment
into American territory of forces not subject to the
i;ame line of authority as governed in colonial civil
jiffairs was one of the galling circumstances giving
■ise to the impulse to independence.
This problem was relevant again when in the
mmediate sequel to independence a few heady
'eterans dreamed passingly of imposing them-
lelves as the dominant element in a political so-
:iety cast in a military mold.
This problem emerged again when the contra-
lictions of politics outran the capacity of politics
o resolve contradictions and produced the Civil
Var. I refer especially to the clash of will and
uthority between the President and General Mc-
:iellan.
"Little Mac" had two mistaken ideas. The first
?as that the employment of violence, rather than
lolitics, to resolve the problems of the state ipso
'acto makes the military arm ascendant over the
ivil arm. The second was that supreme command
n the field subsumes supreme authority in all
elevant matters. For these mistakes "Little Mac"
vas relieved. He nurtured dreams of a political
indication. His contention was that Presidential
nterix)sition had frustrated victory and that the
var consequently was a failure. He did not suc-
■eed in making this cogent to a sufficient propor-
ion of the electorate.
The same problem became relevant again in a
vay when, in the sequel to the fighting phases of
he Civil War, the President and the Congress
livided on the question whether military means
ihould be laid aside at once or continued for a
;eason so as to work further changes in relation-
ihips before the restoration of normal political
nethods within the reintegrated Union.
The phase brought on by triumph of the con-
gressional view favoring the continued employ-
nent of military means — not in violence but in
liccupation as a substitute for civil authority —
vas perhaps the bitterest and most destructive in
i)ur history. Its scars still mark and its neuroses
ret affect the body politic.
Yet this was not a civil-military struggle at
■oot. The contest over reconstruction was a con-
«st between rival elements of civil authority, and
)ne of them turned to military means to forward
ts own political purposes. This is worth noting.
The problem of civil-military relations is how to
nhibit political abuse of militai-y matters just as
nuch as it is the inhibiting of military abuse of
political matters.
These instances from our historic past shed
neager light on the present, however.
In our prevailing experience as a Nation, the
issue of military domination was immaterial. The
passing incidents of international war were mainly
peripheral adventures not involving national sur-
vival. Armed forces of negligible proportions,
supported by a popular militia inveterately pro-
ficient in use of firearms, were deemed enough to
give national security. No massive threat con-
fronted the United States from any quarter.
Within a generation past it was possible for a
President, without appearing ridiculous, to in-
struct the War Department to desist from fur-
ther activity in war plans since the possibility of
hostilities had ceased to be of material concern
to the United States, and for a Secretary of State
to assert that America was impregnable because a
million farmers with shotguns would spring to her
defense in case of any threat of invasion.
Those were the times in which we sailed on what
Lord Bryce called America's summer sea.
America was busily engaged in developing the
bases of its world power — a vast continental range
integral to both the Northern and the Western
Hemispheres, a richly productive economy, and
strong jDolitical institutions based upon princi-
ples of accountability and freedom — without a real
grasp of the eventual implications of such power.
This development was made possible by the fact
of the diffusion of power among several nations of
great magnitude.
That fact ceased to be a fact all within a life-
time.
Primary Positions of the U.S. and the U.S.S.R.
Two nations, the United States and the Soviet
Union, have emerged into positions of primary
magnitude in contrast to the former diffusion of
power.
The confrontation between them takes the form
of a contest over the issue whether the clash of cul-
tures, the problem of working out relationships be-
tween the rest of the world and the peoples newly
come to freedom, and the problem of weapons and
security are to be exploited to widen the scope and
strengthen the foundations of a monopoly of the
Kremlin, or to be resolved on the basis of accom-
modation arrived at by a free concurrence.
No combination of nations adequate to cope
with the Soviet power is conceivable without the
support and participation of the United States.
While novel to us, this situation was well fore-
seen by perceptive minds in our long past.
For example, Jefferson wrote to John Adams in
1816 : "We are destined to be a barrier against the
returns of ignorance and barbarism." Of our con-
tinental position he said: "What a stand will it
secure as a ralliance for the reason and freedom of
the globe !"
'September 8, 1952
349
In the same vein, AValt Wliitman wrote a gen-
eration later:
Long, too long America
Travelin-:: roarts all even and peaceful, you learned
from joys and prosperity only.
But now, ah now, to learn from crisis of an^cuish,
advancing, grappling with direst fate and recoiling
not.
And now to conceive and sliow to the world what your
children en masse really are.
Let US say something now of the ciiTumstances
in which we are called upon to show the world
wliat we Americans really are.
The power developed in the era of freedom pro-
vided by the balance of ])ower now permanently
involves us. This fact deprives us of the old sense
of freedom. By being permanently involved, the
Nation has lost also the power to alter the world
situation dramatically and suddenly by interpos-
ing its weight. Thus it is deprived of its former
sense of efficacy.
These circumstances have drastically and sec-
ularly altered the relationship of military power
and civil autJiority.
I do not intend to labor a descrijition of the
present arrangements for collaboration between
the civil and the military components of the Gov-
ernment.
Katlier I want to point out briefly and broadly
the points of crux in the new situation.
One point is the shift of tJie primary focus of
the national effort and tlie national consciousness
about public concerns to tlie factors of national se-
curity in world relations rather than upon in-
ternal development.
I do not mean to say that everyone in the Nation
has suddenly become preoccupied with the prob-
lems of foreign policy and strategy to the exclu-
sion of interest in domestic affairs. Eegardless
of how the individual citizen may apportion his
daily worrying time, an unprecedented part of his
daily effort, whether he knows it or not, goes to
the support of national security in a strictly mili-
tary sense.
Points of Focus for the U.S. Citizen
The point of focus in the Govermnent itself,
both in the executive branch and in the Congress,
is on national security and military concerns to a
degree undreamed of in the historic past of this
country.
This is going to be the case at best for a long
time to come, notwithstanding the tendency of
many to speak as if this were only a passing phase
to be put behind us by some stroke of jjolicy or
some spontaneous alteration of circumstance. The
situation in which concentration on military con-
cerns and security was only the job of a season is
permanently gone.
To the matters of primacy and permanence of
concern I would add the new factor of size.
How the military spend their money ceases to
350
be merely a question of marginal economizing. It
now becomes one of the chief determinants in the
economic life of the Nation.
The factor of magnitude is important in anothen
way also. The military mechanism, notwithi
standing that we may speak of it in terms or
weapons and budgets, is essentially a collection
of individuals.
The permanent and expanded military effort
entails the normal expectation and experience oi
military life by the young American. ''
This will produce a steady increment of veter-
ans as a factor in society and in the politics of
the electorate.
I do not know the full significance of this. It
does indicate, however, that the effects of mili-
tary indoctrination and experience on political
attitudes will be of enormous permanent impor-
tance. It will fall to military authority not onlj
to superintend a military machine but also to oper
ate a permanent school for citizens.
This symptom of increasing participation of th«
military in national life has its counterpart in th(
increasing military participation in i^olicy making
Military Participation in Policy Making
This is reflected in tlie National Security Aci
of 1947 establishing the National Security Coinici
as a supreme body immediately below the Presi
dent and as an adjunct to him in the consideratior
of problems of national security.
The intention was to create a continuous rappor,
between the civil and military elements in workini
out the answers in the fields where statesmanshi}
and the military arts coincide.
I do not want to discuss the organization anc
procedure of tlie National Security Council, j
want to make a point only to tlie continuing evi
dences of misgiving in the Nation over the ide;
that something of that sort is working out.
Just a few weeks ago, in the question period fol
lowing a speech at Pliiladelphia, a lady asked mi
as to the truth of disturbing reports to the effeci
that generals and admirals were entering more anc
more into the spliere of policy decisions. She als(
asked me as to the truth of reports of the impor
tance of the role of Gen. Omar Bradley in the af
fairs of Government.
This sort of thing is not confined to a lady ii
Philadelphia. One notes, recurringly, comment:
reflecting a premise of something dangerous in thi
preference of generals and admirals in tlie conn
cils of state. Just a couple of weeks ago, I nolcc
a great deal of discussion in the press in regart
to the fact of a briefing of a Presidential candidat(
by a general in a position of considerable authority
The tone of much of the comment implied some
thing evil in the mingling of military knowledgi
and politics.
Let me emphasize this. Our foreign policy v.
now objectified in a pattern of military coalitions I
Tliese cover the American Hemisphere. They em
Department of State Bulletir
brace the countries of Western Europe and carry
to the eastern shores of the Mediterranean. They
extend to the reaches of the Pacific in a nexus of
alliances witli New Zealand, Australia, the Philip-
pines, and Japan. In the same area we are carry-
ing on limited hostilities in Korea with a coalition
in support of foreign-policy objectives.
The fact of being the integrating member of a
icomplex pattern of coalitions is in itself some-
thing quite new in our national experience. It
brings the military into foi'eign policy pervasively
las never before.
Coalition relationships are difficult and delicate
things to handle, requiring the keenest tempering
and balancing of civilian and military considera-
tions with one's allies.
In like fashion, the deployment of military
forces abroad in occupation duties in recent years
has raised novel questions in our constitutional
experience.
In our past were periods of brief and limited
occupations of foreign areas, but none approached
in magnitude and complexity the problems of
occupation in the wake of World War II, when
American forces became for a time virtually a
sovereign arm in large portions or in all of the
area of defeated nations.
The Question of Military Secrecy
That the military have been the operating and
responsible arm of Government in undertakings so
vitally a part of foreign policy as the Occupation
of Germany and Japan illustrates the sterility of
the notion of somehow keeping military concerns
and foreign affairs compartmentalized.
I think it well to get in mind the identity of the
element of danger in military participation in
councils of state.
It is not that generals and admirals should have
a voice, and a significant voice, in councils of
state. A crucial consideration is whether their
voice is the only voice heard or heeded.
I take it that the danger point is reached when,
as in the Kaiser's conferences at Pless in the winter
of 1916-17, the military voice becomes the only
significant voice and those who make the ultimate
decisions of state listen to them to the exclusion
of other authorities in disposing the power of the
state.
I do not think we are anywhere near that dan-
ger. At the same time I do not suggest that we
put it out of our mind. It is basic to the prin-
ciples of responsibility that no man and no group
ever get a monopoly on being heard.
This brings me to the matter of military se-
crecy.
Information is a form of power. The unin-
formed man is in a necessitous position in deal-
ing with the informed man. An official in one
line of responsibility dealing with an official in
another line of responsibility, withal conscious
of the other's knowledge of something denied to
himself and bearing essentially on the problems
of mutual concern, simply cannot feel equality
of relationship in the sense that equality is essen-
tial if consent is to be elicited and concurrence
is to be free.
This poses a potentially grave problem in rela-
tion to the maintenance of lines of responsibility
■within our Government in junctures like the
present.
Absolute secrecy applies to some of the knowl-
edge most vital to the survival of the state. These
are military secrets, available only to highest mili-
tary authorities.
Factors of wliich they control exclusive knowl-
edge form the basis on which the higliest deci-
sions affecting the survival of the state must be
made. The manner and the degree of the with-
holding or disclosing of such information are de-
terminative of the views and decisions of other
agents of the Government and of the Congress.
I know of no formula for solving the diffi-
culties and dangers latent in a situation where
knowledge of data funchimental to the survival
of the state is a monopoly of its military magis-
trates. I would not suggest abandonment or
weakening of the standards of secrecy. My only
point is that this situation poses a problem en-
tirely novel in our national experience, one de-
serving of closest and most persistent study to
see how such secrecy can be maintained without
derogation to the principles of responsibility.
The relevance to relations particularly between
the military and the Congress of this matter of
a monopoly of certain types of information is
obvious.
The vesting in the military of the authorita-
tiveness inlierent in the monopoly of the infor-
mation bearing most vitally on the security of the
state has potential implications on the question
where in the executive establishment will be the
dominant voice in counseling the Congress on pol-
icy related to our world position.
The danger of congressional interposition to
divide the executive establishment against itself
is latent in our institutional arrangements. It has
happened before. The threats have been more
numerous than the occurrences.
Degree of Trust Reposed in the Military
Let me suggest that there is an unnecessary in-
vitation to this sort of thing inherent in the Na-
tional Defense Act of 19-47, which establishes the
Joint Chiefs of Staff as principal military ad-
visers, not to the Pi'esident and the executive es-
tablishment alone but also specifically and di-
rectly to the Congress.
Just as it is hard to serve two masters, it is hard
to be a principal adviser to each of two separate
branches of political authority.
September 8, 1952
351
Let me mention another point of crux involving
the degree of trust to be reposed in the military.
Here the (question is a little different, and applies
to trust imposed in and power allotted to the
executive in general as well as to the military in
particular.
I refer to the need of producing margins of
power in the conduct of policy in relation to the
security concerns of the Nation.
During World War II, I was conversing one
day with a very able general for whom I served
as executive officer. I expressed the view that in
a perfectly planned war the victor would come to
the moment of victory with his warehouses empty.
He said this was a sophomoric idea because the
side whose warehouses are empty at the last mo-
ment of struggle is bound to be the losing side.
He said : "In war it is the surpluses which pro-
duce the margins by which one prevails. In war
to have just enough is to have not quite enough."
The wisdom of that observation applies to a
situation of vital struggle like the present, even
though we may not call it war.
To have had some uncommitted divisions avail-
able at crucial junctures in the Korean struggle
would, I believe, have altered the situation dras-
tically. It would have given the United Nations
Command a flexibility denied in the actual cir-
cumstances. By the same token, it would have
impinged on the scope permitted the adversary.
The same applies to the desirability of having
on hand a few air groups beyond the absolute
needs.
Preserving the Old Spirit Under New Pressures
I shall go further and say that to have a few
hundreds of millions of dollars worth of supplies
and power in the reservoir for foreign spending,
above and beyond the immediate requirements,
would give the Government a power of quick in-
terposition not available to it now, and yet one
most desirable in the present world cii'cumstances.
To lack such margins puts a nation recurringly
in the position of the dwarf who rode up eight
floors in the elevator and then walked three more
floors, all because he was too short to reach the
eleventh button.
Yet the traditions of our Constitution, the prin-
ciples of separation of powers and the practices of
congressional scrutiny of executive requirements
in general and of military requirements in particu-
lar make it remote from probability in any cir-
cumstances, short of formal war, that the execu-
tive in general and the military in particular will
be provided with disposable elements of power
beyond needs demonstrable in advance.
So far I have talked mostly about high-level re-
lationships.
Tlie new scope of interchange between the civil
and the military is felt along the line.
The difference between the military and the
civilian viewpoint in governments — let me put it
this way, between the problems of force and the
other problems of power — are manifested in
myriad contacts every day.
I emphasize the difference between problems
rather than difference between the minds dealing
with them. I want to avoid any easy cliches about
the military mind.
Why military men do, in general, think differ-
ently from those concerned with other aspects of
government is explicable in terms of the material
with which they deal.
Military concerns are more concrete than policy
concerns in general. They can be more readily
reduced to precision, to definition, and to proce-
dure.
The military man is likely therefore to feel im-
patience in dealing with the methodology of
others and unwarily jump to the conclusion that
all human affairs might be brougbt to as complete
solutions as a problem of battle, if planned with
the precision and neatness of military planning.
The cure for this lies in more reciprocal fa-
miliarity developed through experience and in-
doctrination and not in the unrealistic expectation
that military men should be caused to think like
civilians or vice versa.
Lord Wavell spoke of this problem a few years
ago:
. . . In acquiring proficiency in his branch the poli-
tician has many advantaRCs over the soldier ; he is always-
in the field while the soldier's opportunities of practicing!'
his trade in peace are few and artificial.
. . . The politician, who has to persuade and con-
fute, must lieep an open and flexible mind : the mind of
the soldier ... is apt to be fixed, drilled and at-
tached to definite rules. I will not take the comparison
further : that each should understand the other better is
essential. . . .
The heart of the problem — whether in estab-
lishing rapport between civilian and military pub-
lic servants, in handling military secrets without
derogating responsibility, or in adjusting the na-
tional economy to military budgets of huge mag-
nitude— is one of preserving the old spirit under
new pressures.
Certainly no more than half of this job will fall
to the military. The rest of it must fall on the
civil components of government and society.
Their part of the job cannot be done merely on
the basis of Jeffersonian suspicion of the military
arm.
In responding to these circumstances, in pre-
serving the old spirit under new pressures, we
shall show the world what we really are.
• Mr. Marshall is a meimher of the Policy Plan-
ning Staff, Department of State. The above arti-
cle is denved from' an address made iefore the
American Political Science Association, Buffalo,
N. Y., on Aug. 23.
352
Department of State Bulletin
Draper Report on Major European Economic, Political,
and Military Developments
rEXT OF AMBASSADOR DRAPER'S REPORT
White House press release dated August 28
22 August 1952
Mr. President:
I submit the following informal report and
commentary covering the first half-year of my
.enure as United States Special Representative in
Plurope, following my arrival in Paris on January
28 last. Since the Office which I have the honor
to head represents our Government on a regional
basis, I have attempted to picture my over-all im-
pressions of the play of events on the European
scene during recent months.
The Trend Toward Integration
The fourteen countries banded together in the
North Atlantic Treaty Organization have been
moving steadily forward during 1952 and have
made substantial progress toward their common
objectives. As a political group, Nato is becom-
ing stronger and more closely united. In the eco-
nomic field the severe financial crises which were
brewing last winter Iiave been kept within bounds,
the European standard of living has been main-
tained, and a clear-cut movement is under way to-
ward closer economic integration. At the same
time the mutual effort to build a strong collective
defense has been gaining ground slowly but sui'ely.
Above all, I have been greatly inspired by the
dedication of all fourteen Nato Governments to
their primary and common purpose of maintain-
ing their free way of life and preventing World
War III. These governments vinderstand that
only by presenting a united front in both the po-
litical and tiie military sense can they hope to
counteract the threat of internal and external
Communist aggression. This understanding has
permeated and inspired every important discus-
sion and conference I have attended during the
past six months.
It was this spirit of give and take in the common
need for unity that bi'ought successful agreement
at Lisbon in February after failure had been
openly predicted. This same driving force has
now brought the Schuman Plan into being, with
six countries joined together to develop their basic
economic resources through the European Coal
and Steel Community. Under the pressure of
events, Germany and the three Western Powers
have composed many outstanding differences and
have signed agreements which should soon end the
long occupation of Western Germany and peace-
fully integrate its fifty million people into the rest
of the free world. Already two powers, the
United States and Great Britain, have ratified
these agreements.
With even more striking historic implications,
six governments, France, Germany, Italy, Bel-
gium, Holland and Luxembourg have signed
mutual pacts intended to establish a European De-
fense Community and the European Army. I
look for early parliamentary ratification of these
treaties. Then we shall see countries which twice
in a generation have been mortal enemies join to-
gether in a common army and adopt a common
defense budget. These six countries are now dis-
cussing even closer political ties and may merge
more of their national sovereignties in the mutual
effort.
Even those of us who have been closely ob-
serving these recent developments here find it
difficult to realize how far along the road to mili-
tary integration, economic unification, and po-
litical federation the nations of Western Europe
have really come. Measured in terms of history
the pace has been incredibly rapid. This Euro-
pean movement has been influenced by the effoi'ts
and the active good will of thinking people from
many nations. Even more, it has been motivated
by the inexorable forces of natural progress and
of the political and economic pressures of the
post-war period.
In the free world the trend toward unity and
strength is now clear. If this trend can be main-
tained, we can see ahead the changes in world
relations for which fiee men everywhere have
waited since Soviet imperialism unmasked its evil
ambitions.
September 8, J 952
353
WHITE HOUSE ANNOUNCEMENT
White House press release dated August 28
By greatly increasing its imports the United
States can help Western European nations to close
their existing "dollar gap" and thus earn their
own way, Ambassador William H. Draper, Jr.,
U.S. sjjecial representative in Europe, wrote in a
report to President Truman released on August
28. Mr. Draper's summary of his first 6 months
in office was forwarded to the President from his
headquarters in Paris.
He recommended that the United States should
seek all possible means for promoting additional
private investment abroad, including the strength-
ening and extension of the provisions for govern-
mental guaranties. Increased American in\est-
ments abroad, he said, would supplement efforts to
alleviate Europe's chronic shortage of dollars.
The American people are being taxed to pay for
the huge excess volume of raw materials and man-
ufactured goods being shipped to Europe, he
noted. The United States must substantially in-
crease its imports from Europe and from other
parts of the world if America expects to keep up
its present volume of exports and at the same time
get paid for it, he said.
"If this simple truth were clearly understood
and accepted by our own people, regardless of
party, the next Administration and the new Con-
gress would doubtless find ways and means to
gradually accomplish the desired result," Mr.
Draper asserted.
Among methods he suggested for stimulating
greater imports were reaffirmation and extension
of the reciprocal trade agreements program ; enact-
ment of proposed legislation for simplified cus-
toms procedures; and the progressive lowering of
other import restrictions and duties. Such a pol-
icy would increase Europe's capacity to pay with-
out correspondingly reducing America's exports,
he said.
Ambassador Draper in his report emphasized
these other major developments:
1. Western European nations have made sig-
nificant advances in political, economic, and
military integration.
2. Nato is becoming stronger and more'i
closely united; the Council is now carrying out
an Annual Review to set firm military goals for
1953 and to reconcile the cost of proposed mili-
tary forces with economic capabilities.
3. Defense budgets of the Nato countries
have more than doubled since the Korean War
to build up, train, and equip their armed forces.
4. Offshore procurement contracts placed by
U.S. armed services during the past G months
totaled $683,800,000 to buy European-made de-
fense equipment for Nato forces, and a similar
offshore program for the fiscal year 1953 is now
being planned.
5. Success of the European Payments Union
is solving the critical Belgian surplus creditor
position and attests to the spirit of cooperation
existing in Western Europe today.
6. More production at competitive prices and
better markets are essential to Europe's further
economic development; present European mar-
kets no longer adequately serve the needs of
European producers.
United States Agencies in Europe
The creation early this year of the Office of
the United States Special Representative in Eu-
rope was made necessary by the growing scope
of our national responsibilities. In the mutual
security field, this Office provides civilian coor-
dination and supervision on a regional basis of
the political, economic and defense activities of
our Government in Europe. This objective can-
not be fully achieved quickly, nor can we re-
main static. As problems arise and conditions
change, existing policies and organizations must
be responsive to the new needs.
As Special Representative I report to the
several departments of our Government in AVash-
ington, and work through and with our Ambas-
sadors and "country teams" in Western European
capitals.
Our regional office is now established in Paris
and resulted from merging the U.S. political and
defense activities in Nato, until recently in Lon-
don, with the U.S. economic and mutual aid
activities already located in Paris. Ambassador
Frederick L. Anderson serves as my general
Deputy and takes turns with me in visiting the
various European countries. Our office is divided
functionally into three divisions — political, eco-
nomic and defense. Ambassador Livingston T.
Merchant, with long and varied experience in the
State Department, heads the Political Division
and handles matters arising in the North Atlantic
Council. Mr. Paul R. Porter, formerly in charge
of Mutual Security Agency activities in Europe,
deals with problems of the Organization for Euro-
pean Economic Cooperation and directs the Eco-
nomic Division. Mr. Luke W. Finlay, a reserve
Brigadier General, was recently in charge of
European offshore procurement for the Army.
Now, as Deputy for Defense Affairs, he is re-
sponsible for coordinating military assistance and
production problems.
In each Nato capital the United States ))lays
its part and exerts its influence in strengthening
the military and economic effort through a so-
called "country team". This "country team" is
headed by our accredited Ambassador in each
country, and includes, in addition to diplomatic
354
Department of State Bulletin
Ilicials for political problems, a mutual security
iiission in the economic field and a military as-
iistance advisory group in the defense area.
riu'se three elements receive policy guidance and
liifction respectively from the Department of
■it ale, the Mutual Security Agency, and the De-
partment of Defense in Washington.
On the military side. General Matthew B. Ridg-
.vay, as Supreme Allied Commander, Europe,
commands allied forces in Europe assigned to
S'ato, including the United States military
'orces so assigned. General Ridgway, in his ca-
Dacity as Commander-in-Chief of all U.S. Forces
n Europe, has delegated to his Deputy, General
Thomas T. Handy, coordination of command and
idministrative matters for the forces, as well as
ippropriate coordination with tliis oflice.
Tlie effort to integrate U.S. policy in Europe
lirough the Office of the Special Representative
.vould not have been possilile without tlie com-
plete cooperation and sujiport of the armed serv-
ces and of the several agencies and many indi-
viduals concerned with the program in Washing-
ton and throughout Eui-ope. This cooperation
ind support we have had in the fullest measure,
md for this I am deeply grateful.
The North Atlantic Council
The reorganization and physical concentration
Df our regional activities in Paris has paralleled
fhe move of the North Atlantic Council, Nato's
higli political body, from London to Paris. The
Lisbon Conference created a civilian Secretary
General for Nato who directs an Liternational
Staff in carrying out the decisions of the North
Atlantic Council. Lord Ismay. of the United
Kingdom, as the first Secretary General, brought
to the newly created office a long and valuable
background of military experience and civilian
government responsibility. Under Lord Ismay
and the Deputy Secretary General Mr. H. van
Vredenburch, are three major divisions headed
by Mr. Rene Sei'gent of France. Assistant Secre-
tary General for Economic Affairs; Mr. David
Luke Hopkins of the LTnited States. Assistant Sec-
retary General for Defense Production; and Mr.
Sergio Fenoaltea of Italy, Assistant Secretary
General for Political Affairs.
The Council, now in continuous session in Paris,
has easy informal contact with Supreme Head-
quarters, Allied Powers in Europe, under General
Ridgway, although the Council's formal relation-
sliip with the military is through the Standing
Group and the Military Representatives Commit-
tee in Washington.
Through participating as United States Perma-
nent Representative in the discussions of the North
Atlantic Council, I have been impressed with the
deep desire of all tlie National Representatives to
avoid bickering and dispute, to find common
ground for agreement, and generally to pursue the
same basic objectives.
The Lisbon Conference
The Lisbon Conference last February marked
a milestone of great importance for Nato. Ap-
proval was given to the Temporary Council Com-
mittee recommendations providing for a system-
atic strengthening of the Nato military forces in
combat-ready units, and establishing the neces-
sary organization and procedures for annual re-
valuation and planning of the military buildup.
Approval in principle was given to the European
Defense Community, designed to make possible
Germany's participation in the western defense
effort. Turkey and Greece, with large gi-ound
forces in being, became full members of the North
Atlantic Treaty Organization.
Under the leadership of Mr. Averell Harriman,
of the United States, Sir Edwin Plowden, of
Great Britain, and Mr. Jean Monnet, of France,
an intensive study had been made by the Tem-
porary Council Committee of national military
cajiabilities and of available budgetary resources.
This represented a NATO-wide effort to plan the
maximum combined build-up of Nato's military
forces within the capabilities of the member coun-
tries. For the first time in history a group of
countries made available their military programs
and their military budgets to an international
bodj' for review and recommendation.
At Lisbon tlie various nations agreed to provide
to Nato by this year end approximately fifty com-
bat-ready gi-ound divisions (half of them active
divisions and the balance readily mobilizable re-
serve divisions), about four thousand combat air-
planes and a comparable naval strength. These
goals were exclusive of Greek and Turkish forces.
Developments since February indicate that these
goals may not be met in full by the end of this cal-
endar year, but any slippage is of relatively small
proportions and, with intensive effort, it should be
possible to complete the 1952 goals early in 1953.
The North Atlantic Council, together with the
Nato military headquarters, are currently review-
ing the progress being made toward these agreed
goals. The Council is now carrying out an Annual
Review to set firm military goals for 1953 and to
reconcile the cost of proposed military forces with
economic capabilities on the basis of the experience
and information developed since the Lisbon meet-
ing.
U.S. Military Aid and Offshore Procurement
European defense budgets have more than dou-
bled since the Korean War. These increased re-
sources have been used to build up, train and equip
the armed forces of our Nato partners. The
United States has supplemented the European ef-
fort by furnishing heavy armament and other
equipment that cannot be produced in Europe in
the time and quantities required.
The military assistance from the United States
in the form of tanks, planes, artillery and other
September 8, 1952
355
weapons is indispensable in bringing Nato forces
quickly to a status of greater combat readiness.
The flow of military weapons and equipment from
the United States is increasing but must increase
still further in order to pi-ovide the European de-
fense forces with the substantial quantities of mod-
ern weapons required.
As part of our military assistance, a large-scale
program of procurement in Europe was adopted a
year ago. The primary objective and the great
significance of this step is that it will contribute
to the develoiTinent of a production base that will
make it possible for the countries of Western
Europe in the future to provide more fully for
their own defense requirements. In addition, these
offshore procurement contracts will contribute ma-
terially to the effective use of labor and resources
in Europe and will help make dollars available for
imports needed for defense and civilian produc-
tion.
Last fall Army, Navy and Air Force procure-
ment ofhcers wei-e authorized to begin the place-
ment of offshore procurement contracts in Europe.
A multitude of major and minor difficulties and
delays were necessarily involved. Specifications
and blueprints had to be translated into many lan-
guages; measurements had to be converted from
inches and feet into the metric system; contract-
ing procedures normally followed in the United
States had to be adapted to conform reasonably
with contracting customs and procedures of the
Nato countries; special tax agreements had to be
negotiated, under which governmental and local
taxes were \vaived on military production financed
by the United States. Time was also necessarily
spent in determining appropriate delivery sched-
ules and sources of iDroduction, and in getting com-
petitive bids from the various plants and countries.
Nevertheless, the three military services carried
out the program and actually placed contracts be-
fore the fiscal year ended on June 30th last, for
nearly $700,000,000 of military production in
Europe. Practically all of this huge total is being
produced in nine Nato countries, broken down as
follows :
Belgium $46, 000, 000
Denmark 6, 000, 000
France 335, 500, 000
Greece 11, OOO, 000
Italy 109_ 000, 000
Luxembourg 3OO, oOO
Netherland.s 38, 000, 000
Norway 6, 000, 000
United Kingdom 69, 000, 000
Non-NATO countries 43, 000, 000
Total 683, 800, 000
About $600,000,000 of this total is being financed
from 1952 Mutual Security Funds appropriated
last year, and the resulting military end-items —
auxiliary combat ships, annnunition, electronic
and other equipment — will be allocated to our
Nato partners as part of the collective effort to re-
356
arm. The balance of these orders were financed
from regular Defense Department appropriations
and will provide military hardware and ammuni-
tion for the use of the United States forces.
The procurement agencies of the Army, Navy
and Air Force and the United States Joint Coordi-
nating Board for Offshore Procurement are to be
congratulated for overcoming the many obstacles
to achieving this important program which only a
few months ago appeared insurmountable.
More than half of the $335,.500,000 of procure-
ment orders placed in France represented fulfill-
ment of the commitment undertaken by the United
States to the French Government at Lisbon. The
French Government pledged itself to firm military
goals for 1952 and undertook to increase its own
defense contribution beyond that recommended by
the Nato Temporary Council Committee. The
United States Government agreed that as part of
its total aid $200,000,000 of military and economic
assistance would be provided in the form of mili-
tary procurement in France, largely for Indo-
China, designed to give budgetary as well as dollar
assistance to France.
At the Lisbon meeting France also requested
"offshore procui'ement" assistance for additional
production in France which the budgetary limita-
tions of even the increased French budget would
not cover, but which had been already program-
med as part of the French effort. The United
States pointed out that it could not undertake any
commitment for this additional production but
agreed to examine specific French proposals as
they were presented. Contracts have since been
placed for a number of auxiliary combat ships so
requested by France, and are included in the totals
given above. In addition the United States has
now agi'eed, subject to satisfactory conditions and
prices, to place $186,000,000 of additional offshore
procurement in France in response to the French
request for much larger procurement. The fact
is that the French production program, as origi-
nally planned, is still not fully covered by the
increased French budget, even with American
military assistance which can be made available to
France from the appropriations actually voted by
our Congress.
Procurement of Planes, Tanks, and Ammunition in
Europe
The Office of the Special Representative, in
coordination with the military services, is now
preparing to recommend the broad outlines for a
comparable offshore procurement program for the
1952-53 fiscal year. The Nato International
Staff, which is steadily becoming more effective,
has very usefully cooperated in developing a pro-
posed program of production in Europe of com-
bat airplanes to meet part of the existing deficiency
in Nato's air power and also to strengthen Eu-
rope's aircraft production industry. This pro-
gi-am calls for the expenditure of some $-100,000,-
Department of State Bulletin
000, partly contributed by the United States and
partly by tlie European nations tliemselves. Ap-
proval in princii)le lias been jriven to this impor-
tant pro<rram by the United States Government
and negotiations have begun to solve the many
financial, technical and production problems in-
volved. Negotiations are also under way for the
production in Great Britain of Centurion tanks
for certain Xato countries as part of the offshore
procurement program.
A considerable part of the offshore procure-
ment contracts already placed will provide needed
amnnmition for Nato forces. The Nato Inter-
national Staff is now preparing to recommend an
ammunition program for the current fiscal year
in which the national ammunition programs will
be integrated with and supplemented by addi-
tional offshore ammunition production financed
by U.S. military aid funds.
Since offshore procurement serves many desir-
able long-range U.S. objectives and at the same
time effectively accelerates the short-term defense
buildup, I believe it should be continued as an
important and integral part of our military assist-
ance program to Europe.
Organization for European Economic Cooperation
The United States, as well as Canada, is an
associate member of the Organization for Euro-
pean Economic Cooperation. This oi'ganization,
established in 1948 to concert the recovery aims
and actions of the nations receiving Marshall
Plan aid, continues to play a major role in creat-
ing the basis for an integrated and self-support-
ing European economy. Among its other major
activities the Oeec has renderecl invaluable serv-
ice in helping member governments reduce trade
barriers and expand intra-European trade through
a system for settlement of trade balances, partly
in cash and partly in credit. This system is ad-
ministered l)y the European Payments Union,
which the Oeec created and supervises. Mr.
Anthony Eden, British Foreign Secretary, has
recently succeeded Dr. Dirk U. Stikker of The
Netherlands as Chairman of the Ministerial Coun-
cil directing Oeec.
The United States maintains close and friendly
relations in the economic field with Sweden,
Switzerland and Ireland, and has similar rela-
tions with and special responsibilities toward
Austria and the territory of Trieste, all of which
are membei's of Oeec but not of Nato. Western
Germany is also an active member of Oeec, and
its economic development is closely related to the
cour.se of production, trade and general jirosperity
in Western Europe. The German Federal Re-
public as a prospective charter member of the Eu-
ropean Defense Community should soon play its
part in the common defense effort as an integral
element of the European Army. Although Yugo-
slavia is not a member of either Nato or Oeec,
Sepf ember 8, 1952
221057—52 3
United States military and economic assistance is
now being made available to that country. Ne-
gotiations are currently under way regarding mili-
tary and economic assistance for Spain. There
are, therefore, aside from the United States and
Canada, 12 countries in Nato, 6 additional coun-
tries in Oeec, and Yugoslavia and Spain, or a
total of 20 countries in Europe with which the
Office of the United States Special Representative
deals on one basis or another.
Intra-European Economic and Financial Problems
It is clear that Europe, in building its defenses
a]id in strengthening its will to resist possible
aggression, must maintain strong national econ-
omies and reasonable standards of living for its
peoples. Only through increased total production
can Em-ope continue to meet both its military and
civilian requirements.
Since the war, European production has in fact
made remarkable strides. Wartime destruction
has been largely repaired. Industrial production
has for the past many months been above prewar,
and recently agi'icultural production has risen
slightly above prewar totals.
Despite this progress in physical production,
iinancial and payments problems of the most seri-
ous character continue to trouble Western Europe.
Soaring raw material prices following the Koi'ean
war and the cost of rearming have aggravated
inflationary pressures. At the same time the
necessary expansion of trade and conversion of
currencies have become more difficult. The trad-
ing problems inherent in the dangerous shrinkage
in British reserves of gold and dollars late last
year and the severe financial problems of the
French Government last winter illustrate the
difficulties.
To combat these jiarticular problems the United
Kingdom has adopted stricter budgetary meas-
ures, raised the bank rate and sharply restricted
dollar and other imports. The Prime Minister,
for reasons of economy, has also announced a
"stretchout" in the timing of the British defense
build-up. The French Government has reduced
capital investments and certain other expenditures
and has also adopted emergency trade restrictions
to protect its foreign exchange position. Some
i-eduction may also be necessary in the scale of
French defense ]iroduction.
The European Payments Union
A particularly knotty ])robleni plagued many
European Finance Ministers this spring. For two
years the European Payments Union had pro-
vided an orderly basis for settling the monthly
trade balances of nearly a score of countries. It
had given real relief from the bilateral trade agree-
ments and bilateral settlements of the years
immediately following the war. But the agree-
ment ran only to June 30, 1952 and the extreme
357
creditor position of Belgium threatened its vei-y
existence.
Belgium faced a special difficulty since its
exports to European countries and to the sterling
area greatly exceeded its imports of goods from
those areas. For a considerable period of time
these excess exports were running $30,000,000 to
$■±0,000,000 a month. These mounting credit bal-
ances meant a constant drain on Belgium's finan-
cial resources, since the European Payments Union
only provided partial payment, intended to
cushion temporary ups and downs in foreign trade.
Unfortunately, the Belgian export surplus was
constant and soon outran the agi-eed quotas. The
European Finance Ministers, sitting in the Council
of the Organization for European Economic
Cooperation, struggled in May and June to solve
Belgium's need for greater payments without
seriously straining the gold and dollar reserves of
the European Payments Union.
They finally found an acceptable solution, under
which Belgium (1) received an additional partial
payment, (2) increased her own imports bj^ plac-
ing defense production orders in France and the
United Kingdom (offset employment-wise in Bel-
gium by U.S. offshore procurement orders placed
in Belgium), and (3) agreed to extend additional
credit to the E.P.U. countries. Moreover, the In-
ternational Monetary Fund assisted in making the
entire arrangement possible by providing $50,000,-
000 in standby credits to Belgium.
As a result, the European Payments Union was
enabled to continue its useful operation, and an-
other demonstration was given of the real will to
cooperate which exists in Western Europe today.
However, a trade clearing and credit arrangement
such as E.P.U. which covers only a limited cur-
rency area can only be temporary. Some more
permanent solution must eventually be worked out.
The cooperation extended indirectly to E.P.U.
by the International Monetary Fund was a good
augury for the future. Certainly discussions of
currency and related problems which might result
between these two organizations could not but be
helpful in analyzing the present disparities be-
tween the E.P.U. and dollar areas, and in clarify-
ing the conditions of external trade and pay-
ments, and of internal financial stability that
must be realized before the currencies of the two
areas could become mutually convertible.
Inflationary developments in both the United
States and certain European countries since the
Korean War have re-emjjhasized the need for eco-
nomic and financial stability throughout Europe.
The Oeec Council has recently completed a study
of this problem by a group of outstanding inter-
national financial experts, reviewing particularly
the situation in the United States, the United
Kingdom, France and Belgium. The report re-
viewed the steps already taken with some success
in the several countries to check inflation, and sug-
gested the directions in which fiscal policy and
358
monetary controls should deal with this problem
in the future. A Ministerial Committee has ac-
cepted the report as a useful contribution in point-
ing the way to a greater degree of internal finan-
cial stability, and the Council has forwarded it to
all Oeec countries for further consideration and
comment.
The Chronic Dollar Balance-of-Payments Problem
The internal and intra-European financial and
payments problems, serious as they are, nonethe-
less are overshadowed by the balance of payments
problem of Western Europe vis-a-vis the dollar
area. This phenomenon, which has its roots in
the huge excess of United States exports over its
imports, has persisted in varying degree over a
period of years. Unless a balance can be restored
there is real danger of a deep and perhaps disas-
trous fissure between the economies of Europe and
America. The lack of balance in Europe's foreign
trade manifests itself in a perpetual shortage of
dollars needed to buy raw materials, machinery
and other commodities in the Western Hemi-
sphere.
This dollar shortage has developed during the
jiast thirty years from the huge investment losses,
trade dislocations and physical damage caused by
two world wars. In contrast, our own dynamic
economy and production have enjoyed the advan-
tages of a large internal market, keen competition,
and expanding consumer buying power, and have
far outdistanced European competition. Since
World War II, Europe has been forced to rely
more than ever before on imports from the dollar
area. Fortunately, the economic assistance pro-
vided by the Marshall Plan has helped to meet
Europe's dollar shortage during the recovery
years, and has prevented possible economic and
"social disaster. Moreover, European economic
recovery, aided by the Marshall Plan, has brought
about a very considerable reduction in the dollar
shortage compared with the early post-war years.
During this coming year, defense support assist-
ance and offshore procurement will again supply
some part of the dollars Europe must have to carry
on an adequate defense effort while maintaining a
tolerable standard of living.
"Trade Rather Than Aid"
Important voices on this side of the Atlantic are
urging that sounder economic and trade policies
be undertaken in both Europe and America to re-
duce the need for economic assistance. The Chan-
cellor of the British Exchequer, Mr. Richard A.
Butler, at a recent meeting of the Oeec Council
of Ministers, re-emphasized the need to close the
dollar gap as soon as possible by "trade and not
by aid".
Balanced trade is obviously the best solution.
But this solution is not easy to achieve. It will
Department of State Bulletin
require drastic and complementary actions on both
sides of the Atlantic ; both Europe and the United
States must make fundamental changes in present
uneconomic practices.
Western Europe must steadily become more pro-
ductive, and produce at more competitive prices.
European producers need within Europe a market
that is both wider and deeper, in which the spur of
competition and new opportunity would yield
major gains in higher productivity and lower
prices. The European market, separated in small
compartments, no longer adequately serves the
needs of the people. Existing trade restrictions
and cartel arrangements fail to stimulate either
mass production or mass selling. More production
and better markets are essential if the economic
development of Europe is not to lag still further
behind that of the United States.
The free trade unions of Europe, which are
steadily becoming more effective, are giving con-
sistent support to the Mutual Security Program.
They can make an important and useful contribu-
tion in solving these difficult economic and politi-
cal problems.
We, too, must face hard facts. Settlement for
the net export balances to the United States, rmi-
ning now at the rate of billions of dollars a year,
can only be made, as I see it, in one of three ways.
First, we can buy more in European countries,
which would permit those nations to earn their
own way, and at the same time would improve
our own American standard of living by making
more imported goods available for consumption.
Second, we can invest abroad some part of the
large amounts due us each month either through
governmental or private investment channels, and
look to the future for repayment. And finally —
the third alternative — we can continue indefinitely
military and economic grant programs.
During the past few years, we have been fol-
lowing the last of these methods of settlement and
have been taxing our own people to pay for the
huge excess volume of resources— both raw mate-
rials and manufactured goods — which we have
been shipping to Europe. To maintain our pres-
ent volume of export trade, and at the same time
to be paid in full, we must greatly increase our
imports from Europe and from other parts of the
world.
If this simple truth were clearly understood and
accepted by our own people, regardless of party,
the next Administration and the new Congress
would doubtless find ways and means to gradually
accomplish the desired i-esult. Among other meth-
ods to this end, I would suggest reaffirmation and
extension of the reciprocal trade agreements pro-
gram, enactment of the proposed legislation for
simplified customs procedures, and the progres-
sive lowering of other import restrictions and
duties. Such a policy would increase Europe's
capacity to pay without correspondingly reducing
our exports. I believe adoption of this policy
would directly benefit tlie United States by in-
creasing its economic and eventually its military
security. The existing "dollar gap" threatens not
only our own export trade, but if not reduced
may unfavorably affect the mutual defense effort
as well.
Clearly the present trade imbalance cannot be
reversed overnight. The necessary adjustments in
our own industry and our own markets can only
be made equitably over a period of time. This
fact, and the relatively greater productivity in
the United States make it very unlikely that the
existing gap can be closed by increased American
imports alone.
The Possibility of Increased Foreign Investment
A significant part of the remaining dollar gap
could perhaps be filled by increased overseas in-
vestment by tlie United States. Under present
world conditions, the normal flow of private capi-
tal is seriously impeded by political instability and
existing world tensions. In the interest of our
own balance of payments position, of tax reduction
from lessened foreign aid, and of our own need
for a stable western world, we should seek all pos-
sible means for promoting additional private in-
vestment abroad, including the strengthening
and extension of tlie provisions for governmen-
tal guarantees. The private investor obviously
sliould bear the normal business risks, but our own
national interest requires that unusual political
and exchange risks, properly and carefully defined
be assumed to a greater extent on a government
basis.
The Oi'ganization for European Economic Co-
operation is now studying, and planning later to
recommend, certain changes in economic policy
which, if accepted, and implemented on both sides
of the Atlantic, should help in reducing Europe's
dollar gap. The Mutual Security Public Ad-
visory Board in accordance with a Presidential re-
quest is undertaking to review American economic
l^olicy in the field of foreign trade, taking into
account the curtailment of trade between the West-
ern nations and the Soviet bloc, and the trade
vacuum that might result. These somewhat par-
allel studies should clarify the economic and finan-
cial problems discussed in this report and will, I
liope, lead to constructive action next year in both
Europe and the United States. It could be very
useful, either in connection with the studies al-
ready instituted by the Mutual Security Public
Advisory Board or separately, to investigate thor-
oughly future possibilities for increased American
overseas investment, with and without some form
of govermnental guarantee. Organizations such
as the International Chamber of Commerce, the
National Foreign Trade Council and the Invest-
ment Bankers Association would undoubtedly co-
o]3erate in making an exhaustive study of this sub-
ject, including an evaluation of the need and the
September 8, 1952
359
productive possibilities of such iuvestments, and
of the further safeg-uards with which they could
be surrounded if appropriate action were taken by
foreign governments and by our own government.
The importance of increasing foreign investment
by the United States was recognized by the Con-
gress itself in the present Mutual Security
legislation.
Conclusion
The developments emphasized in the earlier
pai-ts of this report are on the whole distinctly
encouraging. But I do not underestimate the
hazards and diilicidties of the coming months.
Even with American military and economic
assistance, a number of Euroi)ean countries have
felt compelled to alter and delay their defense
efforts, particularly in the field of military pro-
duction. The slippage in attaining our own pro-
duction goals in the United States, as well as the
requirements of the Korean War, have slowed up
to some extent the delivery of military end-items.
The higher priority given to military deliveries
to Europe last January provides the framework
within which further improvement must take
place. However, the action of Congress in reduc-
ing the appropriations requested for military
and economic assistance to Europe for the current
fiscal year will be another influence tending to
spread the defense buildup over a somewhat
longer period than originally planned.
In the economic field, a better solution for
Europe's chronic trade and financial problems
must be found soon, or Hie long term consequences
for the strength and solidarity of the free world
could be damaging indeed.
One cannot deny that, aside from ratification
of the European Defense Community Treaty and
the Contractual Agreements with the German
Federal Eepublic, many problems remain to be
dealt with. For example, Italy has a special
problem in its large unemi)loyment which is be-
ing attacked both through attempts to increase
jobs internally and to increase the rate of emi-
gration to other countries. Problems like these
cannot be solved by one nation alone.
Nevertheless, I am convinced that given the
cooperation, good will and understanding among
the members of the North Atlantic Community
that have successfully overcome so many obstacles
in the past, the difficulties that lie ahead can and
will be resolved.
Faithfully yours,
WiLLi.\M H. Draper, Jr.
U.S. Special Representative
in Europe
U.S., U.K. Submit Joint Proposals
to Iran
Press release 682 dated August 30
Text of Message to the Prime Minister of Iran
FROM the President of the United States and
THE Prime Minister of Great Britain, Deliv-
ered August 30, 1952
To His Excellency
Dr. Mohammad Mossadegh,
Prime Minister of Iran
We have reviewed the messages from our two
Embassies in Iran regarding recent talks with you,
as well as your communication of August 7, 1952,
to the British Government. It seems clear to us
that to bring about a satisfactory solution to the
oil problem will require prompt action by all three
of our Governments. We are attaching proposals
for action which our two Governments are pre-
pared to take and which we sincerely hope will
meet with your approval and result in a satisfac-
tory solution. AVe are motivated by sincere and
traditional feelings of friendship for the Iranian
nation and people and it is our earnest desire to
make possible an early and equitable solution of
the present dispute.
Harry S. Truman
Winston S. Churchill
Proposals
1. There shall be submitted to the International
Court of Justice the question of compensation to
be paid in respect of the nationalization of the
enterprise of the Aioc^ in Iran, having regard to
the legal position of the parties existing immedi-
ately prior to nationalization and to all claims
and counterclaims of both parties.
2. Suitable representatives shall be appointed
to represent the Iranian Government and the
Aioc in negotiations for making arrangements for
the flow of oil from Iran to world markets.
3. If the Iranian Government agrees to the pro-
posals in the foregoing two paragraphs, it is un-
derstood that (a) representatives of the Aioc will
seek arrangements for the movement of oil already
stored in Iran, and as agreements are reached
upon price, and as physical conditions of loading
permit, appropriate payments will be made for
such quantities of oil as can be moved; (h) Her
Majesty's Government will relax restrictions on
exports to Iran and on Iran's use of .sterling; and
(r) the United States Government will make an
immediate grant of $10 million to the Iranian
Government to assist in their budgetary problem.
' Aiiglo-Iraninii Oil Cdiniiaiiy.
360
Deparfment of Stafe Bulletin
The Interdependence of Foreign and Domestic Policy
Folloinng is the summ-ai^ of an address made
on August 26 hy ^Y. A ver-ell Harriman, Director
for Mutual 'Security, before the first general ses-
sion, forty-eighth annual meeting of the American
Political Science Association, Buffalo, N. T.
Triicing the relatioiisliips between domestic and
foreign policies in the political, psychological,
economic, and military fields, Mr. Harriman said
that "we must all learn to approach questions of
national policy in a world context whether the
major aspects of the particular question involved
are domestic or foreign."
Mr. Harriman declared that political stability is
directly related to economic stability and stated
that "whether certain nations can remain free or
fall victim to C'onnnunist subversion rests to a
frightening degree upon our ability to maintain an
expanding and stable economy in this country."
Pointing out that the U.S. population repre-
sents only 10 percent of the people of the free
world but turns out over 50 percent of the free
world's gross production of goods and services,
Mr. Harriman said that "our every action in the
economic sphere has direct and major conse-
quences— often magnified consequences — for the
rest of the free world and therefore for our whole
foreign policy." As an example, Mr. Harriman
recalled that in the latter half of 19-19, when the
gross national product of the United States de-
clined about 31/2 percent compared with the same
period of 1948, our total imports declined more
than 10 percent, those from the Marshall Plan
countries as a group over 20 percent, and those
from certain individual countries over 40 percent.
"Thus a minor fluctuation in our economic activity
at home," he said, "can have disastrous conse-
quences on the economies of our friends and allies."
Mr. Harriman said that the interdependence of
the United States and other free world economies
has "direct and immediate implications" for U.S.
trade and tariff policies, and then pointed out the
growing dependence of this country for imported
supplies of raw materials. Referring to the re-
port of the President's Materials Policy Commis-
sion,^ Mr. Harriman pointed out that some 20 or
25 years from now, the United States will have to
obtain from abroad three to four times the volume
of net materials imports of today in order to
maintain our expanded economy. In this connec-
tion, he continued :
Without increased availabilities in the relatively under-
developed area.s of the world, the very physical base of an
expanding American economy will be lacking. This in
turn calls for a ix)licy of fostering' balanced development
in the underdeveloped areas. For make no mistake about
this : access to raw materials sources abroad is not merely
a matter of going in and digging wherever they are to be
found. Investment must be on terms that the i>eoples of
the underdeveloped areas will accept; it cannot be old-
fashioned exploitation ; it must take the form of balanced
development that promotes — as it can — the interests of
supplying and consuming countries alike. It must take
account of the vigorous nationalism in the areas recently
freed from colonialism and of tlie deeply ingrained fears
of the raw materials producers — born of long experience —
of a feast and famine economy.
"If we are to have access to the raw materials
we shall need so desperately in the next two dec-
ades," Mr. Harriman continued, "the producing
nations must remain free from Soviet domination
and friendly to the rest of the free world. This
emphasizes not only the wisdom but the pressing
necessity of our Point Four Program under which
American technical assistance and a relatively
small economic contribution already is beginning
to work miracles by stamping out disease and
increasing food production."
Turning to the question of defense, Mr. Harri-
man said that "the inseparability of our military
security and the military security of our allies is
obvious." "Equally clear,'' he added, "is the im-
pact of the military needs of the free world, both
for our own forces and our allies, on our budget,
on our national debt, on our tax levels. The
American divisions standing with our allies in
Western Germany, our troops in Korea, our air-
fields in Morocco, our equipment in Indochina are
' For a digest of vol. I of the Commission's report, see
Bulletin of July 14, 1952, p. 55.
September 8, 1952
361
every bit as much a part of our national defense
as an infantry division training in Louisiana."
Mr. Harriman reviewed the major foreign
policy steps undertaken by the United States to
strengthen the resources of the free world against
Kremlin aggression and subversion and stressed
the vital role of the Mutual Security Program in
this connection. AVhile this Program involves
large expenditures, Mr. Harriman pointed out
that the combined military, economic, and Point
Four aspects of the Program take less than 8 per-
cent of the total U.S. budget.
"The fear that haunts the Kremlin today," Mr.
Harriman said, "is that the mad Communist
dream of conquering the world, already being frus-
trated, will be shattered forever by an unshakable
alliance of all the free nations."
Stating that the leadership of this country in
forging unity in the non-Communist world both in
Europe and in Asia "has knocked the Kremlin off
balance and is taking the initiative away from
Stalin in many parts of the world," Mr. Harriman
said that Eussia and Communist parties every-
where are "now engaged in an hysterical cam-
paign to offset our growing strength and unity by
driving a wedge between the United States and
its allies around the world. Every technique of
political and propaganda warfare is being and will
be used for this purpose," Mr. Harriman said. He
then referred to the "hate America" campaign of
Communist propaganda and spoke of the Com-
munist efforts to "smear America and Americans,
to stir up suspicion and distrust by distorting the
motives and policies of our friends and oureelves,
and to exploit the differences that are bound to
arise between fi-ee peoples working together in
voluntary association.
"Like every world aggressor before him," Mr.
Harriman said, "Stalin is seeking to divide the
free peoples so he can take them over one at a
time. Our survival," he added, "depends upon
our ability to build and preserve the unity of the
diverse peoples who share a basic faith in free-
dom and the dignity of mankind."
"No greater responsibility could be placed upon
any nation than the responsibility we face today
to understand our free world partners, to under-
stand that the whole world is watching everything
we do, and to conduct ourselves so that we shall
help to cement the free world unity that is the one
answer to the menace of world disaster," Mr. Har-
rinum said. "To do this," he added, "we must
keep ever in mind that almost everything we do
at home is directly and inseparably related to the
success of our foreign policies — whether in the
field of ci^il liberties and civil rights, or in social
progress in education, housing, and health, or in
the rights of labor to organize, or in the improve-
ment of economic opportunity and security for
all. The time has passed," Mr. Harriman said,
"when we can think of these things as purely
domestic affairs."
Pointing to deep social unrest in many parts
of the world, Mr. Harriman concluded :
The world situation today calls for a continuation and
broadening of progressive, liberal, and dynamic foreign
policies. We have sponsored successfully such policies
under the Marshall Plan, the Point Four Program, the
NATO treaty, the system of Pacific alliances, the programs
for inter-American cooperation, and in many other ways.
These policies already have stalled and rolled back the
niiirrh of Kremlin imperialism — beginning in Iran in 1946,
and then in Greece, in Berlin and Western Europe, In
Korea, in Indochina, in the Philippines, and elsewhere.
We know that we still stand in grave danger, but we also
know that we are on the right road : we can be confident
that if we continue and strengthen the policies we are
following we shall come to the day when the free world,
with its vastly superior spiritual and material resources,
will stand organized in such strength and unity that we
can live without fear. When that day comes, the internal
tensions that permeate the unnatural and inhuman slave
system behind the Iron Curtain will loosen the grip of
tile dictator and the forces of disintegration will set in.
Press Assertions Relating
to AH EPA
Press release 603 dated August 25
An article appearing in the Washington Times
Herald on August 23 charged that the Depart-
ment of State had asserted its influence to ob-
tain the introduction and passage of certain reso-
lutions by the American Hellenic Educational
Progressive Association (Ahep.v) Conference
then in session at Washington.
The article stated that three resolutions were
adopted by the conference at the request of the
State Department. It said the resolutions were
presented by a State Department official, "who
identified himself as Mr. Kusaila."
In no manner did the Department propose any
of the resolutions presented to the conference of
this organization. It had no part in the presenta-
tion or introduction of any of the resolutions men-
tioned in the news report.
The "Mr. Kusaila" mentioned in the article is
Joseph Kusaila, a member of the European
Branch of the International Press Service of the
International Information Administration. He
attended the conference only to report the proceed-
ings of the meeting for the Department's Inter-
national Information Program. He did not re-
ceive nor ask for any privileges not accorded to
any members of the press in attendance. Mr. Ku-
saila did make known his interest in obtaining
copies of whatever resolutions might be adopted
to the chairman of the association's Resolutions
Committee. Articles prepared by him were for
use in the Department's Wireless Bulletin and
VoA broadcasts, particularly those sent to Greece.
Mr. Kusaila in no way participated in the i)res-
entation of the resolutions mentioned in the press
report, nor did he suggest topics for any of the
resolutions presented to the conference. He had
no knowledge of the content of the proposed reso-
lutions prior to their distribution to the press.
362
Department of State Bulletin
U.S., U.K., France, and Switzerland
Sign German Property Agreement
Press release 679 dated August 29
On August 28 an agi'eement was signed at
Bern between Switzerland, France, tlie United
Kingdom, and the United States concerning
German property in Switzerland.
The agreement will become effective upon ap-
proval by the appropriate Swiss authorities and
upon appi'oval by aj^propriate Swiss and German
authorities of separate but related agreements
concluded on August 26, 1952, between the Ger-
man Federal Republic and the Swiss Confedera-
tion with regard to German property in Swit-
zerland and certain Swiss claims against Germany.
Complete texts of these related agreements are
not presently available, but will be released for
publication when received by the Department.
Under the terms of the present agreement, the
sum of 121,500,000 Swiss francs will be paid by
the Swiss Government to the three Allied Gov-
ernments for distribution in accordance with the
terms of the Paris Reparation Agreement of
194G and decisions of the Inter-Allied Repara-
tion Agency. The Swiss Government will, in
turn, receive the stated sum from the Federal
Republic of Germany. Upon payment of this
simi to the three Allied Governments, the pro-
visions of the Washington Accord of May 25,
194(), which called for the total liquidation of
German assets in Switzerland and the division of
the proceeds in equal measure between Switzer-
land and the Allied Governments, will cease to
have effect with regard to German assets in
Switzerland owned by persons who are residents
of the Federal Republic of Germany and the
Western sectors of Berlin. These assets will, in-
stead, become subject to the Swiss-German agree-
ment of August 26, which sets forth the proce-
dures for raising the funds required for the
payment to be made to the three Allied Gov-
ernments.
The agreement between Switzerland, France,
the United Kingdom, and the United States also
includes a number of letters which were exchanged
between the signatory countries and which record
understandings reached in the course of nego-
tiating the agi'eement.
Following are (1) Text of the Swiss-Allied
Agreement; (2) Synopsis of the Swiss-German
Agreement of August 26; and (3) Summary of
letters included in the Swiss-Allied Agreement
of August 28.
Agreement Between Switzerland, France, the
United Kingdom, and the United States Con-
cerning German Property in Savitzerland
The Government of the Swiss Confederation (herein-
after referred to as the Swiss Government), on the one
hand, and the Governments of tlie French Republic, the
United Kingdom of Great Britain and Northern Ireland,
and the LTnited States of America (hereinafter referred
to as the Three Governments), on the other
Having concluded an agreement on May 2.5, 1946, at
Washington, D.C. (hereinafter referred to as the Wash-
ington Accord),
And taking into consideration the agreement entered
into between the Swiss Confederation and the Federal Re-
public of Germany concerning German property In Switz-
erland on August 26, 1952, at Bonn, (hereinafter referred
to as the Swiss-German Agreement),
Hereby Ageee as Follows :
Article 1
The Swiss Government shall without delay pay in favor
of the Three Governments Into an account to be opened
with a banking institution designated by the Three Gov-
ernments the sum of Swiss Francs 121,500,000, which,
under the terms of the Swiss-German Agreement, will be
paid to the Swiss Government by the German Federal
Government within two weeks after the receipt by the
German Federal Government of notification of the entry
into force of the present agreement, subject, however, to
the deduction from said sum of Swiss Francs 20,000,000
which have been advanced by the Swiss Government In
accordance with Section V of the Annex to the Washington
Accord.
When payment into the designated account Is made, the
obligations of all partie.s to the Washington Accord with
respect to German assets in Switzerland which are owned
by persons who are resident in the German Federal Re-
public and In the Western Sectors of Berlin shall be re-
garded as discharged and the provisions of the Accord and
the Annex thereto shall cease to have effect with respect
to such assets, and the claims of the Three Governments
and of the governments on whose behalf they are acting
to such assets shall be regarded as finally settled.
The provisions of this agreement shall be without preju-
dice to the position of any country, party to this agree-
ment, respecting the application, interpretation and fulfill-
ment of such provisions of the Washington Accord as are
not affected by tbig agreement.
Sepfember 8, 1952
363
Article 2
The leKislntion existing in Germany concerning the vest-
ing and marshalling of German external assets shall be
deprived of effect with regard to German holders of assets
in Switzerland by the elimination of Switzerland from the
list of conntries in the schedule to Allied High Commission
Law No. 63.
Article 3
The terms of this agreement and of the Swiss-German
Agreement, shall be without prejudice to any position
which a country that is a member of the Inter-Allied Repa-
ration Agency may take respecting any inter-custodial
agreement concluded or to be concluded l)etween tlie Swiss
Government and such country.
Article 4
Nothing in this agreement or in the Swiss-German
Agreement shall be deemed to confer upon any person or
government rights regarding any property under the ju-
risdiction of any country which was at war with Germany
after September 1, 1089.
Article 5
The Swiss Government is acting in respect to this agree-
ment also on behalf of the Principality of Liechtenstein.
The Three Governments are acting in respect to this agree-
ment on behalf of the countries which are members of the
Inter-Allied Reparation Agency.
Article 6
This Agreement shall enter into force when :
(a) The Three Governments have been notified by the
Swiss Government that this agreement has been approved
by the appropriate Swiss authorities, and
(b) The agreements between the Swiss Confederation
and the Federal Republic of Germany concerning German
property in Switzerland and concerning settlement of the
claims of the Swiss Confederation against the former
German Reich become effective.
Ix Witness Whehi;:)!-' the undersigned, being duly au-
thorized by their respective Governments, have signed the
present Agreement and have affixed thereto their seals.
Done in quadruplicate at Bern on the 28th day of Au-
gust, 1952, in English and French, both texts being equally
authentic.
Synopsis of the Swiss-German Agreement of
ArousT 26, 1952
The payment called for under the Swiss-Allied Agree-
ment will be financed in the first instance from contribu-
tions from German (jwiiers of proi)erty in Switzerland in
the amount of one-third of the value of their assets.
Assets of owners who fail to make this contribution will
be entirely liquidated and the counter-value in (ierman
marks will be paid to the owner by the Federal Govern-
ment of Germany. Exempted from the contributions or
from liquidation will be properties with a total value
of less than 10,000 Swiss francs and properties of owners
in certain categories sucli as persons who liave suffered
persecution in Germany for racial, iKilitical. or religious
rea.sons, persons who, in addition to German nationality,
also held on February 16, 194."), nationality of another
country, and firms orgiinized under German law in- having
their seat in (Jermany, in which non-CJerman nationals
had a majority of interest. In case of non-German par-
ticipation in firms othei'wise subject to contribution, a 25
to .50% non-German interest will be duly protected.
The necessary administrative measures will be taken by
the Swiss Compensation Office, which will send notifica-
tion to all owners of pr(jperty affected by the agreements
that they may either make the stipulated contribution in
order to have the rest of their property unblocked or re-
quest release of their property if tliey fall within the
exempted categories.
Article 20 of the Swiss-German Agreement defines prop-
erty of German owners as assets of any description located
in Switzerland and acquired before .January 1, 1948, with
tlie exception of claims secured by mortgages or real estate
in Germany and securities of German issue and denomi-
nation in German currency.
The three Allied Governments have informed the Swiss
Government that they interpret the term "German prop-
erty in Switzerland" as defined in this Article as not in-
cluding property within the jurisdiction of any country
which was at war with (iermany during World War 11
except to the extent such property is released to Switzer-
land pursuant to bilateral arrangements concerning inter-
custodial problems.
Summary of Letters Included in Swiss- Allied
Agreement of August 28, 1952
1) It is agreed that the Washington Accord will cease
to have effect with respect to property in Switzerland
owned by residents of the Saar and that the Swiss Gov-
ernment will unblock .such property immediately after the
coming into force of the present Agreement.
2) It is agreed that upon the coming into effect of the
present Agreement, the .loint Commission established
under the Washington Accord of Jlay 2.5, 1946, will be
abolished.
3) The three governments request that the Swiss Gov-
ernment will give sympathetic consideration to the appli-
cation for the relief and rehabilitation of victims of Nazi
actions, of assets of Nazi victims who died without heirs,
in the event such assets should be found to exist in Switzer-
land. The Swiss Government expresses agreement with
this request.
4) It is recognized that the respective positions of the
parties to the Accord with respect to Articles 4 and 6 of the
Accord are unchanged.
5) The Swiss (Jovernment acknowledges that the pro-
visions of tlie Swiss-German Agreement of August 26 re-
lating to the protection of interests of non-German na-
tionals, of victims of persecution and of persons to whom
property is returned under restitution procedures can be
changed only with the concurrence of the three Allied
Governments.
6) The Swiss Government states that it is prepared to
take into account foreign interests in companies outside of
(iei'many and Switzerland in which tliere is a German in-
terest of .50% or more, provided that the foreign interest
amounts to 25% or more and provided that comparable
protection is available to similar Swiss interests in prop-
erty under the jurisdiction of the other country. (The
Swiss have also stated that they are prepared to afford
protection to American interests of the type <lescribed and
li.ave expressed the firm liojie that similar Swiss interests
in property in the United States will be protected).
Preoccupation Bank Deposits
in Soviet Zone of Germany
Press release 678 dated August 28
The Departnient of State has been informed of
the extension to September 30, 1952, of the dead-
line for the filing of applications for the conver-
sion into East mark accounts of preoccupation
reichsmark deposits in financial institutions in the
Soviet zone of occupation of Germany or in Ger-
man areas east of the Oder-Xeisse line.
Under currency-reform legislation enacted in
364
Department of State Bulletin
those areas in 1948, applications for the conver-
sion of such accounts had to be submitted to the
Banken-Konimission, Taubenstrasse 26, Berlin
W 8, Germany, before December 31, 1950, to pre-
vent the cancellation of the deposits.^
According to information recently received by
the Department, an East German law of May 30,
1952, extends to September 30, 1952, the pei'iod
for the filing of conversion applications. Appli-
cations should be submitted to the Deutsche No-
tenbank, Franzosische kStrasse 42/44, Berlin W 8,
the successor to the Banken-Kommission. Sup-
porting documents may be filed before December
31, 1952, and should include confirmation of the
balance of the account as of May 9, 1945, from the
bank where the account was originally main-
tained.
U. S. Members, Conciliators' Panel,
Brussels Intercustodial Agreement
Press release 658 dated August 25
Malcolm S. jNIason, formerly General Counsel
of the Othce of Alien ProiJerty, and Owen J. Rob-
erts, formerly Associate Justice of the Supreme
Court of the United States, have been elected as
U.S. members of the Panel of Conciliators set up
under the "Agreement Relating to the Resolution
of Conflicting Claims to German Enemy Assets,"
otherwise known as the Brussels Intercustodial
Agreement.
Article 35 of the Brussels Intercustodial Agree-
ment, which was signed by the United States, Can-
ada, Belgium, Denmark, Luxembourg, and the
Netherlands and which went into effect as to these
countries January 24, 1951,- provides that each
signatory party may nominate not more than three
candidates for election to the Panel of Concilia-
tors. Article 35 further provides that the parties
to the agreement shall elect from the candidates
seven conciliators, who shall constitute the panel.
However, not more than two nationals of the same
country may be elected to the panel. In addition
to Malcolm S. Mason and Owen J. Roberts, the
following were elected :
Jacques Rueff, France (President)
Marcel H. Bregsteln, Netherlands
Georges Kaeckenbeeck, Belgium
Jens Herfelt, Denmark
Lambert Schaus, Luxembourg
Article 37 of the Brussels Intercustodial Agree-
ment provides that in the event a dispute between
the parties to the agreement is not resolved within
a reasonable time, a party may request the appoint-
' For text of Department's announcement to this effect,
see Bulletin of Dec. IS, 1950, p. 984.
' For text of Department's announcement thereto, see
Bulletin of Feb. 19, 1951, p. 294.
ment of a conciliator from the panel for settle-
ment of the dispute. The solution formulated by
the conciliator shall be final and binding upon the
parties concerned.
The types of claims covered by the Brussels In-
tercustodial Agreement are those where the alien
property custodians of two countries both claim
the same German external asset, or where an alien
property custodian claims that certain property
is a German external asset and a national of a
friendly country claims the property is owned by
him beneficially through an intermediate corpora-
tion. With regard to this latter type of case, ref-
erence is made to the Department of State Bul-
letin of May 26, 1952, p. 821, for Department an-
nouncements reque.sting American claimants who
have interests in property falling under the agree-
ment, or in other property in allied or neutral
countries, which has been seized or blocked as
enemy property, to submit information to the De-
partment of State on the basis of which the De-
partment might take action to j^rotect their
interests.
In addition to the above six signatories as of
January 24, 1951, four Latin American countries
have adhered to the agreement : Honduras, Octo-
ber 8, 1951 ; Nicaragua, October 23, 1951 ; Cuba
and Haiti, October 24, 1951. Any dispute involv-
ing these countries is likewise subject to settlement
by a conciliator from the panel.
Claims Involving U.S. Interests
Seized as German Enemy Property
Press release 607 dated August 26
Notice is hereby given that under article 23 of
the Brussels agreement relating to the resolution
of conflicting claims to German enemy assets (the
Brussels Intercustodial Agreement) claims of
Americans who have certain interests in property
in Honduras, Nicaragua, Cuba, and Haiti seized or
blocked as German enemy property must be spon-
sored by the State Department ancl received by the
country in which the property is located within
one year of that country's adherence to the agree-
ment. The various deadlines are accordingly:
Honduras, October 8, 1952 ; Nicaragua, October 23,
1952 ; Cuba and Haiti, October 24, 1952.
The type of claim falling under article 23, in
general, involves property of any kind in Hon-
duras, Nicaragua, Cuba, and Haiti owned by a cor-
poration or other enterprise organized under the
laws of Germany in which corporation or enter-
prise Americans are shareholders, bondholders, or
have any other form of participation.
Americans with this type of claim are requested
to submit forfhirlth information thereon to the
Department of State, so that the Department may
examine the claim and, if appropriate, transmit it
Sepfember 8, J952
365
witliin the tune limit to the country concerned as
a sponsored chiiin under the Brussels Intercus-
todial Agreement.
rommunications to the Department should be
addressed to Adrian S. Fisher, Legal Adviser, De-
partment of State, Washington ^5, D. C. ; should
i-efor to the present press release ; and should con-
tain information as to the kind of property, tlie
country in which it is located, the interest of the
American claimant in the property, the estimated
value of such interest, the residence and nation-
ality status of the claimant, and any facts which
would be helpful in tracing the American interest
into the property in question. Communications
should also refer to any prior correspondence with
the Department of State.
In the present connection reference is made to
related press releases for background information :
no. !)'2 of February (S, 1951 ; no. 93 of February G,
1951; no. 1086 of December 12, 1951; no. 365 of
May 8, 1952 : and no. 658 of August 22, 1952.^
It should be pointed out that press release no. 93,
dealing with "American Interests in Property in
Allied or Neutral Countries Seized or Blocked as
'Enemy' Property," is broader than the present
press release, and requests information as to prop-
erty in all Allied or neutral countries which has
been seized or blocked as German, Japanese, Ital-
ian, Bulgarian, or Hungarian and whether the
American interest is direct or indirect.
Survey of Point Four Program
in Latin America
I'ress release 674 dated August 28
Stanley Andrews, Administrator of the Tech-
nical Cooperation Administration, Department of
State, left on August 28 with two of his staff for
Habana, Cuba, on the first leg of a tour of eight
Latin American countries to survey the work of
the Point Four Program.
He is being accompanied by Paul Duncan, Di-
rector of Tca's Program Information and Reports
Staff, and Omar B. Pancoast, Director of the Pro-
gram Planning Staff.
Besides Cuba, the Administrator and his party
will study activities of technicians and manage-
ment of the program in Peru, Bolivia, Paraguay,
Brazil. Panama, Costa Rica, and Nicaragua. They
will return to Washington about September 28.
The Point Four Program is operated in Latin
America throuirh the Institute of Inter- American
Affairs, an integral part of Tca, which pioneered
in technical cooperation witli underdeveloped
ai'eas.
' See BtTi.i.ETiN of Feb. 19, 10."il, pp. 293 and 294; ibid.,
Dec. 24, 19.")1, p. 1013; ibid.. May 20, 19.-)2, p. S21 ; post.,
p. 304.
Joint projects are carried on by 19 individual
countries with technical assistance from the
United States, partly through the mechanism of
"servicios," in addition to other projects which the
Tca assists financially through the United Nations
and the Organization of American States.
At the end of July, there were 541 U.S. tech-
nicians and other personnel in Latin America
working with a much larger number of Latin
American technicians in the fields of health and
sanitation, education, agriculture, foi-estry and
fisheries, natural resources, labor, transportation
and communication, industry, public administra-
tion and government services, social services, and
housing. Congressional appropriation for the
work there in the present Hscal year is in the
amount of $20,329,000.
International IVBonetary Fund
and Banii Activities
Loan to Colombia
The International Bank for Reconstruction and
Development on August 26 made a loan of 25
million dollars to Colombia. Twenty million dol-
lars of tlie loan will be used to help build a rail-
road in the Magdalena River Valley; the rest will
help build and equip railroad repair shops in
Bogota. Both projects are part of a broad pro-
gram being carriecl out by the Government for
the improvement of the Colombian National
Railroads.
The Magdalena Valley line will be 235 miles
long and will connect the country's eastern and
western rail networks. It will provide all-rail
transport between the port of Buenaventura on
the Pacific coast and the areas of Bogota and
Medellin, as well as a fast and reliable river-rail
route between central Colombia and the Caribbean
ports. At present, traflic through the valley is
carried on the Magdalena River, but on some sec-
tions of the river, navigation is subject to frequent
interruptions in dry seasons. The railroad will
supplement river transport in those sections.
The new repair shops will provide facilities for
proper reconditioning and maintenance of rolling
stock, which now lies idle for long periods await-
ing repair. With this rolling .stock in good con-
dition, the efficiency of rail service will be im-
proved and the need for additional cars and
engines for the Magdalena Valley raili-oad and all
the connecting lines will be reduced.
The Bank's loan will be used to pay for im-
ported equipment and services needed to build the
new railroad and the repair shops. The imported
goods to be financed are mainly structural steel,
rails, work trains, and construction equipment for
the new railroad, and machinery and tools for the
366
Department of State Bulletin
new Bogota shops. The total cost of tlie projects
is estimated at 49 million dollars (122 million
pesos) — 25 million dollars in foreign exchange
and 24 million dollars in Colombian pesos. The
work will be carried out by experienced engineer-
ing and construction firms under contract with the
Ministry of Public Works and is scheduled for
completion by late 1956.
Building the Magdalena line and constructing
the repair shops are integral parts of a compre-
hensive railway program being undertaken by the
Government to eliminate conditions that are im-
jjosing a serious burden on almost every sector of
the economy. At present, shij^ping costs are
lieavy, deliveries are often delayed, there is exces-
sive breakage and pilfei'age of shipments, and
insurance rates are higli.
The program for railway improvement includes
physical rehabilitation of existing facilities and a
thorough reorganization of the National Rail-
roads. Under the reorganization, the railways
will be administered by an autonomous corporate
body, with an independent manager and board of
directors. Present operating procedures will be
overhauled to get more intensive use of rolling
stock, to increase the serviceability of equipment,
and to improve the effectiveness of labor. The
reorganized properties will be administered on the
public-utility principle of providing the best pos-
sible service at the lowest possible charges con-
sistent with a reasonable return on investment.
I'he Government will assume the outstanding debt
of the railroads and provide equity capital to cover
local currency costs of the program. The rail-
roads will pay to the Government the peso equiva-
lent of the amortization, interest, and other
charges of the Bank's loan.
Today's loan is the sixth made by the Bank to
Colombia and brings the total of these loans to
$55,030,000. The Bank previously loaned a total
of $8,530,000 for hydroelectric projects in the areas
of Call, Manizales, and Bucaramanga; $5,000,000
for the purchase of agricultural machinery; and
$16,500,000 for a program of highway construction
and rehabilitation.
The Government of Colombia has been working
closely with the International Bank in drawing
up and carrying out plans for Colombia's economic
development. A general survey mission jointly
sponsored by Colombia and the Bank made a sur-
vey of the country's economic resources in 1949-50,
and the Colombian Government subsequently
established an Economic Development Conmiit-
tee, a nonpartisan group of leading private cit-
izens, to outline an over-all development program
based on the mission's report. Both the mission
and the Committee gave priority to the construc-
tion of the new Magdalena Valley railroad as a
first step in a comprehensive railroad improve-
ment program. Construction of the railroad has
been approved by the National Planning Board,
which the Government created in April 1952, to
coordinate investment in Colombia's development
program.
The Bank's railway loan of 25 million dollars is
for a term of 25 years and bears interest at the
rate of 4% percent per annum including the
1 percent commission which, in accordance with
the Bank's articles of agreement, is allocated to
a special reserve. Amortization payments will
begin on August 15, 1957.
After approval by the Bank's executive direc-
tors, the loan agi-eement was signed by Cipriano
Restrepo-Jaramillo, Colombian Ambassador to the
United States, on behalf of the Republic of Co-
lombia, and by Eugene R. Black, President, on
behalf of the International Bank for Reconstruc-
tion and Development.
Loan to Iceland
The International Bank for Reconstruction and
Development on August 26 made a loan to Ice-
land to help finance the construction of a nitrogen
fertilizer plant. The loan was made in various
European currencies equivalent to $854,000. The
plant will save foreign exchange and make enough
fertilizer to meet the country's increasing needs
for some years. Iceland now imports all its
chemical fertilizers.
Conditions of soil and climate in Iceland re-
quire heavy applications of nitrogen fertilizer,
and an increase in agricultural production de-
pends upon a plentiful supply. More intensive
use of pasture lands will result principally in
the increased production and export of lamb,
mutton, and wool, thus bringing about a better
balance in Iceland's economy by lessening her
dependence on fishing.
Operating at full capacity, the new fertilizer
jilant will produce about 18,000 tons of ammonium
nitrate a year. This is substantially above the
current rate of consumption, but a gradual in-
crease in the use of fertilizer is expected, and
eventually the whole output will be used in Ice-
land. In the meantime, the surplus will be
exported.
The loan is closely related to two previous loans
made to Iceland by the International Bank. Like
the loan of £360,000 ($1,008,000) made in No-
vember 1951 to finance farm improvements, it
should help to raise agricultural productivity.
It is also related to the loan of £875,000 ($2,450,-
000) made in June 1951 for development of power
on the Sog and Laxa Rivers. The hydroelectric
project on the Sog River will provide the power
for the fertilizer plant. The plant will be op-
erated so as to make the fullest use of electricity
at times of day when other demands for power
are low.
The plant will be operated by a corporation
which will obtain most of its funds from the Gov-
ernment. The total cost of the plant is estimated
at the equivalent of 7 million dollars, of which the
Sepfember 8, J 952
367
foreign-exchange cost is equivalent to 4.3 million
dollars. Most of the foreign exchange is being
provided by the Mutual Security Agency of the
United States. The Bank's loan, equivalent to
$854,000, will provide European currencies for the
purchase of i-ectifier equiinnent, cement, reinforc-
ing steel, lumber, building materials, and window
glass. The remaining cost of the project, amount-
ing to the equivalent of 2.7 million dollars will
cover labor and materials provided locally.
The Bank's loan is for a term of 17 years and
carries interest at the rate of 4% percent per an-
num, including the 1 percent commission which,
in accordance with the Bank's articles of agree-
ment is allocated to its special reserve. Amor-
tization payments will begin on June 1, 1954.
After approval by the Bank's executive direc-
tors, the loan agreement was signed by Thor Thors,
Minister of Iceland to the United States, on behalf
of the Government of Iceland, and by Eugene R.
Black, President, on behalf of the International
Bank for Reconstruction and Development.
Jordan Becomes Member
The Hashemite Kingdom of Jordan on August
29 became a member of the Intei'national Mone-
tary Fund and the International Bank for Re-
construction and Development wlien the articles
of agreement of these institutions were signed at
Washington on behalf of the Government of
Jordan by Yusuf Haikal, Minister to the United
States.
Jordan's quota in tlie International Monetary
Fund is 3 million dollars and its subscription to
the capital stock of the Bank is 30 shares with a
total par value of 3 million dollars.
Fifty-four nations are now members of the
Fund and of the Bank. Admission of Jordan
brought the total of members' quotas in the Fund
to $8,736,500,000. The total subscribed capital of
the Bank is now $9,030,500,000.
August Transactions^ Monetary Fund
The International Monetary Fund on Septem-
ber 1 announced that during the month of August
the Fund sold $30,000,000 (U.S.) to the Govern-
ment of Australia, and received a repurchase pay-
ment amounting to $25,500,000 (U.S.) from the
Government of Brazil and a provisional repur-
chase payment of $27,121,500 (U.S.) from the
Government of the Netherlands.
The transaction with Australia was effected
pursuant to an arrangement announced last April.
At that time, the Fund agreed to a purchase of
$30,000,000 for Australian pounds that could be
completed at any time before September 30.
The payment by Brazil, which reduces the
Fund's holdings of cruzeiros by a corresponding
amount, completes a series of three repurchases by
the member in June, July, and August amounting
in all to 65.5 million dollars.
The payment by the Netherlands was accepted
subject to the receipt of further data on the mem-
bers' monetary reserves.
The Fund's exchange transactions to date total
$892,408,380. Repurchases in gold and U.S. dol-
lars total $184,693,538.
Appointments
U.S. -Brazil Joint Comm.ission
for Economic Development
Press release 660 dated August 25
President Truman has appointed Merwin L.
Bohan as U.S. member on the United States-
Brazil Joint Commission for Economic Develop-
ment, the Department of State announced on
August 25. Ambassador Bohan previously served
in an acting capacity in this position following
the death of Francis Adams Truslow in 1951.
The Ambassador, who is now in Brazil, is on
detail from his assignment as U.S. representative
to tlie Inter- American Economic and Social Coun-
cil of the Organization of American Sta|es.
I nter-A^nencan Economic
and Social Council of OAS
Press release 659 dated August 25
Julian C. Greenup, a Foreign Service career
officer for approximately 30 years, has been ap-
pointed acting U.S. representative to the Inter-
American Economic and Social Council of the
Organization of American States, the Department
of State announced on August 25.
368
Department of State Bulletin
HUMAN NEEDS ARE WORLD NEEDS
hy Frances K. Kemohan
The very nature of civilization in the world to-
day brings us closer to world-wide human need.
In the words of Mark Twain, "Human nature is
so prevalent." We are faced with the urgency of
creating an environment in which we can live at
peace. The rapid advances of the physical sciences
have resulted in a contraction of time and space.
Communication advances make possible the
knowledge of events shortly after they have taken
place. In the span of a few years, distant areas
of the world have become a matter of hours rather
than of months. A vast amount of technical
knowledge is now available to mankind. The
countries with technical know-how are making
their knowledge available to meet human needs
wherever they may be and are thereby helping cre-
ate the economic and social stability essential to
a world at peace.
What Are These Needs?
What are these human needs that are world
needs? The human needs to which I refer are
the changeless basic needs that man has had since
the beginning of time — the need for food; the
need for shelter; the need for security; the need
for independence. You will recall that in August
1941 the Atlantic Charter expressed the hope that
a peace would be established which would afford
to all nations the means of dwelling in safety
within their boundaries and which would afford
assurance that all men in all lands might through-
out their lives live in freedom from fear and free-
dom irom want.
Who Are These People?
Let's pretend that you readers are a cross sec-
tion of the 2,400,000,000 persons in the world.
Let's try to estimate your chances of living a
happy, healthy, decent, and useful life. If you are
born this year, then on the same day more than
200,000 other babies will be bom all over the world.
You will have less than one chance in twenty of
being born in the United States. Your chance of
being born in the Soviet Union will be not much
better.
You will probably be colored. You and the
200,000 other babies are going to be born all over
the planet, and there are just not enough openings
in the places where the white race lives. You
must take your chances with the other babies, and
the chances are you will be colored — colored black,
or colored brown, or colored yellow. Your
chances of being born white this year are not more
tlian one in three. Your chances of being Chinese
are one in four ; of being born in India, better than
one in nine. You have only about one chance in
four of being born a Christian. It is far more
likely that you will be born a Confucian, or a
Buddhist, or a Mohammedan.
Eight out of ten of you would work the soil
and expend your energy in producing enough food
to survive. At least six out of ten of you would
not be able to read or to write. By our U.S.
standards, most of you would be very young, for
the life expectancy for two-thirds of mankind is
less than 35 years. Many of you w(Tuld be dis-
eased. There are more than 300,000,000 cases of
September 8, 1952
369
malaria in the underdeveloped areas of the world
today. Two-thirds of you would live in the
underdeveloped areas and would belong to that
two-thirds of mankind born into misery and
poverty.
Can one-third of mankind carry the responsi-
bility for the other two-thirds? Patently not.
There are not funds available. The best the one-
third can do is to help the two-thirds obtain a start
on the road to their economic, social, and political
stability. They seek help. They want to help
themsehes. They want independence — not de-
pendence. Let us remember, for example, that the
people of India, Israel, and Pakistan make up new
nations. They are proud and sensitive. They
carry heavy individual tax burdens. They accept
strict rationing because they believe in themselves
and in their future. Those who are social workers
have come to know what such factors mean in the
lives of individuals. The prognosis is good when
the individual wants to help himself — when he
seeks to help himself.
Is the World Facing These Needs?
Over a year ago in Washington such phrases
were heard as "a world beset with too rapid social
change." Early in April at a National Confer-
ence on International Economic and Social Devel-
opment, students, representatives of industry, and
our public officials faced the reality of the times
by using the phrase "social revolution." For us,
the simple political reality is that we cannot sur-
vive as a free people if the two-thirds of mankind
remains depressed and are sucked into the Soviet
orbit. What would happen if the Near East and
South Asia were lost to the world ? Perhaps for
a while we could maintain America as a fortress
surrounded by a seething and a bitter world. The
Soviets as well as we know in what conditions the
two-thirds live. Tliey know that the depressed
of mankind recognize that near starvation, disease,
and early death need not be the only way of life.
The question is, is the world facing these needs ?
I read not long ago an excellent analysis of the im-
pact which these human needs are making on the
world. Henri Laugier, former Assistant Secre-
tary General in Charge of Social Affairs of the
United Nations, reviewed the work of the Social
and Humanitarian Committee of the General As-
sembly. His review took into account the various
subjects discussed in that Committee since its in-
ception. Mr. Laugier reported the fact that on
such subjects as the colonial clause in the Human
Eights Covenant, freedom of information, the
right of self-determination, a majority of some 30
to 35 states (made up of most of the South Ameri-
can countries, Middle Eastern countries, Asiatic,
and Soviet states) joined together against a mi-
nority of 12 to 16 votes of the highly developed
states such as Great Britain, the United States,
France, Belgium, and Australia.
Mr. Laugier asks, "Wliat does this mean?" He
replies to his own question by saying that what it
means is that in the Social Committee of the United
Nations, where governmental pressure is not as
great as in the political, economic, trusteeship, or
financial committees, the highly developed coun-
tries have lost the control, the leadership of the
international community; that this control and
this leadership have gone over to the disinherited
countries. He goes on to say that it means and
signifies that there exist today in the world sev-
eral hundred million men, women, and children
who are leading a life which is not fit for a human
being, in slums and with insuiScient food, among
sickness, ignorance, and illiteracy; and who, to-
day, in tliis world of technical progress, are not
willing to resign themselves to this fate. He points
out that the same problem existed 50 or 100 years
ago. At that time these men came into the world,
lived and died on their own land like plants and
animals. Today, in this scientific world, they
know that within reach by plane, a few hours from
misery, there exist countries where there is plenty
of everything.
And they no longer resign themselves to their
sad fate; they demand, discreetly today, impera-
tively tomorrow, an international night of August
4, 1789, when in France all feudal rights and
privileges of the nobility were relinquished to the
constituent assembly. The disinherited countries
are arising to ask that these states abandon their
privileges — states which history and geography
have made into privileged countries. ■
Meeting the Challenge
What is the free world, including the two-thirds,
doing to meet the challenge of the need for food,
for health, for the physical strength to produce a
day's work, for the power to read, write, and
govern? Much more is being done to cope with
man's economic and social problems than can be
370
Department of State Bulletin
gleaned from a review of the daily news, which is
dominated by urgent political issues. The disin-
herited are helping themselves through their par-
ticipation in the United Nations and under their
own jjlans. You will find in the composition of
the General Assembly, various other U.N. bodies,
the specialized agencies, and the U.N. Interna-
tional Children's Emergency Fund, virile rej)re-
sentation by the underdeveloped countries.
Let us look first at what the United Nations and
the specialized agencies are doing to help meet
these human needs which are world needs. The
preamble of the Charter of the United Nations
pledged that body "to employ international ma-
chinery for the promotion of the economic and
social advancement of all people." Since 1945,
the United Nations and the specialized agencies
have devoted gieater international effort than was
ever made before to meet these human needs. A
vast network of machinery has been created.
The day-to-day oj^erations of the several U.N.
specialized agencies demonstrate what is being
done at the "grass roots." Space precludes a com-
pi'ehensive discussion of the purpose and scope of
such specialized agencies as the Food and Agri-
culture Organization (Fao), the World Health
Organization (Wiio), and of the U.N. Interna-
tional Children's Emergency Fund — popularly
known the world over as Unicef. These agencies
of the United Nations, like the several member
agencies of our Community Chests, exist to meet
special needs and there is continuing interagency
cooperation and coordination.
Let us take an example of coordination, the pri-
mary focus of which is the meeting of human
need. This example involves the World Health
Organization, the Food and Agriculture Organi-
zation, and the U.N. International Children's
Emergency Fund. In an area in northern India,
an area a little smaller than Delaware, with a
population of 150,000, a Who nurse from England
with a team of Indian nurses went into the villages
to gain the confidence and cooperation of the peo-
ple. By way of getting acquainted, the nurses
treated the children of the village for minor ail-
ments and talked with and gave advice to the
mothers. When the confidence of the people was
gained, the World Health Organization suggested
that the Children's Fund provide financing for a
few very simple maternal and child health cen-
ters. This financing was provided by the 26-gov-
ernment board of Unicef. The maternal and
child health centers were opened and are flourish-
ing today.
As a result of this cooperative endeavor in
which the Government of India plays a leading
role, these nurses have been able to collect "infant
blood slides" essential to their basic purpose —
malaria control. At the outset, it was found
that 50 to 75 percent of the babies contracted ma-
laria during the first year of life. After the coop-
erative endeavor got under way, Ddt was provided
by Unicef for spraying the houses in these vil-
lages. One year of spraying with Ddt reduced
the malaria rate to 21/. percent. Two years of Ddt
sjDraying practically eliminated the disease.
With malaria under control, agricultural pro-
duction increased, land values almost doubled, the
areas under cultivation almost tripled. At this
stage the Food and Agriculture Organization en-
tered the picture. Nine experts were brought in
to assist the villagers with various asjjects of agri-
cultural development. Three are working on land
reclamation and teaching the farmers to use sim-
ple, improvised tools. One is helping in the eradi-
cation of cattle diseases. Two are dealing with
the development of plants and grasses in the vil-
lages. One is working with the people in the tan-
ning of hides, and two are helping with food pres-
ervation, canning, and dehydration.
The Children's Fund
Another example of how the two-thirds of man-
kind are helping themselves through the medium
of the United Nations can be found in the work of
the Children's Fund. Created by the General As-
sembly in 1946, Unicef has become the catalytic
agent in the U.N. system which focuses on the
needs of the world's children — the citizens of to-
morrow. Since its inception and with the help of
Who, Fao, and the U.N. Social Affairs Depart-
ment, Unicef has brought aid to over 42 million
children in 64 countries and territories. In nuiny
countries it has come to mean the United Nations.
Unicef and Who have been working together
on health jirograms for children in various parts
of the world. Their extensive programs to com-
bat malaria, tuberculosis, and yaws in Asia are at
last yielding impressive results. For example, at.
tlie end of 1951, 1,500,000 mothers and children
benefited from these cooperative antimalaria
campaigns. It is anticipated that this cooperative
endeavor will reach 5 million mothers and chil-
dren in 1952. Over 12 million children and
Sepfember 8, 1952
371
mothers were tested or vaccinated in a joint anti-
tubei-culosis campaign during 1951. In 1952 the
goal is 26,750,000. In the combating of yaws,
2,375,000 were examined or treated in 1951, and
tlie goal for 1952 is 0,400,000.
In India, for example, an antituberculosis cam-
paign is presently under way. To date, 3,723,000
people have been tested and 1,250,000 have been
vaccinated. It is expected that within 3 years the
total population of children and young adults in
tliat country will have been tested and a large
number vaccinated against tuberculosis. The
Government of India is carrying out this cam-
paign in cooperation with Unicef and Who. The
latter is providing personnel to train local teams;
Unicef is making available the necessary supplies
and transport; the Government of India is pro-
viding the local personnel.
Economic and Social Council
The Economic and Social Council (Ecosoc) is
the keystone of the U.N. structure in the economic
and social field. It provides a means for mobi-
lizing and coordinating the resources of the United
Nations and its specialized agencies in dealing
with the vast complexity of economic and social
problems. Mention of a few items on the agenda
of tlie fourteenth session of the Council, which was
held from May 20 to August 1 at the U.N. Head-
quarters in New York, gives some indication of its
current scope. Agenda items included "The
World Economic Situation," "Economic and So-
cial Development in Underdeveloped Areas," and
I'eports of the various commissions such as Human
Eights, Status of Women, and the Social Com-
mission.
The Social Commission, comprised of repre-
sentatives of 18 governments, held its eighth ses-
sion at New York from May 12-30. Many of the
government representatives who attended are ex-
perts in the social field. They included Arthur J.
Altmeyer, Commissioner for Social Security in
the United States; F. H. Rowe, Director General
of the Ministry of Social Welfare of Australia;
and G. Vlahov, Deputy in the Health and Welfare
Council of the Government of Yugoslavia.
The Social Commission's agenda included con-
sideration of the "Training of Social Welfare Per-
sonnel" ; "Improvement of Housing with Particu-
lar Emphasis on Underdeveloped Areas"; and "A
Report on the World's Social Situation." Tliis is
the first report which the United Nations has made
in the broad social field.^
Advisory Social Welfare Services Program
Under the Social Commission comes the oper-
ating arm of the United Nations in the social field.
This is the Advisory Social Welfare Services pro-
gram. Under this program expert advisers, fel-
lowships, social welfai'e publications, films, and
social welfare seminars are made available to gov- I
ernments upon their request. ■
In 1951, under this program 25 social welfare
experts were sent to countries in Europe, Latin
America, and the other continents. One hundred .
and ninety-one fellowships were provided to na- '
tionals of countries all over the world. Forty-
nine of these fellows came to the United States.
What happened in northern India in the coop-
erative endeavor of the World Health Organiza-
tion, the Food and Agi-iculture Organization, and
the International Children's Emergency Fund,
and what has happened as the result of the Ad-
visory Social Welfare Services program are im-
portant ways through which the United Nations
helps governments to help themselves. It is the
application of the twentieth century know-how —
the application of the technical assistance concept.
The two-thirds of mankind are also helping
themselves under plans of their own devising. It
is difficult for us to understand this two-thirds of
mankind because we do not know them as indi-
viduals. I believe that it will facilitate our un-
derstanding if we look at the way one of these
financially underdeveloped countries is helping it-
self. Let us turn for a moment to the word picture
given the Department of State by Evelyn Hersey,
the Department of State's social welfare attache
stationed at New Delhi, India. Miss Hersey has
traveled some 50,000 miles in India and visited
hundreds of villages there.
India, which is slightly more than one-third as
large as the United States, has two and one-half
times as many people who have been fighting a
losing battle with starvation for generations.
India became an independent nation less than
5 years ago. That independence is to the Indian
one of his most precious possessions. Social
1 For a summary statement on this report by Walter M.
Kotscbnig, deputy U.S. representative to the U.N. Eco-
nomic and Social Council, see Bduletin of July 28, 1952,
p. 142.
372
Deporfmenf of Sfafe Bulletin
effort in India by individuals and groups has had
a long history dating back thousands of years.
Almsgiving is a traditional part of the Indian
way of life. The joint family system has been
the social security system of India for thousands
of years. Like other countries whose social phi-
losophy was founded on the joint family system,
modern India is evolving new patterns to meet
her human needs. The joint family system is
breaking up. Industrialization has required parts
of families to migrate to cities. As a bypi'oduct,
poverty in rural areas is coming about. The
lack of facilities outside of the family to care for
dependent children, the crippled, and the aged,
have given an urgency to the development of new
patterns to meet human needs.
India's Faith in the Future
India is studying the social pains and malad-
justments of other countries during their past
periods of industrial revolution, and is seeking
means of avoiding some of these difficulties her-
self. She is enacting labor laws; establishing a
minimum age for employment; providing for the
protection of women, including maternity bene-
fits and industrial safety measures.
A brief look at some of the major social prob-
lems reveals overwhelming need and a demonstra-
tion on the part of the Indians of an almost un-
believable enthusiasm and faith in the future.
Consideration is currently being given to the
establishment of a Ministry of Social Welfare.
In the field of health, the State and Central gov-
ernments have over-all jahms for social services.
India has passed a health insurance law but is
meeting difficulty in setting up pilot projects.
The need for equipment and trained personnel is
overwhelming. However, the use of mobile dis-
pensaries and hospitals in outlying areas has
begun.
The road to the liquidation of the 85 percent
country-wide illiteracy is long and blocked by lack
of finances and trained personnel. There are the
problems of adult literacy training, vocational ed-
ucation, vocational guidance, and university train-
ing. In villages where India's mass literacy
training program is under way, some eager adults
have learned the fundamentals of reading and
writing in 30 days at a cost of about 21 cents per
person.
The impact of the twentieth century on India is
bringing about great changes in the status of
women and children. In the social action field,
India is bringing about the codification of the
Hindu personal law which affects the status of
wonieii with regard to marriage, divorce, inheri-
tance, and the holding of property. Several cities
have juvenile courts, detention homes, and board-
ing schools. The need for establishing recrea-
tional facilities is understood in many parts of
India. One recreational organization with some
40,000 members recently celebrated its twenty-fifth
anniversary. The 5-year-old Central Government
is now discussing a National Children's Act which
it is hoped will be adopted by many states.
The bulk of the social work in India is being
done by volunteers. However, the full-time so-
cial worker is beginning to appear. Volunteers
and paid workers are both seeking more training.
There are now three graduate schools of social
work in India.
India has its National Bed Cross, National
Boy Scouts, Girl Guides, YWCA, and YMCA.
In the last 2 years a penology conference has
been formed and an association for adult educa-
tion. The All-India Women's Conference is a
national organization of women interested in so-
cial reform. Cities like Madras have formed
organizations comparable to our Community
Chests. In 1947 the Indian National Conference
of Social Work was organized and is making an
increasing contribution in the social field. Mad-
ras, Bombay, and New Delhi have published
directories of social agencies. There is a recog-
nition on the part of the Central Government of
the importance of the social-work field, as is evi-
denced by the fact that the National Govern-
ment Planning Commission has established a
social-welfare section. A National Social Wel-
fare Advisory Council to the National Govern-
ment ministries has been formed and a National
Advisory Committee to schools of social work has
been formed by the National Government.
India is in truth making a tremendous effort to
meet the human needs of her people. Other coun-
tries like India are undertaking similar programs.
Meeting the Needs of Underdeveloped Countries
What are the United States and other countries
of the free world doing to help the disadvantaged
two-thirds of mankind? The record of our Gov-
ernment is an honorable one. Specifically, the
Sepf ember 8, 1952
373
United States is doing much to help. The sup-
port of the United Nations is a declared touch-
stone of U.S. foreign policy. We are members
not only of the United Nations but also of all the
specialized agencies, of the Cliildren's Fund, and
of organized international eilort on behalf of refu-
gees and the victims of the war in Korea. We
are a major contributor to the United Nations
and the specialized agencies and these other or-
ganizations. We have been the largest contribu-
tor to the U.N. International Children's Emer-
gency Fund. The Soviet Union and its satellites,
although members of the United Nations, are no
longer members of the specialized agencies. The
Soviet Union, altliougli still a member of the
Cliildren's Fund, has not contributed one red
ruble. The Children's Fund in the early days gave
some 35 million dollars out of its total resources
of Ifi;) million dollars for the aid of mothers and
children behind the Iron Curtain.
Any discussion of U.S. participation in the
world eifort to find better ways to meet human
needs is not complete without reference to Latin
America and the Organization of American
States. The United States, recognizing the in-
ci'eased emphasis on social welfare throughout
Latin America, has recently accepted a seat on the
eight-nation Social Cooperation Commission of
the Inter- American Economic and Social Council.
Our Government is also undertaking a vast stu-
dent exchange program which in this past year has
brought approximately 2,685 foreign students to
this country.
The Point Four Program
And last, but by no means least, there is the
major effort on the part of our Government under
the Point Four Program. In 1949 the President
of tlie United States announced a "bold new pro-
gram for making the benefits of our scientific ad-
vances and industrial progress available for the
improvement and growth of underdeveloped
areas." In commenting on this move, Arnold
Toynbee, the great English historian, stated,
"Point Fo)ir is one of our best hopes for the sur-
vival of free societies." Point Four has become a
reality. By late 1951, projects were in operation
in o3 countries, and during the year ending June
30, 1952, the number of persons employed on Point
Four projects overseas is expected to reach almost
3,000. As Secretary Acheson stated last January,
"Point Four has become a settled part of our for-
eign policy . . . it is a long-tenn proposition
to help people to help themselves . . . not an
overnight miracle drug, not a philanthropy."
The technical assistance concept is not new.
The Departments of Conomerce, Interior, and
Agriculture for more than 15 years have sent ex-
perts out to help improve census methods, to give
expert geological advice, and introduce new
methods of soil conservation. The U.S. Public
Health Service and the Children's Bureau have
carried on technical assistance programs in Latin
America for a quarter of a century.
Our private social agencies and our chief church
groups working overseas have often been the van-
guard of governmental effort. For example, the
National YWCA helped establish the New Delhi
School of Social Work. The private foundations,
Ford, Carnegie, Macy, Rockefeller, and others,
have for years sought and found better ways to
meet human needs and are now cooperating closely
with governmental effort.
In American industry, the Point Four concept
is not new. For example, the meat-packing in-
dustry has carried on an international exchange-
of-persons program for many years. During a
recent informal discussion, a representative of
Westinghouse, stationed in Cuba, stated that when
young engineers from this country reported for
duty in Habana they were not permitted to rush
into things in the typical American manner.
Their first assignment was to become acquainted
with the officials of the company with whom they
were to work. Westinghouse learned several years
ago that the approach to the Cuban businessman is
somewhat different from that made to the Ameri-
can businessman. The psychiatric social worker
may call this the establishment of 7'apport. Our
Ambassador to India, Chester Bowles, terms it the
creation and maintenance of the right psychologi-
cal atmosphere. It is that ingi-edient — the art (or
the science) of human relations — which makes
possible the application and acceptance of
technical know-how.
The Point Four concept and Point Four tech-
niques are not new or impractical. However, the
thing that is new is the boldness and the dimen-
sion. Ambassador Bowles speaks of it in terms of
breadth, scope, and mileage.
374
Department of State Bulletin
The Colombo Plan
Otlier developed countries in the free world are
also assisting the underdeveloped countries. The
concept of helping others to help themselves has
been accepted as a free-world crusade. In May
1950 representatives of several Commonwealth
Governments met in Australia and drew up a tech-
nical assistance program, the Colombo Plan, to
help South and Southeast Asia. One-sixth of all
expenditures for development under the Colombo
Plan is to be used for social-service programs.
High priority is given to schools and to the reset-
tlement and rehabilitation of displaced persons.
Smaller sums have been allocated to build hos-
pitals and dispensaries, new housing, and to effect
slum clearance. A review of the Colombo Plan
now in operation shows that there have been re-
quests for maternal and child welfare specialists.
There is an expressed interest in psychiatric social
work training.
Experience shows that these so-called bilateral
technical assistance programs are effective.
Point Four in India came into being when Prime
Minister Nehru and Ambassador Bowles signed
last January, on behalf of their respective Gov-
ernments, an agreement establishing a joint fund
under which the United States will make avail-
able .50 million dollars to India during the year
ending June 30, 1952. The Indians will con-
tribute for the same period at least an equivalent
amount in rupees. Of major importance is the
community development program, which con-
templates the setting up of about 50 development
areas in different parts of the country, each of
which will reach ujjwards of 200,000 people in
300 villages.
The Indian Cooperative Union
A recent communication from our social wel-
fare attache in India illustrates the type of activity
taking place throughout that great country with
the assistance of Point Four funds. Faridabad
was a community of refugees who 4 years
ago were hopeless, apathetic, and resentful. A
little over 2 years ago a young Indian was sent
by the Indian Cooperative Union to that com-
munity. He lived and worked with the refugees
and encouraged them to help themselves through
the organization of cooperatives. The Govern-
ment sent in contractors to construct houses for
20,000 refugees who were living in tents under
miserable conditions. The natives of the com-
munity were mostly small shopkeepers and had
never done manual labor. They refused to co-
operate with the contractors. With the help of
the Indian Cooperative Union, a plan was set up
by which the natives could build their own houses.
Thus, these men who had never made bricks or
constructed houses went to work. The construc-
tion of the buildings was completed ahead of
schedule. The refugees themselves built their
town. They not only built their own houses but
they constructed a hospital and set up clinics.
Health work is going forward. Schools are es-
tablished. Private industry from other places in
India has been attracted to this new town. There
are a myriad of examples like the achievements
at Faridabad.
If the United States succeeds in helping India
to carry out her own plans so that she sees that the
future under a democratic system is not hopeless,
then we will have contributed. Hope and faith
were expressed by Ambassador Bowles in a recent
speech delivered at Bombay :
Can Indian democracy, can democratic techniques, pro-
vide a better life for India's millions? We know that
Indian democracy can ijrovide fair elections. We know
it can provide a secular state. It can give freedom of
i-peech, of worship, and other freedoms. But can it free
the Indian people from the shackles of poverty, and sick-
ness, and ignorance? Tliat is the question. The Govern-
ment of India believes that it can. We believe that it can.
India is now intent on proving that it can through its great
Five Year Plan. We are intent on helping India — how-
ever, we may be able to make India's program of economic
and agricultural development more successful.
India is faced with the problems of human need
which have accumulated over the centuries. She
seeks help as do the other countries who are com-
ing to know that hunger, illiteracy, and early death
need not be the only way of life. The manner in
which the help is given will determine the degree
of success or failure. Our social work know-
how — accepting the client where he is; the con-
cept of individual differences; that precious feel-
ing of indei^endence ; the hope and courage that
go into healthy growth; the right of the indi-
vidual to lead a personally satisfying life — all are
integral parts of action to meet human needs and
to insure world peace.
If we who live in the last half of this century
have enough courage and enough humility, and if
our civilization can produce enough men and
women who combine within themselves technical
September 8, 1952
375
knowledge and an understanding of human rela-
tions— then there is hope. We of the so-called de-
veloped one-third of the world do not have a cor-
ner on the market of this know-how. We must
approach our task with humility. I will illustrate
this point by a simple story that I heard not long
ago at a meeting of the Executive Board of the
Children's Fund:
Some seven centuries ago an Italian social-serv-
ice worker set out on a journey to the Far East.
After his return, he wrote a report which succeed-
ing generations have continued to read eagerly
from cover to cover. With exemplary modesty, he
stated that he went to teach but i-emained to learn.
The social-service worker's name, of course, was
Marco Polo. His growing respect and admiration
for the people whom he felt called upon to teach,
but among whom he remained to learn, may teach
us also a lesson.
Many of us who have worked closely with people
whom we want to help have been impressed by
their intelligence, their adaptability, their
straight- forward reasoning, and their capacity for
helping themselves. Experience shows that pro-
grams developed by and with the people they in-
tend to reach have been the most successful.
The Conduct of Life by Louis Mumford con-
tains this passage:
Today for the first time the hurnao race as a whole
commands resources that have hitherto been perverted
or restricted for the benefit of a fortunate minority. In
a fashion never so true before, we live by helping one
another, and we shall live better by helping each other
to the utmost. Now, at least potentially, every person
has a claim to the highest goods of life : sensibility, in-
telligence, feeling, insight. All that goes toward the de-
velopment of the person are no longer the property of a
single ruling group or a chcsen nation. This equalized
potentiality for life and for development is the true prom-
ise of democracy.
• Miss Kernohan, author of the above article^ is
Assistant Officer in Charge, United Nations Social
Affairs, and alternate U.S. representative on the
Executive Board of the United Nations Inter7\a-
tional Children's Emergency Fund.
The U.S. in the U.N.
A weekly feature, does not appear in this issue.
A Commentary on the U.N.
Children's Emergency Fund
Statement by Walter M. Kotschnig
Deputy U.S. Representative in the U.N. Economic
and Social Council
U.S. /U.N. press release dated July 24
This is the story of Som Chit Sae Ma, a 7-year-
old Thai girl, one of the many children in the
world for whom a new life has opened up through
the help given by the United Nations. Two years
ago Som Chit's sarong caught on fire and her legs
were badly burned. Since that time her right leg
had been shriveling so that it was possible for her
to get about only by hopping on her left leg. She
might have gone on that way except for the for-
tunate cliance of having been seen by a social wel-
fare expert assigned by the United Nations to a
newly established maternal and child welfare cen-
ter that had been equipped by Unicef (United
Nations International Children's Emergency
Fund). The child was taken to the center and
given the necessary care so that she will be able to
walk again.
More than one thousand maternal and child
welfare centers have been equipped by Unicef in
K) Asian countries and 900 more are to be equipped.
They will serve the community directly and be-
cause they are there little girls like Som Chit can
get the care they need.
This story can be duiDlicated among the more
than 42 million children in the 64 countries and
territories who have received help from Unicef.
The Fund celebrates its fifth birthday on Decem-
ber 11, 1951. Since its inception in 1946, the
Children's Fund has brought concrete awareness
of the United Nations to a larger segment of the
world's population — the underfed and underpriv-
ileged who are the first targets of social unrest —
tlian any other U.N. program. It is contributing
to the social stability of countries by assisting
children, the citizens of tomorrow.
The delegation of the United States supported
tlie resolution unanimously adopted by the Social
Commission on the report of the Executive Board
of Unicef. It will do so in this Council. As the
years have gone forward, we have noted with ap-
preciation the prevailing spirit of harmony in the
transactions of the Executive Board. The 26-
government Board recognizes the importance of
its assignment — which is to help make the world
a better place in which our children may develop
into useful citizens.
With the steady growth of child welfare and
health programs, the relationship of Unicef and
the specialized agencies and the United Nations
itself has become increasingly close. As with any
group of organizations which have general objec-
tives in common, although widely varj'ing indi-
376
Department of State Bulletin
vidnal assignments, there is an ever-present ques-
tion of interrelationship and teamwork. The dif-
ficulties can and are being overcome by constant
attention to the need of maximizing the limited
resources of each agency and by insisting that the
people at the headquarters of each agency and the
people in the field work together on a day-to-day
basis.
Extension of UNICEF Programs
My delegation has worked for and welcomes the
extension of Unicef programs in economically
less developed areas. Of the funds allocated at
the recent Board meeting, exclusive of emergency
programs, over three-fourths were apportioned to
Asia, Africa, Latin America, and the eastern
Mediterranean countries. This was the first time
programs for Africa were considered. We
strongly support this development.
In general, the intentions and the accomplish-
ments of the Fund in its long-range work are to
be commended. The U.S. delegation to Unicef
will continue to urge that the greatest imagina-
tion and skill be used by the Administration of
the Fund in planning with and assisting govern-
ments in the development of their permanent child-
welfare and health services. We believe further
improvements can be made — a better balance
among the various aspects of child care achieved.
We will continue to urge that more attention be
given to child nutrition and welfare programs in
contrast to the present heavy weighting on child
health programs. We anticipate that the work
on an integrated program for meeting the needs
of children, which is at present being undertaken
by the working group of the Administrative
Committee on Coordination (Ace) will be of
practicable assistance in further developing the
emiihasis of the Unicef program.
We believe in the distinguishing characteristic
of the Fund — the spending of its resources pri-
marily for supplies. These supplies are concrete
aids to governments in the development of their
child-care services. However, we will continue to
question the wisdom of the Fund's spending even
a portion of its limited resources for the establish-
ment of plants for the production of antibiotics
and insecticides. It is our opinion that such capi-
tal expenditures — worthy as they may be — are
not directed primarily to mothers and children,
and so are not appropriate charges upon the
Fund's resources.
We continue to concur in the wisdom of reso-
lution 417 of the fifth session of the General As-
sembly which provides flexibility in meeting
emergency situations. Unicef is a tangible re-
source for countries faced with emergencies.
Within a matter of days after the outbreak of
floods in Italy, Unicef took emergency action to
speed relief to 70,000 children in the flood-stricken
Po River Valley. Some 16,000 mothers and chil-
dren in the Philippines, who were victims of vol-
canic eruptions and typhoons, received emergency
assistance in December of last year. With refer-
ence to the report before us, let me say that my
delegation joined with others at the Board meet-
ing in expressing the understanding that the Di-
rector of United Nations Relief and Works Agency
for Palestine Refugees in the Near East
(Unkwaprne) would recommend to the next regu-
lar session of the General Assembly, the assump-
tion by that organization of the total feeding
budget for Palestine refugee mothers and chil-
dren beginning December 1, 1952.
We note with satisfaction that the resolution
before us recommends that there be increased ef-
fort to make known the achievements of Unicef
in its world-wide collaboration witli the technical
services of the U.N. and the specialized agencies.
It is our hope that the working group of the Ace
will make concrete proposals to the Social Com-
mission on the further development of an inte-
grated program for meeting the needs of children
so that these proposals can be considered when the
future of Unicef is examined in 1953 in accord-
ance with resolution 417 (V) .
U.S. Contributions to UNICEF
Finally, we note that this resolution calls the
attention of government and private individuals
to the urgent need for additional funds. In this
connection the U.S. Congress passed, and the
President has approved, legislation permitting
further contributions to Unicef through Decem-
ber 31, 1953, of not to exceed $16,481,000 to the
extent that funds are appropriated. This legis-
lation is permissive only. An appropriation was
passed by the Congress in the final days of the last
session, and approved by the President, in the
amount of $6,666,667 under this authorization.
The balance of $9,814,333 authorized but not ap-
propriated may be available for contribution if
the Congress enacts, and the President approves,
additional appropriations. This contribution of
$6,666,667, when made, will represent one-third or
less of contributions from governments including
local contributions of governments for the benefit
of children within their territories. The cumula-
tive U.S. contribution of $87,416,667 which has
thus far been made available by the U.S. Congress
will represent over 70 percent of total contribu-
tions of governments to the central account of the
Fund.
It is our hope that other governments, within
the limits of their resources and commitments,
will be able to continue their support of Unicef
so that this worthwhile humanitarian work can
go forward in 1953 without interruption.
September 8, 1952
Z77
Famine Expert Appointed to FAO
Press release 680 dated August 29
The Director General of the Food and Agricul-
ture Organization of the United Nations (Fag)
recently requested the United States to nominate
an expert experienced in the international han-
dling of foodstuffs for appointment to a Working
Party, which the Fag Council has established to
study proposals for dealing with emergency
famine conditions. The U.S. Government has
nominated Carl C. Farrington to serve on this
Working Party. The group will meet under the
auspices of the Fag at Rome, Italy, September
1-15, 1952.
The possibility of increasing international co-
operation in dealing with famine conditions has
been under discussion within the U.N. Economic
and Social Council and the Fag for some time.
In June 1952, in response to a recommendation of
the sixth Fao Conference held at Rome in No-
vember and December 1951, the Fag Council con-
sidered the problem. It was decided to appoint a
Working Party consisting of five independent ex-
perts to study the problem further, in line with
the discussions that had taken place. Accord-
ingly, the Director General of the Fag has re-
quested two exporting countries, two importing
countries, and one country interested in both ex-
porting and importing to nominate experts to
serve on the Working Party. Governments other
than the United States which have been ap-
proached by the Director General are Australia,
for an expert experienced in the acquisition, stor-
ing, transport, and disposal of cereals and other
goods; France, for an economist experienced in
the problem of international markets and market-
ing; India, for an expert experienced in the han-
dling and provision of food supplies to meet acute
food shortage or actual famine conditions; and
the United Kingdom, for an expert experienced in
the problems of finance, of balance of payments,
and other exchange questions arising from inter-
national trade in commodities.
Congress of Onomastic Sciences
Press release 675 dated August 28
More than 150 delegates from 22 countries, in-
cluding the United States, attended the Fourth
International Congress of Onomastic Sciences
held at Uppsala, Sweden from August 18 to 21,
1952. Sweden, which is recognized as a leader in
the advancement of scientific methods in the field
of toponymies (place names), has over a period of
50 years developed standard practices for field
work and a very thorough and detailed system of
recording place-name information which were of
great interest to the Congress.
Under the auspices of the Government of
Sweden, delegates participated in a 100-mile field
trip through the Province of Uppland, one of the
areas in which Swedish experts have done field
work in place names, and in a tour of the Royal
Swedish Toponymic Commission, which has its
archives on the campus of the University of
Uppsala.
The U.S. Government was represented at the
Congress by Allen Belden, Chief of the Research
Branch, Division of Geography, Department of
the Interior, and John G. Mutziger, Chief of the
Linguistics and History Section, Division of
Geography, Department of the Interior.
The delegation of the United States introduced
a resolution, which was unanimously adopted, to
the effect that the proceedings of this Congress and
the papers and proceedings of future Congi-esses
will use the place names which are recognized as
the locally-preferred and official names. This res-
olution, which is an important step toward the de-
velopment of consistent international practice by
experts in the field, embodies a principle funda-
mental to the work of this and other governments
in the standardization of geographic names for use
in map making.
The purpose of this series of Congresses is to
provide exi^erts on the scientific study of nomen-
clature with an opportunity to discuss the latest
developments in the fields of toponymy (place
names) and anthroponomy (family names), and
to make coojjerative agreements for stimulating
consistent work in these fields. During the 3 days
of the session which were devoted to scientific
papers, delegates to the Fourth Congress consid-
ered tasks and methods of onomastics, cultural
currents, and questions of settlement, European
place names and their Greek and Latin forms, pre-
Indo-European place names in Europe, carto-
graphic representation of types of European place
names, substitution of Christian personal names
for pre-Christian names, and surnames and nick-
names relating to trades.
The Congress of Onomastic Sciences was for-
merly known as the Congress of Toponymy and
Anthroponomy. Its first two sessions were held
at Paris in 1936 and 19-17. The United States was
officially represented at the Third Congress, held
at Brussels in 1949. The Fifth Congress will be
held in 1955 on the campus of the University of
Salamanca, Spain, at the invitation of the rector
of the University of Salamanca.
THE DEPARTMENT
Appointment of Officers
Stanloy D. Metzger as Assistant Legal Adviser for Eco-
nomic Affairs, effective August 3.
378
Department of State Bulletin
THE FOREIGN SERVICE
Legations Raised to Embassy Ranit
The Government of the United States on August 27
announced the elevation of its Legations at Lebanon,
Syria, and the Hasiiemite Kingdom of Jordan to the sta-
tus of Embassies.
Appointment of Officers
The White House on August 25 announced the appoint-
ment of U.S. Ambas.sador to Czochosloval£ia Ellis O.
Briggs as Ambassador to the Republic of Korea.
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Agreement between the United States and Haiti —
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entered into force Aug. 19, 1949.
Health and Sanitation, Cooperative Program in Paraguay,
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Protocol between the United States and Other Gov-
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Supplement to 1951 Biographic Register of the Depart-
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Service Series 26. Pub. 4545. xii, 139 pp. 55(f.
This issue is a supplement to the complete Register
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Signed at San Francisco September 1, 1951 ; entered
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Checi< List of Department of State
Press Releases: Aug. 25-30, 1952
Releases may be obtained from the Office of the
Special Assistant for Press Relation.s, Department
of State, Washington, 25, D. C.
Subject
Belgian Custodial Agreement
Greenup to Oas (rewrite)
Bohan : Joint Commission (rewrite)
Anderson : Prisoners of war
Ecuador : President's inauguration
Denial of Dept. influence at Ahepa
Briggs: Amb. to Korea (rewrite)
E.xchange of persons
Anderson : Statement on appointment
German property claims
Foreign Service retirements
Broadcasting study group ( Itu )
E.xchange of persons
Syria and Jordan to embassy rank
Anderson: Repatriation plea
Compton : Crusade of ideas
Point 4 tour of Latin America
Congress of Onomastic Sciences
Iverson to Ford Foundation
German property agreement
East German bank deposits
Text of German property agreement
Famine expert to Fao
Venezuela trade agreement
U.S., British message to Iran
tHeld for a later issue of the Bulletin.
*Not printed.
No.
Date
658
8/25
659
8/25
660
8/25
t661
8/25
*662
8/25
663
8/25
664
8/25
*665
8/25
t666
8/25
667
8/26
*66S
8/26
t669
8/27
*670
8/27
671
8/27
t672
8/27
673
8/28
674
8/28
675
8/28
*676
8/28
*677
8/28
678
8/28
679
8/29
680
8/29
t681
8/29
682
8/30
September 8, 7952
379
Sept. 8, 1952
Ind
ex
Vol. XXVII, No. 689
Agriculture
Famine expert appointed to Fao 378
Aid to Foreign Countries
Human needs are world needs (Kernohan) . . 369
American Principles
Present day relationship between military power
and civil authority (Marshall) 348
American Republics
International Monetary Fund and bank activi-
ties, loans to Colombia and Iceland . . . 366
Survey of Point Pour Program in Latin Amer-
ica 366
Asia
Middle East legations raised to embassy rank . 379
Claims and Property
Claims involving U.S. interests seized as German
enemy property 365
Preoccupation bank deposits in Soviet Zone
of Germany 364
U.S., U.K., France, and Switzerland sign German
property agreement 363
Europe
Draper report on major Eluropean economic,
political, and military developments (White
House announcement, text) 353
GERMANY: U.S., U.K., France, and Switzerland
sign German property agreement .... 363
Finance
Draper report on major European economic,
political, and military developments (Wliite
House announcement, text) 353
International Monetary Fund and bank activi-
ties, loans to Colombia and Iceland, Jordan
becomes member. August transactions . . 366
Preoccupation bank deposits In Soviet Zone of
Germany 364
Foreign Service
APPOINTMENTS: Briggs to Korea 379
MISSIONS: Legations raised to embassy rank . 379
Iceland
International Monetary Fund and bank activi-
ties; loan to Iceland 366
International Information
Crusade of ideas (Compton) 343
International Meetings
Congress of Onomastic Sciences 378
U.S. members, conciliators' panel, Brussels Inter-
custodial Agreement 365
Mutual Aid and Defense
The interdependence of foreign and domestic
policy 361
North Atlantic Treaty Organization (NATO)
Draper report on major European economic,
political, and military developments (White
House announcement, text) 353
Near East
IRAN: U.S., U.K. submit joint proposals (Tru-
man-Churchill message to Mossadegh) . . 360
JORDAN: Becomes member of International
Monetary Fund 366
Presidential Documents
CORRESPONDENCE: U.S., U.K. submit Joint
proposals to Iran (Truman-Churchlll mes-
sage to Mossadegh) 360
Protection of U.S. Nationals and Property
Claims involving U.S. interests seized as German
enemy property 355
U.S. members, conciliators' panel, Brussels Inter-
custodial Agreement 365
Publications
Recent releases 379
State, Department of
Appointments 368,378
Press assertions relating to Ahepa 362
Technical Cooperation and Development
POINT FOUR: Survey of program in Latin
America 366
Treaty Information
U.S.. U.K., France, and Switzerland sign
German property agreement 363
United Nations
Commentary on the U.N. children's emergency
fund 376
Famine expert appointed to Fao 378
Human needs are world needs (Kernohan) . . 369
Name Index
Andrews, Stanley 366
Belden, Allan 373
Black, Eugene 357
Bohan, Merwin 368
Churchill, Prime Minister 36O
Compton, Wilson 343
Draper, William H., Jr 353
Farrington, Carl C 373
Greenup, Julian C 368
Harrlman, W. Averell 36I
Kernohan, Frances K 369
Kotschnig, Walter M 375
Marshall, Charles B 343
Mason, Malcolm S 365
Metzger, Stanley D 378
Mosadegh, Prime Minister 330
Mutziger, John G 373
Restrepo-Jaramillo, Cipriano 357
Roberts, Owen J 355
Thors, Thor 353
Truman, President 350
11 S. GOVERNMENT PRINTING OFFICE. 1957
iJrie/ ^eha^tTitent/ ,(w ^aie^
Vol. XXVII, No. 690
September 15, 1952
^BNT o^
U.S., U.K., AND FRANCE PROPOSE CONFERENCE
ON AUSTRIAN TREATY:
Text of U.S. Note of September 5 404
Additional Articles for Austrian Treaty 405
U.S. REAFFIRMS SUPPORT OF U.N. COLLECTIVE
SECURITY SYSTEM # Statement by Ambassador
Warren R. Austin 411
CREATION OF ECONOMIC STRENGTH IN THE
FREE WORLD • fay Harold F. Under 383
THE WORLD ECONOMIC SITUATION:
Address by Eugene R. Rlack 385
International Monetary Fund's Annual Report, 1952 . 390
For index see back cover
M.
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September 15, 1952
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Creation of Economic Strength in the Free World
Remarks hy Harold F. Linder
Deputy Assistant Secretary for Econojnic Affairs^
Commentator: Statements are constantly be-
ng made tluit any increase in U.S. tariffs would
im-t our allies in their fight against communism,
rake the recent refusal of the President to accept
;he recommendation of the Tariff Commission to
increase the duty on Swiss watches.^ Shouldn't
my action on tariffs be based on U.S. self-interest
rather than on what effect it would have on some
foreign country?
Mr. Linder : I believe that the American people
are pretty much agreed that isolationism, whether
in a military sense or in an economic one, is not
a policy that will serve the best interests of the
United States. Both the Democratic and Repub-
lican Parties are pretty much in agreement that
creating strength in the free world is in the self-
interest of the United States. The United States
has been the leader in efforts to develop the eco-
nomic strength of the free world. We helped,
through the Marshall Plan, to rebuild the war-
damaged economies of Western Europe. We are
supplying arms under the Mutual Security Pro-
gram. Through Point Four we are seeking to
assure the basic economic stability of underde-
veloped countries. We are also helping the free
world to expand its production of strategic ma-
terials, and we are attempting to eliminate bar-
riers to trade, which is an important element in
the effort to create economic strength in the free
world.
The Communists are well aware that actions
taken which affect trade also affect our general
foreign relations. You have a good example of
that in Switzerland, where for weeks prior to the
President's action on watches the Communists
sought to make political capital by warning that
the United States would undoubtedly raise the
tariff on watches and thus smash the Swiss econ-
omy and force it to its knees. When the Pres-
ident acted, a small, frustrated, and rather plain-
' Made over NBC's "Pro and Con" Program on Sept. 5
and released to the press (No. 700) on the same date.
^ Bulletin of Aug. 25, 1952, p. 305.
Sepfemfaer 75, 7952
tive Communist Party was the only segment of
the Swiss populace that was unhappy. They were
left way out on a limb, and American relations
with Switzerland improved tremendously.
Commentator: I, of course, realize that the
common clefense of the free world is important to
us, but does that mean we have to sacrifice our
economic interests?
Mr. Linder : Decidedly not. We must realize
that trade is a two-way street, that we stand to
gain from imports as well as from exports. Back
before the turn of the century, President McKinley
repeatedly stated that the United States cannot
continue to sell its products abroad unless it is
willing to buy from abroad. Too few Americans
believed this economic fact of life then, and too few
understand it today. This has been partially
responsible for the fact that every year since 1919
the United States has been giving away a good
part of its national wealth and refusing to accept
payment in foreign goods in return. The excess
of "United States exports over imports during the
period since 1919 has reached the staggering total
of 80 billion dollars. Take Switzerland, for an ex-
ample. An increase in tariff on watches would
have struck at Switzerland's most important ex-
port to us. It would have meant that Switzerland
would earn less dollars with which to buy goods
from the United States. As it is, during 1951 the
Swiss bought from the United States more than
216 million dollars' worth of our products, includ-
ing such important commodities as wheat, cotton,
tobacco, automobiles, machinery, office appliances,
and pharmaceuticals. We bought from Switzer-
land in 1951 only 131 million dollars' worth of
goods. United States exports to Switzerland are
therefore almost double our imports from Swit-
zerland. It doesn't seem to me that we are sacrific-
ing our economic interests because we let the Swiss
earn their dollars to buy products from the United
States. If, by reducing tariffs and other barriers
to trade, we helped other nations to earn the dollars
they need to buy our goods, it would be in the best
interests of the United States.
383
Commentator : You say that reductions in the
U.S. tariff are in the self-interest of the United
States. Will you explain that further?
Mr. Linder: I would be frlad to go into a little
more detail. Unless we want to give away dollars
with which foreign countries can buy our goods,
we are only going to be able to sell abroad that
amount of goods which equals in value that which
we buy from foreign countries. If we decide to
cut down the dollars we want to give away but we
are not willing to increase our imports, it's going
to mean a cut in the amount of goods that we sell
to foreign countries. That, in turn, is going to
affect the more than 3 million U.S. workers who
are eni])loyed in export industries. It's going to
hurt cities like Minneapolis, just to take one ex-
ample, which earns more than a half-million dol-
lars in wages each week from its foreign trade.
It's going to liurt the American farmer. P'oreign
markets provided an outlet for over 4 billion dol-
lars' worth of our farm products in 1951. This
was equal to the combined farm income of New
York, North Carolina, Indiana, and Kansas.
Last year we sold abroad more than one-third of
our production of cotton, wheat, flue-cured to-
bacco, rice, dried whole milk, dried peas, and
grain sorghum.
Furthermore, as we decrease duties and thus let
foreign countries earn their own way, we cut down
the amount of foreign aid required. It will also
mean that friendly foreign countries will be able
to sell their products in the United States and will
be able to buy more from the United States. It
will thus be possible for them to avoid trading
their strategic materials with the Soviet bloc.
Commentator: Many of our commentators, re-
porting from abroad, state that our allies want to
stand on their own feet. They want to substitute
trade for aid. What does our trade policy have
to do with foreign countries earning their own
way?
Mr. Linder: As I mentioned previously, the
world has been buying more American goods than
it can pay for, and it would like to buy even more,
but it can't. This has resulted in a huge gap be-
tween America's imports and her exports — a gap
which the United States has covered since the war
with gifts and loans and Marshall Plan aid. But
when we impose barriers, either in the form of
high tariffs or restrictions on imports or embar-
goes, it means that foreign countries are not able
to earn the dollars they need.
Our policy of giving aid and at the same time
maintaining barriers against trade is certainly in-
consistent. It is inconsistent with our efforts to
build an economically strong free world; and it
is also in conflict with the very basic principle
that has made the U.S. economy strong, the con-
cept that competition is what spurs progress in the
United States. We can't very well tell foreign
countries that they ought to get rid of their car-
tels and other restrictions and create more
384
competition and at the same time refuse to let
them compete with us in the United States. Com-
petition, whether it has been from other firms
in the United States or from abroad, will continue
to keep American business on its toes and keep
the American economy expanding and progressive.
Commentator: In the President's letter turn-
ing down the Tariff Commission's recommenda-
tion on watches, he said that consumption of
watches has quadrupled in the last 16 years that
tariff reductions have been in effect. Did imports
have anything to do with this increase?
Mr. Linder: I would say that they certainly
did. Most of us can remember the days when it
was unusual for an American to have a watch
of his own. When tariffs were lowered in the
thirties and imported Swiss watches were sold
at a lower price than had prevailed previously
in the United States, a tremendous market was
opened up in which the domestic manufacturers
shared. The Swiss development of self-winding
watches, shock-proof and water-proof watches, as
well as calendar watches, opened up further new
markets for watches, and now U.S. manufacturers
are also producing timepieces of these types.
I might also cite the case of imported wines
and imported cheeses. They helped create an
American taste for wines and cheeses, which made
it possible for domestic industries to expand.
Commentator: Ambassador Draper, the U.S.
Special Representative in Europe, last week re-
ported to the President that the United States
should substantially increase its imports from
Europe and from other parts of the free world
if America expects to keep its present volume of
exports and at the same time get paid for it.^ He
said : "If this simple truth were clearly under-
stood and accepted by our own people, regardless
of party, the next administration and the new
Congress would doubtless find ways and means
to gradually accomplish the desired result."
What steps would you suggest, Mr. Linder, to get
foreign countries off the back of the U.S. taxpayer ?
Mr. Linder: In the short time that we have
available, I can mention only a few. Some of
these are a reduction in trade barriers among the
free nations of the world; simplification of U.S.
customs procedures; elimination of legislation
which makes it difficult for the U.S. Government
to buy products from our allies, even when their
price is lower than our own; and the elimination
of U.S. restrictions on imports, such as the one on
cheese and the embargoes on certain other
products.
Paul Hoffman once estimated that if, out
of every dollar we Americans spend, only 2
cents more of it were spent on buying goods
or services from abroad, then the budgets of the
world would balance, the currencies harden, and
the world's most serious economic troubles end.
' Bulletin of Sept. 8, 1952, p. 353.
Departmenf of State Bulletin
[f another 2 percent of our national income were
spent on foreign imports, it would probably end
ill need for further gifts— goods, money, or mili-
tary equipment— to our allies, for they could then
buy those things from us out of their own earnings
from what we had bought from them.
Commentator: U.S. trade policy, it is very
obvious, can make a terrific impact on our domes-
tic economy, as well as on our foreign relations.
What are business, labor, and civic leaders doing
to o-et this policv better understood '^
Mr LiNDER : Recent pressure to restrict imports
has been causing business, labor, and civic leaders,
as well as the Government, considerable concern.
I am sure that they recognize that the problem
is one that has to be decided by the citizens of
the United States. It's up to them to decide what
U S policy should be. Business, labor, and civic
leaders are farsighted and are aware of the rami-
fications that U.S. trade policy has on Mam Street,
USA, and how it affects each and every taxpayer
I believe if the problem were better understood
by the people of the United States that there
would be even greater support for a policy tor
reducing barriers to trade and thus helpin|T our
allies to stand on their own feet. It would, ot
course, be helpful if greater public attention and
discussion were focused on this problem, especially
in the months ahead, since early in 1953, after the
election and the installation of a new President
and Congress, the U.S. Government and the citi-
zens of the country will have to face up to this
problem in concrete terms. In June of 1953 the
present reciprocal trade-agreements authority ex-
pires The country must then decide whether to
turn the clock back toward the high-tariff days
of the Smoot-Hawley Act or push ahead with
the elimination of barriers to trade and thus in-
crease the economic strength of the free world.
The World Economic Situation
ADDRESS BY EUGENE R. BLACK '
Let me begin by expressing my gratitude for
the gracious hospitality being shown to us by the
Government of Mexico. It was, I think, a happy
decision of the Governors that we should meet in
this capital city. It gives us a chance to see with
our own eyes something of a nation in which the
process of economic development is fully under
^"since before the war, the income of the Mexican
citizen has, on the average, increased by more tiian
half This improvement has been brought about
by the growth of production in almost every part
of Mexico's economy. It was achieved without
conspicuously plentiful resources and often under
difficult circumstances. It has been based, to
mention only a few of many factors, on the ener-
gies of the Mexican people, the adaptability and
initiative of the citizenry, on sound investment
of public funds in the expansion of basic utilities
and social services, and on the sustained confidence
" Made on September 5 before a meeting of the Board
of Governors of the International Bank for Reconstruction
and Development at Mexico City, and released to the press
on the same date. Mr. Black, President of the Interna-
tional Bank, on this occasion, presented the isank s
seventh annual report to the Board of Governors, bee
p. 392.
September 15, 7952
of the country in a succession of competent na-
tional administrations. j ,j •
The relations between the Bank and Mexico
have been particularly close and continuous. 1 he
fact that we are meeting here is evidence not only
of Mexican hospitality but also, I hope, of mutual
satisfaction. Mexico, as a member of our Bank,
can welcome us ; and we, for our part, feel at home
This has been an active 12 months for the Bank.
We sli<Thtly exceeded the record volume of lending
we established last year. We provided more tech-
nical assistance to our members, especially in the
planning of development. We were more active
in raising funds in the capital markets of the
world. . 1 T
For the second consecutive year, our lending
approached 300 million dollars. That sum is
composed of 30 million dollars of new loans in
Asia, 68 million dollars in Africa, 79 million dol-
lars in Latin America, and more than 120 million
dollars in Europe. Our second loan to Australia
did not come until after the end of the fiscal year,
but in each of these other areas we lent more than
in the year preceding; and in Europe we lent
substantially more.
Disbursements rose to 185 million dollars, the
highest level since fiscal 1948. More than a third
of^this was used for purchases outside the United
States.
385
The Bank has continued to adapt its lendin<T
policies and procedures to the differing problems
presented by its borrowers.
Bank's Frexible Lending Techniques
We usually lend for specific and individual
projects. In the great majority of cases, this is
the most practical and effective form of collabora-
tion between us and the borrower. But even when
we make loans for single projects, we often are
financing some key component of a larger under-
taking. Some of the Governors were glad to ob-
serve last year that in the case of Australia we
were giving support to an entire program of de-
"''elopment. We have made additional loans of
this broader type since we convened in Washing-
ton 12 montlis ago— to the Belgian Congo, to Italy,
to Yugoslavia, and, for a second time, to Australia.
These cases differ considerably in detail, but they
all reflect the principle that the Bank is as much
interested in the progress a country can make on
a broad front as in the success of a particular
project. Program loans may continue to be the
exception rather than the rule ; but they definitely
have taken their place among the instru"meiits used
by the Bank to promote economic development.
In other ways, the Bank has kept its lendino-
techniques flexible. Our loan of last October in
support of the 10-year plan for the development
of southern Italy, for instance, is for us a new
kind of transaction. It is not intended to finance
the equipment needed for carrying out this pro-
gram. Rather, it will cushion "the impact of the
program on the Italian economy, by providino-
dollars to meet some of the demand for imported
goods that the 10-year plan will generate.
Our loan to Belgium, likewise, micht be called
an "impact" loan— designed in this case to offset
the dollar cost that will arise from Belgian sup-
port of a development program in the Congo.
The Bank is keenly aware of the necessity for
keeping its lending flexible in another important
respect. Up to now, the Bank has lent chiefly in
dollars. To the extent that we can lend in other
currencies, we can better meet the needs of coun-
tries more able to service debt in those currencies
than in dollars. During the year, we made one
loan to Iceland and another to Yugoslavia which
are repayable entirely in European currencies
Almost half our railway loan to Pakistan consists
of French francs, and part of our loan to Southern
Kliodesia will be disbursed in South African
pounds. Nearly 15 percent of the amount we lent
tins past year is repayable in currencies other than
dollars— a proportion much higher than in any
previous year.
_ With our lending at the current rate, we have
increased our own borrowings. We went to the
capital markets four times, with two bond i.ssues
in the United States and our first public offerings
386
m Canada and Switzerland. The total amount of
our issues was equivalent to approximately 175
million dollars, a sum greater than in any year
since 1947. The Bank has also replenished its
Jendable funds by 23 million dollars of sales from
Its portfolio; more than 10 million dollars of these
sales, let me point out, were made without our
guaranty.
I am glad to say that our bonds enjoy a stronw
position m Switzerland, the United Kino-donr
and Canada, as well as in the United States. As
the amount of our dollar obligations has increased
there has been a satisfactory broadening of the
market for our securities in the United States.
I he Bank has been affected, however, by a o-eneral
trend, all over the world, toward higher interest
rates. We have had to pay more on our own
borrowings, and there has had to be a correspond-
ing rise of interest rates on our loans.
Character of Bank's and Borrowers' Securities
I would like to emphasize that the market for
the Bank's own securities and for those received
from borrowers is becoming more and more inter-
national in character. Of the more than 500 mil-
lion dollars' worth of direct and guaranteed
obligations we have outstanding, investors outside
tlie United States hold approximately one-quarter
The central banking institutions of 12 of our mem-
ber nations, in particular, have acquired for their
reserves some of the largest known holdings of
the Bank's bonds.
Finally, the Bank's lendable resources, as I have
already implied, were increased by the release to
us of parts of the local currency subscriptions
of several member countries. The French Gov-
ernment, for instance, released tlie francs which
will be used in the Pakistan loan, and the South
Atrican Government has made available to us
pound.s which will be used in the loan for South-
ern Khodesia. Of particular note, let me say,
was Canada s release, in the spring of this year^
of 41 million Canadian dollars on a fully con-
vertible basis. This constituted the balance of
her original paid-in subscription of 58.5 million
Canadian dollars to the Bank's capital.
If we survey all the funds which the Bank has
had available for lending since the start of its
operations, the international character of our fi-
nancial resources emerges with particular clarity.
Up to the end of the fiscal year our lendable re-
sources amounted to the equivalent of nearly a
billion and a half dollars. Of this, 375 million
in dollars and other currencies — or about one-
quarter m all— was received from, or borrowed
in, our member countries outside the United
States. I am hopeful, in spite of all the known
difliculties, that the Bank will continue to receive
releases of the currencies of its European mem-
bers. The need for non-dollar funds is as urgent
as ever.
Deparfment of State Bulletin
Private Participation in Bank's Lending
One of the main objectives of the Bank, I hardly
need remind you, is to promote tlie international
investment of private capital in economic devel-
opment. Tlie Bank's bonds themselves are one
of the principal avenues by wliich such invest-
ment is made, and most of our sales from portfolio
have been made to private investors. In addition,
however, the Bank has continued to be able to in-
terest the private market in more direct partici-
pation in its lending. American banks this year
took portions of two of our loans — one to the KLM
Eoyal Dutch Airlines, the other to Pakistan — at
the time they were made. I see signs that private
participation in our lending will become an in-
creasingly important feature of our operations.
One condition, of course, for the international
investment of private capital is that there be a
reasonable prospect of repayment. In some cases,
this prospect is clouded by the existence of obliga-
tions already in default; and in some instances
the Bank has been able to encourage its member
governments to start negotiating settlements on
these obligations as an essential means of encour-
aging the resumption of foreign investment.
We have also, as you will have noticed in our
annual report, made an intensive study of a pro-
posal to establish an International Finance Cor-
poration as a new instrument for investment in
private enterprise. This Corporation would be
affiliated with the Bank but would have its own
capital subscribed by member governments. It
would be able to do two things the Bank does not
do : It could make loans to private enterprises
without governmental guarantees, and it could
provide equity capital. We have prepared a re-
port on this proposal and .shall continue to explore
the idea with private financial and business inter-
ests and with our member governments. The pro-
posal needs to be given further consideration, and
the Corjioration admittedly would be an experi-
ment. But I personally think that it might prove
to be a useful instrument for stimulating invest-
ment of private capital, both domestic and foreign,
in enter])rises significant in economic development.
The Bank, of course, does not regard itself
merely as a source of financing. I have often said
to you in these meetings that internal factors are
more important in a country's economic growth
than financing fi'om abroad. We have therefore
continued, at the request of member countries, to
send our general survey missions, composed of irn-
partial experts, to help those countries assess their
potentialities and to draw up broad programs
which will best channel their own energies and
resources into development.
The reports of four of these general survey
missions were presented during the year to the
Governments of Cuba, Guatemala, and Iraq and,
for Surinam, jointly to the Governments of the
Netherlands and Surinam. The repoi't of our
mission to Ceylon was published earlier this week
in Colombo and Washington. In a few days, we
will be presenting to the Government of Nica-
ragua the report of two of our staff members who
spent nearly a year in that country, working with
the Government in drafting a development pro-
gram and starting to put it into effect. The
recommendations of our recent mission to Jamaica
are now being prepared in final form.
Economic surveys, I hardly need to tell you, are
nothing new. Many good ones have been done,
and some of them lie moldering in the archives
of our member nations. It is still too early to say
what the fate of our own surveys may be; but I
am glad to say that the results, so far, have been
encouraging. I believe that the Governor for
Colombia would agree with me that the report of
our mission to his country, and the recommenda-
tions by a citizens' committee on economic de-
velopment whicli followed it, have already had an
important influence on the economic life of Colom-
bia. In the case of other countries more recently
visited by our missions, our annual report gives
many instances of action already under way to
carry out fundamental recommendations and pro-
vide a basis for accelerated economic progress in
years to come.
The Bank has continued to take a broad view
of its responsibilities and opportunities in other
respects. Indeed, we could hardly do otherwise
and remain faithful to the character of our Bank
as a cooperative, international institution.
Early this year, after expressions of interest by
Iran and the United Kingdom, representatives of
the Bank visited London and Tehran. The pur-
pose of our mission was to see whether the Bank
could work out some interim arrangement for re-
storing oil operations in Iran and give the parties
to the dispute time to reach agreement. Our
efforts, as you know, were not successful, and our
negotiations were recessed in Tehran last March.
The Bank has also offered its services in another
matter affecting two of its member countries.
When I was in Asia late last winter, I discussed
witli the Prime Ministers of India and Pakistan
an invitation I had already extended for the two
Governments to examine, together with the Bank,
the possibilities of developing the water resources
of the Indus River System, which are so im-
portant to the economic development of both these
countries. The Governments accepted this invi-
tation. Tlieir engineers met with ours in Wash-
ington this spring and successfully completed a
series of meetings which drew up a program for
studies of possible technical measures to increase
the supplies of water in the Indus Basin. Their
engineers and ours will convene again next No-
vember in Karachi for an exchange of information
as a prelude to further meetings. I personally am
encouraged. I hope that tlie eventual outcome
will be the development of these water resources,
with the help of the Bank, in a way which will
bring great benefit to millions of 2:)eople in both
India and Pakistan.
September 15, 1952
387
Future Increase in Bank's Operations
As we review the Bank's performance in the
past year, I think we can take satisfaction from
the fact that our operations have been disturbed
remarkably little by the economic changes which
have taken place since the outbreak of war in
Korea. Looking forward, it seems to me that,
if the Bank and its members fully grasp the op-
portunities they have, the coming year will see a
significant increase in the Bank's operations.
In Europe, there continues to be an urgent need
for greatly expanded production. This will re-
quire heavy investment in new plants and equip-
ment as well as in modernization of old. It will
have to be achieved without provoking inflation
and will have to take place at the same time as
United States aid is being reduced in scope and
amount.
The Bank, for its part, can supplement Europe's
own capital with dollar loans. I have already
remarked that the scale of the Bank's lending in
Europe was substantially increased during this
past year. Our ability to lend in dollars, how-
ever, is limited by the fact that the capacity of
many European countries to service additional
dollar debt is itself limited.
From now on, it is clear, the countries of
Europe will have to rely more on their own savings
and will have to mobilize their own capital more
effectively. This is a subject which is being
actively studied on the Continent. The Bank has
followed this study closely and with sympathetic
interest.
Some of the proposals which recently have been
made envisage the creation of a new financing in-
stitution. If new arrangements come into exist-
ence, the Bank would, of course, cooperate with
them. But let me point out that new institutions
themselves do not create savings. Fundamentally
we must work with what we have. I myself be-
lieve very strongly that the Bank itself could
operate effectively as an instrument for mobilizing
European capital, and I doubt that sufficient con^
sideration has yet been given to the role we might
play in this respect.
The Bank already has had some experience in
tapping private resources by the sale of its securi-
ties in European markets. With the cooperation
of its members, it could be more active in raising
additional private capital. That might well re*^
quire the working out of new types of bonds and
of distribution techniques that have not yet been
tried. I think this is a field well deserving fur-
ther study, and I am anxious to explore, with the
Governors most closely concerned, any adaptation
of our operations that would better fit them to the
particular investment needs of Europe and to the
special conditions now prevailing in Europe's capi-
tal markets.
Tlie continuing movement toward economic in-
388
tegi-ation in Western Europe may i-aise new
opportunities for the Bank. The Schuman Plan,
for instance, which aims at the integration of the
continental coal and steel industries, has now be-
gun to operate. The capital requirements of the
Plan certainly will be large, and the necessary
equipment probably can be procured for the most
part m European currencies. Should the Bank be
asked to provide some of the funds, questions
would arise with which we have not previously
been confronted; for example, concerning the
form of guaranty needed for a loan to an inter-
national body. In any case, the Schuman Plan
potentially has great importance. It is one of the
projects that the Bank, should it be called on,
would be glad to search for feasible ways to
assist.
Outstanding Economic Events of tiie Past 2 Years
For those of our member countries which are
leading producers of primary commodities, the
swift rise of raw-materials prices that followed
the outbreak of the war in Korea, and now the
recession of those prices to pre-Korean levels,
have been the outstanding economic events of the
past 2 years.
Not all primary products shared in the boom,
find not all our less developed members shared
in the higher earnings of foreign exchange that
resulted. Nevertheless, a number of our mem-
ber countries in Asia and Latin America made
good use of extra earnings by devoting a sizable
portion of them to financing economic develop-
ment. To do so required firm and expert handling
of the inflationary pressures exerted by high
prices in world markets; among several note-
worthy performances of this kind, I might spe-
cifically mention those of India and Colombia.
At the other extreme, I regret to say, some mem-
bers of the Bank not only failed to take advan-
tage of the windfall from high raw-materials
prices but allowed inflation to distort their econ-
omies to such an extent that they are not so well
off today as they were 2 years ago.
In any event, the boom is now over and our less
developed member countries are left to deal with
the same hard problems that confronted them be-
fore. There are, however, many factors in the
situation which I find encouraging. In the post-
war years, and particularly in the last two, I think
much progress has been made, both in a growing
understanding of economic development and in
the adoption of techniques to bring that develop-
ment about.
The governments of underdeveloped countries
are realizing more and more that economic prog-
ress is the primary responsibility of the countries
themselves. Kesponsible leadership, to an increas-
ing extent, is buckling down to the job and is at-
Deparfment of State Bulletin
tempting to achieve progress through sound
planning, financing, and engineering.
Many of the world's less developed countries
are attempting to shape their economic policies—
and especially their investment policies— to make
better use of their own physical and financial re-
sources. Intensive stock taking of these assets has
been undertaken by an increasing number of gov-
ernments as a first step in gaging more accurately
the potentialities of their economies and deter-
mining the directions in which development
should move. Programs and programing agencies
have been established to assure continuity of ef-
fort. Finally, the financial resources, and the
increasing skill of the underdeveloped countries
in planning the use of those resources, have been
supplemented by a growing volume of financial
and technical assistance from the more advanced
nations. i i i j
The problems which face the underdeveloped
countries are still tremendous and difficult. Often
in the past, I have stressed the shortcomings of
the policies and practices of some of our member
nations in dealing with these problems.
Nevertheless, the scene presented by the under-
developed countries is one of growing activity
and of a growing amount of soundly planned ac-
tivity. The implication for the Bank is that we
have a broader and better basis on which to con-
duct our operations.
Many times, the Bank has warned that massive
injections of foreign capital cannot successsfully
be absorbed in the first stages of a country's de-
velopment. We have pointed out that shortages
of skilled manpower and the lack of basic facili-
ties are limiting factors which will take a long
time to overcome. These statements have some-
times been misconstrued as expressing a timidity
or a lack of real will on our part to promote
development. _ ^i i ij!
The facts show otherwise. To more than halt
our borrowers, we have made repeated loans—
to Mexico, for example, in 1949, 1950, and 1952;
to Colombia in 1949, 1950, and 1951, and to Brazil
in 1949 and every year since then. In countries
of Asia and Africa, as well as in the developing
countries of Europe like Turkey and Finland,
we are doing the same thing.
What We Want From Economic Development
Processes
These continuing relationships are proof that,
far from recoiling from additional commitments,
we are on the contrary supporting the develop-
ment of our member countries year by year and
step by step. We are lending money in amounts
our borrowers can effectively use and can reason-
ably be expected to repay ; we are lending for those
purposes that will do the most to make the borrow-
ing countries more productive and able in the
future to put still more money to work. This is
September 15, 7952
the basic principle of investment. Soundly and
persistently applied, it can help nations to move
forward.
Let us ask ourselves, what do we want, all of
us, from this process of development ? I think we
want a world of freedom, of stable peace, of ex-
panding production and trade— a world of oppor-
tunity in which free men can more and more
govern their own careers.
How do we go about achieving what we want?
Development is most certainly not the concern of
only those countries whose standard of living is
still woefully low. It vitally concerns, too, the
more industrialized nations, because their own best
hope of progress is an expanding world economy.
Financial and technical assistance will continue
to be needed for many years from those countries
which can afford exports of capital and skill.
Granted that the underdeveloped areas do not
yet have the capacity to make productive use of
any huge inflow of resources, we must still admit
that the present magnitude of international in-
vestment for development is clearly inadequate
to the need.
Whatever form it takes, the assistance of the
industrialized countries must be steady and con-
tinuous. It must not be warped by politics. And
it must be accompanied by international economic
and commercial policies consistent with the de-
velopment objective — in particular by the removal
of all unnecessary restrictions on the movement
of goods in world trade and of the money needed
to ])ay for them.
But the main effort— and most of the means-
must come from the less developed countries
themselves. They must want development, and
they must want it badly enough to make some
sacrifices. It is up to them to free the forces of
progress in every way they can — by continuity
of effort, by fiscal and economic policies that will
encourage economic growth, by sound prograrns
of investment, by a multitude of actions which will
increase incentives for labor, for management,
and for capital — both domestic and foreign.
These are some of the conditions of progress.
If they are met— substantially— the underde-
velopeci nations can advance, not with a sensa-
tional rush but with an increasing momentum.
And as the conditions of life improve, so will the
prospects of a stable peace. Improvement in the
living conditions of men brings a sense of personal
fulfillment and self-respect. With resiaect for
themselves as individuals, people are not easily
fooled by the cynical and disruptive propaganda
of demagogues— whatever mantle they may be
wearing.
In development the Bank, I think, has a vital
role to play. Not only can we be a source of some
of the cap'ital that is needed; but we can serve as
a focal point for stimulating and supporting con-
structive action on the part of all those who are
working toward the common goal.
389
INTERNATIONAL MONETARY FUND'S ANNUAL
REPORT, 1952
Following are excerpts from, the -first chapter of
the International Monetary Fund's Annual Re-
port, 1952, which wa.s made public on September 5.
Other chapters of this report, in addition to 12
appendices, are entitled respectively: "-The Use
of the Fund's Resources'"; ''Gold Policy''; ''Ex-
change Restrictions",- "Par Values and Ex-
change Rates"; "Membership, Organization, and
Administration."
At the time of the foundation of the Fund, it
was envisaged that, after the destruction and dis-
location caused by World War II had been re-
paired, a balanced pattern of multilateral world
trade and payments would emerge in which the
general support of restrictive and discriminatory
policies would no longer be needed. Seven years
have now elapsed since the war and more than
5 years since the Fund began operations. Durino-
these years there have been a remarkable growth
m production and one widespread adjustment of
exchange rates. The attainment of a stable inter-
national equilibrium, however, still eludes laro-e
parts of the world, and there has been little secure
or sustained progress toward the Fund objectives
of unimpeded multilateral trade and the general
convertibility of currencies.
During the last 7 years, balance-of-payments
ditticulties have been continuous or recurrent, and
most countries have either been unable to make
substantial progress toward freer international
trade or have had to reverse from time to time
^rU^ ? • '^ ^^^P^ *'''^^'" ""^ *'^^^t direction. The
ditticulties at any given point of time can nearly
always be represented as being, at least in part the
result of some special temporary disturbing fac-
tors Ihese special factors can, indeed, never
safely be neglected. The frequent recurrence of
balance-of-payments difficulties suggests how
ever, tliat an explanation of the difficulties sliould
be sought m terms of the more fundamental and
pervasive influences that to some extent have
aae<?ted almost all countries.
Tlie first critical situation arising out of the
postwar payments disequilibrium occurred in the
summer of 1947 and was associated with tlie short-
lived resumption of sterling convertibility It
was temporarily resolved by the U. S. interim
aid program and the Marshall Plan, which per-
mitted the European countries to proceed with
the restoration of their economies much more rap-
Klly than would otherwise have been possible
Their recovery was in most cases substantial but,
as the most urgent reconstruction and pent-up
consumer and producer demands were satisfied, a
second exchange crisis began to develop. Its first
symptoms were seen in a tendency for some Euro-
pean exporters to find themselves priced out of
dollar markets. The par values agreed in 1946
and 1947 were at first quite compatible with a
390
rapid recovery of exports because unsatisfied de-
mands for exports were so large. As the urgency
of many of these demands declined, however, it
became apparent in many countries that inflation
was adding to the competitive difficulties of ex-
porters. The emergence of a buyers' market was
hastened by a moderate downturn in economic
activity in the United States early in 1949, and
the exports of many countries began to lag. With
a decline of confidence in certain key currencies,
this resulted in the widespread devaluations of
September 1949. A substantial improvement in
the international reserves of many countries fol-
lowed. This was due in part to the reversal of
earlier speculative positions in regard to pay-
ments and orders and to a running down of stocks,
but there was also a significant strengthening of
the underlying balance-of-payments situation. In
many countries restrictions were relaxed and some
progress was made toward convertibility.
Before there had been time for the full effects
of the devaluations of September 1949 to be
worked out, fighting broke out in Korea in June
1950 and initiated a series of new developments
to which balances of payments had to be adjusted.
The immediate, and partly speculative, reactions
to tlie outbreak of hostilities were followed by a
readjustment or correction phase. The increased
demands arising from stockpiling and rearma-
ment raised prices, national income, and world
trade to higher levels. It might have been ex-
pected that the increased demand for raw mate-
rials would, after some adjustments, lead to a new
equilibrium, with the terms of trade and exchange
reserves of the countries concerned somewhat more
favorable than before June 1950. The reserve
positions of many countries were, indeed, strength-
enecl but this trend ceased with the subsequent
decline in commodity prices, which reversed part
of the initial improvement in the terms of trade
of raw-material producers. The old troubles then
reappeared. There were widespread lialance-of-
payments difficulties, reserves declined, and the
earlier movement toward freer trade was to some
extent reversed. While conditions in individual
countries in the first half of 1952 vary widely, the
reappearance of these difficulties provides a strong
indication that the earlier efforts to restore a new
world equilibrium had failed to get to the root of
the matter.
A proper understanding of the fundamental
causes_ responsible for the recurrent external
disequilibria in recent years is not possible with-
out reference to the domestic fiscal and monetary
policies pursued by various governments. These
policies have permitted continuous inflationary
pressures and the connection between domestic
inflation and balance-of-payments difficulties has
become increasingly evident. Since the end of
World War II the pressure of demand for con-
sumption and investment goods and services has,
for a wide variety of reasons, been allowed to pass
Deparfment of State Bulletin
beyond the limits set by the resources available.
The efforts to translate into reality the widespread
desire for economic security and betterment, or,
in some countries, to check the deterioration of
standards realized in the past, have been an
important factor in this situation. More recently,
rearmament programs have made further demands
upon the limited supplies of resources. Sometimes
an inflationary situation has been produced that
was clearly recognizable. Sometimes the effects
of inflationary pressures have been temporarily
concealed by devices such as price controls and
subsidies. Without the aid given since the end
of the war by various countries, and especially by
the United States, inflation would probably have
been more severe and the development and produc-
tion would have been retarded. But even when
temporarily held in check, the inflationary pres-
sures have always been ready to reemerge and to
upset such uneasy monetary equilibrium as may
have been established.
In their efforts to satisfy the competing claims
of divergent social and economic objectives, many
countries have adopted economic and monetary
policies which have meant that they were attempt-
ing to live beyond their means. Any such attempt
is "bound sooner or later to be frustrated but if
this is not clearly understood or, if for social or
political reasons governments feel it impossible to
act in accordance with a correct understanding of
the situation, the necessary adaptations of domes-
tic policies to current changes in the balance of
payments are not quickly or adequately made.
Measures which it is feared will be unpopular are
either not taken at all or taken only after long
delay and then not pushed far enough. In the
meantime, the continuance of inflation makes it
difficult to recognize and respond to any structural
changes that may be taking place. When there
is excessive demand for all resources, the incentives
to undertake the transfers of productive resources
that may be necessary if long-term external equi-
librium is to be established are seriously weakened.
Continuous inflationary pressures and balance-of-
payments problems are bound to make it increas-
ingly difficult to insure the maintenance of supplies
of essential raw materials, and therefore of steady
levels of employment.
U. S. Predominance in World Economy
"Wliile the recurrence of balance-of-payments
difficulties is to be explained mainly in terms of
the inflationary pressures generated by diverse
conflicting claims on limited resources, other fac-
tors also have had a significant influence. The
magnitude and range of U.S. production and pro-
ductivity have placed that country in a position
of predominance in the world economy and of
comparative self-sufficiency. This situation de-
mands difficult adjustments, in both the rest of
the world and in the United States, that are still
Sepf ember 15, 1952
far from complete. Agricultural protection in
Europe and the United States still creates diffi-
culties for some countries, and the other protective
policies maintained in the United States, despite
its great competitive power, also continue to em-
barrass other countries.
The industrialization of some of the raw-ma-
terial producing countries, which was already
under way before World War II and was further
accelerated in response to the wartime disruption
of trade connections, also calls for adjustmentsin
the world economy, and particularly in the in-
dustrialized countries of Europe. Overseas in-
dustrialization means on the one hand diminished
demand for the products of some European indus-
tries, while on the other hand it provides an ex-
panded market for exports of all kinds of capital
equipment. In recent years the industrializing
countries have increasingly turned to dollar
sources of supply to satisfy their demands for
these capital goods. It has thus become difficult
for the older industrialized countries to meet their
dollar-area deficits by export surpluses to raw-
material producing countries with a dollar
surplus.
An aggravating factor in the recurrent balance-
of-payments crises of the postwar years is the
inadequacy of international reserves available to
monetarv authorities outside the United States.
Although the gold and dollar holdings of coun-
tries other than the United States have risen to
some extent since 1938, the increase has not been
in proportion to the expansion of world trade and
their value in real terms has been actually reduced
by inflation. These trends, combined with the
abnormally wide swings in balances of payments,
have often produced situations in which reserves
have appeared to be dangerously low. The at-
tainment of any particular level or ratio of re-
serves is not by itself a guarantee against balance-
of-payments crises; nevertheless, a more adequate
cushion against balance-of-payments disturbances
is clearly desirable so that more time may be avail-
able to make the necessary readjustments.
The significance of inadequate reserves has also
been greatly enhanced by the fact that the dis-
ruption in the 1930's of the private international
short-term capital market has not been repaired.
Instead of private capital movements helping to
minimize the use of official reserves, in a great
number of countries the whole burden of adjust-
ment to balance-of-payments fluctuations has had
to be borne by central banks and governments.
Balance-of-payments adjustments are also made
more difficult by the virtual absence of any effec-
tive private international long-term capital
market.
Postwar economic developments have further
been affected by the international political cle-
velopments which have proved much less satis-
factory than was envisaged at the end of the war.
The decline in East-West European trade is partly
391
responsible for the deterioration in the terms of
trade of Western Europe, wliich has been cut off
from the raw material and foodstuffs supplies of
Eastern Europe. Similar dilliculties have arisen
in the Far East. Political tensions have led to
a general feeling of insecurity which, combined
with the growing sensitiveness to risks of eco-
nomic insecurity, has induced disturbing short-
term capital movements that greatly complicate
the tasks of monetary policy. In the last few
years, the conflict in Korea and increased political
tension generally have necessitated rearmament
which tends further to disrupt international
prices, intensify inflationary pressures, and im-
pose on countries increased burdens of adjust-
ment.
Finally, the recurrence of balance-of -payments
difficulties must also be attributed, in part, to a
certain lack of effective cooperation between var-
ious countries. In the last analysis, the success of
any international endeavoi must depend on the
degree of cooperation and coordination among
countries. Progress toward a balanced pattern
of international exchange would be more rapid if
countries were to cooperate more effectively, for
example, to insure careful consideration of the
interests of other countries if restrictive measures
have to be taken and in the stockpiling of scarce
materials.
In the situation that has been described above,
the steps taken by the Fund to facilitate the utili-
zation of its resources by members, as described
in Chapter II, have particular significance as ful-
filling in part the need of members for a second
line of reserves. The solution of members' prob-
lems requires, however, more than a strengthen-
ing of their reserves. For each country it will
have to be found in the acceptance of appropriate
domestic monetary and fiscal policies that are in
accord with that country's balance-of-payments
position. The Fund has an important role in help-
ing Its meinbers to adopt such policies. Moreover,
by watching developments and by providing a
forum for an exchange of views between its mem-
bers, the Fund can seek to increase the degree of
coordination among them. There are some forces,
such as the growing international tension, over
which the Fund can have little, if any, influence.
The adoption of effective balance-of-payments
policies is still often impeded by domestic politi-
cal forces. The difficulties that have been respon-
sible for the recurrent exchange crises are not,
however, irremediable. Indeed, within the past
year, there has been increasing recognition of the
fundamental weaknesses underlying external im-
balance and a growing determination to come to
grips with them.
While the Fund's main task is international —
to seek a system of multilateral trade and pay-
ments—the purposes for which it was formed can
be reached only if effective domestic measures are
taken by its members. Whatever its cause, do-
mestic inflation has been at the root of many recent
392
international difficulties, and as long as it con-
tinues, a satisfactory and stable system of inter-
national trade and payments will be impossible.
Inflation has had much to do with one serious
danger to international trade— -the maintenance
under conditions of peace of the division of the
world into separate currency areas that followed
the war. Such a division cannot last without the
support of a network of administrative controls
applied both to the external trade of countries and
to their internal economies. The economic rela-
tions of countries are too pervasive to be confined
for long within a complicated network of this kind,
unless the controls are extended to many of their
major activities. The choice before us is to end
inflation or to move further toward a kind of world
which is the antithesis of the world the Fund was
formed to serve. In such a world, even the present
weakened structure of international trade and pay-
ments is more likely to deteriorate than to improve.
Initial Reactions to the Korean Outbrealt
U.S. imports, which even before the outbreak
of the fighting in Korea were rising, showed a fur-
ther prompt and vigorous increase after the con-
flict began ; this increase dominated the first phase
of the reactions to the Korean outbreak through
the first quarter of 1951. The value of U.S. im-
ports in the third quarter of 1950 exceeded that of
the second quarter by 470 million dollars, or about
25 percent, and there were further increases of 260
million dollars in the fourth quarter of 1950 and
380 million dollars in the first quarter of 1951.
During the first few months after the beginning
of hostilities, foodstuffs (e. g., sugar) accounted
for a more than proportionate share in this ex-
pansion of U.S. imports, but emphasis soon shifted
to industrial raw materials. Eemembering the
wartime shortages and fearing a rise in prices, con-
sumers, producers, and the U.S. Government
sharply increased their demands. In the third
quarter of 1950, the principal effect of these in-
creases was to raise the volume of imports; subse-
quently, their principal effect was to raise import
prices. In both the fourth quarter of 1950, when
the value of U.S. imports rose by 11 percent, and
the first quarter of 1951, when their value rose by
14 percent, the increase in import volume was only
around 3 percent.
In the industrial countries of Western Europe,
the movements of retail sales indicated a similar
upward surge in demand in the third quarter of
1950. The value of their imports, however, did
not increase until the fourth quarter (Germany
and Switzerland were notable exceptions), and
continued to rise through the second quarter of
1951. The expansion of European imports in
general lagged behind that in the United States
by one quarter. As a consequence, in contrast to
the United States, Germany, and Switzerland,
which had been able to obtain some of their addi-
tional imports at prices closer to the level of June
Department of State Bulletin
1950, most countries of Western Europe increased
their purchases substantially only after prices had
advanced. An important impediment to the ex-
pansion of European imports was probably the
administrative delays in relaxing controls and the
fact that the general public was at first less in-
fluenced in Europe than in the United States by
the outbreak in Korea. The upsurge m retail
buying in Western Europe in fact lagged about
2 months behind that in the United States.
The first quarter of 1951 thus marked the end
of the initial reaction to the outbreak of fighting
in Korea. By the second quarter, U.S. imports
had turned down and the decline in commodity
prices had begun.
Balance-of-Payments Developments
The outflow of gold from the United States that
had begun in 1950 lost its momentum in May 1951,
when U.S. reserves were 21,861 million dollars,
and a substantial inflow began in August. By
May 1952, U.S. gold holdings amounted to 23,502
million dollars. The net deficit ' of foreign coun-
tries as a whole with the United States, covering
not only goods and services but also private cap-
ital movements and certain other transactions,
amounted in 1951 to 3,156 million dollars against
265 million dollars in 1950 and 5,348 million dol-
lars in 1919. This deficit was financed not only
by movements of reserves but also by substantial
grants and loans.
Throughout the postwar period, U.S. Govern-
ment grants and loans have been a factor of out-
standing importance in the reconstruction and
balance-of -payments developments of many coun-
tries, especially in Western Europe. The knowl-
edge that this financial aid would be reduced was
something to be taken into account in determining
policy in 1951. Although Eca aid tapered off in
that year, U.S. Government grants and loans
(net) to foreign countries, including both military
and economic aid, amounted to 4,594 million dol-
lars, somewhat more than the 1950 total of 4,207
million dollai-s. Military grants increased from
580 million dollars to 1,460 million dollars,
whereas economic grants fell off from 3,460 mil-
lion dollars to 2,970 million dollars. Although
most of the military as well as of the economic aid
continued to go to the Oeec [Organization for
European Economic Cooperation] countries, the
total grants extended to them declined slightly.
The balance of payments of the United King-
dom deteriorated seriously during 1951, not only
with tlie United States but also with the Epu
' Except where otherwise indicated, the balance-of-
paynients surplus or deficit as used in this section is meas-
ured by compensatory official financing.
September 15, 1952
[European Payments Union] area. Although the
balance with tlie rest of the sterling area improved,
from a deficit of £13 million in the first halt ot
the year to a surplus of £116 million in the second
half, this improvement was insufficient to offset
the worsening vis-a-vis other areas, and the 1950
surplus of £255 million was followed m 1951 by a
deficit of £756 million. For the year as a whole,
the outstanding feature was the widening of the
trade deficit, as the value of exports increased by
22 percent while the value of imports rose 47 per-
cent. In the second half of the year, there was a
sharp drop in the surplus on account of services,
partly because of the stoppage of Iranian oil sales.
The United Kingdom's balance-of-payment deficit
with the nonsterling area rose from £204 million
in the first half of the year to £655 million in the
second half. Gold and dollar holdings, after
rising moderately to 3,867 million dollars at the
end of June 1951, fell in the next 4 quarters by
2,182 million dollars; at the end of June 1952,
they were 1,685 million dollars, about the same as
at the end of 1949. In real terms, gold and dollar
holdings at the end of June 1952 were below the
1949 level.
The downward movement of reserves, indeed,
gives an exaggerated picture of the real deteriora-
tion in the external position of the United King-
dom. In a time of uncertainty there was an in-
ducement for importers in the United Kingdom
to accelerate the dollar payments that they had
to make and for the importers of U.K. goods
abroad to delay the settlement of their obligations.
These changes in the timing of payments, the so-
called "leads and lags," were an important factor
in reducing reserves. Any subsequent reversal of
such short-term movements must be taken into ac-
count in interpreting later movements of reserves.
One reason for emphasizing the importance of re-
serves is precisely the protection that they afford
against the effects of temporary adverse changes
of this kind.
The deterioration of the U.K. balance of pay-
ments was also the result of more fundamental
changes in its economic position. For example,
according to calculations in which c.i.f. import
prices are used, its terms of trade in 1951 were 11
percent below those of 1950; the actual decline
must have been less because freight charges in-
creased. The most important factor, however,
was undoubtedly the increase of 16 percent in
import volume, which in part may have been the
result of the rebuilding of stocks that had been
allowed to run down in 1950, and is to be compared
with an increase of 3 percent in the volume of ex-
ports.
With a view to checking the deterioration of
its balance of payments, import restrictions were
intensified in the United Kingdom. Most other
countries in the sterling area also took similar
action in the early months of 1952.
393
In the first half of 1951, the sterling liabilities
of the United Kingdom to all countries inci-eased
by £425 million, to £4,168 million, and were then
as high as they had ever been. By the end of
the year they had fallen back to £3,807 million,
not much above the level of £3,743 million at the
beginning of the year. This movement was ac-
counted for largely by changes in liabilities to
other sterling-area countries. These increased
from £2,732 million at the beginning of the year to
£3,100 million at the end oi' June, and then fell
off to £2,789 million by the end of the year. There
were considerable variations in the records of in-
dividual countries, but the sterling balances of the
United Kingdom's dependent territories as a whole
tended to increase throughout this period.
Further evidence of the imbalance in world
trade is afforded by developments in the Euro-
pean Payments Union, whose members clear
through its machinery not only their own trans-
actions with other members, biit also most of the
transactions of their associated monetary areas.
Until May 1951 the sterling area hacl a surplus in
Epu, but subsequently it had deficits which
reached a peak of 236 million dollars in October.
Although the monthly deficit has declined since
then, the United Kingdom by the end of May
1952 had exceeded its quota and reached the stage
of 100 percent gold settlement. Substantial in-
visible and capital transactions appear to have
affected the Epu position of the sterling area, but
an examination of the trade returns of the United
Kingdom with continental Oeec countries, and of
the latter jvith the rest of the sterling area suggests
that U.K. trade was a more important fac-
tor in the reversal of the sterling area's Epu posi-
tion than was the trade of the other sterling-area
countries. The trade deficit of the United King-
dom increased and the trade surplus of the other
sterling countries decreased, the increase in the
deficit however being substantially greater than
the decrease in the surplus.
The balance-of-payments position of the next
largest member of Epu, France, also deteriorated
sharply in 1951. The over-all deficit of the franc
area, which in 1950 had been 217 million dollars,
increased to about 1,000 million dollars in 1951,
almost entirely on account of goods and services.
The terms of trade deteriorated by 9 percent. The
increase in the volume of exports (19 percent)
was only slightly greater than the increase in the
volume of imports; the export surplus with the
overseas territories increased moderately ; and the
trade deficit with other countries grew substan-
tially. Although the monthly deficit in Epu de-
creased m March 1952, France was by that time
m the CO percent gold settlement tranche of its
quota.
The general balance-of-payments positions of a
number of other Epu members improved. For
example, the over-all deficit of the Netherlands
decreased from the equivalent of 358 million dol-
394
lars in 1950 to 119 million dollars in 1951; Bel-
gium's 1950 deficit of 301 million dollars was fol-
lowed by a surplus of about 145 million dollars in
1951 ; and Western Germany, which had a deficit
of 653 million dollars in 1950, had a small surplus
m 1951.
The two largest members of Epu have been its
heaviest debtors and three members, Belgium,
Italy, and Portugal, have credit positions in excess
of their quotas, requiring special arrangements
for gold settlements. These are symptoms of the
disequilibrium which has from time to time threat-
ened a drain on the liquid resources of the Union.
Some of the trade liberalization progress of Epu
has been lost in an effort to reduce these payments
difficulties. Free imports from other Epu coun-
tries were temporarily suspended by France and
severely limited by the United Kingdom. Some
creditors (especially Belgium) also introduced
specific controls designed to reduce their monthly
surpluses. These measures, taken together, may
help temporarily to suppress the payments dis-
equilibrium within Europe, but at the cost of ret-
rogression in the field of liberalization.
Latin America's trade position with the United
States shifted from a surplus in the first quarter of
1951 to a large deficit in the third and fourth quar-
ters. An inflow of U.S. capital and of dollars re-
ceived from exports to other countries maintained
Latin America's reserves at a level in September
1951 which was still above that at the end of 1950;
but they were declining sharply in the third quar-
ter, and fell further in the fourth quarter. The
Latin American Republics as a whole continued
to run a modest trade surplus with the Oeeo
countries until the fourth quarter of 1951. The
terms of trade of Latin America as a whole are
down from the level of early 1951, but may still be
above the level of the first half of 1950. Canada's
over-all surplus fell from Can$C42 million in 1950
to about Can$240 million in 1951, less than a quar-
ter of the decline being accounted for by a worsen-
ing of the goods and services balance.
Continuance of Inflationary Pressures
Balance-of-payments developments since the
outbreak of hostilities in Korea in June 1950
afford another illustration of the inevitably close
relationship between balance-of-payments diffi-
culties and inflationary pressures. It was impos-
sible immediately after hostilities began to predict
confidently the course of events. In fact specu-
lative purchases, the increased cost of imports, and
the expansion of military outlays produced, in a
situation where there were already inflationary
potentialities, a mixture of cost and income infla-
tion in both industrial and primary producing
countries. The fact that steps were not taken in
time to minimize these inflationary forces and to
neutralize their impact was the outstanding ele-
ment in the reversal after the middle of 1951 of
Deparfmenf of State Bulletin
1
the favorable balance-of-payments position that
had developed earlier in many countries.
The commodity boom of 1950 might have been
kept within bounds if there had been a more wide-
spread and prompt use of monetary policies and
more elective coordination among countries in
government stockpiling. This would have re-
duced the inflationary pressures felt during the
first phase of the Korean war and would have
smoothed the transition to rearmament economies.
The increase in defense expenditures would have
required in any case a reduction of the proportion
of national expenditures directed toward civilian
goods, and it was particularly desirable that any
further complications through wide swings in
terms of trade and speculative buying should have
been avoided. Some changes in the terms of
trade and in the balance-of-payments positions of
raw-material producing countries may well have
been inevitable ; but if it had been possible to mod-
erate the inflationary impact of these changes, the
subsequent sharp reversal in international reserves
would have been limited.
In some countries, indeed, considerable progress
has been made in recent months in the fight against
inflation. Uncontrolled inflation has not yet al-
together ceased to be a danger but the threat today
is generally not so great as it was a year ago.
Even, however, where internal stability has been
temporarily attained, the measures taken have
often been insufficient to insure that it will be
permanent. The main test of stabilization policy
will come when rearmament expenditures reach
their maximum.
During the first few months of the Korean war,
the upsurge of speculative demand and the con-
sequent increases in the prices of imported raw
materials led in most industrial countries to a
sharp expansion in bank credit. This expansion
was slowed down after March 1951 by the decline
in raw-materials prices, the tightening of credit
and money market conditions, and stronger con-
sumer resistance in reaction to the earlier spate
of buying. In the United States, for example,
commercial-bank loans to business and individ-
uals, which had increased by 21 percent during
the 9 months ended March 1951, increased further
during the subsequent 9 months (April 1951-
December 1951) by only 6 percent. There was
a similar slowing down in the rate of bank-credit
expansion in other countries, including Canada,
the Netherlands, Italy, Switzerland, and Western
Germany. This relaxation of inflationary pres-
sures in industrial countries can also be seen in
the movements of their cost-of-living indices dur-
ing these two periods. The U.S. cost-of-living
index, which had increased by 8 percent from
June 1950 to March 1951, rose by less than 3 per-
cent between March 1951 and December 1951, and
declined slightly in the first quarter of 1952.
Cost-of-living increases have similarly _ slowed
down in most of Western Europe, particularly
September 15, 1952
where an effective monetary policy had been
adopted, as in the Netherlands, Belgium, Den-
mark, Finland, and Italy.
The tendency toward a reduction of inflation-
ary pressures iii the latter part of 1951, was, how-
ever, less obvious in some other industrial
countries, including the United Kingdom and
France. In the United Kingdom, commercial-
bank credit to business and individuals continued
to expand until October 1951, when it was 15 per-
cent higher than a year before. The continuance
of inflationary pressures in the United Kingdom
at a time when they were diminishing elsewhere
can be traced in part to its greater dependence
on imported food and raw materials, to its efforts
to rebuild the stocks which had been allowed to
run down when prices first began to rise, and to
the speed and magnitude of its rearmament ef-
fort. A high level of reconstruction and invest-
ment has also continued to be an important fac-
tor. The difficulties of the United Kingdom were,
moreover, prolonged by the delay in making ade-
quate use of the weapons of monetary control.
Throughout the postwar period, commercial
banks in the United Kingdom have been subject
to a form of selective credit control and since 19-18
there has been a tendency for interest rates to rise
gradually. But the decisive break from cheap-
money policy came only in November 1951, when
the ciiscount rate of the Bank of England was
raised, for the first time since 1939, from 2 to 2.5
percent. In March 1952 the discount rate was
raised further, to 4 percent. In the meantime,
the liquidity of the banking system was also re-
duced by funding a part of the floating debt.
The consequent change in the financial climate of
the country slowed down the expansion of bank
credit to a'considerable extent in the first quarter
of 1952. It did much to restore confidence in
sterling and to reverse the outflow of capital.
In France in the first part of 1951, political cir-
cumstances hampered the adoption of fiscal and
monetarv measures firm enough to check inflation,
when military expenditures and a large investment
progi-am are taken into account. France has
maintained elaborate quantitative restrictions on
credit and the discount rate of the Bank of France,
which had been reduced prior to the outbreak of
hostilities in Korea, was raised in October 1951 to
3 percent, and in November to 4 percent. The
Government's finance program, announced early
in 1952, proposed to reduce some noninvestment
expenditures and to link investment outlays more
closely to the borrowings available from genuine
savings.
Inflationary developments in the raw-material
producing countries have followed a slightly dif-
ferent pattern. In some of them, e.g., Egypt,
Venezuela, Costa Rica, and the Dominican Repub-
lic, the growth of the money supply during the 9
months ended March 30, 1951, was moderate. In
most of them, however, the money supply in-
395
creased rapidly in response to the improvement in
tlieir foreign-exchange positions. This expansion
was cliecked sharply after March 1951, when raw-
maternil prices began to decline and import con-
trols were liberalized. During the last 9 months
of the year, the money supply actually declined in
India, Ceylon, the Philippine Republic, and
Uruguay. In most of the other raw-material pro-
ducing countries, with the exception of a few such
as Chile, the increase was quite moderate in com-
parison with the earlier period. In Australia the
growth m the money supply ceased after April
1951. Australian imports, however, rose sharply
during the last 9 months of 1951 and there was a
large trade deficit which would have resulted in a
contraction of the money supply if there had not
been an increase of 18 percent in bank advances,
the greater part of which was used to finance tem-
porarily heavy stocks of imported goods.
The spectacular increases in the money supply
during the first phase of the reaction to the Korean
war were not, however, entirely a consequence of
external factors; in many raw-material producing
countries there was also a speculative wave of de^
mand fed by an expansion of bank credit. The
boom in raw-material prices, indeed, made it pos-
sible for many underdeveloped countries to raise
extraordinary revenues through higher export
duties which had been intended as an anti-mfia-
tionary measure, or by multiple currency practices.
Countries such as Ceylon, India, and Indonesia
were thus able to reduce their budget deficits, and
some of them were for some time able to a greater
extent than before to finance developmental proj-
ects from current revenue. But the decline in ex-
port receipts during the latter part of 1951 has
in some countries raised again the problem of
financing capital expenditure by normal taxes and
genuine savings. In order to maintain exports at
satisfactory levels in the face of declining raw-
material prices, export duties have been reduced
and budget deficits of uncomfortable proportions
have begun to reappear.
The foreign-exchange reserves accumulated in
the first phase of the Korean war enabled many
countries during the readjustment phase to coun-
teract the inflationist impact of reemergent budget
deficits by increasing imports. But this remedy
against domestically generated inflationary pres-
sures involved a deficit on current external account
and could be applied for only a short time. It is
now, however, coming to be more generally real-
ized that financial stability is an essential element
in schemes for rapid economic progress. The
difficulties of a country with limited '^administra-
tive resources in collecting taxes and utilizin<T
domestic resources have sometimes been exaggei^
ated; recent experience in some countries, such as
tlie Philippine Republic, has shown that much
can be achieved by improving tax collections. At
the same time, if the development of these coun-
tries IS not to be unduly retarded, an expansion
396
of the flow of long-term international capital is
required. This objective will not be attained
without the active cooperation of both the coun-
tries receiving capital and those supplying it
Despite set-backs in certain areas, there have
been some indications in recent months of willino--
ness to adopt policies to attract investments to
underdeveloped countries.
In India the bank rate was increased in Novem-
ber 1951 from 3 to 3.5 percent, and there was a
partial withdrawal of support for Government
bonds. At the same time domestic production had
increased considerably during the year, while
foreign demand for jute and cotton had slackened
home stringency in the money market followed in
tlie early months of 1952. which forced a general
dishoarding of commodities, and there was a
sharp fall in the wholesale price level in March
1952. Since that time prices have recovered a
little Australia, which in 1951-52 budgeted for
a substantial surplus, has a system of quantita-
tive credit controls but interest rates have not been
a major instrument of monetary policy. The strain
of rapid development and the regulation of wa^^es
in accordance with movements of the cost of livin^^
meant a continuous rise in the cost of livintr iS
Australia during 1951, even after the prices of raw
materials had begun to decline.
Rearmament Expenditures
During the first year of the Korean war, defense
expenditures did not increase sharply except in the
United States and, because of military operations
in Indochina, in France. In the United States
these expenditures were roughly 26 billion dollars
in the fiscal year ended June 1951, and about 47
billion dollars in the fiscal year ended June 1952
when they were covered largely by higher tax'
yields. For fiscal 1952-53 the expenditures are
estimated at some 60-65 bilhon dollars and a siz-
able deficit IS expected. The intensification of the
conflict in Indochina led to a substantial increase
m military expenditures in France prior to the out-
break of hostilities in Korea; a further increase
m 1951 brought total military expenditures in that
year in money terms, to more than twice the 1949
level.
In some countries, such as Yugoslavia and Tur-
key, defense expenditures have been maintained
at the high level that had been reached earlier
I hey have increased in the United Kingdom where
during the fiscal year 1952-53, they are expected
*,o,^otal approximately £1,500 million (against
£750 million m 1949-50). Over the period 1949-
51, defense expenditures have increased substan-
tially in other European countries. This intensi-
fication of rearmament efforts has not led so far to
any serious imbalance in government budgets ex-
cept in France, but defense expenditure is still
expanding, and the stresses and strains of this
expansion are widely felt. Some countries have
Department of State Bulletin
had to revise downwartl their immediate plans
for rearmament expenditure, and tlie need for fur-
ther U.S. military and economic assistance has
been pressed more strongly than was envisaged a
year ago.
Anti-inflationary Measures
As pointed out above, the instruments of mon-
etary policy have been used more widely during
the past year, particularly in the industrial coim-
tries of Europe and North America, to cope with
the resurgence of inflationary pressures; interest
rates have been raised and quantitative and quali-
tative controls over credit have been more exten-
sively applied. Fiscal policy has also been adapted
in some countries with a view to checking infla-
tion. To some extent, direct controls, relaxed
before June 19.50, have been imposed. The move-
ment toward direct controls is not widespread,
however, and recent extensions have affected
mainly raw-material allocations, foreign trade,
and wages.
Among the fiscal measures adopted in the last
year, the reduction of subsidies on consumption
in countries such as India, the Netherlands, and
the United Kingdom is noteworthy. In order to
avoid increases in the cost of living and in wages,
subsidies have often been used to offset the effects
of increased costs upon prices. Recently, how-
ever, there has been a tendency to cut these subsi-
dies substantially. The immediate anti-inflation-
ary sigiiificance of these decisions has sometimes
been small, because of counterbalancing tax con-
cessions and the wage adjustments that might be
made. Nevertheless, these changes, in addition to
being significant as a move toward the restoration
of an effective working price mechanism, serve to
emphasize the basic need in all anti-inflationary
efforts. Whether inflationary pressures are gen-
erated by an effort to use more resources than are in
fact available — in response, for example, to re-
armament or development demands, or to changes
in the terms of trade— the central problem is to
persuade people to accept the inevitable cuts in
real consumption and in investment for civilian
production. This requires that money wages and
money profits should not be increased in an effort
to compensate for higher taxation or higher costs
of materials and consumer goods. The realization
of this objective demands high standards of public
responsibility and willingness to accept a plan for
distributing the sacrifices that are unavoidable.
In addition, several countries have allowed long-
term rates on government bonds to fluctuate more
freely. Even where the policy of supporting gov-
ernment bond markets has not been completely
abandoned, there has been an orderly withdrawal
of support, and the market yield on government
September 75, J952
221665 — 52 3
bonds in many countries has consequently
increased.
Interest rates on short-term government securi-
ties have also generally been allowed to rise. The
policy of higher interest rates has been supple-
mented by quantitative and qualitative credit con-
trols, which have themselves tended to raise the
level of interest rates.
The general effect of restrictive credit policies
has been to curtail speculative investment, mainly
in inventories, and to dissipate inflationary expec-
tations. Once these objectives are achieved, it
may be possible to relax credit restrictions to
some extent. If unemployment should rise to a
level regarded as unacceptable, some relaxation
of credit might become inevitable.
The tendency toward easing credit in order to
meet the changing requirements of the situation
is already evident in some countries. Eai-ly in
April ]95'2, credit controls were lifted in the
Netherlands and the reduction of bank rates in
Belgium, Finland, and the Netherlands has al-
I'eady been mentioned. In the United States and
Canada some of the selective credit conti-ols and
informal credit restrictions imposed on commer-
cial banks have also been relaxed or withdrawn
in recent months. In some countries steps have
been taken to prevent higher interest rates from
unduly retarding housing construction.
For a variety of reasons unemployment remains
comparatively high in some countries of Western
Europe such as Belgium, Denmark, Western Ger-
many and Italy; in certain other countries,
including the Netherlands and the United King-
dom, it has increased in recent months from
previous low levels. There has been no tendency
toward greater unemployment in the United
States, where average unemployment, as a per-
centage of the total labor force, declined from ,5
percent in 1950 to 3 percent in 19.51, and was
smaller in the first quarter of 1952 than in the
corresponding period of 1951 (3.2 percent against
3.8 percent). To some extent, increases in unem-
ployment have been due to the temporary i-esist-
ance of consumers after a spate of buying, or to
causes requiring some reallocation of productive
resources. Thus, the recession in the clothing and
textile industries of the United Kingdom, the
Netherlands, and Western Germany is explained
in part by the revival or building up of textile
industries in other countries and the overstocking
of earlier months. In some countries, the intensi-
fication of import restrictions elsewhere has also
been a cause of unemployment. The unemploy-
ment trend in Western Europe needs to be se-
riously watched, if only because it might weaken
tlie resolve to reduce inflationary forces and might
give a cumulative turn to the recent restrictive in-
ternational trade measures. "Wliile certain types
of chronic unemployment may require joint inter-
national action, steps have already been taken in-
397
dependently in some countries to counteract the
recent tendency toward unemployment. For ex-
ample, an extension of public works is proposed
in the Netlierlands, and military orders are being
more swiftly directed to the depressed industries
in, for example, the United Kingdom and the
Netherlands. The line of demarcation between
inflation and deflation is necessarily a matter for
delicate judgment. It has yet to be seen whether
the unemployment that has appeared calls for
anti-deflationary policies or whether it is the re-
sult of the cessation of inflationary pressures and
of the shifts in production which must accompany
the attainment and maintenance of internal
stability and external solvency.
International Payments Prospects
The readjustment of the payments disequilib-
rium between the dollar and nondollar areas was
being made easier in the early part of 1952 by the
reentry of the United States into the market for
certain key commodities and by the foreign financ-
ing progi-am of the U.S. Oovernment. There
were also some favorable developments that
pointed to a more fundamental solution of the
payments problem. The more general use of
monetary and fiscal measures to keep effective
demand within the limits of availabilities suggests
a better understanding in many countries of the
real nature of the problem.
With inflationary pressures still active in many
countries, however, such balance-of-payments im-
provements as have been recorded recently have
been achieved to a large extent at the cost of
further trade and exchange restrictions and the
additional distortion of trade that these restric-
tions are likely to involve. By reducino- the
supply of goods, these restrictions indeecf will
strengthen the forces of inflation. As rearma-
ment expenditures increase, the supply of goods
on the home market may be further restricted.
The effects of political developments upon the
level and timing of rearmament expenditures in-
ject into the situation a further element of
uncertainty. Demands for wage increases may
upset the precarious balance between demand and
supply and thus generate fresh inflation. Fi-
nally, there are still some important divergencies
between prices in dollar and nondollar markets,
which distort the normal course of international
trade, impede the attainment of competitive
prices, and threaten to complicate the present pat-
tern of exchange rates.
Summary and Conclusion
It is a melancholy fact that 7 years after the end
of the war the Fund has to report that interna-
tional payments are still far from having attained
a state of balance and that exchange difficulties
and exchange restrictions are again, over large
398
parts of the trading world, the order of the day.
In the years immediately after the war, dis-
equilibrium in the world exchange markets was
inevitable. The task confronting all countries at
that tune was primarily to restore and modernize
production facilities after a long war which had
caused great destruction, had altered prewar
debtor-creditor relations, and had prevented
normal capital investment. At the same time
consumers were eager to replace their old, worn-
out durable goods and purchase other consumers'
goods which for so many years had been in short
supply. Without substantial balance-of-pay-
ments deficits, many countries would have found
it impossible to restore production rapidly and
to make good consumption deficiencies. These
deficits were partly covered by large-scale aid
from abroad.
During the past few years, however, the res-
toration of production facilities has resulted in
a volume of output— particularly of industrial
output— throughout the world substantially
higher than prewar levels. In spite of this, bal-
ance-of-payments pressures have never been en-
tirely absent in many countries and, though the
pressures have on occasion been relieved by singu-
larly favorable circumstances — such as very high
export prices — exchange difficulties have never
been far from the surface, and any adverse change
m circumstances has threatened to cause them
fo emerge in the form of a fresh exchange crisis.
It has been argued above that a basic reason
for the persistence of these balance-of-payments
problems so long after the restoration of produc-
tion is that certain countries — and they constitute
a large part of the world— have followed policies
aimed at achieving higher levels of consumption
and investment than could be covered out of the
real resources available. The result has been a
situation of inflationary pressure throughout the
world that in certain countries has been aggra-
vated by the emergence of a new important
claimant on resources in the form of rearmament.
The inflationary pressure has not been uniform;
some countries have taken more effective and
timely anti-inflationary action than others; some
have disposed of much greater reserves of pro-
ductive capacity than others and so have been able
to satisfy out of their own resources the gi-owing
demands of consumption, investment, and gov-
ernment, including rearmament expenditures.
Inflationary pressures have tended to spill across
the frontiers. They have created excessive de-
mands for imports and reduced the quantities of
goods available for export to parts of the world
less subject to inflationary strains.
In this situation the use of exchange restrictions
and quantitative import controls, frequently of a
discriminatory nature, has seemed inevitable to
many countries; and during the past year there
has been a tendency to extend and intensify these
restrictions and controls. Even where the long-
Deparfment of State Bulletin
term consequences of the measures adopted were
clearly understood, the need for immediate action
to deal with a critical situation has made it diffi-
cult to give adequate attention to them. In con-
sequence, the treatment of exchange problems has
frequently been symptomatic rather than radical :
it has been aimed at the outward manifestations
of balance-of-payments pressure rather than at
its causes. . .
Restrictions and prohibitions and discrunina-
tions inevitably exert a strong influence on the
structure of production and on the allocation of
resources. The direction which they give to pro-
duction and to the allocation of resources is not
always determined by considerations which might
be relevant in a system of rational "planning" : it
is often accidental, dependent as it is on the selec-
tion of goods as proper objects of import restric-
tions and discrimination. Goods considered by
the authorities to be relatively less essential tend
to be a favored object of import restrictions. In
countries dealing with their balances-of -payments
problems in this way, an incentive is thus given to
the production of goods of this kind. At the same
time, there is no adequate incentive to increase,
or even maintain, the production of certain basic
foodstuffs and raw materials, the shortages of
which are an important factor perpetuating inter-
national disequilibrium. Attempts to meet pay-
ments problems by relying on the shelter of im-
port restrictions or on the assistance afforded by
other countries' import discriminations are likely,
over a period of time, to lead to a more wasteful
and inefficient allocation of resources and make
the countries relying on these methods less, rather
than more, capable of dealing effectively with their
international payments problems.
The undesirable long-run consequences of ex-
change and import restrictions are often well
known to the authorities of the countries applying
them. Their continued use reflects in part the
great difficulties that are felt to lie in the way of
eliminating the basic inflationary causes of bal-
ance-of-payments deficits. Attempts to deal with
inflation encounter resistance on the part of those
who fear that such attempts must result in a spiral
of deflation with all its evil consequences in the
form of unemployment and loss of production.
No one, however, would wish to initiate a spiral
of deflation, and it cannot be assumed that a well-
considered program for controlling inflation will
necessarily have this effect.
The countries which, through their member-
ship in the Fund, have subscribed to the objectives
of expansion and balanced growth of interna-
tional trade and currency convertibility have other
economic objectives as well, such as a high level
of employment, economic development or eco-
nomic stability, high or minimum standards of
living. In the short run, for particular countries
there may be difficulty in reconciling the clainis of
all these objectives. In such circumstances it is
the function of the Fund to provide a forum for
September 15, 1952
discussion. The judgment is embodied in the
Fund agreement that the balanced growth of in-
ternational trade, with the highest degree of mul-
tilateralism, currency convertibility, and cur-
rency stability, will itself be of major assist-
ance in helping countries to attain their
other basic economic objectives. It is the duty
of the Fund constantly to remind countries
of the weakening effects on the world economic
structure of the mere symptomatic treatment of
exchange difficulties and to urge them to give
careful consideration to the question whether the
policies they adopt set up incentives that lead,
over a period of time, in the direction of interna-
tional balance or in the opposite direction.
In the last resort, the maintenance of monetary
stability depends upon the policies adopted by the
domestic monetary authorities. In relation to
every sector of economic policy, it is indeed the
duty of all countries to recognize their mutual
responsibility for each other's welfare, and for
many purposes it is important to distinguish be-
tween inflation imposed by external forces and
inflation that has been generated domestically.
The distinction can, however, easily be pushed too
far if it encourages the belief that the external
causes of inflation are always predominant, that
individual governments are therefore helpless to
deal with an inflationary situation, and everything
must wait for decisions to be taken by other more
powerful governments abroad. Even when exter-
nal conditions are most unfavorable, there is much
that can be achieved by domestic measures.
The task of restoring a balanced system of in-
ternational settlements that will function without
periodic breakdowns is indeed formidable, even
under the most favorable circumstances. To urge
that, with this objective in view, more serious at-
tention must be paid to the importance of mone-
tary and fiscal policy in no way detracts from the
overriding importance of maintaining and raising
the level of world output. The fruits of postwar
investment are now becoming available in increas-
ing volume, but the world is still confronted with
urgent production problems. There have been
profound shifts of economic power as between dif-
ferent countries since before the war. New prod-
ucts have emerged and new demands developed.
The old multilateral patterns of international set-
tlement have been disturbed and new, more stable
patterns have not yet replaced the old. Inter-
national-payments equilibrium would be brought
much nearer if, for example, the output of raw
materials such as coal and of foodstuffs such as
wheat could be expanded on an economic basis so
that the need for dollar imports of these commodi-
ties would be reduced. The protective stimulus
that restrictions give to the production of less
essential goods and services has indeed been one
of the factors that has caused the production of
basic foodstuffs to lag behind the world's require-
ments.
399
This situation is one that calls for the most
etiicient possible allocation of resources on the part
of all countries for a very high degree of competi-
tive strength and for the'maximum degree of flex-
ibility in national economies in making the inevi-
table adjustments to changing circumstances, such,
for example, as the reviving productive capacity
of Germany and Japan. In making these adjust-
ments each country should have regard for its
trading position with all others as well, of course,
as for its competitive position at home, and it
should not allow an excessive preoccupation with
any single market to deflect it from seeking to make
its adjustments on the widest possible basis.
The efficient allocation of the world's resources
also requires that continuous attention should be
given to the problems of economic development.
Wisely planned development will strengthen the
balance of payments of countries whose natural
resources have hitherto been neglected. The use
of inflationary means of finance to promote de-
velopment, however, often creates balance-of-
payinents ditKculties, and even the development
that it produces sometimes turns out to be disap-
pointing. The underdeveloped countries need
themselves to undertake measures that would as-
sure for development some flow of resources from
their own savings. No comprehensive program
of development is possible, however, unless there
is a larger flow of foreign capital to the under-
developed countries than has been the practice in
recent years.
If, in this Keport, great stress has been laid on
the maintenance of internal monetary stability.
It IS because, in the judgment of the Fund, the
balance-of-payments difficulties of the past couple
of years have been due nuiinly to the attempt of
many countries to do more by way of consump-
tion, investment, and goverimrent expenditure
than could be managed with the resources avail-
able to them. But it is obvious that the task of
reestablishing a healthy pattern of international
payments must be undertaken as much by the
countries that achieve persistent surpluses in their
balance of international jiayments as by the defi-
cit countries. Obstacles i^laced by the surplus
countries on imports, whether in the form of in-
creased tariffs, import quotas and prohibitions,
customs administration, or in any other way, may
frustrate even the most strenuous efforts of the
deficit countries to achieve international balance
without resorting to restrictions. For this reason,
the Fund expresses its earnest conviction that all
countries in a strong balance-of-payments posi-
tion should take all practicable means of reducing
barriers to international trade as their most ef-
fective contribution to the restoration of a bal-
anced world economy.
U. S. Signs New Trade Agreement With Venezuela
DEPARTMENT'S ANNOUNCEMENT
Press release 681 dated August 29
The Governments of the United States of Amer-
ica and of the United States of Venezuela signed
a trade agreement at Caracas on August 28, 1952,
which supplements and amends the trade agree-
ment of 1939 between the two countries.
The agreement will enter into effect 30 days
after exchange of a proclamation by the President
of the United States and an instrument of rati-
fication by the Government of the United States
of Venezuela. This exchange will take place as
soon as these documents can be prepared.
The new agreement ])rovides for additional
tariff concessions by both countries. Some Ven-
ezuelan concessions in the 1939 agreement are
modified or withdrawn as a result of the new
agreement, but new concessions, together with
the 1939 concessions remaining unchanged, cover
a wide range of U.S. agricultural and industrial
products. The Venezuelans also agree to extend
more favorable customs treatment to products of
the Virgin Islands. Under the revised agree-
ment, the trade coverage of Venezuelan conces-
sions is almost double that of the 1939 agreement.
The United States giants new concessions on
petroleum and iron products.
The Trade Agreements Extension Act of 1951
provides for a peril-point finding by the U.S.
Tariff Commission with regard to every product
on which a concession by the United States is con-
templated. Under the law, a peril point is de-
fined as the level of customs treatment below which
serious injury may be caused or threatened to the
domestic industry producing the product. If the
President grants a concession going below the
peril point, he reports such fact to Congre.ss and
explains his reason for the action.
In the case of crude petroleum, topped crude,
and fuel oil, three members of the Tariff Commis-
sion found that a rate of IO1/2 cents would not
400
Departmenf of Slate Bulletin
cause or threaten serious injury; the other three
Conunissioners found that the present customs
treatment (quota arrangement) represented the
peril point. Ahhough there is some legal ques-
tion as to whether a peril-point finding was actu-
ally made in the case of these products, the
President, in the desire to inform the Congress, is
sending a message to Congress ^ explannng the
concession on these petroleum products. In sum-
mary, the President points out: (1) most of the
domestic production of crude petroleum is of
specific gravity of 25 degrees API or higher; (2)
most of our imports are of higher than 25 degrees
gi-avity : (3) the-lower rate of 514 cents will apply
primarily to imports of residual fuel oil, which is
utilized niainly by power plants and energy-using
manufacturing industries on the east coast. Many
of these plants can also use coal. At present, be-
cause coal is cheaper and more available, such
plants are using coal, and the change in the import
tax is not expected to change this situation.
MESSAGE OF THE PRESIDENT
TO THE CONGRESS
White House press release dated August 29
On August 28, 1952, the United States signed
an agreement with Venezuela which amends and
supplements the Trade Agreement of 1939 be-
tween the two countries. In view of a special
situation which arose in connection with this
agreement, I am submitting the following state-
ment to the Congress :
Subsection (a) of Section 3 of the Trade Agree-
ments Extension Act of 1951 provides that before
entering into negotiations for a trade agreement
the Pre^sident shall submit to the Tariff Commis-
sion a list of the articles to be considered for spe-
cific concessions and that upon receipt of such list
"... the Commission shall make an investiga-
tion and report to the President the findings of
the Commission with respect to each such article
as to (1) the limit to which such modification,
imposition, or continuance may be extended in
order to carry out the purpose of such section o50
without causing or threatening serious injury to
the domestic industry producing like or directly
competitive articles; and (2) if increases m duties
or additional import restrictions are required to
avoid serious injury to the domestic industry pro-
ducing like or directly competitive articles the
minimum increases in duties or additional import
restrictions required. Such report shall be made
by the Commission to the President not later than
120 days after the receipt of such list by the Com-
mission. No such foreign trade agreement shall
be entered into until the Comnnssion has made
its report to the President or until the expiration
of the 120-day period." The findings of the
Tariff Commission under this subsection are pop-
ularly known as the "peril point" findings.
Uiider subsection (a) of Section 4, m case the
President enters into a trade agreement which ex-
ceeds the so-called "peril point" findings of the
Tariff Commission he shall within the 30 days
"transmit to Congi-ess a copy of such agreement
together with a message accurately identifying
the article with respect to which such limits or
minimum requirements are not complied with,
and stating his reasons for the action taken with
respect to such article. If either the Senate or
the House of Representatives, or both, are not in
session at the time of such transmission, suich
ao-reement and message shall be filed with the Sec-
retary of the Senate or the Clerk of the House of
Representatives, or both, as the case may be.
Subsection (b) of Section 4 requires the larifl
Commission promptly after the President has
transmitted such foreign trade agreement to Con-
o-ress to "deposit with the Committee on Ways
and Means of the House of Representatives, and
the Committee on Finance of the Senate, a copy
of the portions of its report to the President deal-
ino- with the articles with respect to which such
limits or minimiun requirements are not complied
with." . . .^, ,,
In preparation for the negotiations witH tire
Government of Venezuela looking towards an
ao-reement supplementary to the existing recipro-
cal trade agreement with that country of Novem-
ber 6, 1939, I submitted to the Tariff Commission
a list of articles to be considered for specific con-
cessions by the United States. In accordance
with Section 3 of the Trade Agreements Exten-
sion Act of 1951, hereinabove set forth, the Tariff
Commission reported to me on December 27, 1951,
its findings with respect to each such article as to
the limit below which concessions could not be
granted without causing or threatening serious in-
]ury to the domestic industry producing like or
directly competitive products. For a certain
o-roup of petroleum products- three of the Com-
missioners found that the peril point was the ex-
isting tariff quota arrangement (Id/o^! per barrel
or 1/4^ per gallon on a quantity equal to 5 percent
of the total quantity of crude petroleum processed
in refineries in continental United States during
the preceding calendar year and 21 cents per bar-
rel, or 1/2 cents per gallon in excess of this quan-
tity) . The other three Commissioners found that
a rate of 10 1/2 cents per barrel on all imports would
constitute tlie peril point.
Although there are a nmnber of legal issues in-
volved on the question of whether there is or is not
any peril point found within the requirements of
' Infra.
September 15, 1952
- Crude petroleum, topped crude petroleum, and fuel oil
derived from petroleum (ineludius fuel oil known as gas
oil) —Paragraph 1733 Tariff Act of 1930 and Section 3422,
Internal Revenue Code.
401
section 3 of the statute by reason of the evenly-
divided Commission, I nevertheless desire to in-
form the Congress of the action I have taken with
resi^ect to these petroleum products in the agree-
ment.
The text of the supplementary trade agreement
which I have concluded with the Government of
Venezuela is attached.^ This agreement contains
the following concession on Paragraph 1733 of the
Tariff Act of 1930 and Section 3422 of the Internal
Kevenue Code:
Tariff Act
oj 1930
Paragraph
1733
Internal
Revenue
Code
Section
3422
Description of Article
Petroleum, crude, fuel, or
refined and all distillates
obtained from petroleum,
including kerosene benzine,
naphtha, gasoline, paraffin,
and paraffin oil, not spe-
cially provided for (except
petroleum jelly or petro-
latum,and except mineral
oil of medicinal grade).
Description of Article
Crude petroleum, topped
crude petroleum, and fuel
oil derived from petroleum
(including fuel oil known
as gas oil):
Testing under 25 de-
grees A. P. I.
Testing 25 degrees
A. P. I. or more.
Rate of Duty
Free.
Rale of
Import Tax
Yd per gal.
%i^ per gal.
Thus, when the agreement enters into force, a rate
of 5%<^ per barrel will apply to imports into the
United States of crude petroleum, topj^ed crude
petroleum and fuel oil derived from petroleum
(including fuel oil known as gas oil) which is
testing under 25 degrees A. P. I. (American Pe-
troleum Institute Rating) ; the rate on these same
products testing 25 degrees A. P. I. or more will
be 101/^^ per barrel.
The supplementary agreement with Venezuela
will provide for increased trade between the two
countries. It will contribute to the security of
both countries and will stimulate tlie development
of proven oil reserves in the Western hemisphere.
As compared to the 1939 agreement, Venezuela
grants new or improved concessions on $154 mil-
lion of imports from the United States in 1950 ; on
$12 million of imports they are withdrawing the
1939 concessions ; and on $6 million of imports the
new agi-eement provides for higher Venezuelan
rates than in the 1939 agreement. The trade cov-
erage of the 1939 agreement as supplemented by
the new agi-eement is $240 million or about CO
percent of total United States exports to Vene-
zuela. Under the 1939 agreement, only 35 percent
of our exports were covered. Among the impor-
° Not printed here.
tant items receiving new or improved duty con-
cessions are apples, pears, certain dried vegetables,
rolled oats, wheat flour, barley malt, baby and
dietetic foods, wrapping paper, laboratory and
refractory glass products, galvanized iron sheets,
enameled iron and steel manufactures, builders'
hardware, table flatware, unassembled trucks and
passenger cars, motorcycles, aircraft and parts,
trailers, radio and television receivers including
parts, phonographs including combinations and
parts, phonograph records, automatic refrigera-
tors, scientific apparatus, hand tools, photographic
products, office machinery, electric motors, pumps,
numerous types of industrial ma-chinery and ap-
paratus and parts, generators and transformers.
Among the products on which new bindings of
duty-free treatment were granted by Venezuela are
road building, textile and printing machinery,
stoves, heaters and ovens, and parts for agricul-
tural machinery. The agreement, as revised,
covers 179 Venezuelan tariff items as compared
with 88 in the 1939 agreement. It includes prod-
ucts of interest to practically every important
group of United States exporters. Concessions by
Venezuela have particular significance since that
country has no balance of payment difficulties in
purchasing from the dollar area.
In 1950 United States imports from Venezuela
of crude petroleum and residual fuel oil amounted
to $288 million or about 90 percent of our total
imports from Venezuela. It is estimated that the
1950 value of trade on which the United States
granted improved customs treatment is about $175
million, of which practically all was crude petro-
leum and residual fuel oil. New concessions of
potential value to Venezuela consisted of the bind-
ing of existing duty-free entry for iron ore, de-
posits of which are now being developed.
The new agreement also amends and supple-
ments some of the general provisions of the 1939
agreement. The principal changes are a substan-
tial strengthening of the quota provisions so as to
safeguard more adequately the value of the re-
ciprocal tariff concessions, an additional recipro-
cal undertaking with regard to customs formali-
ties, and the inclusion of the standard escape
clause in event serious injury should be caused or
threatened to domestic industry as a result of the
agreement.
With regard to the concession on crude petro-
leum, topped crude and fuel oil derived from
petroleum, it would have been possible under the
authority of the Trade Agreements Act to reduce
the excise tax provided for in Section 3422 of the
Internal Revenue Code to 51/4^ per barrel. The
majority of the representatives of private business
urged during the hearings held both by the Tariff
Commission and by the Committee for Reciprocity
Information that such a concession be made to
Venezuela. I have agi-eed to a concession of 514^
per barrel on imports of some of these kinds of
petroleum products, namely, those which test
402
Department of State Bulletin
under 25 degrees A. P. I. A rate of lOi/a^ per
barrel, a treatment which was in effect from 1943
through 1950 under the Mexican Trade Agree-
ment, is provided for under the new agreement
for petroleum products testing 25 degrees or more
A. P. I., which constitute the greater part of
United States imports of crude oil. Experience
during 1943-50 indicates that imports at 101/20
will undoubtedly prove no deterrent to drilling
and development pi'ograms now under way in the
United States.
Most of the crude oil produced in the United
States has a specific gravity of 25 clegrees A. P. I.
or higher. The national average is about 35 de-
grees A. P. I. For example, less than one percent
of the crude oil produced in West Texas is below
25 degrees A. P. I. Most of the heavier crude oils
in the United States are produced in the Rocky
Mountain area, in California, and in some of the
Gulf Coast area.
About one-third of the Venezuelan crude oil
production has a gravity of less than 25 degrees
A. P. I. Nearly all of the low-gravity oil is
shipped to the refineries on the islands of Aruba
and Curasao.
Only the asphalt crudes, some of the topped
crude," and the residual fuel oil will pay the lower
excise tax. Generally, imports of these heavier
crude oils sell in markets different from those in
which domestic low-gravity oils sell. Further-
more, the lower gravity oils have a lower value
in the market than the higher gravity petroleum
products. It is believed appropriate, therefore,
that these commodities of less worth should be
dutiable at a lower specific rate and that the more
valuable oils should pay a higher rate.
The imported oils which would pay the lower
tax are among those which are in relatively short
supply in the United States and generally
throughout the world. It is not expected that the
lower tax applicable to such oils will cause an
undue increase in imports above the quantity
which otherwise might be imported. It would
appear, accordingly, that the lower tax on residual
fuel oil would not serve to disturb the relationship
which now exists in the United States between
this fuel and other sources of heat and energy.
One major use of residual fuel oil is for ship
bunkering; oil for this purpose traditionally has
been imported free into the United States. The
residual fuel oil subject to import tax is utilized
mainly in gas and electric power plants, in
smelters, mines, and manufacturing industries,
and, to a lesser degree, as heating oil in industrial
plants. Most of these users are located along the
east coast.
For the most part, these fuel-burning installa-
tions, particularly the power plants, are con-
vertible, using either coal or residual fuel oil
depending upon which is cheaper at a given time.
In recent years coal has been cheaper. Coal is
also more available, because residual fuel oil is in
tight world supply, and because the percentage
of residual fuel oil to total output of United States
refineries is constantly decreasing as emphasis
shifts to distilling larger amounts of the higher
and more valuable fractions, such as gasoline.
Therefore, the percentage of convertible plants
using coal has increased steadily since 1949, until
now most of the east coast power plants are using
coal rather than residual fuel oil. The reduction
in excise tax on residual fuel oil in the present
agreement is not expected to be sufficient to change
this long-term trend. In reviewing this situation
in its peril point findings, the various Tariff Com-
mission members, too, concluded that it offered
no valid deterrent to a reduction in the import tax
on petroleum.
The conclusion of the supplementary trade
agreement is recognition by both the United States
and Venezuela of a common interest in the ex-
pansion of trade. Venezuela is one of the largest
markets for a wide range of United States export
products. The United States provides an im-
portant and established market for Venezuelan
oil, this representing, in turn, an essential supple-
ment to domestic United States production. The
United States will also provide a market for other
Venezuelan natural resources, such as iron ore,
which are needed in this country. The agreement,
therefore, will be of economic benefit to both
countries. It is, moreover, of vital security im-
portance in view of the strategic nature of some
of the products included within its terms.
Harry S. Truman
The White House,
August 29, 1952
Sepfemfaer J 5, J 952
403
U.S., U.K., and France Propose Conference on Austrian Treaty
Press release 701 dated September 5
The United States on September 5 again demon-
strated its eagerness to fidfill the promise of the
Moscow Declaration of November 1, 19Ji3, to re-
store to Austna her full freedom and independ-
ence. The latest proposal was m,ade in a note
delivered to the Soviet Ministry of Foreign Af-
fairs bg the American Embassy at Moscow. Simi-
lar notes toere delivered by the British and French
Emhassies.
After 258 fruitless meetings on a 59-article draft
treaty {the Soviet Deputy did not appear at what
would have been the 259th session called for Lon-
don in January of this year), the Western Powers
proposed on March 13 a simple 8-article insti-u-
ment to terminate the prolonged occupation of
Austria}
The Soviet Union replied to this proposal after
5 months and two reminders. In their reply ^ they
objected to the new proposal saying that it failed
to include certain points which they deemed essen-
tial to '■'■the reestablishment of a free, independent
and democratic Austria.''''
In their latest notes the Western Powers an-
nounce their acceptance of the Soviet suggestions
by adding four previously agreed articles to the
proposal of March 13 and invite the U.S.S.R. to
a Deputies meeting in London September 29 to
initial the short-form inMrmnent as amended to
meet the Soviet objections.
TEXT OF U.S. NOTE OF SEPTEMBER 5
The Govenunent of the United States is pleased
to receive the reply of the Soviet Government to
its note of Mai-ch 13, 1952 proposing to the Soviet
Government a simple instrument which will give
Austria full independence.
The Soviet Government's recent reply suggests
the withdrawal of the proposal made on March
13, 1952. This suggestion is based on four objec-
tions, namely, that it fails to provide for free
' BtJixETiN of Mar. 24, 19.'i2, p. 448.
' Ihiil., Sept. 1, 1952, p. .321.
elections as specified in Article 8 of the long draft
of the State Treaty, that it fails to guarantee
human rights and basic freedoms as specified in
Article 7 of the long draft, that it fails to elimi-
nate Nazism as specified in Article 9 of the long
draft, and that it fails to provide for Austrian
Armed Forces.
With reference to the first three of these points,
it is the view of the Government of the United
States that none of these provisions specified in
the note of the Soviet Government are required
in a simple instrument designed to terminate the
prolonged occupation and to re-establish the inde-
pendence of Austria. These points are all covered
in the Austrian Constitution or in Austrian legis-
lation now in force. Nonetheless, appreciating the
careful consideration given by the U.S.S.R during
these past five months to the proposal of March
13, 1952, and anxious, as it has been since the
Moscow Declaration of 1913, to restore to Austria
full independence, the Government of the United
States therefore proposes that there be added to
its proposal of March 13, 1952 articles 7, 8, and
9 of the long draft as previously agreed upon by
the four powers.
With reference to the Soviet Government's ob-
jections to the proposal of March 13, 1952 in that
it passes over the right of Austria to have its own
national armed forces necessary for the defense
of the country, the Government of the United
States considers that the right to maintain armed
forces belongs inherently to a free and independent
nation and should not have to be specifically
granted to a nation never considered to have been
an enemy. The Soviet Government, however, im-
plies by its reference to the long draft of the State
Treaty that it wishes to place limitations upon
Austria's right to liave national armed forces for
its self-defense. While seeing no necessity thus to
limit Austrian sovereign rights, the United States
Government, in order to reacli early agreement and
to terminate the occupation, would accept, al-
though reluctantly, the addition of Article 17 of
the long draft to its proposal of March 13, 1952.
The Government of the United States therefore
believes that the way is now clear for the conclusion
of an Austrian settlement as it is prepared to
404
Department of State Bulletin
accept the Soviet suggestions regarding the only
points of objection to the proposal of March I'd,
1952. The Government of the United States is
accordingly prepared for a meeting of the Dep-
uties with the object of initialling the proposal
of Marcli 13, 1952, amended as above in accord-
ance with the suggestions outlined in the Soviet
Government's note. Since the United States Dep-
uty will be in the chair at the forthcoming
meeting, he has requested the Secretary General
to issue invitations for a meeting of the four
Deputies in London on September 29, 1952.
ADDITIONAL ARTICLES FOR AUSTRIAN TREATY
Following is the complete text of articles 7, 5,
9, and 17 of the old draft treaty with Austria
which the United States, United Kingdom, and
France have agreed to add to their short-form
treaty proposal of March 13:
Article 7
Human Rights
1. Austria shall take all rueasui'es necessary to secure
to all persons under Austrian jurisdiction, without dis-
tinction as to race, sex, language or religion, the enjoyment
of human rights and of the fundamental freedoms, in-
cluding freedom of expression, of press and publication,
of religious worship, of political opinion and of public
meeting.
2. Austria further undertakes that the laws in force
in Austria shall not, either in their content or in their
application, discriminate or entail any discrimination
between persons of Austrian nationality on the ground
of their r:ice, sex, language or religion, whether in ref-
erence to their persons, property, business, professional
or financial interests, status, political or civil rights or
any other matter.
Article 8
Democratic Institutions
Austria shall have a democratic government based on
elections by secret ballot and shall guarantee to all citi-
zens free, equal and universal suffrage and the right to
be elected to public office without discrimination as to
race, sex, language, religion or political opinion.
Article 9
Disso'vtion of Naxi Organizations
Austria shall complete the measures, already begun by
the enactment of appropriate legislation approved by the
Allied Conunission for Austria, to destroy the National
Socialist Party and its affiliated and supervised organ-
izations, including political, military and para-military
organizations, on Austrian territory. Austria shall also
continue the efforts to eliminate from Austiian political,
economic and cultural life all traces of Nazism, to ensure
that the above-mentioned organizations are not revived
in any form, and to prevent all Nazi and militarist ac-
tivity and propaganda in Austria.
Article 17
Limitation of Austrian Armed Forces
1. The maintenance of land and air armaments and
fortifications shall be closely restricted to meeting tasks
of an intei-nal character and local defense of frontiers.
In accordance with the foregoing Austria is authorized
to have armed forces consisting of not more than :
(a) A land army, including frontier guards, anti-air-
craft troops, gendarmerie and river gendarmerie with
a total strength of 53,000 ;
(6) An air force of 90 aircraft including reserves, of
which not more than 70 may be combat types of aircraft,
with a total personnel strength of ,5,000. Austria shall
not possess aircraft designed primarily as bombers with
internal bomb carrying facilities;
(c) These strengths shall in each case include combat,
service and overhead personnel.
2. Austria undertakes not to reestablish any military
installations or fortifications which were destroyed in
accordance with the instructions of the Allied Commission
for Austria.
3. The number and size of aerodromes should corre-
spond strictly to the tasks of the Austrian air force and
to the requirements of civil aviation in Austria.
Death of Count Sforza
Statement hy Secretary Acheson
Press release 697 dated September 4
It is with deep regret that I learn of the death
of Count Carlo Sforza, a great statesman and a
distinguished scholar, who served not only his
country but Europe and the world in his long
career as a diplomat and Minister for Foreign
Affairs and who staunchly supported throughout
his lifetime the principles of freedom and justice
for which he worked untiringly. The last years
of his life saw him working with unflagging en-
ergy for the good of his country and for the
unification of the free peoples of Europe. He will
be sorely missed by all who have had the privilege
of working with him as I have, as well as by those
everywhere who believe in the principles for which
he fought.
Clarification of Joint U.S.-U.K.
Message to Iran
Press Conference Statement hy Secretary Acheson
Press release 690 dated September 3
The joint message and proposals from President
Truman and Prime Minister Churchill to Prime
Minister Mossadegh on the oil situation ' were, we
believe, fair and reasonable and had no strings
attached. It may be useful to clarify certain
points which have been raised in the press.
There has-been question raised regarding Brit-
ish recognition of the nationalization of the oil
industry in Iran. The joint United States-
United Kingdom proposals to Mr. Mossadegh ac-
cept the nationalization of the oil industry in Iran
as a fact and propose a forum for the determina-
tion of compensation.
Another question concerns the part which the
Anglo-Iianian Oil Comjjany (Aioc) is to play in
' Bulletin of Sept. 8, 1952, p. 360.
September 15, 1952
405
making arrangements for tlie flow of Iranian oil
to world markets. In this connection I refer to
tlie Nine-Point law implementing the national-
ization of tlie Iranian oil industry. Article 7 of
this law provides that purchasers of Iranian oil
products during the 2 years immediately preced-
ing the nationalization of the oil industry shall
receive certain priority rights of purchase. The
Aioc, as the principal former customer, would
seem, therefore, to be the logical entity to open
such negotiations with the Iranians. The joint
message does not propose that the Aioc should
be the sole purchaser of Iranian oil.
It is recognized that there must be a fair settle-
ment of the claims and counterclaims arising from
the nationalization of the oil industry in Iran.
The Iranian Nine-Point Nationalization law ac-
cepts this principle in article 2 wliich takes cog-
nizance of the fact that funds should be set aside
"to secure" such claims.
"\^niat we are proposing is that the International
Court of Justice, as an impartial body, be asked
to consider all claims of both parties. We believe
that this proposal should be acceptable to the
Iranians, especially in view of the recent decision
of the International Court of Justice ^ which was
favorable to Iran.
There has been some question regarding the
U.S. offer of a grant of 10 million dollars. I
would like to point out that the purpose of this
grant would be to provide Iran witli funds for a
short term to assist that nation financially until
flow of Iranian oil to world markets could be
resumed. The availability of oil revenue should
not be long delayed in view of the proposal for
the early sale of the oil already stored in Iran.
The figure of 10 million dollars was based on such
information as we had of current Iranian budg-
etarj' deficits.
I sincerely believe that the proposals meet the
outstanding issues in the oil dispute and deserve
careful consideration as a basis for negotiations
to end the unhappy dispute between two good
friends of the United States.
Developments in Egypt
Press Conference Statement by Secretary Ackeson
Press release 688 dated September 3
There have been some encouraging develop-
ments in Egypt since we last met together, includ-
ing tlie reform program amiounced by the
Egyptian Government. We are following events
witli mucli interest and we wish Prime Minister
Ali Maher and his civilian and military colleagues
every success in their efforts to solve the internal
problems of their country.
' U.N. doe. S/2746.
Relations between the United States and Egypt
remain most friendly and cooperative. I am hope-
ful that in the interest of our two countries these
relations, as well as those between Egypt and all
tlie nations of the free world, will be increased
and strengthened. We look forward to an era in
which new areas of cooperation and mutual bene-
fit can be brought into being.
The Mecca Airlift
Press Conference Statement by Secretary Acheson
Press release 689 dated September 3
The successful and speedy action in setting into
motion tlie airlift wliich jjermitted pilgrims to
reach Mecca who might otherwise not have been
able to do so wa-s, in large measure, due to the
close cooperation and coordination between the
Departments of State and Air Force.
Tliis is illustrated by the events which led up to
the airlift. On August 21, Harold B. Minor, U.S.
Minister to Lebanon, was approached by the Leba-
nese Government. Mr. Minor immediately sent
in a strong recommendation that the United States
do the "impossible" by assisting in the problem of
getting worshippers to Mecca in time for the
annual pilgi-image.
On receipt of the night-action priority cable
from Mr. Minor, the Department answered with a
night-action priority cable requesting specific in-
formation regarding numbers of pilgrims, finan-
cial problems involved, and mechanical details,
such as landing rights, security clearances, health
certificates, visas, etc. On receipt of answers to
these questions, the following afternoon. Assist-
ant Secretary Byroade ^ telephoned Secretary of
the Air Force Finletter, and arrangements for the
airlift were set in motion. By 5 : 45 p. m. on
August 22, Mats [Military Air Transport Serv-
ice] had been instructed to provide available
transportation from Andrews Field at Tripoli in
Libya.
Successful implementation of the Mecca Airlift
required the closest cooperation between Brig. Gen.
Wentworth Goss of the Air Force, who directed
operation "Pilgrim," and Minister Minor and their
staffs.
Mr. Bruce,- with my hearty endorsement, has
congratulated the Embassy at Beirut for its out-
standing woi'k and has sent a letter of commenda-
tion for the work of the Air Force to Secretary
Lovett.
" Henry A. Byroade, Assistant Secretary for Near East-
ern, South Asian and African Affairs.
^ David Bruce, Under Secretary.
406
Department of %iate Bulletin
Commission on Immigration and Naturalization Established
STATEMENT BY THE PRESIDENT
White House press release dated September 4
I have today established a special Commission on
Immigration and Naturalization to study and
evaluate the immigration and naturalization
policies of the United States.
Our immigration and naturalization policies
are of major importance to our own security and to
the defense of the free world. Immediately after
the war ended, we recognized the plight of the
displaced persons; we acted to cooperate with
other nations and to admit a share of these victims
of war and tyranny into our own country. The
displaced-persons program has now been success-
fully concluded, but the free world faces equally
grave and equally heart-rending problems in the
continual stream of refugees and escapees from the
Iron Curtain countries into Western Europe.
These people add to the pressures of overpopula-
tion in certain countries. Overseas migration
from Europe has been dammed up by years of war
and international economic disorder. Wliile we
have joined with other nations to meet such prob-
lems as these, our own immigration laws, based on
conditions and assumptions that have long ceased
to exist, present serious obstacles to reaching a
satisfactory solution.
Humanitarian considerations, as well as the
national interest, require that we reassess our im-
migration policies in the light of these facts. The
United States must remain true to its great tradi-
tions and have an immigration policy that
strengthens our Nation at home and furthers our
world leadership.
The Eighty-second Congress devoted much time
and effort to this problem, but the bill which it
passed was so defective in many important pro-
visions that I could not give it my approval. In
my veto message,^ I expressed the hope that the
Congress would agree to a careful reexamination
of the entire matter. I suggested that the Con-
gress create a representative commission of out-
standing Americans to make a study of the basic
assumptions of our immigration policy, the quota
■ Bulletin of July 14, 1952, p. 78.
system and all that goes into it, the effect of our
immigration and nationality laws, and the ways
in which they can be brought into line with our
national ideals and our foreign policy. The Con-
gress did not act upon these suggestions.
I do not believe that the matter should remain
where the Congress left it. The problems of im-
migration policy grow more pressing, and the in-
equities fostered by the new law require careful
examination. I am, therefore, appointing this
Commission in the belief that its recommendations
will enable the next Congress to consider the sub-
ject promptly and intelligently. This Commis-
sion will have the benefit of nuich information
already drawn together in the field of immigra-
tion, including that developed by the committees
of Congress in their long study of the problem.
It should therefore be in a position to complete its
study before the reconvening of the next Congress.
I have directed the Commission to give particu-
lar consideration to :
(a) The requirements and administration of our
immigration laws with respect to the admission,
naturalization, and denaturalization of aliens, and
their exclusion and deportation;
(b) The admission of immigrants into this
country in the light of our present and prospective
economic and social conditions and of other perti-
nent considerations ; and
(c) The effect of our immigration laws and
their administration, including the national-ori-
gin quota system, on the conduct of the foreign
policies of the United States and the need for
authority to meet emergency conditions such as the
present overpopulation of parts of Western Eu-
rope and the serious refugee and escapee prob-
lems in such areas.
The members of the Commission are as follows :
Philip B. Perlinan of Maryland, Chah-man
(Former Solicitor General of the United States;
former City Solicitor of Baltimore, Secretary of the
State of Maryland, Assistant Attorney General of
Maryland)
Earl G. Harrison of Pennsylvania, Vice Chairman
(Attorney, former U.S. Commissioner of Immigra-
tion and Naturalization ; and former Dean of the
Law School of the University of Pennsylvania)
September 15, 1952
407
Monsignor John O'Grady of Washington, D.C.
(Secretary, National Conference of Catholic
Charities)
Rev. Thaddeus P. GuUixson of Minnesota
(President, Lutheran Theological Seminary of St.
Paul, Minn. ; Chairman, Minnesota State Displaced
Persons Commission)
Clarence E. Pickett of Pennsylvania
(Honorary Secretary, American Friends Service
Committee)
Adrian S. Fisher of Tennessee
(Legal Adviser to Department of State; former
General Counsel of Atomic Energy Commission and
Solicitor of the Department of Commerce)
Thomas C. Finucane of Maryland
(Chairman, Board of Immigration Appeals, Depart-
ment of Justice)
9 of the Act of March 4, 1909, .35 Stat. 1027 (31 U.S.C.
673), and (c) such other laws as the President may
hereafter specify. The raemhers of the Commission shall
receive such compensation and expense allowances, pay-
able out of the said allotment, as the President shall
hereafter fix, except that no compensation shall lie so fixed
with respect to any person while receiving other com-
pensation from the United States.
Sec. 6. The Commission shall make a final written re-
port to the President not later than January 1, 1953,
including its recommendations for legislative, adminis-
trative or other action. The Commission may also make
such earlier reports to the President as it may deem
appropriate. The Commission shall cease to exist 30
days after rendition of its final report to the President.
Hakrt S. Truman
The White House,
September 4, 1952.
EXECUTIVE ORDER 10392 2
By virtue of the authority vested in me as President of
the United States, it is hereby ordered as follows:
Sec. 1. There is hereby established in the Executive
Oflice of the President a commission to be known as the
President's Commission on Immigration and Naturaliza-
tion, which shall be composed of a Chairman, a Vice
Chairman, and five other members, all of whom shall be
designated by the President.
See. 2. The Commission is authorized and directed to
make a survey and evaluation of the immigration and
naturalization policies of the United States, and shall
make recommendations to the President for such legisla-
tive, administrative, or other action as In its opinion
may be desirable in the interest of the economy, security,
and responsibilities of this country. The Commission
shall give particular consideration to:
(a) the requirements and administration of our immi-
gration laws with respect to the admission, natural-
ization denaturalization of aliens, and their
exclusion and deportation;
(b) the admission of immigrants into this country in
the light of our present and prospective economic
and social conditions and of other pertinent
considerations ; and
(c) the effect of our immigration laws and their ad-
ministration, including the national origin quota
system, on the conduct of the foreign policies of
the United States, and the need for authority to
meet emergency conditions such as the present
overpopulation of parts of Western Europe and
the serious refugee and escapee problems in such
areas.
See. 3. In performing its functions under this order,
the Commission may pre.scribe such rules of procedure,
and may hold such public hearings and hear such wit-
nesses as it may deem appropriate.
Sec. 4. All executive departments and agencies of the
Federal Government are authorized and directed to co-
operate with the Commission in its work and to furnish
the Commi.=:sion such assistance, not inconsistent with
law, as it may require in the performance of Its functions.
Sec. 5. The expenditures of the Conmiission shall be
paid out of an allotment made by the President from the
appropriation entitled "Emergency Fund for the Presi-
dent— National Defense" in Title I of the Independent
Offices Appropriation Act, 19.'')3 (Public Law 4.">5, 82nd
Congress), approved July 5, 19.52. Such payments shall
be made without regard to the provisions of (</) section
3681 of the Revised Statutes (31 U.S.C. 672), (h) section
'17 Fed. Reg. 8061.
Board of Clemency for
Japanese War Criminals
Press release 696 dated September 4
President Truman on September 4, 1952, estab-
lislied a Board of Clemency and Parole for War
Criminals to recommend to him the appropriate
U.S. decisions on recommendations of the Japa-
nese Government for clemency or parole for Japa-
nese war criminals imprisoned in Japan.
Under article 11 of the peace treaty with Japan,
it is provided that Japan accepts the judg-
ments of the International Military Tribunal for
the Far East and of other Allied war crimes
courts and will carry out the sentences imposed
by these courts upon Japanese nationals im-
prisoned in Japan. The Allied war crimes courts
referred to include the courts set up by U.S. mili-
tary commanders in the Far East. Under the
terms of the treaty, the power to grant clemency,
to reduce sentences, and to parole, with respect to
the war criminals convicted by these courts, may
not be exercised, except on the decision of the
government which imposed the sentence. Hence a
decision of the U.S. Government must be made
on each recommendation of the Japanese Govern-
ment for clemency or parole for a war criminal
sentenced by a U.S. court.
The Board appointed by the President will also
recommend the appropriate U.S. decision on Japa-
nese recommendations for clemency and parole
with respect to Japane.se war criminals convicted
by the International Military Tribunal for the
Far East. In the case of these major war crimi-
nals, however, the ultimate decision will be made
not by the United States alone but by a majority
of the governments represented on the tribunal,
which includes the United States.
It is considered of the greatest importance that
these decisions be made on a judicial rather than
408
Department of State Bulletin
on a political basis. To insure that each decision
will be in accordance with law and justice and will
rest on accepted principles of clemency and parole,
the President will appoint three high-level offi-
cers— one from the Department of State, with
knowledge of international law and treaty; one
from the Department of Defense, with knowledge
of the military court and the law and customs of
war; and one from the Department of Justice,
trained in the principles of sound penal practice.
Tlie President's decision to appoint the Board
of Clemency and Parole will enable the United
States to establish a procedure for the handling
of a number of recommendations made by the
Japanese Government for the parole of individual
Japanese war criminals. Of these, 429 out of a
total of 819 imprisoned in Japan were sentenced
by U.S. war crimes courts. The Japanese Gov-
ernment has recently indicated to the Department
of State its desire that action be taken to estab-
lish parole procedures for these war criminals,
similar to procedures in effect under the Supreme
Commander for the Allied Powers when those
prisoners who had served one-third of their sen-
tences became eligible for parole. The purpose
of the newly established Board is to handle the
parole recommendations of the Japanese Govern-
ment expeditiously and fairly, through careful
review of each case.
Following is the text of the executive order
establishing the Board : ^
ESTABLISHMENT OF THE CLEMENCY AND
PAROLE BOARD FOR WAR CRIMINALS
By virtue of the autbority vested in me by tbe Constitu-
tion and the Statutes, and as President of the United
States and as Commander in Chief of the Armed Forces
of tbe United States, it is ordered as follows :
1. There is hereby established a Clemency and Parole
Board for War Criminals (hereinafter referred to as tbe
Board). The Board shall consist ol three menihers, ap-
pointed by the President, one of whom shall be designated
from tbe Department of State, one from the Department
of Defense, and one from the Department of Justice.
Each member shall designate an officer or employee of his
department as an alternate member of the Board, who
while participating as a member of the Board shall have
the same status and functions as the memlier designating
him.
2. The Board shall make the necessary investigations
in, and advise the President with respect to, those cases
in which a decision of the Government of the United States
is required on recommendation by the Government of
.Japan for clemency, reduction of sentence, or parole, with
respect to sentences imposed on .Japanese war criminals
by tribunals established by the Government of the United
States or by the International Military Tribunal for tbe
Far E:ist. In making its investigations, the Board may
examine witnesses and take testimony to the extent
deemed necessary or advisable.
3. The Board shall determine its own procedure and
shall act liy majority vote. The member designated from
the Department of State, or his alternate, shall serve as
Chairman. The Board may prescribe rules and regula-
" No. 10393, 17 Fed. Reg. 8061.
September 15, 1952
tions deemed necessary or desirable for carrying out the
purposes of this Order.
4 Consonant with law, including section 214 of the Act
of May 3, 1045, 5U Stat. 134 (31 U.S.C. 691), each member
and alternate member of the Board shall receive from the
department from which he is designated his compensation
as an officer or employee of that department but shall
receive no additional compensation by reason of service
as a member or alternate member of tbe Board, and the
Department of State shall furnish tbe Board necessary
accommodations and facilities. So much of the other
expenditures of the Board (including such travel expenses
of, and other expense allowances for. members and alter-
nate members of tbe Board as tbe President shall here-
after fix) as may be within the limits of an allotment to
be made by the President from the appropriation entitled
"Emergency Fund for the President — National Defense"
in Title I of the Independent Offices Appropriation Act,
19.13 (Public Law 45.5, 82nd Congress, approved July 5,
1952), shall be paid from the said allotment. Payments
from such allotment shall be made without regard to
provisions of (a) section 3081 of the Revised Statutes
(31 U.S.C. 672), (b) section 9 of the Act of March 4,
1909, 35 Stat. 1027 (31 U.S.C. 673), and (c) such other
laws as tbe President may hereafter specify.
Haery S. Teuman
The White House,
September 4, 1952.
New System for Transshipment
of Strategic Goods
The new system for preventing the transship-
ment of strategic goods, developed and put into
partial operation earlier this year in cooperation
with 10 Western European countries, will go into
full effect on October 20, 1952, the Office of Inter-
national Trade (Oit), U.S. Department of Com-
merce, announced on September 2.
The nations cooperating with the United States
in carrying out the new system, known as the
import certification-delivery verification (Icdv)
procedure, are Belgium, Denmark, France, Italy,
Luxembourg, the Netherlands, Norway, Portugal,
the United Kingdom, and Western Germany.
Temporarily, Oit has been permitting U.S. ex-
)-)orters to follow either the Icdv procedure or the
"ultimate consignee statement" procedure, to give
both the exporters and their foreign customers
sufficient time to prepare for the change-over.
Under the Icdv procedure, the foreign importer
certifies to his government that U.S. strategic
goods will not be re-exported without official au-
thorization. Under the ultimate consignee state-
ment procedure, the importer states to the U.S.
exporter that the goods will be used in his coun-
try, and he does not make an official certification
to his government.
Oit now believes it is feasible to require full
compliance with the Icdv procedure and to obtain
the added protection it affords against transship-
ment of strategic goods.
When the Icdv procedure goes into effect in
October, it will be mandatory for U.S. exporters
to obtain "import certificates" from their custom-
409
ers in the cooperating Western European coun-
tries if they wish to send them certain strategic
goods. The original of tlie import certificate, wit-
nessed by the foreign customers government, must
be sent to Orr by the U.S. exporter when he ap-
plies for a license to export the goods.
The commodities to which this procedure ap-
jilies are identified by the letter "A" in Oit's
"Positive List" of commodities under export con-
trol. OiT pomted out, however, that no import
certificate is required in connection with export
license applications covering less than 500 dollars'
worth of such goods.
The import certificate will be accepted by Oit
whether it is issued in the name of the foreign
])urc]iaser, ultimate consignee, or his agent, pro-
vided the person is named also on the U.S. ex-
porter's license application. Previously, Oit
accepted only import certificates issued to the ulti-
mate consignee or end-user.
Oit emphasized that photocopies of import
licenses or permits may not be submitted in lieu
of import certificates. Import licenses and per-
mits are currency control documents, while "im-
port certificates" are designed to prevent unau-
thorized transshipment.
Exporters may request exceptions to the Icdv
procedure if their foreign importers are unable to
obtain the required import certificates, but Oit
will consider granting such requests only if an
exception would not be detrimental to the U.S.
export control program. Export license appli-
cants who request exceptions are required to sub-
mit, in lieu of an import certificate, the regular
ultimate consignee statement, signed by the foreign
customer, declaring the destination and end-use of
the goods.
Other changes, designed to assure proper ad-
ministration, are being made in the Icdv proce-
dure, to provide for the return of unused or
partially used import certificates to foreign
importers.^
Current Legislation on Foreign Policy
International Convention for the High Seas Fisheries of
the North Pacific Ocean With a Protocol Relating
Thereto. Message From the President of the United
States Transmitting an International Convention for
the High Seas Fisheries of the North Pacific Ocean,
Together With a Protocol Relating Thereto Signed
at Tokyo, May 9, 1002, on Behalf of the United States,
Canada, .Japan. S. exec. S, S2d Cong., 2d sess. 1.5 pp
Approving the Constitution of the Commonwealth of
Puerto Rico. S. rept. 1720, 82d Cong., 2d sess [To
accompany S. J. Kes. 151 ] 30 pp.
' The regulation setting forth the Icdv procedure as
revised, will he published in Oit's Current Export Bul-
Ictin, no. 678.
410
Authorizing the Loan of Two Submarines to the Govern-
ment of the Netherlands. S. rept. 1751, 82d Cong., 2d
sess. [To accompany S. 3337] 3 pp.
An Act To amend section 32 (a) (2) of the Trading With
the Enemy Act. Pub. Law 378, 82d Cong., Chapter
372, 2d sess., S. 302. 1 p.
An Act To provide that the additional tax imposed by
section 2470 (a) (2) of the Internal Revenue Code
shall not apply in respect of coconut oil produced in,
or produced from materials grown in, the Territory
of the Pacific Islands. Pub. Law 391, S2d Cong.,
Chapter 420, 2d sess., H. R. 71S8. 1 p.
Annual Report of the Governor of the Panama Canal for
the Fi.scal Year 1951. H. doc. 290, 82d Cong., 2d
sess. 142 pp.
Emergency Powers Continuation Act. S. rept. 1744, 82d
Cong., 2d sess. [To accompany S. J. Res. 165] 46 pp.
Requesting the Secretary of the .\rmy To Furnish to the
House of Representatives Full and Complete Infor-
mation With Respect to Insurgency in Prisoner-of-
War Camps in Korea and Communist-Inspired Dis-
turbances of the Peace in Japan. H. rept. 2128, 82d
Cong., 2d sess. [To accompany H. Res. 661] 13 pp.
Claim of the Cuban-American Sugar Co. Against the
United States — Veto Message. Message From the
President of the United States Returning Without
Approval the Bill (S. 2696) Entitled "An Act Con-
ferring Jurisdiction Upon the Court of Claims of the
United States To Consider and Render Judgment on
the Claim of the Cuban-American Sugar Company
Against the United States." S. doc. 158, 82d Cong.,
2d sess. 4 pp.
Institute of Pacific Relations. Hearings Before the Sub-
committee To Investigate the Administration of the
Internal Security Act and Other Internal Security
Laws of the Committee on the Judiciary, United
States Senate, Eighty-Second Congress, Second Ses-
sion on the Institute of Pacific Relations. Part 8
January 29, February 0, 8, 11, 12. 14, 15, 18, 19. 20, and
21, 19.52. Committee print. 421 pp.; Part 9, Febru-
ary 26, 27. 28, 20, March 1, and 3, 1952. Committee
print. 378 pp, ; Part 10, March 4, 5, 6, 7, 10, 14, and 21,
19.52. Committee print. 437 pp.
Thirty-Third Report to Congress on Lend-Lease Opera-
tions. Message From the President of the United
States Transmitting the Thirty-Third Report to Con-
gress on Lend-Lease Operations, for the Period End-
ing December 31, 19.51. H. doc. 465, 82d Cong., 2d
sess. 51 iip.
Summary of the Legislative Record Eighty-Second Con-
gress. Statement by the Hon. Ernest W. McFarland,
U.S. Senator from Arizona. A. Digest of Major Leg-
islation, Second Session (From January 8, 19.52, to
July 7, 19.52) ; B. Digest of Major Legislation, First
Session (From January 3, 1951, to October 20, 1951).
S. doc. 165, S2d Cong., 2d sess. 155 pp.
Commercial Treaties. Hearing Before a Subcommittee of
the Committee on Foreign Relations, United States
Senate, Eighty-Second Congress, Second Session, on
Treaties of Friendship, Commerce, and Navigation
Between the United States and Colombia, Israel,
Ethiopia, Italy, Denmark, and Greece. Executives
M and R, Eighty-Second Congress, First Session, and
Executives F, H, I, and J. Eighty-Second Congress,
Second Session. Committee print. 42 pp.
The Midyear Economic Report of the President Trans-
mitted to the Congress July 1952 Together With a
Report to the President, The Midyear 1952 Economic
Review by the Council of Economic Advisers. H. doc
489. 82d Cong., 2d sess. 188 pp.
Methods of Communist Infiltration in the United States
Government. Hearing Before the Committee on Un-
American Activities, House of Representatives,
Eighty-Second Congress, Second Session, May 6; June
10 and 23, 1952. Conunittee print. 107 pp.
Department of State Bulletin
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
U.S. Reaffirms Support of U.N. Collective Security System
Statement hy Ambassador Warren R. Austin
V. S. Representative to the United Nations
D.S./U.N. press release dated August 29
As the representative of the United States to
the United Nations, I have transmitted my Gov-
ernment's response to the Collective Measures
Committee's letter of June 2i, 1952.^ _ Our re-
sponse reaffirms U.S. support of the objective of
strengthening the U.N. collective security system.
We are convinced that the United Nations must
have at its disposal the means to maintain inter-
national peace. Those means will be made avail-
able only if countries believe in collective security
and are willing and prepared to contribute to col-
lective action in accordance with the U.N. Charter.
As my Government in its response points out, the
development of collective security through the
United Nations is a cooperative enterprise extend-
ing over the years and requiring the support of
the international community. It cannot be built
in a day but must be developed progressively and
vigorously.
The United States has devoted itself to this
great task by joining with many other countries in
strength-building programs designed to support
and reinforce the U.N. capacities to maintain in-
ternational peace and security. Our letter to the
Collective Measures Committee points out that we
are contributing to U.N. action to repel aggression
and to restore peace in Korea. We intend to help
the United Nations see the job through in Korea
because success there will be a powerful stimulant
to greater progress in building an effective U.N.
security system. Korea proves our will to work
and if' necessary to fight for peace. Those who
made the tragic miscalculation in Korea should
not forget the terrible price they have already paid
' CMC 4/.52.
Sepf ember 15, 1952
for underestimating the determination of free
peoples. .
Our letter points out that we are also making
significant contributions to the North Atlantic
Treaty Organization in order to buttress, within
an important area, the U.N. capacities for main-
taining international peace and security.
These and our other efforts are encouraging first
steps in the direction of a collective security sys-
tem aimed to protect all nations from aggression.
Difficulties confront this great project, yet we have
the faith and courage to persevere and to achieve
the structure of security. I am confident that we,
joined with other free peoples, will succeed in
establishing effective collective measures for the
suppression and prevention of aggression.
Text of U.S. Response
The Eepresentative of the United States to the
United Nations presents his compliments to the
Secretary-General of the United Nations and has
the honor to refer to the Acting Secretary-Gen-
eral's communication of June 24, 1952, transmitted
on behalf of the Collective Measures Committee.
Reference was made in this communication to the
provisions of the General Assembly Resolution
503A (VI) of January 12, 1952 - containing recom-
mendations to Member States that they take cer-
tain national action to increase their general
capacity to participate in United Nations collec-
tive measures.
There is enclosed a memorandum constituting
the response of the United States to the request of
the Collective Measures Committee for the views
^Resolutions adopted hy the General Asscmhhj during
its Sixth Session, 6 Novemher 1951 to 5 February 1952, p. 3.
411
of Member States on the questions raised in the
Acting Secretary General's communication.
[Enclosure]
UNITED STATE?; RESPONSE
TO THE COLLECTIVE MEASURES COMMITTEE
LETTER
REOARDINO IMPLEMENTATION
OF GENERAL ASSEMBLY RESOLUTION 503A (VI)
1. Gcnrral Oh.fervations
The United States was one of the sponsors of the Uniting
for Peace Kesolution (377A (V) ) adopted by the General
Assembly on November 3, 1950 and of the related resolu-
tion (503A (VI) ). It is also a member of the Collective
Measures Committee and participated in the preparation
of the first report of that Committee. Accordingly, the
United States desires in every way possible to further the
recommendations contained in these resolutions which
are designed to carry out the purposes and principles of
the United Nations Charter. The resolutions deal specifi-
cally with collective security and seek the fuUillment of
the purpose contained in Article 1, "to maintain interna-
tional peace and security, and to that end: to take effec-
tive collective measures for the prevention and removal
of threats to the peace, or for the suppression of acts of
ajTsression or other breaches of the peace. . . ."
The policy of the United States in this field has recently
been expressed by the President in his report to the Con-
gress on United States participation in the United Na-
tions. The President .said : "We are working to strengthen
the United Nations by building up a security system in
accordance with the purpo.ses of the Charter that will
protect the community of nations against aggression from
any source".
In addition to providing the Collective Measures Com-
mittee with information regarding the recommendations
of General Assembly resolution 50.3A (VI), tlie United
States wishes to take this opportunity to reaffirm its
appreciation of the responsibilities entailed in building
a stronger United Nations collective security system.
The development of collective security througii the
United Nations is a cooperative enterprise extending over
the years and requiring the support of the international
community.
2. Maintenance of Forces for United Nations Service
With respect to the recommendation contained in
operative paragraph 2 of General Assembly resolution
503A (VI). the United States refers to its letter of .Tune 8,
19,51 in which it informed the Collective Measures Com-
mittee of the measures taken by the United States in
implementation of paragraph 8 of the Uniting for Peace
resolution. This letter pointed out that the elements of
the national armed forces of the United States serving
under the Unified Command in Korea were made avail-
able in fulflllnient of the purposes of the recommenda-
tions of the General Assembly in the Uniting for Peace
resolution. The letter stated that after termination of
hostilities in Korea, the United States would review the
extent to which it will maintain armed forces which
could be made available for United Nations service in
accordance with that recommendation. Forces of the
United States are continuing their operations i>n behalf
of the United Nations in Korea. Accordingly, the United
States reafl^rms its intention to review the situation
after termination of the hostilities in Korea and after
the United States forces there have been withdrawn.
The letter of June 8, 1951 also informed the Committee
that the United States was maintaining elements of its
forces in Europe in furtherance of the North Atlantic
Treaty and as a part of the efforts of the parties to the
Treaty for collective defense and for the preservation of
peace and security. The letter pointed out that the
North Atlantic Treaty comes within the framework of the
Charter of the United Nations and that United States
forces maintained in furtherance of the Treaty could In
appr(Pi,Tiate circumstances pursuant to the Treaty and the
412
Charter and in accordance with our constitutional proc-
esses participate in collective military measures to main-
tain or restore peace and security in the North Atlantic
Treaty area in support of United Nations action. The
United States takes this opportunity to reaffirm its state-
ment regarding the maintenance of these forces in Europe
as set forth in the letter of June 8, 1951.
The United States also reaffirms its intention to keep
this subject under constant review in furtherance of the
policy of the United Nations to build up an effective
collective .security program.
3. Assistance and Facilities
In the United Nations collective action opposing ag-
gres.sion in Korea, the United States has furnished and is
furnishing a wide range of assistance and facilities to the
United Nations forces. Such assistance and facilities
include all the types listed in Annex II of the Actin"
Secretary General's letter of June 24. Thev include also
the use by United Nations Members of certain United
States military and naval bases in the Pacific and training
bases and facilities within the continental limits of the
United States. As demonstrated by the foregoing, the
legislative and administrative arrangements of the United
States are such that by appropriate governmental action
in accordance with its constitutional proces.ses this Gov-
ernment can promptly make available assistance and fa-
cilities in appropriate circumstances.
4. Legislative and Administrative Arrangements
The United States has examined its existing legislation
with a view to determining in the light thereof the appro-
priate steps for carrying out promptly and effectively
United Nations collective measures in accordance with
its constitutional processes. The United States has also
examined the list attached as Annex III to the Acting
Secretary-General's letter of June 24 relating to economic
and financial measures against an aggressor which might
be called for by the United Nations.
In respect to the list of economic and financial measures
against an aggressor, the United States has for some
time applied and is at present applying most of these
measures against the aggressors in Korea. The United
States is in a position to participate in the application
of all such economic and financial measures and controls
undertaken by the Security Council or by the General
Assembly.
As indicated in the previous paragraphs, the legislative
and administrative arrangements of the United States
are such that this Government by appropriate govern-
mental action in accordance with its constitutional
processes can participate in United Nations collective
measures in appropriate circumstances.
The United States will continue to keep these ques-
tions under review in furtherance of the policies ex-
pressed in the Uniting for Peace resolution, the Report
of the Collective Measures Committee, and resolution
503A (VI) adopted by the General Assembly on January
12, 1952.
U.S. Opposed to Soviet Proposal
on U.N. Admissions
Statement hy At7ihassador Warren R. Austin'^
The Soviet draft resolution ^ shows clearly on
its face the theory that a certain group of appli-
cants for admission selected by the Soviet Union
should be "simultaneously" recommended for ad-
' Made in the Security Council on Sept. 3 and released
to the press by the U.S. Mission to the U.N. on the same
date. Ambassador Austin is U.S. representative to the
United Nations.
= U.N. doc. S/2664.
Department of State Bulletin
mission. Repeatedly the Soviet representative
has referred to this o;roup as "all the fom-teen
states." Yet as the members of the Security Coun-
cil are aware, there are considerably more than 14
applications before us. • o •
The United States cannot accept this Soviet
draft resolution as in accordance with the Chart^er
and with the first paragraph of rule 60 of the
Security Council's Rules of Procedure. Tlie
United States believes that each applicant for
membership is entitled to separate consideration
of its application tested by the criteria contained
in article 4 of the Charter. There are certain ap-
plicants contained in the Soviet omnibus resolu-
tion which my Government deems are not qualified
for membership. There are others which in the
judgment of my Government have the strongest
claim for membership and which are needed by
the organization. There are still others such as the
Republic of Korea, to mention one example, which
the Soviet Union does not include in the group it
has selected. We are opposed to adoption of a
draft resolution simultaneously recommending
such a group of applicants, some with sound and
some with unsound qualifications for membership.
Specifically, the United States has confidence
that Austria, Ceylon, Finland, Ireland, Italy,
Jordan, Libya, Nepal, and Portugal are fully
qualified and should be admitted to membership.
On the other hand, we have serious objections
based on our considered judgment that the fol-
lowing candidates do not fulfill the conditions
required by article 4 of the Charter: Albania,
Bulgaria, Hungary, Outer Mongolia, and Ruma-
nia. In connection with Outer Mongolia we con-
tinue to see no facts in the record of the Security
Council that would lead us to the conclusion that
Outer Mongolia is a state.
The representative of the Soviet Union has come
forward with some evidence which he thinks bears
on the candidacies of Albania, Bulgaria, Hungary,
and Rumania. There are facts with which we
are prepared to come forward on the question of
the lack of fitness of these candidates for mem-
bership. We are prepared to discuss these, as all
candidacies, separately and on their merits and
have the Council weigh the evidence and reach its
decision accordingly.
With an adequate majority of the present mem-
bers of the United Nations, the United States has
lono- hoped for the admission of Austria, Ceylon,
Finland, Ireland, Italy, Jordan, Libya, Nepal, ancl
Portugal. Thus we have our own opinion, and
we have expressed it, on whether or not each ap-
plicant for membership meets the requirements
of the Charter.
We respect the views of the majority ot the
Security Council and of the General Assembly.
There has been no instance in which a resolution
dealing with the question of membership, or with
any other question, has failed of adoption in the
Security Council because of the negative vote of
September 15, 1952
the United States. In other words, the United
States has never vetoed a draft resolution of the
Security Council. Of course, we have yotec^
against membership applications which we telt did
not measure up to the requirements of the Charter,
but in no instance have these applications received
seven affirmative votes, with a result that the U.b.
vote alone prevented a recommendation by the
Council.
The argument that any negative vote ot a per-
manent member of the Security Council is a ' veto
is simply to play on words. A negative vote be-
comes a Veto only when it thwarts the will ot the
majority. That is what the Soviet Union has
done repeatedly. It has vetoed and thereby
thwarted the majority will on membership 2A
times. To take one example, the application of
Italv, this has been before the Security Council
on five separate occasions. On five separate oc-
casions the Soviet Union has prevented a favor-
able recommendation of Italy by casting a nega-
tive vote In December of 1951, the vote in the
Security Council was 10 in favor, the Soviet
Union opposed.
We deplore this Soviet policy of using its nega-
tive vote in the Security Council to frustrate
action by the Security Council. The Soviet rep-
resentative tells us, in effect, that it is he alone
who determines what is legal and illegal under
the Charter and that the question of membership
can only be settled on his terms. Yesterday he
brandished the veto over the heads of this Council
to try to force the majority to submit to his views.
Tlie United States is willing to have the major-
ity of the Security Council decide these questions.
It desires to have an opportunity to put its view
before this Council, but it does not insist that its
view must prevail. ■. -, . -e
Nor do we threaten the Security Council that it
it does not accept our view no decision is possible.
We do not claim, as our Soviet colleague, that any
and every decision the United States does not sup-
port is "not worth a cent wholesale or retail.
The United States is a member of the United Na-
tions and believes that U.N. organs are competent
to reach decisions in situations where members
differ. We do not feel scorn, hatred, or rage at
others because they disagree with the considered
view of the majority. We ap]-.roach these prob-
lems in the United Nations with a constructive,
not a destructive spirit. We do not use important
matters such as membership merely to vilify the
character of other governments.
At a later stage in our discussion under item C
of the ao-enda I shall have something to say about
the so-called new applications for membership,
and in that connection I shall then speak ot the
U.S. draft resolution in support of Japan's ]ust
claim to sit among us. However, there is one
applicant for membership not included in the list
contained in the Soviet resolution which has a
peculiarly close connection with the United Na-
tions. I refer, of course, to the Republic of Korea,
413
wliere U.N. Forces have been freeing the Republic
of Korea from invasion since June of 1950 in the
face of aggression which is supported by tlie very
state which would exclude it from the United
Nations. The United States will not forget the
just clami of the Republic of Korea for member-
ship in tins organization.
Finally, the United States has no ultimatum
to present to the Security Council such as : solve
the membership question this way or it can never
be solved. Our position, as we have said before,
IS that there is never a last word or a final chapter
in the work of a living organization capable of
growth and changed circumstances. We shall
continue to seek a way by which the states con-
forming to the requirements of the Charter, in
the opinion of the appropriate organs, can be in-
vited to come in and join us.
For these reasons the United States will not
support the Soviet draft resolution.^
Prisoners of War Commission Opens Third Session
MRS. ANDERSON DESIGNATED U.S. REPRE-
SENTATIVE
Press release 661 dated August 25
American Ambassador to Denmark, Eugenie
Anderson, lias been designated by the President
to serve as the U.S. representative at the third
session of the U.N. Ad Hoc Commission on
Prisoners of War, which opened on August 25 at
Geneva.
The Ad Hoc Commission was established by a
resolution of December 14, 1950, of the U.N. Gen-
eral Assembly. It was directed to investigate the
situation of World War II prisoners of war who
are still in custody, and about whom no informa-
tion has been received, and to take whatever steps
may be possible to facilitate their repatriation.
Its members, who were appointed by the Secre-
tary-General of the United Nations, are Chairman
Jose Gustavo Guerrero of EI Salvador, vice
president of the International Court of Justice;
Judge Aung Khine of the High Court, Rangoon,
Burma; and Countess Bernadotte of Sweden.
While the first session of the xUl Hoc Commis-
sion, held at New York from July 30 to August
15, 1951, was closed, 11 governments were invited
to send representatives to the second session, held
at Geneva from January 22 to February 8, 1952, to
collaborate with the Commission. The same 11
governments have been invited to .send representa-
tives to consult with the Commission in connection
with its examination and evaluation of informa-
tion furnished by governments regarding the pris-
oner-of-war problem and of the' further steps to
be taken by the Commission in the light of that
information. The Governments invited are Aus-
tralia, Belgium, France, tiie Federal Republic of
Germany, Italy, Japan, Luxembourg, the Nether-
414
lands, the Union of Soviet Socialist Republics, the
United Kingdom, and the United States.
Donald C. Blaisdell, U.S. representative for In-
ternational Organization Affairs, Geneva, has
been designated deputy U.S. representative to the
third session. Henry B. Cox, Office of German
Public Affairs, has been named adviser to the U.S.
representatives.
Printed helow is the text of a statement made ly
Amhamador Evgenie Anderson following her des-
ignation hy the President to represent the United
States at the third session of the Prisoners of War
Commission:
Press release 666 dated August 25
I have been greatly honored by President Tru-
man's request that I represent the United States
at the third meeting of the United Nations Ad Hoc
Commission on Prisoners of War. The great trag-
edy that necessitates our meeting here to make
yet another attempt to secure the release of hun-
dreds of thousands of prisoners of war still held
7 years after the end of hostilities has moved me
deeply. I feel the impact of this tragedy not only
as an American to wliom freedom and humanitar-
ian treatment for all is as essential as life itself
but also as a person who places the highest value
on family life and who can understand what un-
told liard.ships and sorrows countless families with
missing members are still suffering.
I sincerely hope that the Commission will be
successful in bringing about the release of these
prisoners and obtaining an accounting for all the
missing. When this issue was placed before the
' The Soviet proposal was rejected by the Security Coun-
cil on Sept. 8 by a vote of 5 against, 2 in favor, and 4
ah.stentions.
Department of State Bulletin
United Nations, it was thought that the United
Nations, whose deep and unavoidable responsi-
bility for human rights made it the appropriate
body to undertake this task, could assist in resolv-
ing the controversy. We still have this hope. The
Soviet Union, which is still holding hundreds of
thousands of these prisoners, has a unique oppoi'-
tunity to show that it values human freedom. I
earnestly hope that the Soviet Union will asso-
ciate itself with the task of the Commission and
cooperate with it to bring its work to a successful
conclusion.
OPENING STATEMENT BY MRS. ANDERSON >
I should like first of all to express to the U.N.
Ad Hoc Commission on Prisoners of War the
appreciation of the Government of the United
States for the invitation to participate with other
interested governments in the Commission's third
session here at Geneva. The President of the
United States has honored me by naming me as
the U.S. representative to this conference. On his
behalf and on behalf of the American people, who
lia\e demonstrated an abiding interest in the tragic
problem which brings us here, I can assure you of
our continued support and sympathy.
The significance in human terms of the task
vv'hich faces this Commission — that of determining
tlTj fate of hundreds of thousands of human beings
who have disappeared since the end of World War
II — can hardly be comprehended from the sta-
tistics which have been presented in this and
previous sessions. It is shocking enough to realize
that we are concerned liere with more than a
million German, Japanese, Italian, and other pris-
oners of war, to say nothing of the thousancls of
deported civilians who have also been deprived of
their freedom.
It is even more shocking and tragic, however,
M'hen we translate these statistics into human
ajiguish, grief, and anxiety. The absence of all
these individuals — men, women, and children — has
meant, and means this very day, intense personal
suffering to them and to their next of kin. The
families of these people live from day to day in
the hope of learning whether their loved ones are
dead or alive. The news that a few stragglers are
rer timing sends relatives rushing to the railroad
stations. More often than not their hopes are
dashed when familiar faces fail to appear. Often
they are almost afraid to hope — but they continue
to hope.
Thus, the tragedy of the missing goes far be-
yond their own fate and is multiplied thousands
of times. In many cases news of any kind would
be. welcome — even if such news confirmed the death
'Made before the third session of the U.N. Ad Hoc
Commission on Prisoners of War at Geneva, on Aug. 27
and released to the press (No. 672) on the same date.
of a loved one. For then, the terrible uncertainty
of not knowing would be relieved. But not to
know — herein is perhaps the greatest anguish.
And it is with this tragic experience that we are
attempting to cope in this meeting.
My Government has for many years endeavored
to find a solution to this problem. The history of
our efforts and those of our British, French, and
Australian colleagues is well known to this Com-
mission. Shortly after the cessation of World
War II hostilities, the United States, together
with the Governments of France and the United
Kingdom, began a series of direct negotiations
with the Soviet Union in an attempt to secure the
prompt repatriation of all prisoners of war held
by that country and as complete an accounting as
possible of those who had died in the course of the
war. Our repeated approaches, however, met
with callous rejection and we were unable to elicit
the slightest cooperation from the Soviet Govern-
ment. Having apparently exhausted all possibil-
ities of a solution through direct channels, the
Governments of the United States, the United
Kingdom, and Australia introduced a resolution
in the General Assembly of the United Nations in
the fall of 1950 which resulted in the creation of
this Commission.
At its first session in the summer of 1951, the
Commission decided to invite a number of govern-
ments, most directly concerned with tlie prisoner
of war problem, to send representatives to con-
sult with it at its second session. This session,
which convened at Geneva on January 22 of this
year, was attended by representatives of all the
principal governments concerned, with the notable
exception of the Soviet Union. Prominent among
those in attendance were the representatives of
Japan, Italy, and the Federal Republic of Ger-
many, whose nationals comprise the bulk of the
missing and unaccounted for. Despite the failure
of the Soviet Government to cooperate in the work
of the Commission, the Commission faithfully
went about its task of consulting with the repre-
sentatives present, holding private and public
hearings, and examining and evaluating the great
volume of evidence presented to it.
We have now come to this third session of the
Commission to assist in the furtherance of this
effort to ascertain the facts and seek a speedy solu-
tion to the problem. Again — and I note this with
great regret — the Soviet Union, the one nation
which holds the key to this problem, has failed
to accept the invitation of the Commission to par-
ticipate.
I think it is abundantly clear to all of us that
without the indispensable cooperation of the So-
viet Union, the efforts of this Commission and of
the other interested nations to obtain the repatri-
ation of and accounting for these missing hun-
dreds of thousands of human beings can meet with
but limited success. It is indeed ironic that a
nation which participated in the founding of the
September 15, 1952
415
United Nations to preserve peace and foster inter-
national good will should refuse its cooperation in
a matter which has such serious human and inter-
national implications.
It can hardly be alleged by any fair-minded
person that this Commission is unreasonable in
its inquiries. The questions for which it seeks
answers here from the Soviet Union are simple
and direct. They are these: What has happened
to these missing men, women, and children ? How
many of them have died? How many are still
being held prisoners? Where are they being
held? Under what conditions do they exist, if
at all? What are tlieir names? When will they
be released? Not only are the nations most di-
rectly concerned awaiting a satisfactory Soviet
reply to these questions — <lecent people "through-
out the world are awaiting the answers to these
queries. This is not a political problem. It is
not merely a legal problem. This is not an ab-
stract, theoretical matter. It is a terribly human
problem — a problem of human freedom. It is
almost inconceivable that in the twentieth cen-
tury one of the leading nations of the world could
be so indifferent to its international obligations
and so scornful of human rights.
My appeal today is therefore twofold. I
appeal to you members of the U.N. Ad Hoc Com-
mission on Prisoners of War to leave nothing
undone, to leave no approach untried which
might bring about the repatriation of and ac-
counting for these prisoners. That is the task
which you have set for yourselves and which you
have thus far pursued so conscientiously. I urge
you to continue to pursue it as long as the slightest
hope remains. Thousands of bereaved families
have placed their cause in your hands. We dare
not slacken our efforts until we have found a
satisfactory solution.
Secondly, I appeal to the Government of the
Soviet Union. I appeal to that Government from
a purely humanitarian point of view. I urge it
to seize this unique opportunity to redeem itself
m the eyes of world opinion. I urge the Soviet
Union to act promptly to bring to an end the
intense suffering of literally hundreds of thou-
sands of individuals by ioining and facilitating
the work of this Commission. I urge it imme-
diately to release and account for all prisoners
taken into its custody during World War II.
In making this appeal, I am keenly aware of
its implications.
Even as I voice it, I recognize that its fulfill-
ment would be a tremendous advance toward those
goals to which all of us, including the Soviet
Union, did subscribe in the preamble to the
Charter of the United Nations :
... to reaffirm faith in fundamental human rights,
in the dignity and worth of the human person, in the
equal rights of men and women and of nations large
and small.
U.S. Delegations
to International Conferences
study Group on Broadcasting (ITU)
On August 27 the Department of State an-
nounced that the U.S. delegation to a meeting of
Study Group X (Broadcasting) of the Interna-
tional Kadio Consultative Committee (Ccir) of
the International Telecommunication Union
(Itu), which is meeting at Geneva from August
26 to September 5, 1952, is as follows:
Chairman
K. Neal McNaughten, Director of Engineering, National
Association of Radio and Television Broadcasters,
Washington, D.C.
Advisers
Eric Klapper, Frequency Utilization Research Section,
Central Itadio Propagation Laboratory, National Bu-
reau of Standards, Department of Commerce
Wayne Mason, Telecommunications Attache, United States
Legation, Bern
Mr. McNaughten, who was also a member of
the U.S. delegation to the sixth plenary assembly
of the CciR, held at Geneva in 1951, is Interna-
tional Chairman of this Study Group which has
been continued at least until the seventh plenary
assembly, scheduled to be held in England during
the fall of 1953.
In considering the reports on the work of the
Study Group on Broadcasting and in assessing
the studies which needed completion as early as
possible, the sixth plenary assembly of the Ccir
recommended that certain questions regarding
broadcast-recording standards be resolved. Ac-
cordingly, at the forthcoming Study Group meet-
ing, specialists in broadcasting will discuss and
attempt to develop standards of disc and tape re-
cordings for the international exchange of pro-
grams. In addition, the Study Group will review
its entire work program, including single side-
band broadcasting and related issues.
The Ccir is one of tlie Itu's three international
consultative committees (radio, telegraph, and
telephone), which were established to study tech-
nical operating questions in the field of telecom-
munication and to make recommendations thereon
to the Plenipotentiary Conference of the Ixu.
International Geological Congress
On September 4 the Department of State an-
nounced that the U.S. Government will be repre-
sented at the Nineteenth International Geological
Congress, to be held at Algiers from September
8 to 15, 1952, by the following delegation:
Delegates
William E. Wrather, Chnirman, Director, Geological
Survey, Department of the Interior
416
Department of State Bulletin
Finn E. Bronner, Corps of Engineers, Department of the
Army
Walter H. Bucher, Professor and Cliairman, Department
of Geology, Columbia University, New York, N. Y. ;
President, American Geophysical Union
A. F. Buddinston, Professor of Geology, Princeton Uni-
versity, Princeton, N. J.
Edward B. Burwell, Corps of Engineers, Department of
the Army
Donald Miner Davidson, Vice President, Cliief Geolo-
gist, and Manager of Exploration, E. J. Longyear
Company, Minneapolis, Minn.
H. G. Ferguson. Geologist, Geological Survey, Depart-
ment of the Interior
W. D. Johnston, Jr., Geologist, Geological Survey, De-
partment of the Interior
T S Lovering Staff Research Geologist, Geological Sur-
vey, Department of the Interior ; President, Geological
Society of America
Raymond C. Moore, Professor of Geology and State
Geologist. University of Kansas, Lawrence, Kans. ;
Visiting Professor, University of Utrecht, Netherlands
W P Woodring, Geologist, Geological Survey, Department
of the Interior; President-elect, Geological Society
of America
The International Geological Congress was
founded at Buffalo, N.Y., in 1876, to fix the rules
concerning map construction, nomenclature, and
geological classification and to promote the study
of the earth from both the theoretical and prac-
tical points of view. The United States, which
has a traditional interest in geology, was host
to the Fifth Congress in 1891 and to the Six-
teenth in 1933. Delegations from 75 countries and
territories participated in the Eighteenth Con-
gress, which was held at London in 1948.
A main topic selected for attention at the forth-
coming session is the state of the world's iron-ore
resources; this subject is of real concern to the
United States, as pointed out in the recent report
of the President's Materials Policy Commission.^
Delegates will also hear reports from the bureau,
which carries on the business of the Congress be-
tween sessions, and from international commis-
sions which have been working in various fields
of geology since the last Congress. Traditional
with the Congress are excursions in the country
in which a session is held, and an opportunity will
therefore be given, as part of the Congress pro-
gram, for delegates to participate in geological
field trips in Algeria.
' For digest of vol. I, see Bulletin of July 14, 1952, p. 55.
THE DEPARTMENT
The U. S. in the U. N.
A weeiily feature, does not appear in this issue.
New Passport Regulations Issued
Press release 686 dated September 2
The Department of State on September 2 made
public certain new regulations pertaining to the
issuance of U.S. passports. The regulations cover
those cases which involve questions of possible
subversive activities on the part of the applicant.
These regulations are designed (1) to provide
for more formalized procedures within the Pass-
port Division in cases where there is a question
as to whether or not an applicant's request for a
passport should be granted, and (2) to provide an
applicant whose request for a passport is denied
with the opportunity to appeal the adverse decision
before a newly created Passport Appeals Board.
At tlie same time, the revised regulations specify
standards under which the decision to deny an
application for a passport will be made.
Under the revised procedures, when derogatory
information exists which, unless clarified, would
result in the denial of a passport, an applicant will
be notified of this fact in writing. He will also be
notified :
—of the reasons, as specifically as security regula-
tions permit, upon which the tentative decision to
deny the passport has been made ;
— of his right to discuss his application in a hear-
ing with the Passport Division ;
—of his right to be represented by Counsel at this
hearing, and to present additional evidence.
If the decision is unfavorable, the unsuccessful
applicant will be notified of his right to appeal
to the Passport Appeals Board, whose member-
ship will include at least three Department officers
who have not been previously concerned with the
case.
Text of the new regulations follow :
CODE OF FEDERAL REGULATIONS
Title 22 — Foreign Relations
Chapter I — Department of State
Part 51 — Passports
Subpart B— Regulations of the Secretary of State
Pursuant to the authority vested in me by paragraph
12G of Executive Order No. 7856, issued on March ai, 1038
(3 F. R. 681 ; 22 CFR 51.77), under authority of section 1
of tlie Act of Congress approved July 3, l'J26 (44 Stat. 887 ;
22 use 211 (a) ), the regulations issued on Mai-ch 31, 1038
(Departmental Order 749) as amended (22 CFR 51.101 to
51.134) are hereby further amended by the addition of
new sections 51.135 to 51.143 as follows :
§ 51.135 Limitation on Issuance of Passports to Persons
Supporting Communist Movement. In order to promote
the national interest by assuring that persons who support
September 75, J952
417
the world Communist movement of which the Communist
Party is an integral unit may not, through use of United
States passports, further the purposes of that movement,
no passport, except one limited for direct and immediate
return to the United States, shall be issued to:
(a) Persons who are members of the Communist Party
or who have recently terminated such membership under
such circumstances as to warrant the conclusion — not
otherwise rebutted by the evidence — that they continue to
act in furtherance of the interests and under the discipline
of the Communist Party ;
(b) Persons, regardless of the formal state of their
affiliation with the Communist Party, who engage in ac-
tivities which support the Communist movement under
such circumstances as to warrant the conclusion — not
otherwise rebutted by the evidence — that they have en-
gaged In such activities as a result of direction, domina-
tion, or control exercised over them by the Communist
movement.
(c) Persons, regardless of the formal state of their
affiliation with the Communist Party, as to whom there is
reason to believe, on the balance of all the evidence, that
they are going abroad to engage in activities which will
advance the Communist movement for the purpose,
knowingly and willfully of advancing that movement.
§ .51.136 Limitntions on Issuance of Passports to Per-
sons Likely to Violate Laws of the United States. In
order to promote the national interest by assuring that
the conduct of foreign relations shall be free from unlaw-
ful interference, no passport, except one limited for di-
rect and immediate return to the United States, shall be
issued to persons as to whom there is reason to believe,
on the balance of all the evidence, that they are going
abroad to engage in activities while abroad which would
violate the laws of the United States, or which if carried
on in the United States would violate such laws designed
to protect the security of the United States.
§ 51.137 Notification to Person Whose Passport Appli-
cation Is Tentatively Disapproved. A person whose pass-
port application is tentatively disapproved under the pro-
visions of § .51. 1.3.5 or § .51.136 will be notified in writing
of the tentative refusal, and of the reasons on which It
is based, as .specifically as In the judgment of the Depart-
ment of State security considerations permit. He shall
be entitled, upon request, and before such refusal becomes
final, to present his case and all relevant information in-
formally to the Passport Division. He shall be entitled
to appear in person before a hearing officer of the Pass-
port Division, and to be represented by counsel. He will,
upon request, confirm his oral statements in an affidavit
for the record. After the applicant has presented his
ca.se, the Passport Division will review the record, and
after consultation with other interested offices, advise
the applicant of the decision. If the decision is adverse,
such advice will be in writing and shall state the reasons
on which the decision is based as specifically as within
the judgment of the Department of State security limita-
tions permit. Such advice shall also inform the applicant
of his right to appeal under § 51.138.
§ 51.138 Appeal hy Passport Applicant. In the event
of a decision adverse to the applicant, he shall be entitled
to appeal his case to the Board of Passport Appeals pro-
vided for in § 51.139.
§ 51.139 Creation and Functions of Board of Passport
Appeals. There is hereby established within the Depart-
ment of State a Board of Passport Appeals, hereinafter
referred to as the Board, composed of not less than three
officers of the Department to be designated by the Secretary
of State. The Board shall act on all appeals under
§ 51.1.38. The Board shall adopt and make public its own
rules of procedures, to be approved by the Secretary,
which shall provide that its duties in any case may be
performed by a panel of not less than three members acting
by majority determination. The rules shall accord appli-
cant the right to a hearing and to be represented by
counsel, and shall accord applicant and each witness the
right to inspect the transcript of his own testimony.
§ 51.140 Duty of Board to Advise Secretary of State on
Action for Disposition of Appealed Cases. It shall be the
duty of the Board, on all the evidence, to advise the
Secretary of the action it finds necessary and proper to
the disposition of cases appealed to it, and to this end the
Board may first call for clarification of the record, further
investigation, or other action consistent with its duties.
§51.141 Bases for Findings of Fact by Board, (a) In
making or reviewing findings of fact, the Board, and all
others with responsibility for so doing under §§ 51.135-
51.143, shall be convinced by a preponderance of the evi-
dence, as would a trial court in a civil case.
(b) Consistent and prolonged adherence to the Commu-
nist Party line on a variety of issues and through shifts
and changes of that line will suffice, prima facie, to sup-
port a finding under § 51.135 (b).
§51.142 Oatli or Affirmation by Applicant as to Mem-
bership in Communist Party. At any stage of the proceed-
ings in the Passport Division or before the Board, if it is
deemed necessary, the applicant may be required, as a
part of his application, to .subscribe, under oath or affirma-
tion, to a statement with respect to present or past mem-
bership in the Communist Party. If applicant states that
be is a Communist, refusal of a passport in his case will
be without further proceedings.
§51.143 Applieahility of Sections 51.135-,51.1.',2. When
the standards set out in § 51.135 or § 51.136 are made
relevant by the facts of a particular case to the exercise
of the discretion of the Secretary under § 51.75, the stand-
ards in §§ 51.135 and 51.136 shall be applied and the pro-
cedural safeguards of §§ 51.137-51.142 shall be followed
in any case where the person affected takes issue with the
action of the Department in granting, refusing, restricting,
withdrawing, cancelling, revoking, extending, renewing,
or in any other fashion or degree affecting the ability of a
person to use a passport through action taken in a par-
ticular case.
For the Secretary of State :
W. K. Scott
Acting Deputy Under Secretary
Publications Distribution Centers:
A Cooperative Endeavor
The American public is taking an increasingly
active interest in this Government's policies and
activities in the field of foreign affairs. This ii\-
terest manifests itself in a demand for copies of
Department of State publications that deal with
subjects in this field.
In the course of a year the Department pub-
lishes materials on virtually every important
current phase of foreign affairs. It issues in
book form papers and diplomatic correspondence
on earlier phases of American international ac-
tivities in a continuing series of volumes called
Foreign Relations of the United States. This se-
ries provides a more complete record of the his-
tory of national foreign policy than is given the
public by any other government in the world.
These information materials — leaflets, pam-
phlets, and foreign-policy reports — are available
through various channels. All of them may be
purchased from the Superintendent of Docu-
ments, Government Printing Office, Washington
25, D.C. Many segments of the Nation-wide
audience for the Department's publications, how-
ever, find it possible to purchase them more
418
Depaiimei\i of Staie Bulletin
juickly and conveniently through the regional
iistribution system which the Department has
jstablished in cooperation with a number of pub-
lic-spirited citizens and private organizations
concerned with foreign policy and international
relations.
Nineteen strategically located national groups
are now serving as distribution centers for the
Department's publications, supplementing Fed-
eral distribution channels. They range from
college libraries to civic organizations such as the
Worfd Affairs Council of Northern California
lin San Francisco and the Woodrow Wilson
iFoundation in New York City.
Anyone interested in obtaining information on
foreign policy may purchase Department of State
publi'cations 'from a number of the distribution
centers. These sales centers are indicated in the
list below. All of the centers have on display
a representative assortment of recent publications.
Visitors interested in examining current State
Department material are welcomed by the distri-
bution centers.
In addition to selling to the general public, the
centers have available a few sample copies of
certain State Department publications which may
be given to key leaders of educational and civic
groups in their communities.
The distribution centers, through the sale and
display of State Department publications, con-
tribute to the substantial cash return which the
Government receives from the sale of this
material.
The following groups are presently serving as
distribution centers for the Department's publi-
cations:
•World Affairs Council of Northern California
421 Powell Street
San Francisco 2, Calif.
University of Denver
Social Science Foundation
Denver 10, Colo.
♦Chicago Council on Foreign Relations
116 S. Michigan Avenue
Chicago 3, III.
Thos. F. Cunningham Reference Library
International House
Gravier & Camp Streets
Nevp Orleans 12, La.
♦United Council on World Affairs
355-A Boylston Street
Boston 16, Jlass.
♦Minnesota World Affairs Center
University of Minnesota
Minneapolis 14, Minn.
♦Woodrow Wilson Foundation
45 East Sixty-fifth Street
New York 21, N.Y.
Southeastern Association for Adult Education
University of North Carolina
Chapel Hill, N.C.
♦Council on World Affairs
922 Society for Savings Building
Cleveland 14, Ohio
September IS, 1952
♦University of Utah Library
Salt Lake City, Utah
♦American Association for the United Nations
'JO'J Fourth Avenue
Seattle 4, Wash.
♦International Center
University of Louisville
Louisville 8, Ky.
♦Institute of International Affairs
General Extension Division
Eugene, Oreg.
*Buffalo Council on World Affairs, Inc.
',J21 Genesee Building
Buffalo 2, N.Y.
♦Woodrow Wilson School of Foreign Affairs
University of Virginia
Cbarlottesville, Va.
♦World Affairs Council of Philadelphia
3il Floor Gallery, .John Wanamaker Store
Thirteenth and Market Streets
Philadelphia 7, Pa.
♦Dallas Council on World Affairs
2419 Maple Avenue
Dallas, Tex.
♦St. Louis Council on World Affairs, Inc.
511 Locust Street
St. Louis 1, Mo.
American Association for the United Nations
Los Angeles, Calif.
♦Centers which are selling Department of State
publications.
No. Date
Check List of Department of State
Press Releases: Sept. 2-5, 1952
Releases may be obtained from the Office of the
Special Assistant for Press Relations, Department
of State, Washington 25, D. C.
Press releases issued prior to Sept. 2 which ap-
pear in this issue of the Bulletin are Nos. 661 of
Aug. 25, 666 of Aug. 25, 669 of Aug. 27, 672 of Aug.
27, and 681 of Aug. 29.
Subject
Fulbright awards
Regional conference (Ecafe)
Astronomical Union (Iau)
New passport regulations
Award to Australian newsman
Acheson : Egyptian developments
Acheson : Mecca airlift
Acheson : Message to Iran
19rh Geological Congress
Award to German newsman
Exchange of persons
Non-Self-Governing Territories Comm.
Claims against Cuban Government
Clemency board for war criminals
Acheson : Death of Count Sforza
"Courler"-VoA broadcasts
Point Four Study on Land Problems
Linder : "Pro and Con" program
U.S. note on Austrian treaty
fHeld for a later issue of the Bulletin.
♦Not printed.
♦683
9/2
t684
9/2
toss
9/2
686
9/2
♦687
9/2
688
9/3
689
9/3
690
9/3
691
9/4
♦692
9/4
♦693
9/4
t694
9/4
1695
9/4
696
9/4
697
9/4
t698
9/5
t099
9/5
700
9/5
701
9/5
419
September 15, 1952
Ind
ex
Vol. XXVII, No. 690
Africa
EGYPT: Developments In Egypt (Achesou) . . 408
American Principles
Creation of economic strength In the free world
(Llnder) 383
American Republics
VENEZUELA: U.S. signs trade agreement . . . 400
Asia
JAPAN: Board of Clemency for Japanese war
criminals 408
Aviation
The Mecca airlift (Acheson) 406
Europe
AUSTRIA: U.S., U.K.. and France propose con-
ference on Austrian treaty 404
ITALY: Death of Count Sforza (Acheson) . . . 405
U.S.S.R.: U.S. opposed to Soviet proposal on
admissions to U.N 412
Finance
The world economic situation (Black) .... 385
International Meetings
Prisoners of War Commission opens third ses-
sion 414
U.S. DELEGATIONS:
International Geological Congress .... 416
Study Group on Broadcasting (ITU) .... 416
Mutual Aid and Defense
U.S. reaffirms support of U.N, collective security
system 411
Near East
IRAN: Clarification of Joint U.S. -U.K. message
to Iran (Acheson) 405
LEBANON: The Mecca airlift (Acheson) ... 406
Presidential Documents
EXECUTIVE ORDERS:
Board of Clemency for Japanese war crim-
inals 408
Commission on Immigration and Naturali-
zation established 407
Publications
Publications distribution centers: a cooperative
endeavor 418
State, Department of
New passport regulations Issued 417
Publications distribution centers: a cooperative
endeavor 418
Strategic Materials
Clarification of Joint U.S.-U.K, message to Iran
(Acheson) 405
New system for transshipment of strategic
goods 409
Telecommunications
Study Group on Broadcasting (Ittj) 416
Trade
New system for transshipment of strategic
goods 409
TARIFFS: U.S. signs new trade agreement with
Venezuela 400
Treaty Information
U.S., U.K., and France propose conference on
.'Austrian treaty 404
U.S. signs new trade agreement with Venezuela . 400
United Nations
Excerpts from International Monetary Fund's
Annual Report, 1952 390
Prisoners of War Commission opens third
session 414
U.S. opposed to Soviet proposal on admissions
to U.N 412
U.S. reafflims support of U.N. collective security
system 411
World economic situation, the (Black) .... 385
Name Index
Acheson, Secretary 405, 406
Anderson, Eugenie 411,414
Austin. Warren R 412
Black, Eugene R 385
Blaisdell, Donald C 414
Churchill, Prime Minister 405
Linder, Harold P 383
McNaughten, K. Neal 416
Mossadegh, Prime Minister 405
Sforza, Carlo 405
Truman, President 400, 405, 407, 408
Wrather, William E 416
U S GOVERNMENT PRINTING OFFICE: I9S2
^-b^i. I n
Jne/ ^e^a^imeni/ ^(w tnaie^
Vol. XXVII, No. 691
September 22, 1952
■*TES O*
THE PATTERN OF LEADERSHIP— A PATTERN OF
RESPONSIBILITY • by Secretary Acheson .... 423
COLLECTIVE KNOWLEDGE FOR A BETTER
WORLD • by Howland H. Sargeant 455
PROBLEMS FACING THE NORTH ATLANTIC
COMMUNITY • by Ambassador William H. Draper, Jr. . 436
FORCED LABOR IN THE SOVIET UNION
428
THE^COLOMBO PLAN: NEW PROMISE FOR ASIA •
Article by Wilfred Malenbaum 441
For index see back cover
U. S. SUPERINTEfv. ,
i^)-'',-i.'(i'll_t
JTS
1952
,j/ie z/^e^ia/y^me^t ^j
./^tate bulletin
Vol. XXVII, No. 691 • Publication 4715
September 22, 1952
For sale by the Superintendent of Documents
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Note: Contents of this publication are not
copyrighted and items contained herein may
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OF State Bdllbtin as tbe source will be
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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
selected press releases on foreign pol-
icy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.
Publications of the Department, as
well as legislative material in the field
of international relations, are listed
currently.
The Pattern of Leadership— A Pattern of Responsibility
Address by Secretary Acheson '
This Nation has given the world renewed proof
of the almost unbelievable vitality and capacity
of the American economy. Since Korea, we have
multiplied by more than six times our production
of what the military call "hard goods"— tanks,
aircraft, ammunition, weapons, and other items —
for ourselves and to help our friends and allies.
This powerful flow of production builds muscle
on the right arm of peace. And so you rightly
want to see this instrument for peace used wisely
and well.
In a broader sense, all labor has a direct and
immediate stake in the defense of the free world—
not only American labor, but free trade-unions
wherever they exist. For free unionism is a basic
element in democratic society ; and it is only m a
free society that free unions can survive and flour-
ish. Both are aspects of liberty.
Plight of Labor in tiie Soviet World
The Communists have pretended to a great con-
cern for the cause of labor— particularly outside
the Soviet world. But behind the Iron Curtain,
trade-unions have been reduced to mere organs of
the state, whose prime function it is to discipline
the workers and speed up their work.
The Soviets say they have large trade-unions,
and every now and then they announce a new col-
lective-bargaining contract. But what is collec-
tive bargaining under the Soviet regime? The
Communist Party workers who are assigned as
union officers ask permission for their fellow
workers to do more work for less pay. Other
Party workers, who serve as Government officials,
think this is a fine deal, and a so-called "collective-
bargaining" agreement is announced.
No one has exposed this fraud better than your
own international president. In rejecting an
invitation to the Moscow Economic Conference,
Mr. Hayes wrote :
' Made before the National Convention of the Interna-
tional Association of Machinists at Kansas City, Mo., on
Sept. 11 and released to the press (No. 717) on the same
date.
Sepfember 22, 7952
Our union has nothing in common with representatives
of labor fronts created by or captured by Communist
parties in Russian-controlled countries and used solely
for the purpose of exploiting the workers through repres-
sive legislation and labor conditions which no seLf-respect-
ing American union member would ever tolerate.
A tragic illustration of the stake free unions
have in the defense of freedom is the perversion
of the unions of Czechoslovakia when the Com-
munists took over. The Czech workers had living
standards among the highest in Europe. By the
time the Communists finished what they called
"improving the workers' lot," the Czechs found
themselves barely eking out a living and working
longer hours to do it.
The unions became instruments for passing
along to the workers pressures from Moscow. In
the Communist vocabulary, this was called "self-
less brotherly assistance."
Czech workers have lost the right to strike.
They have lost even more — freedom to change
jobs, freedom to move.
The machinists in Prague have come to know
the "workbook", held by the employer to keep
workers from changing jobs without permission.
Without a "workbook", you don't eat and you
don't have a place to live.
This "worker's paradise" in the heart of Europe
is a grim reminder to free unions everywhere of
their stake in the defense of freedom.
American labor knows this and has done its
part both directly and through making fine men
available to the Government at home and m many
critical posts abroad. And American labc)r
knows, too, as do some of the rest of us, that this
brings down upon it the vitriolic flood of Com-
munist denunciation.
Trud, the Soviet labor newspaper, complained
that "trade-union agents of the State Department
and of the American Federation of Labor are fol-
lowing one another across the ocean to Europe to
carry out the special orders of the American
imperialists."
And Pravda explained to its readers that there
423
is no base action in the world to which the trade-
union terrorists in the AF of L and the CIO would
not turn their hand."
Soviet Hate Campaign
So I welcome you to the honorable fellowship
of those who have earned their denunciation by
the enemies of freedom.
Recently, Soviet propaganda has taken a
broader and more ominous turn. In the past, it
had been directed against Western institutions
and against the leadership of the Western nations.
The line was: "The American people are all right.
Their economic system is no good. Their leaders
are imperialistic warmongers. But the American
people are peaceful and they won't follow the
warmongers."
But since January a year ago, there has been
a new development. Now, the American people
themselves are pictured as bestial, cruel, vicious,
ruthless. In language which exceeds in violence
that directed against the Nazis at the height of
the war, the Soviet Union is now seeking sys-
tematically and methodically to arouse hatred
against the American people.
Every aspect of Ajuerican life is included in this
torrent of slander. The American labor move-
ment, American business, our young people, our
newspapei-s, our artists, our amusements, our par-
ticipation in the United Nations, and above all,
our armed forces — all these have been the subject
of wild vilification.
Vicious Soviet propaganda is not new, but this
campaign, as I said, has a new and more evil twist :
it is an attempt to poison the minds of an entire
generation in one of the world's great countries
against the people and the civilization of another
great country. This is a criminal act.
This campaign was laimched in January 1951
by a major spokesman in the presence of Stalin,
Molotov, and other members of the Politburo.
At once, a flood of books, articles, speeches, and
other propaganda poured out across the country.
So far, the Soviets have used three themes in this
campaign.
The first theme selected accused American
troops of the most horrible crimes against tlie
Soviet people at the end of World War I.
The fact that these spectacular crimes were
totally unheard of for over 30 years was no
impediment.
Hardly a day passes when a Soviet citizen,
wherever he may live, can escape hearing or read-
ing accounts — including so-called "eye witness"
accounts documented with fake photographs — of
the bestiality of Americans and their blood-thirsty
conduct.
A newspaper ])ublished in Vilna, to take one
example, says : "America is a horrible beast that
eats people alive. Anglo-American warmongers
are base murderers and bloody cannibals. . . ."
"Never forget and never forgive" — that is the
theme Soviet propagandists are trying to hammer
into the consciousness of the Russian people in an
effort to twist their whole outlook.
These stories were followed by a second theme :
the "Korean atrocity" stories. The riots started
by the Communist prisoners on Koje Island were,
of course, grist to this mill.
Finally, came the third and biggest theme:
charges that the United States had resorted to
germ and chemical warfare in Korea. This is one
of the grossest falsehoods in history. The Soviet
Union has turned down every single proposal for
an impartial investigation of these charges or for
assistance to combat the epidemics, if any. This
is a Soviet double-duty theme; it is used to feed
the atrocity campaign to the Soviet people, and
also the anti-American propaganda to the world,
and particularly to the Far East.
This germ-war propaganda campaign was
plainly prepared well in advance. One of the
Soviet publications jumped the gun and published
a cartoon in which I was shown with a germ-war
cannister on my back. This was several months
before the germ-war charge was launched. The
mistake was quickly caught and the germ con-
tainer disappeared in later editions. I suppose the
editor did too.
Wliatever else may happen under the new Soviet
Five Year Plan, I am sure the Soviet Union will
be able to announce it has overfulfilled its quotas
of falsehood.
It is worthy of note that while the Soviet Gov-
ernment inside the Iron Curtain presses this hate
campaign with unparalleled violence, that same
Government, outside the Iron Curtain, blandly de-
nies that it is going on. In a publication which
circulates outside tlie Curtain, the Soviet propa-
gandists denied the report of this campaign,
and said :
The truth is that there are no such facts. The Soviet
State is educating its citizens in the spirit of respect of
other peoples and in tlie spirit of peaceful cooperation.
The Soviet way of life is such as to leave no place for hos-
tile propaganda or for hatred of peoples of other countries.
Compare this statement with the following,
from the SimiU Soviet Encyclopedia:
Soviet patriotism is indissolubly connected with hatred
toveard the enemies of the Socialist Fatherland. "It is
impossible to conquer the enemy without having learned to
hate him with all the might of one's soul. ..." ... The
teaching of hatred toward the enemies of the toilers en-
riches the conception of Socialistic humanism by distin-
guishing it from sugary and hypocritical ■•philanthropy."
We do not have time this evening to talk further
about the meaning of this wicked and reckless
course, but two points must be clear to us.
One is that this campaign to stir up hatred con-
tradicts those Soviet pretensions of peace and
j)us]ies off still further a beginning upon the peace-
ful settlement by negotiation of problems between
the Soviet Union and the outside world.
The second point tliat must be clear to us is that
424
Department of State Bulletin
■we must continue, not deflected by anger or impa-
Itience, to insure that the free world remains free,
that peace is preserved, and that all the while we
are increasing the factors of strength which will
shape events in our favor.
For a fundamental fact of these times is that,
regardless of what tactics the Politburo happens
tolje following currently, hostility against the rest
of the world underlies all that it does.
That is why I have gone into this matter of the
Soviet hate campaign. This current Soviet tactic
toward their own people casts an illuminating
light on the fundamental hostility which is the
concrete reality we must start with in thinking
about foreign jpolicy today.
A Military Shield for Free Nations
And unless this fundamental hostility is held
in check by adequate and united strength among
the free nations, they live in danger.
The primary purpose of this strength is to pre-
vent war. We have labored year in and year out
to make this peaceful purpose clear.
But apart from words, which those who are
strangers to truth may not believe, it must be plain
from the very size and composition of the forces
and defenses now being created in Europe that
they are designed for defense and not for aggres-
sion.
What we have been doing is to build a mili-
tary shield, behind which the economic and the
political and the social strength of the free na-
tions is being built up.
This military shield must be such that it can
both prevent the vast aggression of a general war
and also be able to prevent or to deal with the ag-
gressions which seek the piecemeal conquest of the
free nations.
I stress this point in order to bring out the
fallacy of relying solely on retaliatory striking
power. For if, in dealing with the threat of piece-
meal aggression around the world, our only choice
is to respond with total war, or to do nothing, then
we run the risk of having the foundations of our
strength washed out from under us, or of finding
ourselves plunged into general war. That is why
the staunch defense of Korea was absolutely es-
sential both to our whole position and to all our
efforts to prevent a catastrophic total war from
sweeping the earth. The existence of this kind
of strength and this determination will help to
prevent further piecemeal aggression.
It is not, of course, only a military threat we
have to deal with, for the Soviets place great em-
phasis on the possibility of political and economic
disintegration, in Europe, in Asia, and in Africa,
and especially among the former colonial terri-
tories.
From the writings of Lenin down to the latest
issue of Pvavda, the Communists have been licking
their chops over the expected collapse of the non-
Sep/emfaer 22, 7952
Soviet world. They are betting heavily that there
will not be solutions for such matters as the finan-
cial and economic problems of Western Europe,
unrest throughout the Middle East, the trade prob-
lems of Japan, the difficulties faced by newly in-
clependent nations, and the problems involved in
colonial relationships.
These are what the Communists regard as pay-
dirt. They hope and believe the free nations will
fail to resolve these and other problems; that
then disintegration will occur, and the United
States would find itself isolated and weakened.
Our alliances, they think, would be undermined,
our trade with the world cut off, our influence and
our power diminished. This is the course of events
for which they hope and which Communist doc-
trine teaches them to expect. Then, they think,
they would have the world by the tail oil a down-
hill pull. But the Communist rulers are living
on a vain hope — vain because, again, they under-
estimate the rest of us. The free world has the
will ; it has the resources — spiritual and material —
to meet and surmount these difficulties, to out-
produce the best the Communist world has to of-
fer, to outlast the Communist system of tyranny.
Confidence Justified by Constructive Steps
True, we face problems of gi-eat difficulty, great
complexity. Most of these problems have their
roots in tlie aspirations of people for freedom and
a better life. It is the very power and force of
this basic human drive which creates these
problems.
That being so, how much more colossal are the
problems of the Soviet regime, which not only
has to hold its own people in tyranny but to ad-
minister a rule of iron over an oppressed and en-
slaved empire?
The surge of the human spirit toward liberty
may, for a time, be suppressed by a ruthless tyr-
anny, but just as surely as a tree will push its
way" up through solid rock, the human spirit will
some day break through to the light of day.
This is our faith, this is what all our efforts are
about. The great final strength of our cause is
that it is the cause of human liberty, the cause of
fi-pcdom for the spirit of man, and we believe with
every fiber of our being that this cause is as much
a part of the universe as man himself, and that
it v,-ill not and cannot be denied.
Our confidence is justified by the great strides
of progress we have been witnessing in the free
world. Fragmented by the war, the free world
has been pulling itself together into new patterns
of confidence, of unity, and of strength. Resur-
gent vitality among the free nations is creating
new and imaginative solutions for age-old con-
flicts.
We have taken the lead in developing security
arrangements under the Charter of the United
Nations. In Europe, this has led from the recov-
425
ery program under the Marshall Plan to the de-
velopment toward self-confidence and unity under
the North Atlantic Treaty and our military and
economic aid programs. JVot only has the Soviet
Union been denied control over Europe's indus-
trial plant, but Europe has responded to this
throat with such bold and unprecedented meas-
ures as the S:?human Plan to unite Europe's coal
and steel production, and the European Defense
Community, through which Free Germany can re-
turn to the famil}' of nations.
In Greece and Turkey a once-vulnerable flank
has been converted into a position of strength.
In the Western Hemisphere, ties of security and
of friendship have been strengthened by the Rio
Pact of 1947 and by our programs of technical
cooperation.
A great broad crescent stretches from western
Africa, through the Middle East, Pakistan, India,
Southeast Asia, and north to Formosa, Korea, and
Japan. Here, building the structure of security
has meant dealing with all aspects of Communist
imperialism. Force has been met with force, not
only in Korea, but in Indochina, Malaya, ancl the
Philippines. Formosa has been shiekled against
Communist aggression.
A series of security arrangements has been es-
tablished with the new Japan, with the Pliilip-
pines, with Australia, and New Zealand.
Throughout this area, our Point Four and other
economic-aid programs have been helping newly
independent nations establish the foundations of
economic and political progress. We have rec-
ognized that much of this area is in a process of
fetment and of change. We have sought to help
channel these powerful forces into constructive,
peaceful, and orderly processes which will genu-
inely realize the aspirations of these peoples for
self-government and a better life.
Continued Effort Necessary
In all these ways, and in the progress of our
massive defense program here in the United States,
we have been building strength that will not only
reduce the danger under which we live but will
also put a wholly different aspect on our relations
with the Soviet Union and on all our problems.
To remove from the Soviet rulers the tempta-
tion to gain their goals by military action, to make
clear tliat there will be no collapse of free nations,
that nations newly come to freedom are destined
for vigorous and progressive life— all this will aid
powerfully in the approach to questions that now
block the way to a more durable and stable peace.
This will take time. It will take not less but
more effort. It means a continuation of the de-
termined and responsible course of working our
way through the present period of danger. It
takes hard work, steady nerves, enduring courage.
But it is the course best calculated to bridge our
present dangers. We cannot walk through the
426
dangers of the present on a bridge of glittering
adjectives.
Our discussions of foreign policy can be healthy I
and constructive if they grapple with real issues
in a responsible way. They are not helpful if
they do not get down to concrete situations.
It is fine, for example, to want to be "dynamic",
"positive" and "affirmative", but what does this
mean in terms of support for the Point Four Pro-
gram, for progi-ams to aid the economic develop-
ment of our friends and allies, for shipments of
grain to our friends in India ?
It is fine to be in favor of international trade,
but what does this mean when it comes to stopping
the imports which enable our allies to earn dollars
to pay for what they need ?
It is fine to be for collective security, but what
does this mean when it comes to doing our part in
the Nato army, or when it comes to facing the
blood, sweat and tears involved in the defense of
that very collective security in Korea?
It is fine to be in favor of spreading the truth,
but what does this mean when it comes to funds
for the Voice of America ?
It is something of a new experience to be urged
to be more positive, dynamic, and bold by many
whose chief contribution until now has been in
holding back. They have their hands on the horn
and their feet on the brakes.
Our coattails are ragged from the hands of those
who thouo:ht that we showed too much of all these
"dynamic ' qualities when the President shoul-
dered tlie burden of saving the Middle East in the
Greek-Turkish program in early 1947, and when
the Marshall Plan was developed later in the same
year. There were no cries that we were too nega-
tive when the Berlin airlift was put on in 1948, or
the Atlantic Treaty signed in the next year, or the
Point Four Program put forward. The only
negative attitude on Point Four, and on materia"!
aid for Korea and Far Eastern countries outside
Point Four, came when we asked for the authority
and the funds to do these things. The legislative
record is worth study.
The proposal for the unified Nato army and
command, which General Eisenhower served so
well, was not called negative; on the contrary, it
produced the Great Debate about whether it was
too positive, too dynamic.
I remember with particular vividness June 1950,
when the President, in one of the gravest decisions
any President has had to make, faced squarely up
to the armed attack on Korea and assumed, under
the United Nations, the major burdens of meeting
it. It was greeted then, and is not responsibly
challenged now, as right and courageous.
We have heard some harsh things said about
"containment". We have heard that it is nega-
tive, immoral, and futile, and that we should give
it up and do something else that isn't containment.
Now, let's understand what we are discussing.
It is not whether the word containment is or is not
Department of State Bulletin
a good short-hand description of what we have
been doing and propose that we continue. Per-
sonally I don't happen to think that it is an
adequate description.
The question is whether what we have done
and propose to do is right— whether there are
better alternatives. Not better words, but better
concrete, specific acts with which to meet concrete
specific problems.
Are there better ways to stop Soviet expansion
without a catastrophic war, and to work our way
through this period of grave danger? Are there
better ways to increase the power of the free
world— to unite its power— to solve the questions
which were holding it back, dividing it, weakening
it? Are there better ways to tip the balance in
favor of the outcomes we seek, to create a new
world environment in which we move confidently
and peacefully to an adjustment of problems not
now soluble?
If we really wish to discuss the true issues which
lie behind the word "containment", these are the
issues.
If the question is not just one of words, but ot
alternative courses of action, then the question is
whether we should continue our efforts to hold
in check further Soviet expansion— and I take it
there is no real disagreement on this point — or
whether we should be doing something more than
this, something— and the adjective is usually—
"dynamic", "positive" or "affirmative."
Now I think it is apparent, even from our
brief review this evening, that our eilorts do go
beyond what is ordinarily described as "contain-
ment". Behind the military shield, we are carry-
in'^ on all the measures I have been describing,
to^increase the vitality, the unity, the political
and economic strength of the free nations. We
believe, as anyone must who shares the democratic
faith, that free societies can and will be more
durable, and that ultimately they must exercise a
strong attraction that will shift the balance m
our favor.
But if through impatience or imprudence, we
are urged to try to bring this shift about by force,
if we are urged to seek the "liberation" of ter-
ritories or peoples by force, this advice would be
neither realistic nor responsible. If this is what
is meant by being more "positive", then it is in
fact a positive prescription for disaster.
Our position of leadership in the world calls
for responsibility, not only by officials, but by all
of us. It requires that we take no narrow view
of our interests but that we conceive them in a
broad and understanding way so that they include
the interests of those joined with us m the defense
of freedom. It requires that we do not do reck-
less things which impair these interests. We can-
not dictate, we cannot be irresponsible, if we are
to fulfill the mission of leadership among free
peoples. The pattern of leadership is a pattern
of responsibility.
September 22, 1952
Serious and responsible discussion of the prob-
lems before us is essential. No one has a monopoly
of wisdom ; no one among us is free from error.
But the American people know that there is
no easy short cut through the diilicult times ahead
of us. They are determined ; they are in earnest.
They will do what needs to be done. They will
do it as long as may be necessary and do it with-
out self-deception and without recklessness.
And that, sooner or later, will bring to pass the
triumph of freedom.
Supplementary Tax Convention
With Belgium
rress release 708 dated September 9
On September 9 Secretary Acheson and the
Belgian Ambassador in Washington signed a con-
vention between the United States and Belgium
modifying and supplementing the convention of
October 28, 1948, for the avoidance of double tax-
ation and the prevention of fiscal evasion with
respect to taxes on income.
The convention of 1948 is pending in the Sen-
ate (S. Ex. I, 81st Cong., 1st sess.).
The modifications made by the supplementary
convention to the convention of 1948 include {a)
the addition in article IV of a provision for al-
lowance, as deductions, of all expenses reasonably
allocable to the permanent establishment in the de-
termination of net industrial and commercial
profits allocable to such establishment; (6) the
substitution of an amended article VIII relating to
reduction of tax with respect to dividends, so as
to accord benefits analogous to those accorded in
existing tax conventions of the United States with
the United Kingdom, Denmark, the Netherlands,
and certain other countries; (c) the insertion of a
new article VIIIA relating to the reciprocal re-
duction of tax with respect to interest on bonds,
notes, debentures, or any other form of indebted-
ness; (d) the amendment of article XII (3) (a)
so as to increase from one-fourth to one-fifth the
reduction with respect to Belgian professional tax
and Belgian national crisis tax affecting taxable
income "from sources within and taxed by the
United States; and (e) the substitution of an
amended article XVII so as to bring the provisions
regarding assistance in collection of taxes into
harmony with the policy expressed by the Senate
in 1951 in its consideration of then pending tax
conventions.
The supplementary convention will be trans-
mitted to the Senate for advice and consent to rati-
fication. By its terms the supplementary conven-
tion will be regarded as an integral part of the
convention of 1948. The convention of 1948 and
the supplementary convention will enter into force
upon the exchange of instruments of ratification.
427
Forced Labor in the Soviet Union
The following are chapters I and II of a report
prepared hy the United States Information Serv-
ice of the Department of State for distribution
overseas. In view of the importance of the sub-
ject, the report is also heinr/ given li?nited distri-
bution within the United States to acqv/iint the
American public with the story of conditions with-
in the Soviet sphered
Forced labor has been almost from the time of
the October Revolution a constant characteristic
of Soviet society. In seizing power tlie Bolsheviks
were ambitious to destroy the old elite and the old
institutions and to create a new society with insti-
tutions more to their liking. Use of forced labor
was related to both ambitions, since it could be used
to disjiose of undesirable pei-sons and perform
some of the work needed to create a new society.
In the first decade of rule the new Communist elite
turned this weapon principally against the dis-
possessed elite lingering on from the former
regime. In the succeeding period of construction
of Stalinist socialism the rulers exploited for
forced labor principally groups which the regime
claimed to represent, the workers, peasants, and
the new intelligentsia.
The repression, including forced labor, intro-
duced by the Eed Terror in 1918 — even if in re-
sponse to opposition violence — exceeded in scale
anything which had been known in Tsarist Russia.
Nevertheless, the propagandists employed by
Party and Government claimed that this was a
temporary phenomenon which would disappear
with the liquidation of opposing classes and the
^ Porcrd Labor in the Soviet Union., Department of
State publication 4716. Among the sources of the report
are materials which the U. S. Government turned over
to the United Nations Ad Hoc Committee on Forced La-
bor; for a statement on these materials by \V;ilter M.
Kotschnifr. Deputy U.S. Representative in the U.N. Eco-
nomic and Social Council, see Bulletin of July 14, 1952,
p. 70.
achievement of socialism. In fact, however, the
opposite occurred. Use of forced labor against
the remnants of the aristocracy and bourgeoisie
was as notliing compared to the use of forced labor
later against the groups supposedly allied with
the Bolsheviks.
Forced labor took on mass dimensions after 1929
when ambitions of the ruling group collided with
desires of the masses. The elite wanted to pre-
serve and to extend its power. It was ambitious
to increase rapidly and at all costs the power and
resources within the grasp of the Soviet state while
eliminating opposition to its policies within and
without the ranks of the Communist Party. The
peoples of the U. S. S. R. wanted the better life
they had been promised, in particular release from
tyrannical rule and an increase of their material
well-being. The regime sought to increase indus-
trial outjjut quickly, especially in heavy industry,
and to secure control of agricultural output. A
policy of mass dei^rivation and mass expropriation
followed. The resistance engendered by this pol-
icy provided gi^eat numbers of candidates for re-
pression. Beyond any repression of dissidents,
the regime used wholesale forced labor as a weajjon
against entire economic and ethnic groups which
the rulers decided to destroy. The Soviet leaders
sought to derive maximum economic benefit from
these victims by organizing their labor power to
serve the economic program of the state.
The Soviet Government was unwilling to em-
ploy economic incentives potent enough to attract
sufficient free labor to the undeveloped areas of
the Soviet Union, areas thinly populated and diffi-
cult to exploit. Consequently, the Government
concentrated the largest masses of forced laborers
in the remote areas of Siberia, Central Asia, and
the Far North. Not all persons subjected to
forced labor in confinement were sent to these
428
Department of Slate Bulletin
distant camps, however. Many camps and colo-
nies were located in and near the well-populated
areas. Especially for "short-timers" the nearer
camps could, with little waste of time and trans-
portation facilities, usefully supplement the sup-
ply of free labor in various parts of the U. S. S. R.
In addition, they served as an everyday reminder
to the people of the need for confonnity.
Degrees of Involuntary Labor
In a society as tightly controlled as the Soviet
Union it may be asked if there is a valid distinction
between forced labor and free. Much coercion is
embodied in the relationship between the all-
powerful Soviet state and the individual employee.
A different kind of coercion finds expression in
the relationship between the state and the farmer.
Compulsion or coercion of labor takes various
forms. (1) Youths, often from farms, are
drafted for training in labor reserve schools and
bound afterwards, like graduates of higher schools,
to work for 3 or 4 years on assigned jobs. (2)
Workers may not leave jobs without permission,
and contrariwise, certain qualified workers may
be sent on obligatory assignment to other jobs in
other localities. (3) Farmers are required to
work a certain number of days each year in repair-
ing roads and the like. This survival of the
medieval corvee system has disappeared in most
European countries but not in the U. S. S. R.
(4) For infringement of certain rules workers
may be sentenced to a type of involuntary labor
with reduction of 25 percent in wages, but they
remain either at their normal place of employment,
or at least outside the barbed- wire enclaves. (5)
Workers, peasants, and intellectuals may be exiled
to remote places inside the U. S. S. R. where work-
ing opportunities are limited to a single factory
or mine. Such exiles become in effect forced labor-
ers. (6) If not exiled to a specific place, Soviet
citizens may be banished from their home towns
and forced to find residence and work elsewhere.
Although all of these relationships involve a de-
gree of compulsion sufficient to merit a description
as forced labor, they are not of primary concern
in the following text. They are discussed only
as they bear upon forced labor proper.
Forced labor is a punishment meted out to
those who have offended the powers that be or are
considered as potential offenders. Forced laborers
are persons confined for political or economic rea-
sons in prisons, labor colonies, or concentration
camps (in present-day Soviet terminology, correc-
tive-labor camps) and compelled to work in or
near the place of confinement.
Included in the great number of forced laborers
are both those sentenced by courts through regu-
lar or special courts and those sentenced by ad-
ministrative order. These groups are not treated
separately in the present text for the simple rea-
son that the Soviet authorities lump them together
in forced labor camps. Certain distinguishing
characteristics should be noted, however. Inves-
tigation of such "crimes" as those listed in article
58 of the Soviet criminal codes is in the hands of
the Ministry of State Security (MGB), an off-
shoot of the Ministry of Internal Affairs (MVD).
The most important component of the MGB is the
so-called political police, which has existed almost
from the beginning of the Soviet regime and is
the bearer of the "glorious tradition," to use a
plirase from Soviet propaganda, of the Cheka,
the OGPU, and the NKVD. The political police
can decide after completing an investigation
whether or not the suspect should be turned over
to the courts for prosecution. If the decision is
against court prosecution, the police agencies can
then, without even the semblance of a trial, sen-
tence the victim by administrative fiat to a 5-year
term at forced labor. If the decision is to prose-
cute in court, no great uncertainty arises as to the
danger of the victim's being released. Judges
are sufficiently well indoctrinated politically ; the
defendants' protections are weak ; and procedures
are so adjusted that a verdict of guilty can be ex-
pected. Then the victim once more enters the
grasp of the political police, who administer the
entire system of forced labor.
Soviet Acknowledgments of the
Forced Labor System
Although a wealth of material has been accumu-
lated describing the operations of the forced labor
camps in the U. S. S. R., many facts are still not
known. The gaps in outside knowledge of the
Soviet labor camps relate particularly to current
developments. Some of these facts will in all
probability not become known, at least in the near
future. The Soviet passion for concealment and
secrecy extends even to data and observations re-
garding routine events and processes; it would be
highly surprising if secretiveness did not extend to
the forced labor system, a characteristic of Soviet
society which goes against the grain not only of
Sepfember 22, J 952
429
the world's conscience but also of the Soviet
leaders' own apologia.
Despite Soviet secretiveness about the nature
and extent of forced labor in the U. S. S. R., much
evidence regarding the system has been accumu-
lated from Soviet documents. These documents
are of several types. (1) Laws defining forced
labor, establishing regimes in forced labor camps,
and authorizing confinement by administrative
measures without trial have been published. Al-
though none of these is of more recent vintage
than 1934, current Soviet legal publications make
it clear that they are still in force. (2) When the
Soviet authorities were in a mood to boast of their
claimed success in reforming errant citizens
through forced labor, they published material
hinting at the extent to which forced labor was
involved in certain construction projects, such as
the canal projects. (3) Fortuitously, because dis-
closure was not intended by Soviet authors, the
publication of a detailed Plan for 1941 disclosed
the part played by forced labor in the economic
life of the country on the eve of World War II.
(4) Official Soviet documents given to Polish citi-
zens upon their release early in the war from
forced labor camps confirm evidence from other
sources regarding the existence of literally hun-
dreds of different camps.
Eyewitness Accounts of Soviet Forced Labor
Before World War II forced labor in the
U. S. S. R. had already assumed enormous pro-
portions. Because of Soviet censorship and tight
border controls there were few witnesses who were
in a position to testify to the human consequences
of the system. The war changed all this. Vast
dislocations of population affected Russians,
Ukrainians, Azerbaijani, and other nationalities
of the Soviet Union, as well as Polish citizens,
former residents of the Baltic States, and, of
course, Germans. Many of the Soviet citizens
who had been abroad refused to return at the
war's end, choosing the uncertainties of life in
other countries in preference to the cruel cer-
tainties of life under a concentration-camp regime.
They were justly apprehensive of Soviet measures
of "re-education" following their stay abroad.
This "re-education" did in fact include large doses
of forced labor.
Among the displaced persons were many who
had served terms in Soviet labor camps. They
had a story to tell which vividly portrayed condi-
tions in forced labor camps up to the war. Poles
who had experienced similar conditions in the
early years of the war brought the story more
nearly up to date when their testimony was made
available, as in the notable book entitled Dark
Side of the Moon.
The reconsolidation of Soviet authority has now
dried up the main stream of eyewitness accounts.
Nevertheless, enough Germans (ex-PW's sen-
tenced to forced labor camps) have managed to
leave the U. S. S. R. recently to show that the
forced labor system continues to operate in the
postwar years in the same old way.
Estimates of Size of Forced Labor Group
Neither reticent Soviet references to the forced
labor system nor survivors' accounts offer a means
of estimating the number of forced laborers. To
fill this gap various students of Soviet affairs have
attempted to estimate, on the basis of various sta-
tistics, the forced labor population. It is natural
that these estimates should vary widely, but part
of the discrepancies results from differences not
only in the period considered but also in the defi-
nition of the group to be estimated. The defi-
nition may include — in addition to the basic group
of inmates of "corrective labor" camps — forced
laborers interned in colonies, exiles, persons pun-
ished by forced labor at their place of work, and
prisoners-of-war.
Dallin and Nikolaevsky in their book, Forced
Labor in Soviet Russia,^ pass review on various
estimates of the number of prisoners running up
to 20 million persons and even higher. Their own
guess ranges from 8 to 12 million forced laborers.
In 1948, N. S. Timasheff computed the number
of forced laborers in 1937.^ He based his estimate
on the election returns of tliat year. Calculating
that the population on January 1, 1938, was 167
million, Timasheff estimated that adults of more
than 18 years constituted about 58 percent of this
total. Since only 56 percent of the population,
or 94 million, registered for the 1937 election, Tim-
asheff concluded that 3.3 million missing adults
had been deprived of electoral rights. Of these a
certain number, possibly one million, were either
' David Dallin and B. I. Nikolaevsky (New Haven, 1947),
pp. 84-87.
' American Journal of Sociology, September 1948, ltv,
150.
430
Department of State Bulletin
insane, feeble-minded, or ordinary criminals. The
remainder were in prison camps.
An attempt was made by a research member of
the Russian Research Center of Harvard Univer-
sity to find the number of forced laborers by mak-
ing a detailed breakdown of the population as of
January 1, 1939, by major occupational groups.
Foi-ced laborers become the residual category.
Numbers of males and females can be found in
official sources and can be adjusted to compensate
for omissions and double counting. All the re-
maining adults not accounted for as students, pen-
sioners, or as members of the armed forces should
either be not gainfully employed (housewives, for
example) or should be employed involuntarily.
On the basis of this method a forced labor figure
of almost 10 million for both sexes can be derived.
For 1940 Harry Schwartz estimated the num-
ber of forced laborers on the basis of the gap be-
tween payroll figures issued by the Central Ac-
counting Administration and the "inclusive pay-
roll for the economy as a whole." Central Ac-
counting data cover wage and salary earners re-
quired by law to possess labor books, craftsmen
working in cooperatives and some seasonal work-
ers. The comprehensive payroll data cover, in
addition, members of the armed forces and invol-
untary workers. If the average annual wage of
armed forces personnel or forced laborers is 2,000
rubles, the difference of 37 billion rubles would
support 18.5 million persons. Five million men
were assumed to be in the army. Schwartz there-
fore concluded that 13.5 million persons were
involuntary workers.'
Naum Jasny has presented the most recent
estimate. Jasny 's was based on production and
investment data drawn from the State Plan for
1941. He assumed a ratio of productivity between
forced labor and free labor at one-half to one.
Taking into account prisoners hired out, working
in a service capacity in the camps, and working in
industries not mentioned in the Plan, such as gold
mining, Jasny concluded that about 3.5 million
were camp inmates in 1941." This figure, how-
ever, does not include children, invalids, and other
people who do not work.
' Harry Schwartz, "A Critique of 'Appraisals of Russian
Economic Statistics,' " Review of Economics and Statistics,
February 1948, xxx, 40-41.
'"Labor and Output in Soviet Concentration Camps,"
Journal of Political Economy, October 1951, pp. 405-419.
Number of Prisoners in the U. S. S. R. and Other
Countries
Because of the Soviet concealment of prison data
the number of forced laborers cannot be known.
Even if the number of forced laborers were only
two to three million, and this is the most cautious
estimate, the number is enormous in comparison
either to the number confined under the Tsarist
regime or to the number of prisoners confined in
other countries at the present time. The Small
Soviet Encyclopedia,^ 2d edition, vol. 5, col. 361,
stated that Tsarist penal labor reached its maxi-
mum in 1913 when 33,000 were confined ; of these
5,000 were political prisoners. The number of
people confined in regular Tsarist prisons reached
a peak in 1912 with 184,000, according to Andrei
Vyshinsky.* This figure includes common crimi-
nals as well as "politicals." In prerevolutionary
days the highest number of political exiles was
17,000 in 1907 (according to Soviet Penal Repres-
sion, Moscow, 1934, p. 108). All these figures are
taken from orthodox Soviet publications, which
do not minimize the evils of Tsarism. A compari-
son of these statistics with even minimum estimates
for the Soviet Union I'eveals the great expansion
of forced labor after the Bolshevik Revolution.
The Soviet figures may also be compared to the
statistics of other countries, countries which, like
Tsarist Russia, have published data on prison pop-
ulation. In the United States, for example, por-
trayed in Soviet propaganda as a most barbaric
dungeon, full prison statistics are published. They
show that there is an average of one person ou^ of
1,000 imprisoned, i.e., a total prison population of
150,000 in a country with a population of more
than 150 million. If the U.S.S.R. had the same
ratio of prisoners to population, it would have
200,000 prisoners rather than 2 to 20 million.
The U.S.S.R. would have 200,000, that is, if crime
were as prevalent under Soviet socialism as under
capitalism. But all Soviet apologists assert that
crime is disappearing under socialism. Hence a
figure considerably less than 200,000 would b^
expected, rather than a figure from 15 to 100 times
as large.
Social Effects of the Forced Labor System
Forced labor on the tremendous scale on which
it exists in the U.S.S.R. brings terrible conse-
quences in its wake.
'Malaya Sovefskaya Entsiklopediya (Moscow, 1936).
'Prisons in Capitalist Countries (Moscow, 1937), p. 54.
September 22, J 952
431
Those most seriously affected are, of course, the
victims themselves, persons confined for shorter
or longer times to forced labor camps. Their lives
are likely to be, in Hobbes' phrase, "nasty, mean,
brutish, and short." Work is burdensome and
for long hours. Skills frequently become rusty.
Work conditions are hazardous to health, and
hence illness comes often. Inadequacy of medi-
cal facilities delays or prevents recuperation.
Human relations deteriorate in the unnatural
society of the camps. Even if the victim survives
his camp existence and returns to free society, he
may be handicapped in rehabilitating himself
either by physical or psycliical defects or by the
stigma attached to his name.
The forced labor system brutalizes others be-
sides the victims. The keepers and guardians
responsible for guarding the unfortunate inmates
suffer a blunting of moral fibers and display tend-
encies to degeneration.
The system makes fear routine in the popula-
tion. It shuts mouths which should speak fi'eely
and inspires the utmost caution and servility.
By its existence on a vast scale the forced labor
system makes necessary the continued elevation
of the political police and their continued pene-
tration into the innermost recesses of everyday
life. Since the role of the police is in turn depend-
ent in part on the size of the forced labor establish-
ment, a vicious rhythm is created which continues
to exert deleterious effects on Soviet society.
Forced Labor Constant in Soviet Society
Forced labor has been a constant feature of
Soviet society from the early days of the civil-
war concentration camps to the present period
of large-scale economic enterprises maintained
and operated by prison labor. In the first years
of the regime the Bolsheviks through proclama-
tions promising reform of prisoners attempted to
obscure the seamy reality of this institution. In
recent years the Soviet authorities by their almost
complete silence on forced labor have attempted
to enforce secrecy about the hundreds of camps
and millions of prisoners. Nevertheless, there is
ample evidence not only of the economic and po-
litical significance of forced labor in the Soviet
Union but also of the inhumanities which have
accompanied its application through 34 years of
Communist rule.
At every stage of Soviet development the forced
labor system has been adapted to changing po-
litical and economic needs. The use of forced
labor as a means of political control has been
constant, but the groups most seriously affected
have changed in accordance with shifting em-
phases in political warfare. The economic sig-
nificance of forced labor has varied with changes
in economic programs.
Forced Labor in the Period of War Commumism,
1918-1921
Forced labor camps were first opened in the
fall of 1918 with the institution of the "red ter-
ror." Political repression of the former ruling
groups, the raison d'etre of forced labor in the
first decade of Soviet rule, was presented as a
temporary measure directed against an enemy
class destined to destruction. In tliis period forced
labor was on a small scale, with perhaps less than
100,000 in camps in 1921. This number was par-
ticularly small compared with the large-scale
operations in subsequent years, when the same re-
pressive measure was directed against workers,
peasants, and the revolutionary intelligentsia, the
purported mainstay of the regime.
Nevertheless, it was in this early period, 1918-
1928, that the forced labor system became en-
trenched in Soviet society. In the first months
of the revolution the Bolsheviks organized a spe-
cial political police agency, the Cheka, which has
continued to exist under other names to the pres-
ent. This police agency played a key role in
the operation of forced labor camps, partly be-
cause it possessed the power to sentence victims
to exile or to forced labor camps without any judi-
cial procedure, by administrative decree only. The
labor performed by the victims was in the early
years of only incidental value to the state, since
little attempt was made to organize it on a profit-
able basis. This was also true of the other widely
heralded "progressive penal institutions," such as
labor colonies or corrective labor houses, to which
errant citizens of the working class were sent.
Forced Labor in tlie NEP Period 1921-1928
Concentration or forced labor camps continued
to exist all through the period of the New Eco-
nomic Policy (NEP), 1921-1928, along with the
system of penal institutions for nonpolitical crim-
inals and the work projects organized for those
sentenced to forced labor without incarceration.
Although tlie NEP period represented a consid-
432
Department of State Bulletin
erable relaxation from the stringent persecution
applied during the first years of Bolshevik rule,
there was little essential improvement in the status
of the political prisoner. The repression carried
out earlier by the Cheka found its continuation
in the activities of the GPU-OGPU.
It was in this early period that the authorities
formulated the legal basis of the forced labor
system. One such principle involved the pre-
viously mentioned acceptance of extrajudicial
methods for sentencing to forced labor, and con-
trol of forced labor camps by the political police.
The criminal law codes instituted during NEP
fixed forced labor as a standard penalty. These
codes, typified by that of the E.S.F.S.R. (1922;
revised in 1926), distinguished between forced
labor with confinement and forced labor without
confinement. The former involves incarceration
in a labor camp, or colony, and the latter com-
pulsory performance at a reduced rate of pay in
either the person's regular job or some other
assignment. These varieties of forced labor have
been perpetuated to the present day.
In addition to establishing norms of the crim-
inal law, Soviet authorities in this early period
promulgated the first corrective labor code. This
was issued in the R.S.F.S.R. in 1924. It was
followed by codes of the other republics. These
statutes established a detailed set of rules for per-
sons condemned to all types of forced labor, and
provided for a system of social stratification in
Soviet penal institutions in which criminal ele-
ments were considered the elite.
The Early Plan Period, 1929-1934
With the end of NEP and the resumption of the
"socialist offensive" in 1929, forced labor assumed
new importance. In the earlier years forced labor
was aimed at former "exploiting" classes. In the
period of collectivization the farmers who held
small tracts of land and a few head of livestock
became the chief victims. Five million of these
peasants with their families were eliminated, as
Molotov acknowledged, i.e., were uprooted and
transported to remote regions of tlie U.S.S.R.
The Five Year Plans were inaugurated at this
time to bring rapid industrialization to Soviet
society. The gi-eatly expanded economic activity
of the state was attended by a substantial increase
in the population of the forced labor camps. By
1931 the number of inmates in both prisons and
September 22, 1952
corrective labor camps is estimated to have been
almost 2 million for the R.S.F.S.R. and the
Ukraine alone.'
The economic exploitation of Soviet prisoners
by the OGPU and its successor, the NKVD, be-
came more obvious as the years passed. Soviet
figures relating to several projects employing
prison labor were published during the 1930's.
They indicate that the U.S.S.R. employed more
forced laborers on each of several projects than
the total number of prisoners forced to perform
heavy labor in any year under the Tsar. Accord-
ing to a Soviet source, the highest point of repres-
sion under the old regime was reached in 1913,
when 33,000 convicts were engaged in penal labor.*
In an attempt to refute Western charges about
Soviet forced labor, Molotov reported to the All-
Union Congress of Soviets on March 8, 1931, that
there were "about 60,000'' persons performing cor-
rective labor on three highways, a railway and
the White Sea-Baltic Canal.
In actual fact, a much greater number of forced
laborers was employed on these projects, which
constituted only a small portion of the total forced
labor activity. In 1933, upon completion of the
canal alone, about 72,000 of the prisoners who had
worked on the project were freed or received short-
ened terms by governmental decree. Similar de-
crees in 1937 released 55,000 prisoners who worked
on the Moscow-Volga Canal and 10,000 who
worked on double-tracking the Kaiymskoye-Kha-
barovsk railway.
The period of the First Five Year Plan was
important for developments in the legal basis of
forced labor, which since that time has remained
substantially unchanged. Both the 1930 statute
on corrective labor camps and the 1933 R.S.F.S.R.
Corrective Labor Code (see p. 8), which regulates
all other types of forced labor, are still in effect.
In addition, a 1930 law of the R.S.F.S.R. intro-
duced into the Soviet judicial system the principle
of exile at forced labor, hitherto applied only
administratively by the OGPU. This measure
found immediate and widespread application
against the kulaks in the then developing collec-
' Estimate based on data in A. Ya. Vyshinsky, Ot Tyur-
'em k VospitateVnym Dchrezhdeniyam (From Prisons to
Educational Institutions), Moscow, 1934, pp. 171, 259.
' 87nall Sov-iet Encyclopedia (Moscow, 1936), vol. 5,
col. 361.
433
tivization program. Exile at forced labor was
widely applied to these peasants by the courts as
well as by the OGPU.
During this period a definite end was written
to the pretense that the political police with their
powers outside the law constituted a temporary
phenomenon in Soviet development. The so-
called exploiting classes had been liquidated, and
socialism was soon to be proclaimed. Yet the
status and extra-legal authority of the political
police were fully confirmed in 1934 when the
U.S.S.R. established, for the first time on the
All-Union level, a People's Commissariat of Inter-
nal Affairs (NKVD).
The Era of the Purges, 1935-1939
Forced labor had therefore already become a
well-developed system by the time country-wide,
new wholesale purges were initiated in the mid-
1930's. Consequently, the administrative struc-
ture of this system was well organized and
equipped to receive the additional great numbers
of victims who were soon to find their way into
the camps and other penal institutions.
Changes in the police structure of the Soviet
Union in 1934 when the All-Union NKVD was
established made it easier for the Soviet Govern-
ment to sentence people to the labor camps without
according them the right of court trial. This pro-
cedure was institutionalized in the form of the
Special Conference of the NKVD, a police organ
with the power to exile, banish, or confine in cor-
rective labor camps for periods up to 5 years.
Under the conditions of great internal stress pre-
vailing in the Soviet Union following the assas-
sination of Kirov in 1934, the police authorities
exercised their extrajudicial powers freely on the
Soviet citizenry.
The state found ample projects on which to
employ these great masses of human material at
forced labor. The NKVD's economic activity
expanded ti'emendously in the fields of hydi'oelec-
tric construction, production of industrial goods,
and exploitation of the extractive industries, espe-
cially in remote localities. It was during these
years, for example, that the forced labor camps of
Dalst/roi (the Far Eastern Construction Trust)
became synonymous with the mining of gold in the
Soviet Union.
Forced Labor on the Eve of World War II
By the time forced labor became a large-scale
business in the U.S.S.R., the authorities be-
came secretive about the magnitude and even the
existence of the system. A gauge of the impor-
tance which forced labor had assumed in the econ-
omy of the Soviet Union during the late 1930's
was provided by the detailed Soviet Economic
Plan for 1941. This Plan, intended only for offi-
cial use, fell into the hands of the Germans dur-
ing World War II. The text of the Plan dis-
closed some dimensions of the forced labor oper-
ations in the economy and showed that a sizable
part of the total production in the Soviet Union
was performed by forced laborers.
War Developments in Forced Labor
With the outbreak of World War II the pop-
ulation of Soviet forced labor camps was aug-
mented for the first time by large numbers of
non-Soviet citizens. These consisted of inhabit-
ants of the Baltic States and the eastern part of
Poland who were considered hostile to the Soviet
Government, as well as prisoners from the liqui-
dated Polish armed forces. Many of these for-
eign prisoners were sent to penal labor institu-
tions or transported to exile in the Soviet Union
without the formality of judicial procedure. The
inhumanity of Soviet methods of banishment to
exile and forced labor is well recorded by docu-
ments on the deportations from the three Baltic
States in 1941, which include long and detailed
lists of individuals to be rounded up and trans-
ported, and by the depositions of former Polish
prisoners.
Soviet participation in the war brought about
considerable changes in the forced labor empire.
Although there is little factual information on
this period, because of war-time secrecy, the pop-
ulation of the camps seems to have decreased as
a result of the need for manpower at the front.
Various groups of Soviet citizens were transferred
to army units. The Polish prisoners who had
been incarcerated for almost 2 years were released
by the agreement between the Polish Government-
in-Exile and the Soviet Government of July 30,
1941. There does not seem, however, to have
434
Department of State Bulletin
been a sharp cutback in the productive tasks as-
signed to the NKVD, although it is probable that
the responsibilities of this agency were altered by
the emphasis on functions relating to war pro-
duction.
The war also brought in its wake other trends
affecting the status of forced labor as an insti-
tution. Sentences to corrective labor without in-
carceration, always boasted of as an effective re-
form measure by the Bolsheviks, were to a large
extent replaced by short-term sentences to de-
privation of freedom. In 1942, for example, in
the R.S.F.S.R. (excluding the autonomous re-
publics) sentences to deprivation of freedom ac-
counted for 73 percent of all sentences by the
courts, as compared with 33.5 percent in 1934.
This development seems to have been due largely
to restrictive labor legislation passed at the be-
ginning of the war.
Under the stress of war conditions, so-called
"labor educational colonies" were organized in
1943 under the NKVD for minors aged 11 to 16.^
As far as is known, this marked the first time that
penal measures had been applied to children as
young as 11 years of age. In the same year the
old Tsarist punishment of hatorga, or hard labor,
which the Bolsheviks of earlier years had abol-
ished with great fanfare, was instituted for terms
of 15 to 20 years by an edict of the U.S.S.R.
Supreme Soviet on April 19, 1943. The Soviet
authorities said that this punishment was designed
for certain crimes by both "German Fascists and
traitors to the motherland— those giving aid to
the enemy." Actually, terms of the law were
vague enough so that it could be applied to politi-
cal dissidents.
Developments Since the War's End
Towards the end of the war, forced labor began
to assume a role of greater importance than had
apparently been allotted to it during the years
when the country had been in extreme danger.
New contingents of people undergoing repression
provided labor power for the huge amount of re-
construction which was to be undertaken. Among
these the main groups seem to have been new de-
'I. T. Golyakov, XJgolovnoye Pravo (Criminal Law),
Moscow, 1947, p. 80.
portees from the Baltic States and other annexed
territories, collaborators with the Germans, de-
serters and members of the Vlasov army, and
simple workers and soldiers returned from Europe
who were considered to need a period of reindoc-
trination. Several Soviet minority nationalities
fell victim to the charge of cooperating with the
enemy and were deported to other regions of the
U.S.S.R. These included the Volga Germans,
the Chechen-Ingush, Kalmyks, Karachai, and
others. Great numbers of enemy prisoners of war
were organized by the NKVD into productive
units for the state.
Although several important functions in the
construction field were withdrawn from control
of the NKVD early in 1946, this agency neverthe-
less appears to have been one of the largest capital
construction ministries in the U.S.S.R. in the
postwar period. The MVD is in charge of the
construction and maintenance of highways of AU-
Union importance and has been entrusted with a
large share of responsibility for some of the great-
est railway and hydrotechnical construction proj-
ects attempted in the U.S.S.R. (see also Chapter
V). Included in the latter are the large power
plants and canals announced in the Soviet press
during the latter half of 1950. The great pub-
licity accorded the five decrees on the subject did
not, of course, mention the part the MVD will
play, since the Soviet Government no longer boasts
of the "achievements" of its slave labor force.
The present size of the slave labor force at the
disposal of the MVD is unknown. Soviet sources
in recent years have seldom referred to the
U.S.S.R.'s forced labor system and hardly at all
to the once well-publicized institutions which ad-
minister it. Forced labor nevertheless continues
to form an integral unit in Soviet planning and is
without question a factor of importance to the
development of the Soviet economy.
The dislocation of population caused by the war
served a great purpose in enlightening the world
regarding Soviet forced labor. By strict censor-
ship over all publications and outgoing news and
by strict control of travel the Soviet authorities
had attempted to draw curtains on the forced
labor system. As a result of the war, however,
thousands of Soviet citizens had an opportunity
to escape from further Bolshevik rule by refusing
September 22, 7952
435
to return to a concentration-camp existence. In
this group were many who in the prewar period
had suffered as political prisoners. Their ac-
counts of personal experiences and their knowl-
edge of the system threw a flood of light on the
operation of the regime of forced labor in the
Soviet Union, as did the accounts of German
prisoners of war who had spent some time in reg-
ular Soviet concentration camps and were later
allowed to return to their country.
Problems Facing the North Atlantic Community
&?/ Ambassador WiJliatn H. Draper, Jr.
U.S. Special Representative in Europe ^
You are working toward the same important
ends which my colleagues and I in the Nortli
Atlantic Council are trying to achieve, and I
should like, therefore, to pay tribute to Lord
Duncannon and his associates who conceived this
Conference. I also want to thank each of you
for your public spirit in coming here to explore
ways and means of promoting a better under-
standing of the North Atlantic Treaty Organiza-
tion's (Nato) objectives in your respective coun-
tries and communities.
There could be no more fitting place than
Oxford for this Conference. By bringing to-
gether and educating Rhodes scholai's from many
countries over many years. Oxford has made one
of the outstanding contributions toward broader
international understanding.
The idea of education exchanges between na-
tions has spread widely since Sir Cecil Rhodes had
his great idea. Today, thousands of students and
teachers pass back and forth each year between all
free countries. This year, more than 8,000 stu-
dents from Nato countries are studying in the
United States alone, and 20,000 Americans are
studying in other lands, mainly in the countries
of Nato. This circulation of students and teach-
ers and knowledge is the bloodstream, or I might
call it the thought stream, of the Atlantic commu-
nity, essential to its growth.
I should like to consider with you the simple
question of wliat Nato is and what we may expect
it to become. This, I must confess, is something
we should do more often. The day-to-day busi-
ness of the North Atlantic Treaty Organization is
detailed and complex. Sometimes I feel we tend
^Address made before the Atlantic Community Confer-
ence at Oxford, England, on Sept. 12 and released to the
press (No. 725) on the same date.
to get bogged down in current activities. Your
organization serves an exceedingly useful purpose
if it does no more than encourage those of us
directly concerned with Nato affairs to take stock
from time to time.
Background of NATO
The North Atlantic community, as a commu-
nity of interests, existed long before the North
Atlantic Treaty was signed in "Washington on
April 4, 1949. Two world wars had demonstrated
that an all-out attack aimed against one of the
members of the community threatened the security
of all, and that sooner or later all would be drawn
in. Twice within a generation, countries of the
conmiunity had been obliged to band together to
resist, and to finally overcome in long and costly
wars, aggression that had been thrust upon them.
In other respects as well, the North Atlantic
community existed before the treaty. The coun-
tries in that community are founded on the prin-
ciples of democracy, individual liberty and the
rule of law. They are free and independent coun-
tries and are determined to remain so. Much of
their spiritual and cultural heritage they hold in
common. These are sometimes referred to as the
intangibles that unite the North Atlantic coun-
tries. But to my mind, the intangibles — the spirit,
the will, and the determination of our peoples —
are the essential factor; upon their strength de-
pends our freedona.
At the signing of the North Atlantic Treaty,^
the Secretary of State, Mr. Acheson, emphasized
that the reality of the treaty was
= Bulletin of Apr. 17, 1949, p. 471.
436
Department of State Bulletin
the unity of belief, of spirit, of interest, of the community
of nations represented here. It is tlie product of many
centuries of common thought and of the blood of many
simple and brave men. . . . The reality lies not in the
common pursuit of a material soal or of a power to domi-
nate others. It lies in the affirmation of moral and spir-
itual values which govern the kind of life they propose to
lead and which they propose to defend, by all possible
means, should the necessity be thrust upon them.
The other foreign ministers present at the sign-
ing of the treaty also dwelt upon these two themes
of defense and of peaceful progress which were
the twin purposes of the pact. And it was made
clear at the signing of the pact, and since, that
there is nothing narrow or exclusive about the
North Atlantic community, that the community is
but part of the world community, and that Nato
is actually a bastion of strength for the whole free
world.
In the treaty itself, the countries concerned
agreed that an armed attack against one or more
of them should be considered an attack against
them all; they agreed to maintain and develop,
separately ancl jointly, by means of continuous and
effective self-help and mutual assistance, the in-
dividual and collective capacity to resist armed at-
tack ; and they agreed to set up a permanent organ-
ization to aid in implementing the treaty.
But they also agreed to more.
In article 2, they agreed to "contribute to the
further development of peaceful and friendly in-
ternational relations by strengthening their free
institutions, by bringing about a better under-
standing of the principles upon which these insti-
tutions are founded, ancl by promoting conditions
of stability and well-being." They further agreed
to "seek to eliminate conflict in their international
economic policies" and to "encourage economic
collaboration between any or all of them."
The Military Aspects of NATO
There have been critics of Nato, both friendly
and unfriendly, who have emphasized the militory
aspects of the Nato alliance, who have pointed out
that progress in Nato organization and effort has
been made largely in the military sphere, and that
economic and cultural development of the Atlantic
community has been pushed into the background.
In commenting upon this criticism, I should
like to sketch very briefly a little recent history
which is needed to understand the origins of the
North Atlantic Treaty and the subsequent devel-
opment of Nato.
You are familiar with that history. You know
that Western leaders sought to create out of the
wreckage left from the Second World AVar a world
community of nations, directed to peaceful ad-
vancement. They established the United Nations
for that purpose. And the United States and its
allies in the West proceeded to disarm.
Then came the disillusionment. With mounting
horror, we watched the accumulation of evidence
September 22, 7952
222450—52 3
that the Soviet Union was embarked upon aggres-
sive expansion to which there were apparently
no limits. One by one, the countries of Eastern
Europe passed under Soviet control in direct vio-
lation of Soviet pledges. Then came the Com-
munist aggression in Greece and Soviet pressure
on Turkey. Then came the rejection by the Soviet
Union of the Marshall Plan and subsequent efforts
to cripple the economic recovery of the West.
Then came the organization of the Cominform,
the blocking of peace treaties, and the stepping up
of Communist activities throughout the world.
Ihese developments were accompanied by per-
sistent Soviet use of the veto in the United Nations
and the unleashing in the Soviet Union and
throughout the world of a campaign of hate,
distrust, and lies.
Finally came the Soviet-managed cotip (Petat
in Czechoslovakia in the spring of 1948, followed
shortly by the Berlin blockade, marking direct
Soviet intervention and expansion into the very
center of Europe. It was then that the free coun-
tries of the West started negotiations which cul-
minated in the North Atlantic Treaty.
Even then, in 1949, we still thought we had time
to build the military defenses of the Atlantic com-
munity without making much sacrifice. That
complacency was shattered by the Communist
invasion of South Korea in June 1950, demon-
strating as it did that world communism was not
only expansionist but reckless as well. Rearma-
ment in the West, and rearmament in a hurry, was
clearly demanded.
It was in these circumstances that the over-
whelming thought and attention and energy of the
Nato countries were thrown into the drive for
rearmament. Elementary considerations of se-
curity demanded that the nations of the West build
an effective military shield against the mounting
danger as fast as possible, and that the defense
effort should have the highest priority. This did
not mean, and does not mean, that the other objec-
tives of the North Atlantic community have been
abandoned. It merely means that first things had
to come first.
Last week, the Soviet delegate to the U.N.
Security Council, Mr. Malik, went to great lengths
to denounce Nato as an aggressive military alli-
ance directed against the Soviet Union and to
attack with special violence the principal archi-
tects of Nato. There was nothing new in this.
It has been a major theme of Soviet propaganda
for years. But it did seem unusually vitriolic,
even for a Communist.
I think I can understand the violence of this
Soviet attack on Nato. It must stem at least
partly from frustration. Only a few years ago,
the countries of the West, individualistic, divided
and militarily weak, must have seemed easy pick-
ings to the men of the Kremlin. Today, we are
no longer easy pickings.
Today, we have very substantial Nato defense
437
forces in being, a common Nato military com-
mand in operation, and a military build-up
program that is steadily moving forward. The
military plan agreed upon by Nato powers at
Lisbon last February calls for the provision to
Nato by the end of this year of approximately
50 combat-ready ground divisions, about 4,000 air-
planes, and a comparable naval strength. These
goals may not be achieved in full by the end of
this calendar year, but any slippage is likely to be
of relatively small proportions and with iiitensive
effort it should be possible to com^jlete the 1952
goals early in 1953.
Progress No Reason for Complacency
This, I submit, is a good record. Just a few
years ago, many European members of Nato were
on the verge of economic collapse. Europe was
virtually disarmed. Today, in Europe, substan-
tial and steadily increasing Nato forces stand
guard, deliveries of equipment are rising, and
training programs are accelerating. Our com-
mon military planning and military leadersliip
have made important gains as combined training
exercises have been undertaken and successfully
accomplished. During the past year, 700 mil-
lion dollars' worth of U.S. offshore procure-
ment contracts were placed in Europe to help
strengtlien the European production base. Nato
recently developed recommendations for a coordi-
nated European aircraft production program to
which the United States is gearing a part of its
new offshore procurement program. Scores of air
bases and widespread communications facilities
are being constructed for the use of Nato forces.
In the military build-up, we are clearly making
progress.
Meanwhile, the North Atlantic Treaty Organi-
zation has been streamlined and made into a much
more effective instrument for action. Negotiations
for a European Defense Community have been
completed and a treaty is in the process of ratifi-
cation. The European Coal and Steel Community
has come into being. Recently, the European Pay-
ments Union successfully weathered a severe crisis
and was extended to carry on its good work.
Agreements with Western Germany have been
signed to end the military occupation of Ger-
many and make possible German participation in
Western defense as part of a European army.
These, I submit, are solid achievements. No
longer is Nato only a phrase or an idea. It is a
going concern, and one that is growing in strength
and effectiveness.
Let those who have worked long and hard to
achieve these ends take encouragement from the
record. But let them not take progress as a reason
for complacency. For in spite of recent sugges-
tions in the news there is no credible evidence of
the easing of the Soviet threat itself. And, in the
face of that threat, present Nato strength — mili-
438
tary, economic, and spiritual — still remains far
from adequate.
The economic foundjations of the Atlantic com-
munity are not as sound as they should be and
need further strengthening if we are to have ef-
fective security. The chief difficulty lies, as I
pointed out in my recent report to President Tru-
man,^ in the chronic balance-of-payments prob-
lem that exists between Western Europe and the
dollar area. The United States has a huge excess
of exports over imports, an excess that has per-
sisted over a long period of years. Western Eu-
rope, for its part, has a pereistent shortage of
dollars and is unable to pay for its essential re-
quirements in the dollar area. This has called for
continued large-scale annual grants-in-aid from
the United States to Europe since the war. In my
report to the President, I pointed out that there
were important things to be done both in Europe
and the United States if this difficult problem were
to be solved.
I have noted that my report was received with
considerable interest on both sides of the Atlantic.
It was not unnatural, I suppose, that the European
press in its comments should have emphasized
what I had to say about American responsibilities
and that it should have given considerably less at-
tention to what I had to say about European
responsibilities. It is clear indeed that if Europe
is eventually to pay its way in the world without
American aid, the United States must take needed
action to adjust its foreign-trade balance and yet
maintain a high and increasing level of world
trade. This means both reducing the barriers to
greater purchases from Europe and also increasing
overseas investments of American capital.
But there are important things that Europe, too,
must do. Europe must become more productive —
and at more competitive prices. This means
harder thinking and harder woi'k. This means
creating a wider market, a market freed of trade
restrictions and cartel arrangements which hinder
mass production and mass selling. It also means
a deeper market — a market continuously expand-
able by reason of the ability of workers with a
rising standard of living to buy increasingly the
fruits of their production.
These, I am happy to note in passing, are objec-
tives set forth in the treaty establishing the Euro-
pean Coal and Steel Community. A single market
for coal and steel as wide as the six-member coun-
tries will be established. If, as this great exi^eri-
ment develops, greater competition and greater
productivity — as publicly stressed by thS Presi-
dent of the High Authority — are actually
achieved, the way will have been opened for simi-
lar progress in other industries and perhaps within
wider boundaries.
I was gratified that French Prime Minister
Pinay, in an important sj^eech a few days ago, re-
• Ibid., Sept. 8, 1952, p. 353.
Department of Stale Bulletin
jected a solution of France's economic problems
based on inflation or on stagnation. Instead, he
championed a policy of greater production based
on free and fair competition, on new productive
techniques, and on banning restrictive agreements
by law. He said — and I quote — "The solution for
France is not a question of selling fewer products
at higher prices— it is a question of satisfying more
needs at lower costs." I could not agree more — not
only for France but for all of Europe.
Adverse Labor Conditions
Another problem that I would like to mention
here, and one with which Nato could profitably
concern itself, is that of overpopulation and un-
employment in some of the member countries.
Overpopulation and unemployment, wherever they
occur, pose a threat to social, economic, and politi-
cal stability. Moreover, they represent great hu-
man waste which should not, in this day and age,
be allowed to exist on any appreciable scale.
Side by side with unemployment in some Nato
countries is labor shortage in others. Surely the
community ought to see to it that such a situation
should not be permitted to continue. It is clear
that when 10 percent of the working population is
unemployed, as in Italy, we have a situation that
needs correction. Naturally, every possible step
should be taken by the particular govermnent con-
cerned to put its own people to work, but if this
problem cannot be wholly solved by national ac-
tion, which is clearly the case of Italy, then it is to
the advantage of the entire Atlantic community
to cooperate in finding solutions.
One answer, and a very elementary one, to this
problem is to facilitate emigration from overpopu-
lated countries to those in need of additional labor.
I realize only too well the obstacles and the preju-
dices that often prevent such a transfer of peoples.
In most of our countries there are important
groups that oppose the liberalization of immigra-
tion rules. Our own recent experience in the
United States is a good case in point. There are
similar difficulties in other Nato countries.
You who are assembled here tonight can, I be-
lieve, make a contribution to overcoming these
difficulties. It is highly important, in my opin-
ion, to increase public understanding of the rela-
tion between overpopulation and wasted man-
power on the one hand and peace and stability on
the other.
In my own country. President Truman has just
appointed a seven-member commission to review
U.S. immigi-ation policy.* I sincerely hope that
this will result in a modification of the narrowly
restrictive immigration bill which Congress re-
cently passed over the President's veto. Other
countries might also give careful consideration to
this problem.
*Ihid., Sept. 15, 1952, p. 407.
Sepf ember 22, 1952
The strength of the North Atlantic community-
its ability to resist military attack, to withstand
economic strain, and to resist ideological erosion —
is no greater than the spirit that binds us together.
We have made considerable progress in building
military and political defenses. "We have — in the
economic field — at least defined the objectives and
have coped, by temporary and emergency meas-
ures, with economic crises as they have arisen.
But I must confess that I share your concern that
we of the North Atlantic community could and
should do more to strengthen our ideological
defenses.
The world-wide struggle in which we are en-
gaged is not only political, military, and economic.
It is likewise, and even more importantly, a battle
for the minds of men. Communism battles for
men's minds with all weapons, fair and foul, with
no holds barred. It stirs up strife with false
promises. It encourages brother to testify against
brother. It plays upon prejudice and passion. It
uses the concentration camp and the torture cham-
ber. It murders and kidnaps its victims. With
diabolical skill it wrings confessions from the in-
nocent by drugs and mental and physical cruelty
beyond the limits of human endurance. Its propa-
ganda knows no bounds. If, with these weapons,
it could enslave the minds and souls of peoples,
it could conquer the world.
I am profoundly gi'ateful that you here at this
Conference have recognized the vital importance
of countering this aspect of the world struggle
with communism. Under article 2 of the North
Atlantic Treaty, our countries have agreed to
strengthen their free institutions by bringing
about a broader understanding of the principles
upon which these institutions are founded. But
actions by governments alone are not enough.
Governmental and Nato information programs
are highly useful, and we are developing our fa-
cilities in this respect, but the main burden of
strengthening public understanding of the mean-
ing and purposes of Nato and of the basic values
and the community of interests that underlie it,
and equal understanding of the alternative slavery
that the Soviet offers, necessarily falls upon pri-
vate groups, organizations, and individuals. You,
here at Oxford, have seen the great need and you
have undertaken to shoulder a part of the burden.
I can foresee that the official Nato organization
and some great unofficial allied organization of
private inclividuals and gi-oups from our many
countries might well bring about, by working to-
gether, a closer relationship amoiig the people of
the North Atlantic community. There is a great
opportunity here, and one whose possibilities we
can only begin to contemplate. As U.S. repre-
sentative in the North Atlantic Council, I shall
welcome contributions or suggestions from any of
you as to ways and means by which Nato could
promote a fuller knowledge of the Atlantic com-
munity and its problems.
439
In the work of the Council I sense a growing
spirit of dedication to our common purpose. Our
14 governments have made long strides toward
unity and strength. If this trend continues, and
I expect it will, we can see ahead improved pros-
pects of a peaceful world solution for which free
men have hoped since Soviet imperialism un-
masked its evil intentions.
In the dark days of 1940 when the British Em-
pire stood alone against Hitler's mad attack, and
when my country was beginning to help by send-
ing rifles and guns and destroyers to Britain,
Winston Churchill in a moving address in the
House of Commons remarked that the affairs of
the United States and those of the British Empire
were getting more and more mixed up for the
mutual and general advantage of both.
At present, the affairs of the 14 Nato partners
are also getting mixed up together for a great and
noble purpose — the preservation of peace and
freedom. I cannot see the end of the road, but I
suggest that we all take courage and inspiration
from Mr. Churchill's words of 12 years ago.
Speaking of this mixing process, he said,
Looking out on the future I do not view the process with
any misgivings. I could not stop it if I wislied ; no one
can stop it. Like the Mississippi, it just keeps rolling
along. Let it roll. Let it roll on full flood, inexorable,
irresistible, to broader lands and better days.
Maltreatment of Americans
in Communist Cliina
Press Conference Statement l)y Secretary Acheson
Press release 712 dated September 10
You have all heard of the death of Bishop
Francis Ford in a prison in Communist China.
This Catholic clergyman was 60 years old and had
spent over 30 years of his life in China.
About a year and a half ago we heard that
Bishop Ford had been placed under arrest by the
Communists. But we could never be sure what had
happened to the Bishop because, in the tragically
familiar pattern of the Communist police state,
arrest meant that he was cut off completely from
all outside contact, and no one in authority would
divulge any information concerning him. As far
as we know, however, he was never brought to
public trial.
Credible reports now indicate that Bishop Ford
was allowed only the most meager diet and was
subjected to maltreatment and humiliation in the
presence of the people he had served for half a life-
time, before he died in a Communist prison cell
last February. The Chinese Communists did not
allow news of his death to reach the outside world
until more than 6 months later.
Other innocent and peaceful Americans in
China have similarly fallen victim to Commu-
nist brutality. Gertrude Cone, a Methodist mis-
sionary, applied to Communist officials for an exit
permit in January 1951. Her permit was not is-
sued. In the sununer of 1951 she became ill with
cancer. Running low on funds, she asked Com-
munist officials for permission to telegraph Hong
Kong for money to live on. Her request was
refused.
Gertrude Cone subsisted on a starvation diet
until early February 1952. In December 1951
she fell and broke her hip. Despite extreme i^ain
from cancer, the broken hip, and malnutrition, she
made her way to the police station to ao;ain plead
for permission to wire Hong Kong for funds.
Again she was refused. Gertrude Cone was car-
ried by stretcher across the border into Hong
Kong February 18, 1952. She died 48 hours later.
Gertrude Cone had committed no crime. She
was not accused of any crime. But her life was cut
short by the brutal callousness of Communist
officials.
Dr. William Wallace, an American Baptist phy-
sician, superintendent of the Stout Memorial Hos-
pital, Wuchow, China, was arrested by the Com-
munists on December 19, 1950. He had spent
much of his life in helping the Chinese people.
But Dr. Wallace was grilled and tortured by his
Communist jailers. He died in prison February
10, 1951. His only crime was the high esteem in
which he was held by the people of Wuchow.
Philip Cline, an American businessman, was
arrested in April 1951, accused of spying. He was
released several months later in a precarious state
of health. He suffered from heart disease and
diabetes. Despite his critical condition, he was
rearrested in August 1951 and forced to stand
endless questioning by Communist officials. In
October 1951 Mr. Cline was again released from
prison. Cline and his wife were destitute, living
on bread and water. In the middle of November
1951 Philip Cline died in the city of Tsingtao. A
principal cause of this American's death was the
denial to him of insulin for treatment of his dia-
betes while in prison.
There are other American and foreign nationals
similarly arrested on trumped-up charges who are
still languishing in Chinese Communist prisons.
They continue to be denied the basic right to com-
municate with the outside, to know the charges on
which they are held, to have access to counsel and
witnesses, and to have a fair and open trial.
Tlie standard Chinese Communist procedure in
treatment of prisoners is to endeavor to extort false
confessions from them by use of third-degree
methods. The Communists refuse even to ac-
knowledge that they hold these unfortunate
persons. There may be more Gertrude Cones,
Bishop Fords, Philip Clines, and William Wal-
laces, whose cases are unknown to us. We only
know that these Communist crimes will be forever
condemned by those who believe in simple justice
and fair play for human beings.
440
Department of %tate Bulletin
The Colombo Plan: New Promise for Asia
hy Wilfred Malenhaum,
The Colombo Plan relates to South and South-
east Asia, to countries where there are some 600
million people, about one-fourth of the world's
population. Average annual incomes are among
the lowest in the world. In real terms these in-
comes are less than they were prior to the war.
This decline is only pai'tly due to the dislocations
and destruction of the intervening years. More
significant by far is the fact that average income
in these areas has tended to decrease over a long
period. The development of new resources and
the improved use of old resources have not kept
pace with the increases in population. Thus the
region no longer produces enough food for local
consumption, even at the low caloric levels now
prevailing. Despite the fact that there are in the
area countries which are the world's major ex-
porters of rice, a basic cereal in the diets of the
people of South and Southeast Asia, millions of
scarce dollars must be spent each year for grains
imported from abroad. The potentials of the
area, both human and material, should make it
economically possible both to increase exports
from the surplus regions and to reduce the import
needs in other countries. Rapid development of
this potential requii'es an aggressive attack not
only in agriculture directly but also in transporta-
tion, power, health, education, and various indus-
trial fields. Today, economic development is ap-
propriately the major concern of the people and
governments of South and Southeast Asia.
The United States is deeply interested in this
development. This interest stems from our basic
concern about the unhappy plight of so many in
the area. It stems also from our desire that these
people not be lost to freedom and democracy
through any conviction that communism alone
can improve their economic and social well-being.
The United States is also interested because of the
increased interchange of goods and services that
would result from exp anding incomes in the area.
South and Southeast Asia are important sources
of basic materials which are essential, in growing
quantities, to the economic welfare of the West-
ern world. The growing populations in the area
can generate a large demand for the goods and
services of the more developed parts of the world.
Given this mutuality of interest, it is readily un-
derstandable that the United States has been coop-
erating with these countries in their efforts to
rehabilitate their economies and jiush forward
their plans for economic development. This Gov-
ernment welcomed the initiative of the countries
in the area in formulating the Colombo Plan and
readily accepted an invitation to participate in a
program devoted to objectives so important to the
United States.
Almost 2 years have passed since the publication
of The Colombo Plan for Cooperative Economic
Development in South and Southeast Asla,^ which
presented the develojiment programs of Ceylon,
India, Pakistan, and the U.K. territories of Ma-
laya and British Borneo for the 6-year period
from July 1, 1951, through June 30, 1957. These
programs envisaged a total investment of £1,868
million (about 5.2 billion dollars) in the public
sectors of these countries. It was anticipated that
£784 million of this total could be piovided by the
areas themselves over this period, that an addi-
tional £250 million would be obtained by drawing
down their sterling reserves, and that a residual
£834 million (some 45 percent of the total) would
be required from other sources as outside aid to
the economy of the area.
The development programs under the Colombo
Plan have been in operation for a full year.- The
'British Cmd. 8080 (1950).
^ See Report of the Consultative Committee on Economic
DcveJopnicnt in South and tioiitheast Asia — Fourth Meet-
ing at Karachi, Pakistan, March 1952, Department of
State publication 4650. This document was prepared prior
to the completion of the first full year of the program, but
it gives a good over-all statement of the progress attained
so far.
Sepfember 22, J 952
441
year has shown progress that has in many ways
exceeded expectations. It has also pointed up spe-
cific difficulties which lie ahead. Most important,
perhaps, the first year has demonstrated that the
Colombo Plan and its "sponsor," the Consultative
Committee, are dynamic forces encouraging sound
development in South and Southeast Asia.
The Consultative Committee is a unique instru-
meiit. The underdeveloped areas of the region
present to it their own programs for development.
The Committee does not screen these programs;
it does not in any sense underwrite them. There
is no permanent secretariat. Preparation of
country statements for the meetings is the respon-
sibility of the individual countries, with such as-
sistance as they may themselves seek. Annual
sessions provide a stimulus for keeping the devel-
opment programs under review. Development
plans are thus not simply studies for publication,
but are instead active programs which are adapt-
ed to changing circumstances. The meetings con-
stitute a forum for the multilateral discussion of
programs and progress in individual countries.
An opportunity is thus provided to consider spe-
cific problems of general interest and to study suc-
cessful accomplishment. Much can be learned
from the experience in other countries. This proc-
ess of mutual discussion and of common examina-
tion of individual country programs has appealed
to increasing numbers of countries in South and
Southeast Asia. There is no promise that aid will
be forthcoming as a result of the planning efforts,
yet additional countries have joined the Consul-
tative Committee and are doing more intensive
work on their own development plans. Burma,
Cambodia, Laos, Nepal, and Vietnam are now full
members of the Consultative Committee. Other
underdeveloped countries in the area, notably In-
donesia, the Philippines, and Thailand, have sent
observers to the meetings. There are prospects
that at least some of these may accede to full par-
ticipation.
All the developed countries which are members
of the Committee — Australia, Canada, New Zea-
land, the United Kingdom, and the United
States — do in fact have aid programs in countries
of the region. All these programs are carried out
througli bilateral arrangements. Yet the multi-
lateral discussions provide an excellent opportu-
nity to appraise the relative soundness of the in-
dividual programs, the effectiveness with which
they may be carried out, and the energy which
the various countries of the region are themselves
exerting for their own development. The devel-
oped countries are thus in an excellent position to
learn of the problems at first hand and to help
provide some guidance to their solutions. More-
over, the meetings provide an additional channel
for correlating the activities of various donor
countries in the same underdeveloped area.
Both the International Bank for Reconstruction
and Development and the Economic Commission
for Asia and the Far East ( Ecafe) participata in
the Consultative Committee meetings as observers.
Bank experts have surveyed many parts of the
area. Its loan operations there are expanding.
The Bank is an important source of external
fuiance for the Colombo Plan programs. Ecafe
has devoted much study to those economic prob-
lems whose solution is fundamental to the develop-
ment of the countries of the area. Participation
by these two international organizations assures
advice and guidance from objective experts
sympathetic to the region and its problems.
The Development Programs
The programs emphasize transportation, power,
multipurpose projects, social services, and agri-
culture— fields where investment is usually the
responsibility of public authorities. The major
attention placed upon the public sector does not
mean, however, that efforts are not being made to
expand private investment. Indeed, it is recog-
nized that expansion in the public area cannot
bear full fruit unless it has encouraged an increase
in the level and variety of private investment.
The ultimate objective, a continuous growth which
the economy itself can sustain, can be achieved in
most areas only by an increasing proportion of
investment in the private sector.
In the original estimates for Ceylon, India,
Pakistan, and the U.K. territories, alaout 70 per-
cent of the total public-investment programs was
in the fields of agriculture, transportation, and
power. The major emphasis was in the agricul-
ture sector, since improved power and transporta-
tion were in many cases essential to the accom-
plishment of the total agricultural objective. This
emphasis still prevails, despite the many changes
that have been made in the original programs.
Day by day it becomes more evident that this area
of the world must make the largest possible for-
ward strides in agi'icultural development if the
countries are to increase their own national income
and at the same time contribute to a more stable,
exjjanding world economy.
The specific cost estimates presented in Novem-
ber 1950 for the 6-year period of the Plan are no
longer pertinent. Since that time, prices have in-
creased, in some cases substantially. Changes have
also been made in the programs themselves. Time
has permitted a more complete examination of the
needs and potentials in some of the countries. In
other countries, there have been changes in empha-
sis as conditions have varied and as experience has
revealed more clearly the nature of the needs.
Thus, security conditions in certain areas have im-
proved less rapidly than was anticipated. Cur-
rent plans in these areas allocate smaller amounts
to the investment program because of emergency
needs arising from the continuation of war and
internal disorder.
Since such changes must je made if the plans
442
Deparfmenf of State Bulletin
are to be realistic, presentation of comprehensive
cost totals in current prices would necessitate fre-
quent recalculations. Kecent Consultative Com-
mitte discussions were therefore concentrated on
the individual programs in the current year and
the year immediately ahead. This does not mean
that the objectives of accomplishment over the
6-year period have been pushed aside. Rather, it
reflects an increasing realization that the goals
must be sought under the actual conditions pre-
vailing in each country when specific projects are
undertaken.
The Newer Members
Vietnam formulated the general outlines of a
long-period development plan, which envisaged an
investment of some 550 million dollars in both pri-
vate and public sectors over the 6-year period of
the Colombo Plan. Emphasis was placed on agri-
culture, transport, and communications. Vietnam
anticipated that domestic investment could pro-
vide less than half of the total ; the residual and
larger part would need to come as loan or grant
assistance from abroad.
Planning in Cambodia has not yet reached the
stage of the Vietnamese programs. A large proj-
ect was detailed for increasing rice yields, and
much consideration has been given to a general
program for expanding and diversifying agricul-
tural output. In neither Cambodia nor Vietnam,
however, is active implementation of these pro-
grams yet possible. Security conditions as well
as shortages of trained personnel and funds are
largely responsible for the lack of appreciable
progress. Development operations have in large
part given way to relief activities and to some
reconstruction, with particular attention upon
housing, health, and transportation.
An 8-year development program is being
worked out in Burma, and a 5-year program in
Laos. Nepal anticipates the submission of its
development program to the 1953 meeting of the
Consultative Committee.
Ceylon
Three export commodities — tea, rubber, and
coconuts — provide about 90 percent of Ceylon's
export earnings and about two-thirds of all em-
ployment opportunities. Despite the importance
of agriculture, the country must import about 70
percent of all the food it consumes. Basic needs
of the people are thus dependent upon foreign-
exchange earnings, which are subject to very broad
fluctuations. Ceylon's 6-year development pro-
gram is therefore devoted to a general diversifica-
tion of the economy, but with particular emphasis
upon a large expansion in food output. Agri-
culture (including multipurpose projects), trans-
port, and communications accounted for about 60
percent of some 285 million dollars of investment
contemplated in the original 6-year program sub-
mitted in 1950. In the past year, Ceylon has
reconsidered this program and now envisages a
greater effort, involving an expenditure in excess
of 650 million dollars over this same period. This
increase does reflect price rises, but it is principally
due to higher goals, especially for agi-iculture and
communications. There is a new program for
rural development, and very marked increases are
planned in social investment, notably in education
and in health.
During 1951-52, investment of almost 85 million
dollars was planned. This represents a very sig-
nificant increase over actual development expendi-
ture in 1950-51, which was close to the average
annual rate of almost 50 million dollars contem-
plated in the original Colombo Plan estimates.
The Ceylon budget year runs through September,
so the actual expenditure on development during
1951-52 is not yet known. Budgetary and other
problems may have prevented the fulfillment of
the 85-million-dollar program. There is similar
concern with respect to present plans for develop-
ment expenditure in 1952-53, now envisaged at
about 122 million dollars.
India
The Indian program comprised by far the bulk
of the development estimates included in the 1950
Colombo Plan report. At the time the report was
prepared, a total effort in the public sector of
almost 3,850 million dollars was anticipated.
However, subsequent analysis of Indian develop-
ment needs resulted in the fonnulation of the
Five-Year Plan, which has become the basic docu-
ment for Indian development.^ This program,
which involves higher rates of investment than
were earlier contemplated (and higher rates of
local contribution to this investment), imderlies
the Indian presentation now before the Consulta-
tive Committee. India's 6-year effort now in-
volves a development expenditure, in terms of
November 1950 prices, of almost 4,800 million
dollars. The investment program for 1951-52 ag-
gregated about 710 million dollars, which is well
in excess of the figure for 1950-51, and of the aver-
age annual program anticipated in the earlier
Colombo Plan figures. Further changes in the
pi'ogram are being formulated. Thus, a major
venture into community development is not in-
cluded in the present estimates. This basic pro-
gram can be expected further to alter the cost cal-
culations as well as the expected achievements of
the progi'am.
Despite these revisions, the major objectives of
the Indian program have not been altered. The
progi-am is still basically devoted to an increase
in domestic food output, with the goal of both
eliminating India's large dependence upon import-
ed food supplies and increasing the present low
' The First Five Year Plan, A Draft Outline, Government
of India, Planning Commission, New Dellii, India, July
1951.
Sep/ember 22, J 952
443
levels of average food intake. As the programs
have evolved, this food goal has become more im-
portant, with ever greater emphasis upon gi-ain
output at the expense of increases in nonfood ag-
ricultural products. However, significant progress
in agriculture requires significant development in
other fields, notably power and irrigation. The
Indian program thus contemplates large expendi-
tures for multipurpose projects. Present expecta-
tions are for a further increase in the level of in-
vestment to about 854 million dollars for the fiscal
year 1952-53.
Pakistan
At London in 1950, Pakistan presented a G-year
development program which involved expenditure
of about 660 million dollars in the public sector
and some 120 million dollars in private projects.
Major concentration was on agriculture, transpor-
tation, and power. The program contemplated
somewhat more emphasis upon the industrial field
than was true in other countries. The entire de-
velopment plan, however, was admittedly based on
a very hurried assessment of development needs
and potential. Subsequent analysis has prompted
important changes. An over-all revised total for
the 6-year Colombo Plan period has not as yet
been developed. However, a more detailed ex-
amination of essential development activities in
1951-52 and 1952-53 indicated that the outlay
required in the public sector in these 2 years alone
will be of the magnitude earlier anticipated for
the 6-year period. The increases in part reflect
the inadequacy of the earlier cost investigations.
Thus, a single multipurpose project has already in-
volved greater expenditure than was originally
contemplated for a related group of them. More-
over, the years have brought a need for additional
expenditures not originally envisaged. In a single
year Pakistan invested almost 70 million dollars in
refugee resettlement. It had originally antici-
pated a total outlay under 90 million dollars for
the entire 6-year period and for all social capital,
including the I'efugee requirements.
Investment was programed at about 325 million
dollars for 1951-52 and at about 335 million dol-
lars for fiscal 1953. Full information on develop-
ment performance in the past year is not yet
available. The planned level, however, was a
multiple of the actual development activity in
1950-51.
Vmted Kingdom Territories in South and
Southeast Asia.
The economic problems in the Federation of
Malaya, Singapore, Sarawak, and North Borneo
vary considerably. The common objective of
undertaking projects to improve the economic
position of the people of these areas implies for
Singapore a program most heavily concentrated
on social improvements, especially in housing,
health services, and education. However, in the
Federation of Malaya and in Sarawak and North
Borneo, development programs again show the
importance attached to improvements in agricul-
ture and to the extension of transportation, com-
munications, and power facilities. The territories
as a whole have an economy which is strongly
oriented toward the output of rubber and tin.
They have experienced wide variations in export
earnings as prices of these commodities have fluc-
tuated. There is again the familiar problem of
providing a broader basis of consumer supplies
domestically and a diversification of the economy
through the more efficient use of the region's
resources.
Originally, the total development contemplated
in the area over the 6-year period aggregated some
300 million dollars. Changing conditions, both
in the world economy and in the security situation
in this area, have necessitated revisions in these
estimates. The Federation of iSIalaya has stepped
up significantly its program of rural development
in order to provide resettlement for the population
in areas menaced by the terrorists. There is a
stepped-up effort in the field of housing, as well
as an expanded concentration on road building. In
1952-53, it is expected that about 67 million dollars
will be spent for development, as against 50 mil-
lion dollars in 1951-52 and 36 million in
1950-51. Further increases in these expenditures
are now visualized for subsequent years. In these
territories emphasis on a public-investment pro-
gi-am for diversifying the economy and for the
expansion of such basic facilities as transportation
and communication is in no sense an alternative to
further investment in rubber, timber, and mining.
Private investment is expected to continue at a
high level in these areas. Indeed, the public-
development program should jirovide some spur
to jarivate investment.
Financing the Program
The development programs were submitted in
the expectation that they could be fulfilled. With
respect to finance, this meant that the countries
looked first upon the resources they themselves
could devote to investment in the public sector of
their economies. For the additional resources
needed, they I'elied upon reasonable rates of utili-
zation of their accumulated sterling reserves and
upon that amount of foreign assistance that they
hoped might in fact be available as loans or grants
from abroad. Ceylon, India, Pakistan, and the
U.K. territories planned an investment of 870 mil-
lion dollars on the average for each of the 6 years.
Of this sum, local resources would ])rovide 365
million dollars, sterling releases about 115 million
dollars, and other foreign financing some 390 mil-
lion dollars. Since the last amount, 45 percent of
the total, significantly exceeds the volume of loans
that the countries expect to attract during each of
these j'ears, heavy reliance has been placed on
444
Department of State Bulletin
grant aid. Indeed, the revisions and expansions
made in the original estimates in some countries
have actually inci-eased this dependence. On the
other hand, the most dependable source of financ-
ing is the contribution by the developing coun-
tries themselves. Moreover, the determination
with which these countries further their own
development with their own resources is f I'equently
a factor in the willingness of other countries to
provide grant aid. Foreign assistance can play
only a supplementary role in the comliined effort
toward a mutually desired objective. It is obvi-
ously important that the Colombo Plan countries
make the largest possible contribution to financing
their own development.
Local Investment
The maximum level for such contributions can-
not readily be determined. National incomes in
these areas are small ; they are very low on a per-
capita basis. This suggests that, on the average,
there is not a large margin for savings above even
the minimum requirements for per-capita con-
sumption. However, there is little firm statistical
basis for indicating just how large these savings
are or can l>e. The local contributions to invest-
ment in the public sector are of course effected
through government expenditure. The govern-
ment can make these contributions from resources
raised by taxation in excess of revenues needed for
current "expenditures, from the profits on govern-
ment-owned enterprises, from money obtained
directly from the public on loan issues, or indi-
rectly through borrowing from the banks and
other financial institutions.
Un the tax front, major efforts have been made
in difl'erent countries both to increase the effective-
ness of the existing tax laws and to expand the
tax base. Experience alone will tell whether still
greater efforts will in fact result in net increases
in revenues. On the borrowing side, too, increas-
ingly ingenious techniques have been developed
for reacliing savings which are not being effec-
tively utilized. Here also, however, it is difficult
to know when such government borrowings begin
to interfere with the demands of private investors,
or indeed of consumers themselves. There is cer-
tainly some point at which the borrowings exceed
the savings of the country or in any event fail to
encourage any expansion in usable resources. The
danger of inflation is a constant fear of the under-
developed countries. Inflation can undermine the
very development objectives which prompted the
increased governmental expenditures. But there
is also the danger that governments seeking de-
velopment may be discouraged from such "bor-
rowings" long before they have reached a stage
where inflationary pressure really constitutes a
menace to the stability of the economy or to the
development program.
In the first year of the Colombo Plan, total de-
velopment expenditure in Ceylon, India, Pakis-
Sepfember 22, 7952
tan, and the U.K. territories may have been close
to 1,200 million dollars, in contrast to the average
of 870 million dollars contemplated in the original
programs. This difference is due almost entirely
to the larger contribution from the countries
themselves.
This impressive performance in local financing
was made possible by several developments which
could not be foreseen at the time the original pro-
gram was planned. The conflict in Korea had a
marked effect on international commodity markets.
These countries are important sources of rubber,
tin, jute, vegetable oils, and other products, the
demand for which expanded tremendously. Dur-
ing 1950-51, therefore, very large export earnings,
coupled in some cases with a tendency toward re-
duced imports, resulted in unexpectedly large sur-
pluses in foreign exchange. Government revenues
also increased, primarily as a result of expanded
tax returns and, in particular, expanded duties on
exported commodities. A gross investment pro-
gram of some 700 million dollars was thus carried
out in 1950-51 without any appreciable ca])ital
from abroad. Indeed many countries entered the
fiscal year 1951-52 with an increase in govern-
ment cash balances and in foreign-exchange re-
serves. It is this improved condition which in
considerable measure accounts for the develop-
ment performance in 1951-52.
By the end of the year 1951-52, however, many
of these factors were less favorable. Price de-
clines for exports, coupled with a persistent in-
crease in the cost of imported goods, resulted in
heavy drains on foreign exchange. Government
budgets began to show deficits on current account
even before the end of the fiscal year. Present
plans for 1952-53 involve outlays some 200 mil-
lion dollars greater than the large investment total
in 1951-52. At the fourth meeting of the Con-
sultative Committee in Karachi, most countries in-
dicated tliat their requirements for external aid in
1952-5.3 would be larger than in 1951-52. At the
moment, however, the prospect for loan and grant
assistance from abroad does not suggest a total
in excess of that in the previous year; indeed, even
that level may not be attained. Successful de-
velopment accomplishment in fiscal 1953 will thus
require outstanding achievement in the mobili-
zation of local resources. There will be ample op-
portunity to test the effectiveness of various
measures for raising local currencies. In many
ways, the experience of the months immediately
ahead may provide a real index of accomplish-
ments to be expected in the remaining years of the
Colombo program.
Ceylon, India, and Pakistan hold large sterling
balances. These represent past savings, largely
accumulated during the war years. By specific
agi-eements with the United Kingdom, these coun-
tries anticipate that they will utilize about 700 mil-
lion dollars of these reserves in their development
efforts over the Colombo Plan period. While these
445
are "local" resources, they are particularly impor-
tant because they can be used for foreign pur-
chases. During 1951-52, about one-sixth of the
agreed total was in fact utilized. Rates of actual
expenditure in the future will be governed not
only by the development needs of the three coun-
tries but also by the general problems confronting
the sterling area of which they are members.
Foreign Financial Assistance
The International Bank has made development
loans to India and Pakistan. A Bank mission vis-
ited Ceylon, but Ceylon has not yet requested that
any loan discussions be initiated. Through 1951-
52, drawings on existing credits of the Bank have
totaled about 45 million dollars. On the grant
side, Australia made available almost 20 million
dollars, Canada, 25 million, and New Zealand, 2.8
million. United States assistance aggregated
about 250 million dollars, including the emergency
wheat loan to India of 190 million. (In addition
to tlie 250 million dollars, U.S. grant assistance to
Burma, Cambodia, Laos, and Vietnam totaled al-
most 40 million for 1951-52.) The United King-
dom, in addition to its agreement to the release of
sterling balances, is providing essentially all the
external grant aid for its territories in the area. A
specific figure for this aid in 1951-52 is not avail-
able, but the United Kingdom has connnitted some
170 million dollars for this purpose over the 6-year
period. Mention might also be made of the fact
that the Ford Foundation began operations in the
area during 1951-52; it anticipates annual ex-
penditures of about 5 million dollars for a period
of years.
Foreign financial assistance to Ceylon, India,
Pakistan, and the U.K. territories was thus in the
vicinity of 350 million dollars during the first year
of the Colombo Plan program. Present prelimi-
nary estimates for 1952-53 suggest a considerably
smaller total. Drawings from International Bank
credits may reach a level of about 45 million dol-
lars. Although it is possible that new credits will
be negotiated during 1952-53, a significant in-
crease in annual drawings cannot be expected.
Loans are limited by the capacity to repay, which
is far short of the investment needs indicated in
the 6-year programs. Grants from the Common-
wealth contributors are expected to be of the same
magnitude as they were in the preceding year.
U.S. aid to countries in this area will be less "than
the previous year's total, at least by the amount
of the emergency wheat loan to India. To some
extent, however, financial assistance in prospect
for 1952-53 will be augmented because full use had
not been made of the 1951-52 aid contributions
during that year.
Financial assistance to the underdeveloped coun-
tries in South and Southeast Asia has, of course,
been provided on a bilateral basis. Apart from
the exchanges at Consultative Committee meet-
ings, coordination among the donor countries is
effected in the capital of each recipient country.
To date, such coordination has been of a most
informal nature; in particular, there is no over-all
approach on the part of the donor countries as
to the "best method" of making aid available.
Some contributions are concentrated on the com-
pletion of a full project, including the cost of both
imported and domestically produced goods. Other
progi-ams have supplied consumer goods, notably
wheat. This released for other purposes the for-
eign exchange that would otherwise be used for
wheat imports, while facilitating the noninflation-
ary acquisition of local currency by the govern-
ment through its sale of the wheat. Apart from
the direct U.S. loan to India for wheat (the sales
proceeds of which should also facilitate the prob-
lem of availability of local currency for develop-
ment), the U.S. aid has tended to be confined to
expert services, capital goods, and producers' sup-
plies. In most countries, the United States also
expects that its contribution in these forms will
be at least matched by local resources which will
be utilized at the discretion of the authorities of
both countries who supervise the over-all program.
Foreign assistance fills a deficit in the essential
requirements of these countries for their develop-
ment needs. It may also serve as a catalyst to
encourage expanded" efforts on the part of the re-
cipient government. Thus, supplying capital
goods exclusively may have some advantages, if
such goods should induce an incremental contri-
bution of the local resources needed to make these
imported goods effective in the economy. Simi-
larly, there is an obvious danger to providing con-
sumer goods in order to put into the hands of
central authorities local currency if this should
diminish their efforts to mobilize incremental
amounts of local resources. On the other hand,
situations can be foreseen in which it is precisely
th& shortage of consumer goods which is a bottle-
neck to expanded develoiament activity.
Technical Assistance
Successful implementation of the development
programs in the Colombo Plan countries requires
not only additional cajntal but a significant injec-
tion of imported technical knowledge. This has
been fully recognized in tlie Colombo Plan. In-
deed, there is associated with the program a Coun-
cil for Technicnl Cooperation in South and South-
east Asia, which provides an additional source of
technicians to member governments. The United
States is not a member of this Council, which has
its headquarters at Colombo, altliough the United
States maintains close liaison with it through the
Embassy at Colombo. The Council supplements
technical facilities made available through the
United Nations and through other bilateral pro-
grams. Also, the Council is a mechanism which
encourages mutual exchange of know-how among
the underdeveloped countries themselves. India,
Pakistan, and Ceylon are providing training
446
Department of Stale Bulletin
facilities and experts to one another in fields in
which each has some special competence and
experience.
The countries of South and Southeast Asia have
made extensive use of the various technical facil-
ities available to them. By the end of fiscal 1952
some 33 experts were operating in Ceylon, and
arrangements had been completed for the training
abroad of about 100 persons. Technical special-
ists are operating in practically every sector of
development in India, from basic agricultural ac-
tivities to advanced scientific fields. In addition,
training facilities have been set up in various re-
search institutions. This pattern is general
throughout the area.
All the countries in the area recognize that their
public development programs constitute only one
sector of their over-all development activity. Pri-
vate investment competes with government for
materials and for the savings of the country.
Nonetheless, there is general recognition that con-
tinued growth in the national product and contin-
ued increases in per-capita income will require an
expanding rate of investment throughout the
economy, particularly in such fields as industry
and trade, which are usually dominated by private
entrepreneui-s. The disproportionate concentra-
tion upon development in the public sector in the
early years of the Colombo Plan is considered
necessary for the subsequent growth of private in-
vestment both by nationals and from abroad.
Private foreign investment constitutes the only
source of continuous long-period external contri-
butions to the economy. The Pakistani program
includes in its industrial category projects which
will, at least in part, be privately financed. In the
Indian estimates, there is explicit recognition of a
rate of private investment which India feels
should be maintained concurrently with the ex-
panded program in the public sector. Private in-
vestment plays a large role elsewhere, particularly
in the specialized export crop regions in Ceylon
and in the U.K. territories in this area. It can be
expected that later sessions of the Consultative
Committee will devote increasing attention to the
prospects for an expansion of private investment.
Future Prospects of the Colombo Plan Programs
The Karachi meetings in March 1952 ended
with a note of cautious optimism regarding the fu-
ture outlook. It was recognized that "the plan
has got off to a good start." In the countries
which had already submitted detailed programs,
public investment in the first year averaged almost
70 percent above investment of the previous year
and was in general at a higher level than the av-
erage rate contemplated in the original programs.
The countries anticipated a further increase of
about 20 percent in investment in the public sector
for the year 1952-53.
While all realized that the very nature of basic
investment in the public sector meant that results
need not be apparent in the short run, real acMeve-
ments were indicated. For example, the main dam
on the Gal Oya irrigation program in Ceylon was
almost completed. Together with other projects
already begun, this project is expected to bring
under irrigation about 45,000 additional acres by
the end of 1953. Ceylon had also completed the
first stage of a major hydroelectric scheme which
provides a generating capacity of 25,000 kw.
Work was initiated on two additional projects of
comparable size. Port improvement and indus-
trial plant expansion had also been started dur-
ing 1951-52. In the Indian program also much
was accomplished on power and irrigation proj-
ects. Such projects as the Nangal Barrage, the
Bokaro Thermal Station, and the Tungabhadra
Irrigation Project and similar works in West
Bengal mean that there will soon be a large in-
crease in lands under cultivation or a substantial
expansion in the yields of existing crop lands. A
fertilizer plant and a locomotive works have been
completed, or practically so. Similarly, the Paki-
stani Government has finished the main work on
the Thai Irrigation Scheme, and there is every
expectation that the first phase of the Lower Sind
Barrage Project vdll be completed by the end of
1953. There is also considerable progi-ess in hy-
droelectric projects and some industrial establish-
ments. Work has been begun on the Singapore
Power Station. A major resettlement in newly
constructed villages is nearing completion in
Malaya, and there is heartening progress in agri-
cultural rehabilitation in Borneo and Sarawak.
The Consultative Committee recognized that
continued success in the 1952-53 program, and in-
deed for the remaining years of the 6-year plan,
would require the continued cooperation of all
member governments, but it stressed that the chief
responsibility was upon the developing countries
themselves. It also pointed to certain imponder-
ables. The future course of prices, for example,
might have a decisive bearing on the ability of
these countries to continue large-scale investment,
but their own ability to influence these prices was
limited. The Committee stressed the need for con-
tinued sympathetic cooperation on the part of the
donor countries with respect to both technical and
financial assistance.
The Consultative Committee offers a unique
medium for mutual discussion of development
programs in the area. It has already given
evidence of the realistic spirit with which the
planning countries approach their olijectiyes.
The plans are considei'ed not sterile blueprints
but flexible means for achieving development
goals. The changes already made in the programs
show a willingness to alter these goals as condi-
tions make necessary this type of action. The
Committee sessions provide ample evidence that
the consultations can lead to improvements in
procedui'es, and in particular to a reappraisal of
September 22, 1952
447
the contributions that the country itself might
make to development. The Consultative Com-
mittee provides a forum in vrhich the United
States and other countries can raise questions as
to the adequacy of the plans with respect to objec-
tives -nhich we consider important, such as the
level of food output, the nature of industrial pro-
graming, the role of private enterprise, and the
degree of self-help measui'es. Most important of
all, the tradition already established at the Con-
sultative Committee meetings, as well as the
]ihilosophy underlying the Colombo Plan, disasso-
ciates the specific discussion occurring at the meet-
ings from any governmental commitments. These
latter remain entirely within the area of bilateral
discussions.
The United States Government has fi-equently
indicated its full recognition of the importance of
economic progress in the countries of Soutli and
Southeast Asia. Tlirough various actions, includ-
ing financial assistance, the United States Govern-
ment has expressed its willingness to cooperate in
this development. Our interest stems from the
belief that world peace will be served if these
countries remain memlDers of the community of
free nations. Tliis area is of direct importance
to the United States as a source of essential im-
ports and as a market for our products. More-
over, it has in the past been, and will need to be
on an even larger scale in the future, a source of
basic foodstuffs for other parts of the world. Im-
proved economic conditions in this area may thus
be essential to the restoration of a healthy world
economy. The U.S. interest would thus "promjit
tlie continuation of our cooperative attitude to-
ward the Colombo Plan. Such a spirit can con-
tribute much to the prospects for successful accom-
plishment of the development objectives in South
and Southeast Asia.
• Mr. Malenbaum, author of the above article,
is chief of the Investment and Economic Develop-
ment Staff, Department of State. He served as
U.S. representative to the Officials' Meeting of the
Colombo Plan Consultative Committee at Karachi,
Pakistan, in March 1952.
First Anniversary of Japanese
Peace Conference
ments of ratification with the U.S. Government
in Washington.
The United States insisted that the Treaty of
Peace with Japan should be a liberal one — one
which would contain promise for the future and
not the seeds of future wars. This treaty broke
new gi-ound in international relations. As the
distinguished Foreign INIinister of Pakistan said,
it opens "to Japan the door passing through which
it may take up among its fellow sovereign nations
a position of dignity, honor, and equality. . . .
It is evidence of a new departure in the relations
of the East and the West as they have subsisted
during the last few centuries."
I congratulate Japan on this anniversary. May
she live in peace with all nations and aU nations
live in peace with her.
Compensation to Jewish Victims
of Nazi Persecution
Press Conference Statement hy Secretary Acheson
Press release 713 dated Septe'mber 10
The United States Government is pleased that
the negotiations which have been in progi-ess at
The Hague between representatives of the German
Federal Republic on the one hand and repre-
sentatives of Israel and the Conference on Jewish
Material Claims on the other have resulted in the
agreements which were signed in Luxembourg to-
day. It is the hope of the United States that these
agreements will be ratified without delay.
It is significant that the first article of the Con-
stitution of the new Germany is a recognition of
the dignity and the inalienable rights of man.
The resolution adopted by the German Bundestag
on September 27, 1951, is a moving tribute to the
determination of the German people that those
rights shall not again be violated and to the deci-
sion to purge themselves of the wrongs inflicted
on millions of innocent people. The agreements
concluded today are a material demonstration of
the resolve of the vast majority of the German
people to make redress for the sufferings of the
Jews under the Nazis.
Statement by John M. Allison
Assistant Secretary for Far Eastern Affairs
Press release 702 dated September 8
One year ago today, 48 nations and Japan signed
in San Francisco a treaty of peace which brought
to an official end the war in the Pacific. This
treaty came into force on April 28 of this year,
upon the deposit of the required number of instru-
Current Legislation on Foreign Policy
Third Special Report on the Operations and Policies of the
International Monetary Fund and the International
Bank for Kix;onstruction and Development. Message
From the President of the United States Transmitting
the Third Special Reiwrt on the Operations and Poli-
cies of tlie International Monetary Fund and the In-
ternational Bank for Reconstruction and Develop-
ment in Accordance With Section 4 (b) (6) of the
Bretton Woods Agreements Act. This Report Covers
448
Department of State Bulletin
the 2- Year Period Ending March 31, 1952. H. doc.
522, 82d Cong., 2d sess. 18 pp.
St Lawrence Seaway and Power Project. Communica-
tion From the President of the United States Trans-
mitting the Application to the International Joint
Commission, Dated June 30, 1052, for Approval of
Certain Works in Connection With the St. Lawrence
Seaway and Power Project, and an Exchange of
Notes, "of the Same Date, Between the Canadian Gov-
ernment and our Own Concerning the St. Lawrence
Project. H. doc. 528, 82d Cong., 2d sess. 9 pp.
Sixth Semiannual Report of United States Advisory Com-
mission on Information. Letter From Chairman,
United States Advisory Commission on Information,
Department of State, Transmitting the Sixth Semi-
annual Report of the United States Advisory Com-
mission on Information, Dated July 1952, Pursuant to
Section 603 of Public Law 402, Eightietli Congress,
An Act To Promote the Better Understanding of the
United States Among the Peoples of the World and
To Strengthen Cooperative International Relations.
H. doc. 526, 82d Cong., 2d sess. 30 pp.
The Katyn Forest Massacre. Hearings Before the Select
Committee To Conduct an Investigation of the Facts,
Evidence, and Circumstances of the Katyn Forest
Massacre, Eightv-Second Congress, Second Session,
on Investigation of the Murder of Thousands of
Polish Officers in the Katyn Forest Near Smolensk,
Russia. Part 5 (Franlsfurt, Germany) April 21, 22,
23, 24, 25, and 26, 1952. Committee print. 392 pp.
Report on Audit of the Institute of Inter-American Affairs
For the Year Ended June 30, 1951. Letter From the
Comptroller General of the United States Trans-
mitting the Audit of the Financial Statements and
Accounts of the Institute of Inter-American Affairs
for the Year Ended June 30, 1951, Pursuant to Gov-
ernment Corporation Control Act (31 U. S. C. 841).
H. doc. 491, 82d Cong., 2d sess. 15 pp.
Repeal of 3 Cents Per Pound Processing Tax on Coconut
Oil. Hearing Before the Committee on Ways and
Means, House of Representatives, Eighty-Second
Congress, Second Session on H. R. 6292, A Bill To
Amend Certain Sections of Chapter 21 of the Inter-
nal Revenue Code, and for Other Purposes. Com-
mittee print. 118 pp.
Appraising the Growth
of the Point Four Program
Statement hy Secretary Acheson
Press release 707 dated September 8
Two years ago today, at the direction of the
President, the State Department assumed respon-
sibility for the operation of the Point Four Pro-
gram of technical cooperation and economic de-
velopment.
On that occasion, the President stated that—
This program will provide means needed to translate
our words of friendship into deeds. ... By patient,
diligent effort, levels of education can be raised and
standards of health improved to enable the people of such
areas to make better use of their resources. Their land
can be made to vield better crops by the use of improved
seeds and more modern methods of cultivation. Roads
and other transportation and communication facilities can
be developed to enable products to be moved to areas
September 22, 7952
where they are needed most. Rivers can be harnessed to
furnish water for farms and cities and electricity for
factories and homes.'
Many of the potentials which the President saw
in Point Four 2 years ago are becoming realities
today. The Program is in action in 35 countries
of Asia, Africa, and Latin America. More than
1,200 "shirt-sleeve diplomats" from all walks of
American life are joining forces with some 13,000
foreign technicians in the attack on hunger, pov-
erty, and disease. Each project is based on whole-
hearted collaboration, and no project is begun
unless the requirement of freely given and freely
received cooperation is met.
The outpourings of the propaganda machine in
Moscow and in the satellites would have the world
believe that the United States is engaged in "war-
mongering" and that its Point Four Program is
an "imperialist plot." Point Four is indeed a
joint declaration by the United States and its
partners in the free world attacking conditions of
povertv and stagnation which have thwarted the
will to a better life. This is the only kind of
"warmongering" that Moscow and its spokesmen
can cite with truth.
The fact that Communist criticism of the Pro-
gram has grown in intensity with each succeeding
month is one indication that Point Four is achiev-
ing results, solid visible results in terms of better
crops, safe water supplies, new health services,
more schools and teachers, and many signs of local
initiative among village people.
There are many examples of the way in which
millions of people regard Point Four cooperation.
I mention one recently told me by Stanley An-
drews, the Administrator of the Program. A
letter signed by the elders of an Iranian village
reads :
Lately an organization under the name of Point Four
has started beneficent activities for the welfare of our
people in diflfeient parts of this country.
Among these parts, poor and knowledge-loving people
of the village of Dastgerd-Hhiar have been taken into
consideration by this organization. Our preliminary
school has been completed and a new Health Center ac-
cording to modern methods and principles of hygiene has
been constructed.
Therefore, we, the people of the village of Dastgerd,
express our gratitude to the well wishing and philan-
thropic people and Government of the United States of
America and the Point Four Organization in Iran; and
liopefully request that other requirements of our thankful
people which come under [the] Point Pour Program will
be considered by this organization and thus increase our
ever sincere gratitude.
While Point Four does not seek gratitude, it
welcomes concrete indications that its Program is
steadily strengthening the human and material
resources of the free world and encouraging the
growth of free institutions through which peoples
can develop their respective cultures and ways of
life.
' Bulletin of Sept. 25, 1950, p. 499.
449
Point Four's Impact on the Middle East
Remarks iy Cedric H. Seager
Chief, Iran Division, Technical Oooperation Administration'^
The Middle East is probably as good a testing
ground as any to prove the work of Point Four.
Tliat its impact has already been felt has become
apparent, as I will seek presently to demonstrate.
But befoi-e I do that, let me try and clear away
some of the misconceptions about the work of
Point Four that keep cropping up time and again.
We do not seek to woo the underdeveloped peo-
ples of the world with our money. We are not,
in fact, a big-money program. We do not seek
to buy alliances. We do not try to ram our cul-
ture clown other people's throats. We do not at-
tempt to make nations in our own image.
We do not pretend to be other than the fortu-
nate heirs of a great tradition ; a tradition of free-
dom and independence that itself stems from the
area which we are gathered here today to discuss.
Our aim is to share that heritage with other free
peoples of the world.
We do acknowledge, humbly, the privileges that
are ours. We do recognize, without boastful-
ness, that in an incredibly short space of time we
have attained to the highest living standard ever
enjoyed by any people anywhere. The disparity
between our wealtli and the desperate poverty
that prevails in the ^Middle East, and over so large
a part of the world, is one reason why Point Four
has assumed obligations aiming toward the clos-
ing of that gap. A further reason is the menace
of communism, which exploits misery and feeds
on despair.
Point Four was born of our realization that
want is a scourge not to be tolerated in a free
world ; that the ramparts of liberty are not proof
against the injustice of needless poverty and
curable disease; and that our way of life, born of
free enterprise and richly endowed by the marvels
of modern science, is a way of life open to all man-
kind once intolerance and tyranny and naked
greed are unmasked.
' Made on Auk. 28 before the American Political Science
Association at Buffalo, N. Y.
450
Our recognition of the factors making for hun-
ger and want is shared by the great majority of
mankind. Ours is no new discovery. As Dr.
Henry G. Bennett ^ often said : "A billion people
have found a window into the Twentieth Century.
It is up to us to provide them a door."
In the area of which we speak, which is the
threshold to Communist Kussia, lives a multitude
of fine people. Progi'ess has passed them by. Im-
perial subjugation for long centuries held them in
thrall. The evils of feudalism perpetuated their
misery. In their awakening consciousness of the
needless want which they have so long suffered,
they are ripe for revolution or for the orderly, sus-
tained process of dignified evolution. Commu-
nism seeks to exploit the bloodier means of revolt;
it is our privilege to demonstrate the fruits of a
more orderly growth, a less explosive escape from
the shackles of poverty and disease.
If there is one thing that we insistently pro-
claim, it is our detestation of communism and all
its works. We make no secret of that, as we labor
in the Middle East or wherever in the world hun-
ger and despair offer fertile soil for the poisonous
seeds of communism.
We know that if the door of opportunity is left
closed for a billion people, despair will grow as
freedom dies. Those things that have made us
great provide the key. Men need not die in their
thirties; a nation's per capita income can be im-
measurably increased by the application of modern
skills to industry; starvation can be replaced by
plenitude if all that we have learned in our country
of improved agricultural methods can be applied
in countries where such knowledge is still a
closed book.
The Communists decry our aims because they
fear them. Their very fears confirm the worth of
what we are doing. The measure of our success
will be the measure of their failure.
'Former Administrator of the Technical Cooperation
Administration, who died in a plane crash in Iran on
Dec. 22, 1951.
Department of Slate Bulletin
At the Village Level
We have already established a partnership of
common enterprise with the nations of the Middle
East. We are working together. On the shores of
the Caspian Sea, right up against the frontier of
Kussia, our men and women are working at the vil-
lage level with the men and women of Iran. By
technical training and by demonstration, the peo-
ple are being taught how to combat disease, how to
raise their standards of personal and community
hygiene, and how to eradicate malaria and other
scourges.
At the village level again, through the develop-
ment of water resources and by demonstrating im-
proved agricultural methods, the fruitful seasons
are being lengthened, rotation practices intro-
duced, and the benefits of mixed farming
exemplified.
All this, on the doorstep of Russia. All this,
wliere people have been stirred to renewed anger
by economic disaster. All this, uninterruptedly
while crowds rioted in the streets of Tehran. Con-
trary to belief in many quarters, our labors in Iran
have been unimpeded by the succeeding crises of
recent months. We have good reason to believe, in
the light of recent experience, that they will con-
tinue unimpeded.
Does that argue that the impact of Point Four
is having effect ? I think that it does.
Is this surprising? I think that it is not.
There is a movement growing in the Middle
East that is of the very essence of our philosophy.
Dr. Bennett preached it; Dean Acheson pro-
claimed it. On the occasion of the Food and
Agriculture Organization Conference in Eome in
November 1951, Secretary Acheson said :
. . . You are talking here, you are working here deal-
ing with resolutions on the subject of land reforms. That
is a matter which we in the Department of State have
believed is absolutely foremost in our whole international
relations. . . . Landownership reform alone is not
enough. Along with it have to go institutions for credit,
proper taxation and things with which you are more
familiar than I. It is in this front in which we really meet
and grapple with the misleading slogans of communism,
and therefore we in the Department of State have from
the very beginning urged that this matter of land reform
should "become a primary objective within our own coun-
tix in our International relations and in those areas
of the world which are now the battleground between
freedom and communism. . . .'
Conference on Land Reform
In the fall of that same year, 1951, a short 12
months ago. Point Four had helped sponsor an
international conference on land tenure at the
University of Wisconsin, attended by political and
agricultural leaders from all over the world.
For most of these eminent leaders, many from
the Middle East, land reform was a wishful dream
' BinxETiN of Feb. 11, 1952, p. 200.
September 22, 7952
12 months ago. Wliere does it stand today ? Read
your nevrspaper lieadlines. It has been front-page
stuff these past few weeks.
La.st spring, a Point Four expert spent 9 weeks
in Iran working out with the Royal Commission
on Crown Lands Distribution a detailed plan for
enabling peasants on the lands of the Shah to be-
come independent landowners. The program will
eventually install 50,000 peasants on farms of their
own. Principles of supervised credit, cooperative
services, training, demonstration, and organized
self-help are embodied in the plan. Premier Mos-
sadegh has recently announced his support of a
land-reform program of even greater magnitude;
and we have concluded with his Government a
project calling for joint support of the Develop-
ment Bank to extend low interest-bearing credit
to peasants and to establish, in cooperation with
the Ford Foundation and the Near East Founda-
tion, a supervisor training school for the tre-
mendous task that now awaits us at the village
level. An American will direct that school and
an American financial adviser will assist the De-
velopment Bank in carrying out that vast scheme.
Prominent in this movement for land reform in
Iran, and member of the Crown Land Distribu-
tion Committee, is Assadollah Alam, who at-
tended the Wisconsin conference.
Significant News From Egypt
Significant news comes out of Egypt, where mo-
mentous events have recently taken place. Clean-
up reformer, General Naguib, has declared that
land reform is Egypt's most imperative and press-
ing necessity. The time is too early to guess at
the progress that surely will be made, but the in-
tention is clear and the announcement bears the
ring of sincerity. In Cairo at this time, to give
guidance as needed, is Point Four's leading land-
reform expert; it is no accident that he happens
to be there at this auspicious moment.
Back of General Naguib, a leader in General
Naguib's land-reform movement is Mohamet
Abdel Wahab Ezzat, who also attended the Wis-
consin conference.
Is it a coincidence that these events have taken
place during the period of Point Four's applica-
tion to the problems of the Middle East? To
stamp them as coincidence would be to belittle
the value of the doctrines we proclaim; and, of
course, they are not coincidence. They are the
very essence of our impact upon the Middle East,
the first rays of the dawn of the era to which
we aspire.
I could speak of education, natural resources,
and other programs in Saudi Arabia. I could
speak of our work for the lonely and oppressed
who have found sanctuary in Israel. I could
speak of public health and economic and agricul-
tural development in Iraq. I could speak of
water resource and hydroelectric power projects
451
in Lebanon.^ I could speak of irrigation and agri-
cultural extension in Jordan. I could speak of
projects and plans and American men and women
at work and of enthusiasms shared, of students
and leaders brought to this country, of lasting
friendships made, and of the sum of all our early
ejlorts— all adding up to a profound impact on
the Middle East, that area so vital to our
civilization.
But, above all, I take pride in the worth of
the effort we are putting forward ; an effort that
is cast in the best of American traditions; an
effort that will end, though we know not when, in
the sure downfall of communism and the birth of a
more glorious age.
Point Four Health Units
Reach Iran
Press release 722 dated September 12
Three large mobile health coaches, fully
equipped as clinical laboratories for the use of the
joint Point Four-Ministry of Health program in
Iran, were displayed September 10 in Tehran.
The traveling units were inspected by the Ira-
nian Minister of Health, Dr. Saber Farmen Far-
manian; Senator Adl-Almolk Dadgar of Ghor-
gan ; Point Four Director William E. Warne, and
various other guests and officials of the Iranian
Government and members of the Point Four
Health Division.
Dr. Farman Farmanian said :
My Ministry and the Iranian Government express
thanks for another example of the continuing help Point
Four has extended to the development of Iran. The most
important element of the health program has been the
cooperation and complete understanding between Point
Four and the Ministry. Through this cooperation many
Iranian villages lacking public-health facilities will have
access to improved health conditions for the first time
through such activities as mobile health. However, this
represents only the beginning of an expanded public-
health program and future smaller units will cover the
country where larger units cannot travel.
Senator Dadgar said :
Iranians will always remember what America is doing
through Point Four to assist in the development and
improvement of Iran by the factual evidence of projects
like the mobile health program. We can learn from the
American example of humanit.v. They are willing to
leave the comforts of their own country to assist others
in Asia, Africa, and throughout the world to better living
conditions. America, through Point Four, is a living
example of showing people how to help themselves.
The mobile units will be assigned to the Tabriz,
Babolsar, and Tehran regions for five primary
purposes : health survey, treatment, inoculations,
public-health education, and initiation later of the
■* For an article on this subject, see Department of State
Field Reportek, July-August issue, p. 16.
452
country-wide health program with permanent
clinics.
Unit teams include a doctor, a nurse, a midwife,
a laboratory supervisor and assistant, a records
assistant, and a driver. The vehicles contain
an air-conditioned laboratory, dispensary, and
examination-inoculation room with complete
equipment. The units will travel in provincial
areas, stopping at centrally located villages which
do not have medical facilities. They will show
films and posters, distribute pamphlets, and dem-
onstrate improved health conditions.
The primary emphasis in the Point Four health
program in Iran is to train Iranians in modern
public-health methods. The program is carried
out in complete cooperation with the Ministries
of Health in the ten ostans (provinces). Point
Four furnishes technical and administrative assist-
ance and provides equipment. The Health Min-
istry also supplies technical personnel.
Comprehensive training under the program
includes :
Nurse-s — on-the-job training
Lalx)ratory technicians — training at the Uni-
versity
Sanitation aides — boys working in public
health, water treatment. DDT spraying,
bathhouse construction in villages
Health visitors — girls instructed in hygiene
practices in villages
Iranian Student Assistance
Continued by Point Four
Press release 723 dated September 12
More than 800 Iranian students will be able to
enroll in American colleges this fall under a con-
tinuation of the student-assistance program in-
augurated last spring through Point Four.^ This
program was established to jirovide dollar ex-
change to students whose normal source of funds
had been cut off by currency restrictions which
tlie Government of Iran felt it necessary to adopt
because of tlie shortage of dollars in Iran.
An agreement extending the project for a year,
to August 31, 1953, has been signed in Tehran by
William E. Warne, Director of Technical Coop-
eration in Iran, and Mehdi Azar, Iranian Minister
of Education.
The parents and sponsors of the students make
rial deposits in Iran to the Technical Cooperation
Administration for dollars which Tca provides in
the United States to the students, at an established
rate of exchange. The rial deposits are used by
Tca in Iran for local costs of Point Four projects
in that country. The plan provides the only means
of keeping most of the Iranian students in Ameri-
can colleges, as dollar exchange would not other-
wise be available.
' BiTLLETlN of Apr. 28, 1952, p. 659.
Department of State Bulletin
Under this profrram, dollars are provided for
maintenance, tuition, and collateral educational
expenses to Iranian students who meet set elig:i-
bility requirements. Most of the Iranian students
are "studyinfi technical subjects such as afjricul-
ture, engineering, and medicine. From their ranks
will come much of the technical and professional
leadership that will be required in Iran in the
years ahead.
On the occasion of signing the new agreement,
Minister Azar said :
I wish to express the appreciation, not only of my min-
istry antl Government, but also of the parents and rela-
tives of young people directly benefited. Most Iranian
students now go to the United States, whereas they once
went to Europe. This will bind us closer in lasting friend-
ship.
Approximately 700 thousand dollars was uti-
lizecl in a similar exchange program under the
first agreement, which covered the period of March
21 through August 31, 19.52.
Each participating student is checked by the
Ministry of Education in Iran, which issues a
certificate of eligibility to the sponsor, enabling
him to deposit rials to the student's account. The
Near East Foundation in New York City obtains
from the college a certification that the student
is enrolled and in good standing. The Near East
Foundation, acting as an agent under contract
with Tc.v, actually makes the dollar payments to
students. It is expected that about 1,800,000 dol-
lars will be disbursed through the current year's
program.
U.S. Ambassador Loy W. Henderson said, in
announcing the extension of the agreement:
Amon.c the many programs the United States has under-
taken in Iran, the student aid program is one of the best
accepted and most appreciated. I feel certain that these
students will be good citizens of Iran and will assist in
building up the country on their return.
The students are attending approximately 200
different schools, but more than half of them are
enrolled at New York U., Columbia U., Syra-
cuse U., U. of California, U.C.L.A., Los Angeles
City College, U. of Southern California, Indi-
ana U., the U. of Nebraska, Utah State Agricul-
tural College, and the U. of Maryland.
Point Four Study on
Key Land Problems
Press release 099 dated September 5
Means of furnishing credit to increase owner-
ship of land by individuals in underdeveloped
countries and to improve methods for its use are
under close study as a Point Four project. Repre-
sentatives of 34 countries throughout the world
will complete 2 months of investigations in the
United States with a series of meetings with
Washington officials held from September 29 to
October 2.
The effort to make clear every phase of credit
operations pertinent to progressive transition of
land ownership and operation is a project of the
Technical Cooperation Administration of the De-
partment of State and the Mutual Security
Agency.
It began on Augvist 4 at the University of Cali-
fornia, in Berkeley, as the International Confer-
ence on Agricultural and Cooperative Credit.
Workshop discussions, addresses, and field trips
will continue until September 13. The delegates
then will divide into two groups to study regional
aspects in the specific locales. One will proceed to
Washington via Salt Lake City, Utah, Denver,
Colo., and Clarkesville and Chattanooga, Tenn. ;
and the other via Phoenix, Ariz., New Orleans,
La., and Tuskegee Institute, Ala.
On Monday, September 29, they will meet with
Stanley Andrews, Point Four Administrator,
Jolm Kenney, Mutual Security Agency deputy
director, and members of their staffs. In the
afternoon they will discuss related questions with
Secretary Charles F. Brannan and other officials
of the U. S. Department of Agriculture and R. M.
Evans, Governor of the Federal Reserve Board.
For the next 2 days, meeting at the Department
of Agriculture South Building, they will hear
officials discuss agricultural economics, rural elec-
trification, and operations of the World Bank,
Farmers Home Administration, Farm Credit Ad-
ministration, and related agencies.
On Thursday a morning session will be held at
the Federal Security Administration Building to
hear spokesmen from the Bureau of Federal Credit
Unions.
A visit to the White House, where the delegates
are scheduled to be greeted by President Truman,
will complete their Washington stay.
The visitors will number 62. Among countries
represented at the Washington meetings will be
Afghanistan, Bolivia, Colombia, Ecuador, Hon-
duras, India, Iran, Israel, Libya, Pakistan, Para-
guay, Peru, Thailand, Burma, Cambodia, Costa
Rica, Cuba, Egypt, El Salvador, Indonesia, Iraq,
Jordan, Laos, "Lebanon, Mexico, Panama, the
Philippines, Syria, Uruguay, and Vietnam.
The Conference is devoted to assembling in-
formation on organization and functions of agri-
cultural credit institutions and facilities; the
extent to which present facilities are adequate;
and desirable measures to improve the services of
rural credit in the countries concerned.
Emphasis throughout is being placed on credit
as a means of increa.sing farm production and in-
come as a basis for better farm living; financing
for production needs and for the marketing and
processing of farm products; the place and im-
portance of cooperative entei-prise ; and the close
ties between credit cooperatives and other types
of cooperation.
September 22, 1952
453
Specific subjects on the agenda are:
Organization and functions of the agricultural
credit institutions and credit problems of each
of the participating countries.
Raising of capital and loanable funds.
The relation of agricultural credit to economic
stability and fiscal policy.
The place of fai'm and home planning and super-
vision in the extension of credit.
The procedure of handling loan funds from time
of issuance from original source or agency to
return of funds to such agency.
The most practicable and reasonable interest rates
for different types of loans.
Relationships and problems involved in extension
of production credit and the interrelationship
with consumer loans.
Financing land redistribution programs.
The most eflicient procedure for obtaining small
loans at a reasonable rate.
The present Conference developed from the
World Land Tenure Conference, a Point Four
project conducted in the autumn of 1951 at the
University of Wisconsin to prepare for greater
international cooperation on land-tenure problems.
Unsettled or Unpaid Claims
Against Cuba
Press release 695 dated September 4
The American Embassy at Habanahas informed
the Department of State that the Tribunal of
Accounts of the Republic of Cuba lias been
directed to conduct a survey to determine the
amount of the Cuban floating debt and that, in
this connection, the Cuban Government recently
announced tliat all persons purporting to have
claims against that Government which arose prior
to October 10, 1940, should now submit their
claims during a specified period of time to the
tribunal for audit and determination.
The Department of State, therefore, recom-
mends that all unsettled or unpaid claims of
American nationals against the Cuban Govern-
ment, whether or not previously submitted, which
arose prior to October 10, 1940, with the exception
of those claims cases that have been adjudicated in
the Cuban courts, should be submitted to the Tri-
bunal of Accounts in order that they may receive
consideration. The Tribunal of Accounts should
be addressed as follows: Comision Depuradora y
Liquidadora de la Deuda Flotante, Direccion de
^ecretaria, Registros y Archives del Tribunal de
Cuentas, Calle 23 numero 55, Vedado, La Habana,
Cuba.
The Comision Depuradora y Liquidadora de la
Deuda Flotante (Committee for the Clarification
and Liquidation of the Floating Debt) is the
agency which will study and pass upon the claims.
It is composed of three members of the Tribunal
of Accounts and has been created to consider all
matters relating to the audit and determination of
the Cuban floating debt.
The final date fixed by the Cuban Government
for the reception of claims is February 5, 1953.
Claimants who have previously filed with the
Cuban Government claims which have not been
adjudicated by the Cuban courts nor adjusted
should request the agency of the Cuban Govern-
ment to which their claims were submitted to
return those claims to them. When claimants
have obtained the return of their claims, or evi-
dence, they should amend them to comply with
I^resent instructions issued by the Cuban Govern-
ment for the preparation and submission of claims.
Copies of the new instructions are being mailed
by the Department of State to all American
nationals who are indicated by its records to have
claims pending against the Cuban Government
which arose prior to October 10, 1940, and which
have not been adjudicated in the Cuban courts.
Any claimant who does not receive a copy of the
new instructions may obtain a copy by communi-
cating with the Department of State, Office of the
Legal Adviser, Washington 25, D. C.
It should be noted that the final date for the
reception of claims by the tribunal is February 5,
1953, and claimants are urged to prepare and sub-
mit their amended claims with a sufficient margin
of time to assure their delivery to the tribunal
prior to that date.
Effective Date of Venezuelan
Trade Agreement
Press release 720 dated September 11
The Supplementary Trade Agreement between
tlie LTnitecl States and Venezuela, which was
signed at Caracas, August 28, 1952, will become
efi'ective October 11, 1952.^ This agreement sup-
plements and amends the Trade Agreement of
1939 between the two countries.
Article 13 in the new agreement provides that
it shall enter into force 30 clays after the exchange
of a proclamation of the agreement by the Presi-
dent of the United States and an instrument of
ratification by the Government of the United
States of Venezuela.
Dr. Aureliano Otafiez, Minister Counselor and
Charge d'Afi'aires ad intervm of the Venezuelan
Embassy, and Assistant Secretary for Inter-Amer-
ican Affairs Edward G. Miller, Jr., exchanged the
documents.
1
' For text of Department's announcement describing
terms of the new agreement, together with a message from
the President to the Congress explaining certain petroleum
concessions in the agreement, see Bulletin of Sept. 15,
19.52, p. 400.
454
{iepat\men\ of Stafe Bulletin
Collective Knowledge for a Better World
ly Rowland H. Sargeant
Assistant Secretary for Public Affairs'^
The United States is itself a young nation. The
roots of our people, however, go back to many
lands. There is not one nation represented here
today that some American does not call "home."
These are good Americans, none better. Their
love for this their adopted country is no less
deep because they remember the "old country" with
affection.
New York City itself has been called the niaster
melting pot. According to the latest available
census figures, the population of New York rep-
resents 27 different major nationalities. Within
the family circle, the people speak exactly that
number of languages.
Your inheritance is ours. "We share its treasures.
If we think we have, oui'selves, something to of-
fer, it is as a son or daughter bringing home
their treasures to add to the family store.
The museums of today open their doors to the
people. They have become valued and recognized
educational tools rather than mere repositories of
the treasures of the past. And the people have re-
sponded.
It is estimated that in this country 50 million
persons visit our museums annually. This, out
of a population of 150 million, is, I think, good.
It could, however, be better. One of the things
we seek to learn in these seminars is how to make
the museum more a part of the average citizen's
education — how we all can profit more fully from
what you have to offer.
Over the past few decades the world has moved
so fast that we have had to revise our thinking.
The miracle of today is the commonplace of to-
morrow. Time has come to mean less and less.
For example, one of the most popular exhibits
^ Excerpts from an address made before the Interna-
tional Seminar on the Role of Museums in Education at
Brooklyn, N.Y., on Sept. 15 and released to the press (No.
726) on the same date.
in the Washington museums is the "Spirit of
St. Louis," the plane in which Charles Lindbergh
flew the Atlantic in 1927. . . . Today, 25 years
later, the average boy or girl sees that flight as
commonplace. Thirty-three hours and 30 minutes
to fly the Atlantic ! What's so wonderful about
that !
Last month a British "jet" flew the Atlantic in
a little over 3 hours and made the return trip in
just about the same time. The total flying time,
if I remember correctly, was exactly 7 hours and
59 minutes.
My favorite Washington newspaper covered the
story in three or four paragi'aphs. It was news,
of course, but nothing like the Lindbergh story.
Nothing like the breathless excitement of the
world over that event. Lindbergh was, and de-
served to be, a world hero. The newspapers
printed column after column, giving the most
minute details of the flight. We ate up every
word.
I can't even remember the name of the pilot of
tlie "jet."
And this, remember, in just 25 years. Museum
visitors who see the Lindbergh plane think of the
"past" in these terms. For the high-school boy or
girl of today that flight is ancient history.
Some years ago, poking around in a museum
file, I ran across a story of a Chinese — well, I sup-
pose I should call him an aeronautical engineer^
who perfected a plane in the 7th century A.D.
It flew, too. His emperor ordered his head cut
off. The contraption, he ruled, was too danger-
ous. Why, men could fly over towns and farm-
lands and drop rocks and things on the people
below. No one would be safe.
Many of us, I think, can sympathize with the
emperor. Our progress, material-wise, has out-
stripped our ability to control the use of the fruits
of our endeavor. The danger he saw has become
a reality. We do use the airplane to drop "things"
and they are not rocks.
Sep/emfaer 22, 1952
455
We also use the airplane in a great many useful
ways. Few of us would be willing to discard it.
The difficulty lies with us — the people who have
produced the plane and other man-made miracles.
The Science of Living Together
We have made very little progress in the science
of living together. We rely on old formulas, for-
midas proved untrustworthy over the ages. War,
of course, is an old formula. It has brought
misery and destruction upon mankind from the
beginning. It has no place in the twentieth
century.
Peace was the primary objective of those who
wrote the Charter of the United Nations — "to save
succeeding generations from the scourge of
war ... to practice tolerance and live together
in peace with one another as good neighbors."
The men and women who wrote those words
were of many races and many creeds. Their
single one compelling bond was their common
humanity and their common determination to
build a peace so strong and enduring that never
again would the world be rocked by war — "which
twice in our lifetime has brought untold sorrow to
mankind."
These were dedicated men and women. But
they knew that they could not attain their gi-eat
goal alone. They knew that the task demanded
the cooperation of all nations and all peoples of
good will.
To build the will to cooperate was the first
problem. Eacli of the specialized agencies of the
United Nations has contributed to the building
of that will. Meeting together to handle specific
problems, they have found collective action the
key to success. Their specialized interests draw
them together, creating a natural sympathy and
understanding.
The United Nations Educational, Scientific and
Cultural Organization (Unesco) was given a more
unusual and different kind of assignment. The
constitution of Unesco reads: "Since wars begin
in the minds of men, it is in the minds of men
that the defenses of peace must be constructed."
UNESCO's assignment was to construct those
defenses.
In handling its task Unesco has adopted a very
simple formula. Not long ago a little girl in a
Washington elementary school was asked to ex-
plain, in her own words, just what Unesco was
trying to do. She said : "It is trying to help
people to get to know each other." That, to me,
was the perfect answer. It describes the Unesco
program exactly.
Unesco operates on the belief that sympathy
and underetanding between men is their natural
heritage. It believes the barriers that separate
them are man-created, artificial. It proposes to
break down those barriers.
The greatest barrier is ignorance. We are very
ignorant of each other, we 2 billion men and
women and children living on this old planet.
We have all sorts of misconceptions of each other.
We have prejudices, hatreds, animosities. Unesco
believes that when we meet, face to face, many of
these misconceptions vanish. Prejudices, hatreds,
animosities are forgotten.
One of the purposes of gatherings such as this
is to bring men and women of many lands to-
gether— to help thein "to get to Iniow each other."
There have been other similar gatherings. There
will be many more.
"Getting to know each other" is not, of course,
the sole purpose of these seminars. Nor of the
other gatherings sponsored by Unesco.
No Monopoly on Knowledge
No one nation and no one people has a monop-
oly on knowledge. Each of us can learn from the
other. One of the purposes of the United Nations
set forth in article 1 of chapter 1 of the Charter,
is "to achieve international cooperation in solving
international problems of an economic, social,
cultural, or humanitarian character."
All of us, all the member nations of Unesco,
have economic, social, cultural, and humanitarian
problems. These are human problems, old as the
human race. The day may never come when we
have solved them completely, but improvement —
vast improvement — is not only possible but im-
perative.
These problems — all of them — carry the seeds
of war. The attainment of the United Nation's
great goal demands that they be reduced to man-
ageable proportions.
Hunger, misery, and despair, these are, as Presi-
dent Truman has said, the ancient enemies of
mankind. To war against these, we, the peaceful
peoples of the world, are united. This is the only
war in which we all can gain and none lose. It is
a war we can win with the tools we now have at
hand.
The keenest of these tools is knowledge. But
it has to be our collective knowledge. Not one of
us is smart enough to win the fight alone.
The role of the museum in this war is vital. In
practically every field of world knowledge, the
museums play a notable part. They are, primar-
ily, storehouses of world knowledge — knowledge
about the minerals, rocks, fossils of the solid
earth, the vegetation on its surface — the vast as-
semblage of life on land and sea.
This is learning material for millions of minds,
regardless of race or creed, regardless of barriers
of language or national frontiers. Under the
roof of the museum all men are brothers — mem-
bers of the great human family.
The past, to use a favorite quotation, is pro-
logue. The museums offer us the prologue to
what can be — what must be — a better and brighter
world.
456
Department of State Bulletin
General Assembly Consideration
of Korean Question
Press release 714 dated September 10
In answer to questions regarding reports that
the United States woidd take the iriitiative in seek-
ing United Nations General Assembly considera-
tion of the Korean question, Secretary Acheson at
his -press conference on Septemher 10 made the
following extemporaneous statement:
As far as I know, these reports grew out of a
misunderstandino; of what Ambassador Ernest
Gross said in a United Nations television inter-
view.
The situation, of course, is that the General As-
sembly meets on the 14th of October. Now one
of the items on the agenda of the General Assem-
bly, which has to appear there and re^rularly ap-
pears there, is the reports of certain commissions
of the United Nations. Two of those commis-
sions have to do with Korea — the rehabilitation
one and the one on the political side. The reports
of those commissions bring up the question of
Korea.
Of course, we are preparing our positions on all
matters which are likely, and some that perhaps
are unlikely, to come before the United Nations.
In doing that, we try to clarify our own ideas as
to what it is that the Assembly can usefully do
on any of these matters. After we get our own
ideas reasonably clarified we begin to discuss the
matter with friendly delegations, get their ideas,
and see if we can reach some kind of meeting of
minds on how to deal with the situation.
That, I believe, is what is happening. I be-
lieve that that is all that is happening. But I think
Mr. Gross talked about this in a way which led to
some misconstruction. I cannot forecast the atti-
tude which we will take. As I say, it is under con-
sideration at the present time. It will undoubtedly
be very much affected by the events which tran-
spire in the next 6 weeks.
Representatives Appointed to
General Assembly
Wliite House press release dated September 12
The President on September 12 named by recess
appointment the following persons to be repre-
sentatives of the United States to the seventh ses-
sion of the General Assembly of the United
Nations to be held at New York, beginning Octo-
ber 14, 1952 :
Warren R. Austin, Vermont
Mrs. Fr:inklin \i. Roosevelt, New York
Theodore Francis Green, U.S. Senator from the State ot
Rhode Island
Alexander Wiley, U.S. Senator from the State of Wis-
consin
Ernest A. Gross, New York
Sepfember 22, 1952
The following are named to be alternate repre-
sentatives of the United States :
Philip C. Jessnp. of Connecticut
Benjamin V. Cohen, of New York
Charles A. Spra^ue, of Oregon
Edith S. Sampson, of Illinois
Isador Lubin, of New York
The Secretary of State will be head of the dele-
gation, and in his absence Ambassador Austin, as
senior representative of the United States, will
serve as chairman of the delegation.
The selection of Senator Green, a senior Demo-
cratic member of the Senate Foreign Eelations
Committee, and Senator Wiley, ranking Republi-
can member of the Committee, continues the prac-
tice of maintaining bipartisan congiessional rep-
resentation on the U.S. delegation, with members
of Congi-ess not up for re-election being given the
appointments. At the fifth session of the Gen-
eral Assembly at New York in 1950, Senator
Sparkman, of Alabama, and Senator Lodge, of
Massachusetts, served as representatives on the
delegation of the United States. At the sixth
session of the General Assembly, held in Paris in
1951, Congressman Michael J. Mansfield, of Mon-
tana, and Congressman John M. Vorys, of Ohio,
served as representatives on the delegation of the
United States.
U. S. Delegations
to International Conferences
Conference of Artists (UNESCO)
On September 11 the Department of State an-
nounced that under the auspices of the United
Nations Educational, Scientific and Cultural Or-
ganization (Unesco), the first International Con-
ference of Artists will be held at Venice, Septem-
ber 22-28. Participation is to be limited to 300
creative artists either designated by governments
that are members of Unesco, sent by interested in-
ternational organizations, or invited to attend as
observers. The United States, which has been in-
vited to participate in the Conference by the Di-
rector General of Unesco, will be represented by
the following participants :
Cliairman
Thornton Wilder, Hainden, Conn.
VarUciiwnts
Valentine Davies, Twentieth Century Fox, Hollywood,
Calif.
Dorothea Greenbaum, New York City
Gei'rge L. K. Morris, New York City
William Schuman, President, Juilliard Schw)l of Music,
New York City
Allen Tate, University of Minnesota, Minneapolis, Minn.
Ralph Walker. Voorhees, Walker, Foley & SmUh, Archi-
tectural Engineers, New York City
457
At the Fifth Session of the Unesco Gen-
eral Conference in 1950, delegates from_ 56
countries agreed that in cultural activities
"UNESCO's first task is to foster international re-
lations by arranging for thinkers, writers, and
artists aiid their ideas to move freely across na-
tional frontiers." It was at this same session and
in this spirit that the United States introduced
the proposal for an international arts conference,
which was unanimously approved.
The purpose of the Conference is to study the
practical conditions required to insure the free-
dom of tlie artist and to seek means of associating
artists more closely with Unesco's woi'k. The re-
sults of the Conference could be significant in
terms of aligning the artist of today with the
principles which govern the United Nations' work.
Tliere will be two types of meetings during the
Conference : plenary meetings, attended by all del-
egates, at which a distinguished expert in each
of the various branches of art will read an intro-
ductory paper ; and simultaneous meetings of five
sect ions, representing music, the theater, literature,
the cinema, and the visual arts, including painting,
sculpture, and architecture, at which the specific
problems of each branch of art will be considered.
The expositions at the plenary meetings are to
have a common backgi'ound and a central theme —
''The Artist in Contemporary Society." The
points to be covered by each of the principal
speakers will include the artist in relation to the
public (education and problems of the critic), to
the public authorities (censorship, political pres-
sure, and the difficult situation of the artist in
exile), to the intermediary (art dealers, agents),
and to each other (international organizations in
the coordination of artistic undertakings).
The Conference is being held in Venice at the
invitation of the Government of Italy on the
occasion of the XXVIth Biennale, an international
exhibition of art given every 2 years with the
support of the Italian Government.
Restrictive Business Practices (ECOSOC>
The Department of State on September 8 an-
nounced tliat the Third Session of the Ad Hoc
Committee on Restrictive Business Practices of
the United Nations Economic and Social Council
(Ecosoc) was opened on that date at Geneva. The
United States Government was represented by the
following delegation :
United States Representative
Dr. Corwin D. Edwards, Director, Bureau of Industrial
Economics, Federal Trade Commission
Advisers
Donald C. Blaisdell, U.S. Representative for International
Organization AfEairs, Geneva
Joseph Greenwald, Member of the U.S. Delegation to the
Economic Commission for Europe, Geneva
The Committee was established by Ecosoc in
1951 and charged with the development of an in-
ternational agreement for possible submission to
governments by Ecosoc to eliminate so far as pos-
sible certain restrictive business practices. The
Committee was requested to submit its proposals
to Ecosoc by March 1953. The Governments of
Belgium, Canada, France, India, Mexico, Paki-
stan, Sweden, the United Kingdom, the United
States, and Uruguay are represented on the Com-
mittee. The United States sponsored the resolu-
tion establishing the Committee and defining its
responsibilities.
Previous meetings were held at the U.N. Head-
quarters at New York in January and April 1952.
During those sessions, considerable progress was
made in the preliminary drafting of proposals
and in reviewing information from U.N. members
and specialized agencies and from other sources
on restrictive business practices and on measures
taken by individual member states to eliminate
them and restore freedom of competition. The
Committee will summarize and analyze this in-
formation for Ecosoc.
The main objective of the forthcoming meeting
is the preparation of proposals on methods for im-
])lementing the Ecosoc resolution that U.N. mem-
bers should act together to prevent restrictive busi-
ness practices affecting international trade which
restrain competition, limit access to markets, or
foster monopolistic control, whenever such prac-
tices have harmful effects on the expansion of
production or trade, on the economic development
of underdeveloped areas, or on standards of liv-
ing.^ The proposals are to include a provision for
the continuing consideration of problems of re-
strictive business practices.
The desirability of having the United States
take the initiative in urging more vigorous in-
ternational action to solve trade and distribution
problems, which can be dealt with only on an
international basis, was pointed out by the Presi-
dent's Materials Policy Commission in June 1952.'
While it noted the progress in eliminating re-
strictions on the flow of commodities between
nations which has been made under the General
Agreement on Tariffs and Trade, the Commission
pointed out that such efforts need to be carried
nnich further. The action of Ecosoc in adopting
tlic United States proposal for settinoj up the Ad
Hoc Committee to draft an international agree-
ment on restrictive business practices was cited
as a step in the right direction.
Safeguards against restrictive commercial prac-
tices which such an agreement could provide are
important in furthering the policy of the United
States for stimulating economic cooperation
amonjT the nations of the free world.
' For text of this resolution, see Bulletin of Oct. 8,
10.-)1. p. .''.95,
= See H. doe. .527, vols. I, II, III, IV, and V, 82d Cong ,
2d sess.
458
Department of State Bulletin
Committee for U. N. Study of Territorial Govern-
ment
The Department of State on September 4 an-
nounced that the first meeting of a U.N. ad hoc
committee established to make a study of the
factors to be taken into account in deciding
whether a territory is or is not self-governing con-
vened on that date in the U.N. Headquarters at
New York. The U.S. Government is represented
by the following delegation :
U.S. Representative
Benjamin Gerig, Director, Office of Dependent Area Af-
fairs, Bureau of United Nations Affairs, Department
of State
Advisers
William I. Carso, Deputy Director, Office of Dependent
Area Affairs, Bureau of United Nations Affairs, De-
partment of State
Mason Barr, Caribliean Division, Office of Territories,
Department of the Interior
Claude G. Rnss, Office of Dependent Area Affairs, Bu-
reau of United Nations Affairs, Department of State
This committee is composed of Australia. Bel-
gium, Burma, Cuba, Denmark, France, Guate-
mala, Iraq, Venezuela, and the United States. It
was established by the U.N. General Assembly in
January 1952.
The question of the factors to be taken into ac-
count in deciding whether a territory is or is not a
territory whose people have attained self-govern-
ment has presented itself in one form or another
since the establishment of the United Nations. At
the first session of the General Assembly, the ques-
tion of the further definition of non-self-govern-
ing territories was raised. Since then, this ques-
tion has received increasing attention in U.N. com-
mittees because certain territories have become
self-governing and are no longer being re-
ported on.
In 1951, at the invitation of the General As-
sembly, the special committee on non-self-govern-
ing territories examined the question and con-
cluded that no single factor or particular combi-
nation of factors can be decisive in every case,
except that the properly and freely expressed will
of the people of the territoi^ concerned would, in
all cases, be the paramount factor in deciding
whether a territory has attained self-government.
In submitting its report to the sixth session of the
General Assembly, the committee also listed a
number of factors of a geographical, political,
economic, and cultural nature.
At its sixth session, the General Assembly de-
cided to take as a basis for future study a, list of
basic and general factors drawn up during the
Assembly session, established the ad hoc commit-
tee, and invited all members to transmit to the
United Nations statements of their views on the
"factors" question.
In its forthcoming deliberations, the ad hoc
committee is to take into account all the infor-
mation available, including that transmitted to
the United Nations on the reasons which have led
certain administering members to cease trans-
mitting information on certain of their territories.
The Committee will report to the seventh session
of the General Assembly, which convenes at New
York on October 14, 1952.
U.N. Committee on Information From
Non-Self-Governing Territories
The Department of State on September 10 an-
nounced that the U.S. delegation to the meeting
of the U.N. Committee on Information from Non-
Self -Governing Territories will be identical to
that announced siipra for the Committee for U.N.
Study of Territorial Government, with the ex-
ception that the name of Edward P. Noziglia,
Office of Dependent Area Affairs, Department of
State, should be added to the previously announced
list of advisers.
Wlien the U.N. Committee on Information from
Non-Self-Governing Territories convenes at the
U.N. Headquarters in New York on September
11, it will make a detailed study of social condi-
tions in non-self-governing territories and will re-
view the information submitted by aclministering
authorities on economic and educational condi-
tions in non-self-governing territories. The Com-
mittee gave particular attention to educational de-
velopment at its 1950 meeting and emphasized eco-
nomic conditions and development at its 1951
session.
Delegates will also discuss international col-
laboration in regard to economic, social, and edu-
cational conditions in these territories and the
question of the future of the Committee, and will
prepare a report for consideration by the General
Assembly.
The United States is a member of this Commit-
tee by virtue of the fact that it is one of the
members of the United Nations transmitting in-
formation on non-self-governing territories. The
composition of the Committee for 1952 is as fol-
lows: administering members — Australia, Bel-
gium, Denmark, France, the Netherlands, New
Zealand, the United Kingdom, and the United
States; elected members— Brazil, Cuba, Ecuador,
Egvpt, India, Indonesia, Pakistan, and the
U.S.S.R.
Under the U.N. Charter, governments admin-
istering non-self-governing territories recognize
that the interests of the inhabitants of their terri-
tories are paramount and accept the obligation to
promote their well-being. Administering states
also assume the obligation to transmit regularly
to the U.N. Secretary-General information relat-
ing to economic, social, and educational conditions
in the territories for which they are responsible.
"Wliile the Charter provided for the transmis-
sion of this information, no provision was made
September 22, 1952
459
for its examination. In 194G, however, tlie Gen-
eral Assembly recommended that information
transmitted on non-self-governing territories be
summarized by the U.N. Secretary-General and
suggested that a committee be convened to exam-
ine this summary and to make recommendations
to the Assembly regarding future procedures.
Later in 1946, the General Assembly established
a special committee to repoi-t on the information
transmitted by members in accordance with the
Charter provisions and to make recommendations
thereon to the next Assembly. This Committee,
known as the Special Committee on Information
Transmitted Under Article 73 (e) of the Charter,
was composed of U.N. members transmitting such
information and an equal number of members
elected on as wide a geographic basis as possible.
In 1947 and again in 1948 the General Assembly
voted to reestablish the Committee for another
year. In 1949 the Committee was reconstituted
for a 3-year period with the proviso that the ques-
tion of its continuation would be reconsidered in
19.o2. The future status of the Committee will be
decided by the General Assembly at its seventh
session.
Executive Committee (WIVIO>
On September 8 the Department of State
announced that the Executive Committee of the
World Meteorological Organization (Wmo)
would hold its third session at Geneva, vSeptember
9-30, 19.52, to discuss questions relative to the
program and administration of the Organization.
Participants from the United States are as
follows :
U.S. Representative
Francis W. Reichelderfer, D.Sc, Chief, Weatlier Bureau,
Department of Commerce
Alternate V.S. Representative
Artlnir W. .Tolinson, Meteorological Attach^, American
Consulate General, Geneva
Advisers
Donald C. niaisdell. U.S. Representative for International
Organization Affairs, Geneva
Norman A. Matson, Assistant Chief. International Avia-
tion Section, Weatlier Bureau, Department of
Commerce
Dr. Reichelderfer, who was elected President of
the Wmo at its First Congress held at Paris in
March and April 19.51, will preside over the forth-
coming Committee meeting. The second session
of the Executive Committee was held at Lausanne,
Switzerland, October 3-24, 1951.
Chemical Industries Committee (ILO)
On September S the Depailment of State an-
nounced that the Third Session of the Chemical
Industries Committee of the International Lrabor
Office (Ilo) is being held at Geneva, September
9-20, 1952. The United States delegation to this
meeting is as follows :
Representing the Goveenment of the United States
Delegates
Robert M. Barnett, Economic officer (labor), American
Legation, Bern
C. C. Concannon, Chemical Division, National Production
Authority, Department of Commerce
Representing the Employers of the United States
Delegates
Howard R. Huston, Vice President, American Cyanamid
Company
Henry W. Johnstone, Vice President, Merck and Com-
pany, Inc.
Alternate Delegate
W. P. Gage, Vice President, Shell Chemical Corporation
Representing the Workers of the United States
Delegates
Harry O'Connell, Member, International Chemical
Workers Union, Local No. 2, American Federation of
Labor
Joseph Joy, Vice President, United Gas, Coke, and Chemi-
cal Workers of America, Congress of Industrial Or-
ganizations
The Chemical Industries Committee is one of
eight industrial committees which the Ilo estab-
lished to consider problems in industries which are
important internationally. It was created by the
Ilo Governing Body in 1946 and was inaugurated
in Europe in 1948. It has held two sessions-
Paris in 1948 and Geneva in 1950. The second
session was attended by 102 representatives from
14 countries and by observers from interested in-
ternational organizations, some of which have es-
tablished spex'ial committees for the chemical
industry.
Each of the industrial committees is composed
of government, employers', and workers' delega-
tions from a munber of countries in which the in-
dustry concerned is of some importance. These
committees provide machinery through which the
special circumstances of the principal inter-
national industries can receive special and de-
tailed consideration.
The first item to be considered at the 1952
session of the Chemical Industries Committee
consists of a general report prepared by the Ilo.
This report deals with action taken in various
countries in the light of conclusions of the previ-
ous sessions, steps taken by the Ilo to follow up
the studies and inquiries proposed by the Com-
mittee, and recent events and developments in the
chemical industry. Representatives will also dis-
cuss safety and hygiene, organization of working
hours, vocational training, and general problems
of hours of work with particular reference to a
comparison of day work and shift work.
Belgium, Brazil, Canada, China, Denmark,
France, India, Italy, Mexico, the Netherlands,
Norway, Sweden, Switzerland, the United King-
460
Department of State Bulletin
iom, and tlie United States are the ori<iiniil mem-
lers of the Committee. Ai-gentina and Greece
Fere added in 1950, and the Federal Republic of
ierniany, which has a rapidly developing chemi-
al industry, was made a member by action of the
xo Governing Body in November 1951.
nternational Civil Aviation Organization
The Department of State on September 9 an-
lounced that on that date the International Civil
Aviation Organization (Icao) would convene a
pecial conference at Rome for the completion of
I convention on damage caused by foreign air-
craft to third parties on the surface. This con-
tention is designed to replace the Rome Conven-
ion of 19.33 concerning the unification of certain
•ules relating to damage of this nature and the
Brussels Protocol of 1938 regulating certain in-
lurance as])ects of the 1933 Convention.
The United States Government will be repre-
;ented at the Conference by the following dele-
ration :
Ihairmnn
jjmory T. Nunneley, Jr., General Counsel, Civil Aero-
nautics Board
ilembeys
}. Nathan Calkins, Jr., Chief. International Rules Divi-
sion, General Counsel's Office, Civil Aeronautics Board
3. Alberta Colclaser, Assistant Chief, Aviation Policy
Staff, Department of State
aicliard E. Elwell, General Counsel, Civil Aeronautics
Administration, Department of Commerce
idviser
Edward C. Sweeney, professional staff member, Senate
Interstate and Foreign Commerce Committee
The draft convention which the Conference
svill con.sider is the product of several years' in-
:ensive study by lawyers under the auspices of
[CAO. In 1951 "the draft convention was circu-
lated to interested governments and international
arganizations by the Council of Icao, which re-
quested that states members of Icao comment on
the draft and submit suggestions for its revision,
rhe Conference will discuss the suggestions made
by governments, together with the final Icao
draft.
The main features of the draft convention are
its provisions on (1) system of liability; (2) ex-
tent of liability; (3) security for operators' lia-
bility; and (4) provisions for suits in actions aris-
ing under the convention to be brought in the
courts of the place where the damage occurred.
Under the terms of the proposed convention,
absolute liability for any damage to third parties
on the surface devolves upon the operator of the
aircraft causing the damage, except in specified
cases of carefully defined types. However, while
the aircraft operator has absolute liability, the
draft convention includes a formula for the limita-
tion of liability based upon the weight of the air-
craft causing the damage. The proposed maxi-
mum amount which an operator could be obliged
to pay under normal circumstances is the equiva-
lent of $663,360. In contrast, the top limit in the
original Rome Convention is the equivalent of
$132,672.
The proposed convention would provide that
states may requii-e the operator of a foreign air-
craft to cover his potential liability by insurance
or some other acceptable security. In this con-
nection, the Icao Council has suggested that the
limitation of liability not be so high as to cause
the cost of third-jjarty insurance to become an ex-
cessive burden on international civil aviation, but
yet be high enough to cover fully compensation to
third parties in all but extremely rare catastrophic
accidents.
The draft convention further provides that any
suits with regard to damages for which liability
arises as provided in the convention shall be
brought in the courts of the country where the
damage occurred. Since assets to satisfy a judg-
ment may not be in that jurisdiction, the draft
convention provides that the courts of other coiin-
tries parties to the convention will grant execution
of such judgments. Under the draft convention,
however, the courts of a nation where execution is
sought are entitled to refuse to grant execution
upon a number of stated grounds.
Seminar on Role of Museums (UNESCO)
The Department of State on September 12 an-
nounced that an International Seminar on the
Role of Museums in Education will be held under
the auspices of the United Nations Educational,
Scientific and Cultural Organization (Unesco)
at the Brooklyn Museum of Art, Science, and His-
tory, New York, from September 14 to October 12,
1952. The U.S. Government will be represented
by the following participants :
William H. Bristow, Director, Bureau of Curriculum Re-
search, Curriculum Division, Board of Education,
New York, N. Y.
Betty Greenfield Grossman, Educational Department, City
Art Museum, St. Louis, Mo.
.Tanet H. MacFarlane, New York State Historical Associa-
tion, Cooperstown, N. Y.
Margaret P. Werber, Supervisor of Education, Newark
Museum, Newark, N. J.
Miriam Wood, Chicago Natural History Museum, Chicago,
111.
This seminar, the first of its kind to be held, con-
stitutes an important step toward developing edu-
cational activities of museums throughout the
world in order to provide direct aids toward in-
creasing international understanding.
The United States is considered to have taken the
lead in adapting its museums to function as edu-
cational centers for children and adults. Many
nuiseums abroad are only now beginning to accept
the view that they have a broader function than
that of serving only as repositories for art ob-
SepJember 22, J952
461
jects. The U.S. delegation to the sixth General
Conference of Unesco, held at Paris in 1951, spon-
sored the resolution ijroviding for the convening
of the seminar.
The forthcoming discussions at New York will
give U.S. specialists the opportunity to show their
tecliniques and practices and to learn of needs and
present practices abroad. More than 40 govern-
ments have accepted the invitation to send repre-
sentatives to the seminar.
International Astronomical Union
The Department of State on September 2 an-
nounced that the International Astronomical
Union (Iatj) will convene in its eighth general
assembly on September 4, 19.52, at Rome. The
U.S. Government, which adheres to the Iau
through the National Research Council, will be
represented by the following delegation :
J)elegates
Otto Struve, Ph.D., Chairman. Professor of Astronomy,
Director of the Students' Observatory and Chairman
of the Department, University of California, Berkeley,
Calif.
Ira S. Bowen, Ph.D., Director, Mount Wilson and Mount
Palomar Observatories, Pasadena, Calif.
Dirk Brouwer, Ph.D., Professor of Natural Philosophy
and Astronomy and Director of the Observatory, Yale
Observatory, New Haven, Conn.
Gerald M. Clemence, Head Astronomer and Director of
Nautical Almanac, Naval Observatory, Department
of Defense
Jason J. Nassau, Ph.D., Professor of Astronomy and Direc-
tor of Warner and Swa.sey Observatory, Case Insti-
tute of Technology. Cleveland, Ohio
Fred L. Whipple, Ph.D., Professor of Astronomy and
Chairman of the Department, Harvard University,
Cambridge, Mass.
Alternate Delegate
<3erard P. Kuiper, Ph.D., Professor of Practical Astron-
omy, Terkes Observatory, University of Chicago, Wil-
liams Bay, Wis.
The Iau is a semigovernmental organization
which was established by the International Re-
search Council in 1919 to facilitate relations be-
tween astronomers of different countries in cases
where international cooperation is necessary or
useful, and to promote the study of astronomy in
all its branches. At sessions of the general as-
sembly, wliich normally meets every 3 years, lead-
ing astronomers come "together for scientific dis-
cussions on developments in the field of astronomy
and to review the program of the Iau. The sev-
enth general assembly was held at Ziirich in
August 1948.
During the forthcoming assembly, delegates
from the 32 adliering countries will also partici-
pate in three special symposia: astrometry of
faint stars, instrumentation, and stellar evolution.
In addition, there will be meetings of the Iau's
Joint Commission on Solar and Terrestrial Rela-
tionships and of the Joint Commission on
Spectroscopy.
The Iau performs important services relating to
air and sea navigation, map making, and accurate
time determination. In 1922, the Iau organized
a Central Bureau for Astronomical Telegrams,
wliich has functioned as a center for exchange of
information on astronomical observations. The
Iau has supported the International Time Bureau
since 1919 and the International Latitude Service
since 1922.
One of the most important of the cooperative
programs of the Iau is astronomical observation
and computation and the compilation of data con-
cerning star and planet positions. Through the
facilities of the Iau, international cooperation in
star observation is achieved, with members in the
Southern Hemisphere contributing to the Union
information on the segment of the sky which is
not visible to observers in the Northern Hemi-
sphere, and vice versa.
Iiiformation which the U. S. Naval Observatory
receives from the Iau is organized and made avail-
able through three publications, A7nencan
Ephejneris, the American Nautical Almanac, and
the American Air Almanac (for aircraft naviga-
tion). The value of these publications is evi-
denced by the fact that every American ship on
the ocean and every American plane on inter-
national flight carries one or both of the latter pub-
lications which are basic for celestial navigation.
The American Ephemeris is a basic reference for
astronomers and is essential in the accurate deter-
mination of time, which in turn is of extreme
importance in civil navigation (including loran),
and defense fields. In addition, accurate astro-
nomical data are essential to the U. S. Coast and
Geodetic Survey in the construction of charts and
maps.
The Iau also provides information on total
eclipses of the sun and other solar observations
which serves as a basis for the prediction of future
periods of poor radio communications. The Iau's
standardization of scientific constants, which are
important to many fields other than astronomy, is
a valuable service since it is essential to interna-
tional cooperation in scientific research that the
same and most exact constants and standards be
used.
Directing Council (PASO)
On September 10 the Department of State an-
nounced that the Gth session of the Directing
Council of the Pan American Sanitary Organ-
ization (Paso) and 4th meeting of the Regional
Committee of the World Health Organization for
the Americas will be held at Habana, September
1 5-24. The United States delegation is as follows :
United States Representative
Leonard A. Scheele, M.D., Surgeon General, Public Health
Service, Federal Security Agency
462
Deparfment of State Bulletin
Alternate Representatives
Frederick J. Brady, M.D.. Assistant Chief, International
Organization Branch, Division of International
Health, Public Health Service, Federal Security
Ag.'ncy
Howard B. Calderwood, Office of United Nations Economic
and Social Affairs, Department of State
Advisers
Wyman Stone, Director, Division of Health, Welfare, and
Housing, Institute of Inter-American Affairs, Tech-
nical Cooperation Administration, Department of
State
Simon N. Wilson, Ofiice of Regional American Affairs,
Department of State
Elton D. Woolpert, Assistant to Surgeon General, Public
Health Service, Federal Security Agency
The ITtli and 18th meetings of the Executive
Committee of tlie Paso are also being held at
Habana, September 10-12 and 25-26, respectively.
The U.S. Government is represented at these
meetings by the following delegation :
Acting United States Representative
Fredericls J. Brady, M.D.
Alternate Representative
Howard B. Calderwood
Adviser
Simon N. Wilson
The purpose of the Pan American Sanitary Or-
ganization, organized in 1902 as the Pan American
Sanitary Bureau, is the coordination of the pub-
lic-health efforts of the countries of the Western
Hemisphere. The Paso stimulates and promotes
the expansion of national and local health services
and the adoption of more effective public-health
techniques. Technical advisory services are pro-
vided and programs, including the control of tu-
berculosis, venereal disease, yellow fever, malaria,
and other insect-borne diseases, are being carried
on to assist member governments in raising the
level of health, thereby contributing to the im-
provement of the economic and social well-being
of the people of the Americas.
The Directing Council, created in 1947, serves as
the executive body of the Paso between quadren-
nial sessions of the Pan American Sanitary Con-
ference, which is the Organization's Governing
Body. It also serves as the Regional Committee of
the World Health Organization for the Americas.
The last annual meeting of the Directing Council
was held at Washington, D. C, in September 1951.
Washington is the permanent headquarters of
the Paso.
The Executive Committee, composed of seven
governments, presently including the United
States, elected by the Directing Council, performs
interim executive and advisory functions between
meetings of the Council. The last meeting of the
Executive Committee was held at Washington,
D. C, October 3-4, 1951.
Among the most important items to be consid-
ered at the Habana meetings are the program aiid
budget of the Paso for 1953 and 1954, agenda items
and arrangements for the 14th Pan American San-
itary Conference to be held in 1954, and proposed
revisions of the constitution of the Paso.
Conference of Statisticians (ECAFE)
On September 2 the Department of State an-
nounced that a second Regional Conference of
Statisticians convened under the auspices of the
U.N. Economic Commission for Asia and the Far
East (Ecafe), in collaboration with the U.N.
Statistical Office, Technical Assistance Adminis-
tration, and specialized agencies concerned, at
Bangkok, for a 2-week session beginning Sep-
tember 1, 1952. The U.S. delegation to the
Conference is as follows :
U.S. Representative
Y. S. Leong, Oflice of Statistical Standards, Bureau of the
Budget
Advisers
Joseph Cunningham, Vice Consul, American Embassy,
Bangkok
Isom Deshotels, Assistant Agricultural Officer, American
Embassy, Rangoon
Thomas P. Corcoran, Tca Consultant to the Government
of Pakistan, American Embassy, Karachi
At the first Conference held at Rangoon in 1951,
it was established that there exists a definite need
for improvement in the method of collecting, com-
piling, and analyzing statistics relating to agri-
cultural and industrial production and to national
income. This branch of statistics, which has di-
rect relation to the most pressing economic prob-
lems in the countries of the region, will be under
consideration by the specialists at the forthcoming
meeting, which is designed to afford the statistical
experts of the Ecafe region an opportunity to
discuss technical problems with a view to improv-
ing the methods of compilation of statistics now
employed.
Agencies of governments represented at the
Conference, the Ecafe Secretariat, the U.N. Sta-
tistical Office, and the Food and Agriculture Or-
ganization of the United Nations have submitted
papers for consideration at the Conference. Dis-
cussions will be focused upon production statistics
and price statistics. Delegates will consider the
practicability of developing manuals on industrial
production statistics and wholesale price statistics.
They will review papers on international stand-
ards for industrial statistics and wholesale price
statistics, their application to Ecafe countries,
and possible adjustments of such standards to
regional conditions. Other papers to be presented
survey the availability of factory production sta-
tistics, of statistics relating to cottage industries,
and of wholesale price statistics in Ecafe coun-
tries and current methods in use for collecting and
l^rocessing them. Attention will also be given to
agricultural production and price statistics.
September 22, 1952
463
It is believed that a Conference of this character
can contribute directly and usefully to the develop-
ment and improvement of national statistical serv-
ices in the Ecafe region. It is also considered that
improvement in the quality and availability of
statistical information on the topics included for
discussion at the meeting is highly desirable in
terms of objectives of important programs of a
number of U.S. agencies, including the Depart-
ment of Agriculture, the Department of Com-
merce, and the Technical Cooperation Administra-
tion of the Department of State. Administration
of certain of these programs involves fairly urgent
needs for current statistics of production and
prices for countries in the EcArE region.
Governments which are members of Ecafe are
Australia, Burma, China, France, India, Indo-
nesia, the Netherlands, New Zealand, Pakistan, the
Philippines, Thailand, the Union of Soviet Social-
ist Republics, the United Kingdom, and the United
States. Associate members are Cambodia, Cey-
lon, Hong Kong, Japan, the Republic of Korea,
Laos, Malaya and British Borneo, Nepal, and the
State of Vietnam.
Scientific Committee for
Trypanosomiasis
Press release 719 dated September 11
Thomas A. Burch, Director of the Liberian In-
stitute of the American Foundation for Tropical
Medicine at Harbel, Liberia, has been designated
as an official observer at the fourth session of the
International Scientific Committee for Trypano-
somiasis Research, scheduled to be held September
25-30 at Lourengo Marques, Mozambique (Portu-
guese East Africa).
Tlie International Scientific Committee for
Trypanosomiasis Research was organized in 1947
to coordinate measures for the control of trypa-
nosomiasis (sleeping sickness) in Africa, Bel-
gium, France, Portugal, Southern Rhodesia, the
Sudan, the Union of S'outli Africa, and the ITnited
Kingdom are members of the Committee. "WTiile
the United States is not a member, it has sent ac-
credited official observers to previous sessions. In-
vitations to the fourth session, tlie meetings of
which will be open only to accredited participants,
have been extended not only to the U.S. Govern-
ment but also to the Permanent Inter-African Bu-
reau for Tsetse and Try]>anosomiasis at Leopold-
ville and to the World Health Organization.
Tlie economic and social development of the
whole of Central Africa is to a large measure con-
tingent upon the discovery of a method to control
trypanosomiasis in domestic animals. The effects
of this disease, which is carried by the tsetse fly,
can be conti-olled in men but not, as yet, in animals.
Therefore, until research can provide the tools to
control the disease in domestic animals, this vast
expanse of 41/2 million square miles in the world's
second largest continent cannot be reclaimed and
settled. Cooperation in trypanosomiasis research
and control is part of the U.S. program of assist-
ance to underdeveloped areas of the world.
Scientists of the United States have made sub-
stantial contributions to tlie knowledge of trypa-
nosomiasis. Trypanosomes liave been used in our
medical-research laboratories since the tuni of the
century as test organisms in the development of
therapeutic agents. In recent years, the National
Institutes of Health have carried on research that
has given scientists considerable insight into the
meciianisms of resistance of animal trypanosomes
to those drugs useful in treating the "human dis-
ease. A number of American research scientists
have made substantial contributions to the treat-
ment of trypanosomiasis by carrying on field tests
in Africa with drugs developed in their labora-
tories in the United States.
Communiques Regarding Korea
to the Security Council
The Headquarters of the United Nations Com-
mand has transmitted communiques regarding
Korea to the Secretary-General of the United
Nations under the following United Nations docu-
ment numbers : S/2733, August 7 ; S/2734, August
18; S/2747, August 20; S/2748, August 21;
S/2749, August 22; S/2751, August 25; S/2752,
August 26; S/2753, August 27; and S/2757,
August 29.
Convention for Safety
of Life at Sea
Press release 721 dated September 11
On September 10 the President issued his proc-
lamation on the International Convention for the
Safety of Life at Sea, 1948,' which was signed at
London on June 10, 1948. The convention pro-
vides for improved standards for safety of life at
sea in the fields of ship construction, fire protec-
tion, lifesaving appliances, radio equipment
dangerous cargoes, and navigation generally.
In accordance with its terms, the convention will
enter into force on November 19, 1952. It will re-
place the convention of May 31, 1929, of the same
character, as between parties to the 1929 conven-
tion who have also accepted the 1948 convention.
In addition to the United States, countries
which have accepted the convention to date are
Belgium, Canada, Denmark, France, Iceland,
' 17 Fed. Reg., 60.34.
464
Department of State Bulletin
Israel, Italy, Japan, the Netherlands, New Zea-
land, Norway, Pakistan, Portugal, Sweden, the
Union of Soiith Africa, the United Kingdom of
Great Britain and Nortliern Ireland, and Yugo-
slavia.
Current United Nations Documents:
A Selected Bibliography'
Economic and Social Council
The rrulik'TU of StatelessiU'Ss. Information transmittea
by States in ]nirsuance of Economic ami Social Coun-
cil resolution 352 (XII) relating to the problem of
statelessness. E/2164/Add. 23, August 1, 1952. 23 pp.
mimeo.
Implementation of Recommendations on Economic and
Social Matters. Economic and Social Council resolu-
tion 2S3 (X). Texts of replies from governments of
Member States. E/2165/Add. 44, July 23, 1952. 9 pp.
mimeo.
Full Employment. Implementation of full employment
policies. Replies of governments to the full employ-
ment questionnaire covering the period 1951-.52, sub-
mitted under resolutions 221 E (IX), 200 (XI) and
371 B (XIII) of the Economic and Social Council.
E/2232/Add. 5, July 11, 1952. 79 pp. mimeo ; E/2232/
Add. 6, July 11, 1952. 46 pp. mimeo.
Co-ordination of the Work of the United Nations and the
Specialized Agencies. Report of the Coordination
Committee. E/230G, July 25. 19.52. 10 iip. mimeo.
Calendar of Conferences for 1953. E/2309, July 2S, 1952.
9 pp. mimeo.
Work Programmes and Costs of the Economic and Social
Activities of the United Nations. E/2315, July 29.
1952. 52 pp. mimeo; IV2315/Add. 1, August 4, 1952.
6 pp. mimeo.
Calendar of Conferences for 19.53 as approved by the
Council at its 664th plenary meeting of 29 July 1952.
E/2316, August 6, 1952. 5 pp. mimeo.
Resolutions Adopted by the Economic and Social Council
During its Fourteenth Session From 20 May to 1
August 1952. E/2331, August 6, 1952. 6 pp. mimeo.
General Assembly
Ad Hoc Committee on Factors (Non-Self -Governing Ter-
ritories). Replies of Governments Indicating Their
Views on the Factors to be Taken Into Account in
Deciding Whether a Territory is or is not a Territory
Whose People Have not yet Attained a Full Measure
of Self-Government. A/AC.58/1, May 22, 1952, 24
pp. mimeo ; A/AC.58/l/Add. 2, June 12, 1952. 11 pp.
mimeo ; and A/AC.58/l/Add. 3, July IC, 1952. 22 pp.
m i nieo.
' Printed materials may be secured in the United States
from the International Poeuments Service, Columbia Uni-
versity Press, 2960 Broadway, New York 27, N. Y. Other
materials (mimeographed or processeil documents) may
lie consulted at certain designated libraries in the United
States.
The United Nations Secretariat has established an Offi-
cial Records series for the General Assembly, the Secu-
rity Council, the Economic and Social Council, the Trustee-
ship Council, and the Atomic Energy Commission, which
includes summaries of proceedings, resolutions, and re-
ports of the various commissions and committees. In-
formation on securing subscriptions to the series may be
obtained from the International Documents Service.
September 22, J 952
Replies of Governments Indicating Their Views on the
Factors To Be Taken Into Account in Deciding
Whether a Territory Is or Is Not a Territory Whose
People Have Not Yet Attained a Full Measure of Self-
Government. Irai] (supplementary reply). A/AC-
5S/1/Acld. 5, Aug. 20, 19.52. 5 pji. mimeo.
Information From Non-Self-Governing Territories: Sum-
mary and Analysis of Information Transmitted Under
Article 73 e of "the Cliarter. Report of the Secretary-
General. Australia, A/2128, July 30, 1952. 19 pp.
mimeo; Denmark, A/2130, August 11, 19.52. 16 pp.
mimeo ; United Kingdom of Great Britain and North-
ern Ireland, A/2134, August 4, 1952. 191 pp. mimeo;
United States of America, A/2135, June 4, 1952. 71
pp. mimeo.
Replies of Governments Indicating Their Views on the
Factors To Be Taken Into Account in Deciding
Whether a Territory is or is not a Territory Whose
People Have Not Yet Attained a Full Measure of
Self-Government. A/AC.58/l/Add. 4, July 25, 1952.
13 pp. mimeo.
Essential Factors To Be Taken Into Account in Deciding
Whether a N'on-Self -Governing Territory has Attained
a Full Measure of Self-Government. Working Paper
Prepared by the Secretariat. A/AC.58/3, July 28,
19.52. 9 pp. mimeo.
Observations of Governments on Particular Factors To
Be Taken Into Account in Deciding Whether a Non-
Self-Governing Territory Has Attained a Full Measure
of Self-Government. Working Paper Prepared by
the Secretariat. A/AC.58/4, July 31, 1952. 12 pp.
mimeo.
Examination of the Factors Indicative of the Free Associa-
tion (Whether in a Federal or Unitary Relationship)
of a Territory on Equal Status With Other Component
Parts of the Metropolitan or Other Country. W'orking
Paper Prepared by the Secretariat. A/AC.58/5,
August 6, 1952. 14 pp. mimeo.
Peace Observation Commission. Balkans Sub-Commis-
sion. Special report of the United Nations Military
Observers in Greece. Letter dated 18 July 1952 from
the Acting Principal Obseiwer submitting a special
report concerning a frontier incident occurring on
16 July 1952. A/CN.7/SC.1/17, July 23, 1952. 7 pp.
mimeo : Letter dated 2 August 1952 from the Acting
Principal Observer submitting a special report con-
cerning a frontier Incident occurring on 26 and 27
July 1952. A/ON.7/SC.1/29, August 11, 1952. 8 pp.
Trusteeship Council
Standing Committee on Administrative Unions. The Gold
Coast (Constitution) Order in Council, 19.50 and the
Gold Coa.st (Constitution) (Amendment) Order in
Council, 19.52. T/C.1/L.30, July 22, 1952. 38 pp.
The Nigeria (Constitution) Order in Council, 1951.
T/C.1/L.31, July 22, 19.52. 64 pp.
Ninth Session, 5 June to .30 July 1951. Disijosition of
Agenda Items. T/INF/22, April 7, 1952. Ill pp.
mimeo.
Draft Report of the Trusteeship Council to the General
Assembly Covering its Fourth Si)ecial Session and
its Tenth and Eleventh Sessions. (18 Decemlier
19.52 to . . . July 1952) Prepared by the Secre-
tariat. T/L..307/Add. 1, July 24, 1952. 14 pp. mimeo.
Report of the Standing Committee on Administrative
Unions to the Trusteeship Council Concerning Coun-
cil's Resolution 420 (X) on Administrative Unions.
T/1026, July 17, 1952. 156 pp. mimeo.
Provision of Information to the Peoples of Trust Terri-
tories. Report of the Secretary-General. T/1028,
July 18, 1952. 13 pp. mimeo.
465
Representative Appointed to
Congress of African Tourism
Press release 729 dated September 12
Donald W. Lcamm, American Consul at Lou-
rengo Marques, Mozambique, Africa, will repre-
sent the U.S. Government as an official observer
at the fourth International Congi-ess of African
Tourism, to be held at Lourengo Marques from
September 15 to 20, 1952.
The United States has an interest in Africa's
present and future role in world affairs and in
the development of travel as an economic and
social benefit.
THE DEPARTMENT
''Courier" To Begin VOA
Broadcasts
Press release 698 dated September 5
The U.S. Coast Guard Cutter Courier^ the Voice
of America's first seagoing radio station, will
begin relaying Voa broadcasts on a regular basis
on September 7.
Anchored at the island of Rhodes in the eastern
Mediterranean, the floating relay base will carry a
daily broadcast schedule of 53^ hours in nine
languages over powerful medium-wave and short-
wave transmitters.
Programs in four languages — Annenian, Geor-
gian, Azerbaijani, and Tatar — will be beamed to
listeners in the Soviet Union, and in five lan-
guages— Turkish, Persian, Hebrew, Arabic, and
English — to the Near and Middle East. Inaugu-
ration of the Courier relay will mark the first
time that Voa broadcasts in the four Soviet mi-
nority languages have been transmitted on medium
wave.
For the last 2 weeks, the Courier^s 150,000-watt
medium-wave transmitter and two 35,000-watt
short-wave transmitters have been undergoing
intensive tests. Reports indicate wide coverage
for the broadcast signals and promise an increase
in the Voice of America's penetration of the elec-
tronic curtain erected by Soviet jamming stations.
En route to Rhodes, the Coast Guard vessel paid
good-will visits to Tangier, Gibraltar, Naples,
and Piraeus. The Courier will operate at Rhodes
under a site and frequency agreement between the
Governments of Greece and the United States.
The U. S. in the U. N.
A weekly feature, does not appear in this issue.
PUBLICATIONS
Recent Releases
For sale by the Superintendent of Documents, Oovernment
Printing Offiec, Washington 2.5, D. C. Address requests
direct to the Superintendent of Documents, except in the
case of free publieafions, which may be obtained from
the Department of State.
Military Aviation Mission. Treaties and Other Inter-
national Acts Series 2395. Pub. 4.543. 2 pp. 5^.
Agreement between the United States and Peru
extenditiR and modifying agreement of Oct. 7, 1946 —
Signed at Washington Sept. 29 and Oct. 31, 1950;
entered into force Oct. 31, 1950.
Passport Visa Fees. Treaties and Other International
Acts Series 2398. Pub. 4550. 3 pp. 50.
Agreement between the United States and Paliistan —
Signed at Karachi Oct. 10 and 18, 1949 ; entered into
force Oct. 18, 1949.
Export Controls and Free World Security.
Policy Series 143. Pub. 4626. 7 pp. 5(f.
Commercial
A baclsground summary explaining how cooperation
has developed voluntarily and has been worljed out
regarding the extent and level of security export
controls.
Health and Sanitation, Cooperative Program in Colombia,
Additional Financial Contributions. Treaties and Other
International Acts Series 2400. Pub. 4560. 4 pp. 5^.
Agreement between the United States and Colombia —
Signed at Bogot.1 Sept. 5 and Nov. 30, 1951 ; entered
into force Nov. 30, 1951.
Economic Cooperation With Turkey Under Public Law
472, 80th Congress, as Amended. Treaties and Other
International Acts Series 2392. Pub. 4527. 3 pp. 5^.
Agreement between the United States and Turkey
amending agreement of .July 4, 1948, as amended—
Signed at Ankara Aug. 16, 1951 ; entered into force
Aug. 16, 1951.
Civil Aviation Mission to Peru. Treaties and Other In-
ternational Acts Series 2.396. Pub. 4547. 10 pp. 5^
Agreement between the United States and Peru —
Signed at Lima Dec. 27. 1946 : entered into force Dec.
27, 1946, and amendment signed at Lima Aug. 28 and
Nov. 11, 1947 ; entered into force Nov. 11, 1947.
Civil Aviation, Use of Payne Field. Treaties and Other
International Acts Series 2397. Pub. 4548. 2 pp. 5(f.
Agreement between the United States and Egypt —
Signed at Cairo June 15, 1946; entered into force
June 15, 1946.
Technical Cooperation Program. Treaties and Other In-
ternational Acts Series 2470. Pub. 4593. 0 pp. 5^.
Agreement between the United States and India —
Signed at New Delhi Jan. 5, 1952; entered into force
Jan. 5, 1952.
466
Department of State Bulletin
Economic Cooperation. Treaties and Other Interna-
tional Acts Series 246;3. Pub. 4598. 4 pp. 5^.
Agreement between the United States and Italy —
Signed at Rome Dec. 28, 1951; entered into force
Dec. 28, 1951.
[ran: Point of World Interest.
;rn Series 6. Pub. 4628. 8 pp.
Near and Middle East-
50.
A background summary presenting a brief r(5sum6 of
Iran and the forces which give her such a prominent
place in international affairs.
UNESCO in Latin America.
md Conference Series IV,
pp. 50.
International Organization
UNESCO IG. Pub. 4644. 6
A progress report printed at the request of Member
States relating major activities affecting Latin
American countries.
[Jniversal Declaration of Human Rights. International
Drganization and Conference Series III, 20. Pub. 3381.
5 pp. 50.
Second revised reprint of the Declaration approved
by the General Assembly at its plenary meeting on
Dec. 10. 1948.
Education, Cooperative Program in Paraguay, Additional
Financial Contributions. Treaties and Other Interna-
tional Acts Series 2451. Pub. 4597. 4 pp. 50.
Agreement between the United States and Paraguay —
Signed at Asuncion Sept. 10 and Nov. 29, 1951 ; entered
into force Nov. 29, 1951.
The UNESCO Constitution and Basic Law. International
Organization and Conference Series IV, Unesco 17. Pub.
4645. 21 pp. 150.
Constitution, Public Law 565, and roster of the U.S.
National Commission for Unesco.
United Nations — 60 Countries Pledged To Act. Interna-
tional Organization and Conference Series III, 81. Pub.
4612. 10 pp. 50.
A pamphlet describing the functions of its specialized
agencies.
Turkey: Frontier of Freedom. Near and Middle Eastern
Series 7. Pub. 4633. 12 pp. 100.
A background summary showing that Turkey has be-
come a substantial "eastmost bastion of Western
freedom."
Exchange of Official Publications. Treaties and Other
international Acts Series 2402. Pub. 4.564. 2 pp. 50.
Agreement between the United States and Brazil
amending agreement of June 15 and 24, 1940 — Dated
at Rio de Janeiro May 16 and 23, 1950; entered into
force May 23, 1950.
LTNESCO in the Middle East. International Organiza-
tion and Conference Series IV, Unesco 19. S pp. 50.
A progress report printed at the request of Member
States relating major activities affecting the Middle
East.
Agriculture, Cooperative Program in Honduras, Addi-
tional Financial Contributions. Treaties and Other In-
ternational Acts Series 2428. Pub. 4580. 5 pp. 50.
Agreement between the United States and Honduras —
Signed at Tegucigalpa Jan. 9 and 16, 1952; entered
into force Jan. 16, 1952.
Copyright. Treaties and Other International Acts Series
2429. Pub. 4581. 6 pp. 50.
Agreement between the United States and Denmark —
Signed at Washington Feb. 4, 1952 ; entered into force
Feb. 4, 1952.
Yugoslavia: Titoism and U.S. Foreign Policy. European
and British Commonwealth Series 35. Pub. 4624. 8
pp. 50.
A background summary outlining the policies followed
by the U.S. Government since the Yugoslav break from
the Soviet orbit. The development of these policies
as related to the background of the forces and events
which led up to the present situation in Yugoslavia.
Organizing a UNESCO Council. International Organiza-
tion and Conference Series IV, Unesco 18. Pub. 4646.
7 pp. 100.
A pamphlet explaining the idea of state and local
UNESCO organizations.
Check List of Department off State
Press Releases: Sept. 8-13, 1952
Releases may be obtained from the office of the
Special Assistant for Press Relations, Department
of State, Washington 25, D. C.
Press releases issued prior to Sept. 8 which ap-
pear
in this issue of the Bulletin are Nos. 684 of
Sept.
2, 685 of Sept. 2, 694 of Sept. 4, 695 of Sept.
4, 698 of Sept. 5. and 699 of Sept. 5. |
No.
Date Subject
702
9/8 Allison : Anniversary Japanese couf.
703
9/8 Chemical industries (Ilo)
704
9/8 Restrictive business practices
*705
9/8 Exchange of persons
706
9/8 World meteorological organization
707
9/8 Acheson : Point 4 Program
708
9/9 Belgian tax convention
709
9/9 Civil aviation organization
*710
9/9 Green : Amba.ssador to Jordan
t711
9/9 U.K. consular convention
712
9/10 Acheson: Americans in China
713
9/10 Ache.son : Compensation to Jews
714
9/10 Acheson : Gen. Assembly and Korea
715
9/10 Pan American sanitary organization
716
9/10 U.N. non-self-governing territories
717
9/11 Acheson : Foreign policy review
718
9/11 Conference of artists (Unesco)
719
9/11 Trypanosomiasis commission
720
9/11 Venezuelan trade agreement
721
9/11 Safety of life at sea convention
722
9/12 Health units to Iran
723
9/12 Iranian students in U.S.
*724
9/12 Exchange of persons
725
9/12 Draper: Problems facing Nac
726
9/12 Sargeant : Role of museums
t727
9/12 Allison : The Asia story
728
9/12 UNESCO seminar on museums
729
9/12 Lamm : African tourism observer
t730
9/13 Morton : head of Voa
tHeld for a later issue of the Bulletin. |
*Not
printed.
September 22, 1952
467
September 22, 1952
Ind
ex
Vol. XXVII, No. 691
Africa
Representative appointed to Congress of African
Tourism 466
Aid to Foreign Countries
The Colombo Plan: New promise for Asia
(Malenbaum) 441
American Principles
Collective knowledge for a better world (Sar-
geant) 455
The pattern of leadership — a pattern of respon-
sibility (Acheson) 423
American Republics
CUBA: Unsettled or unpaid claims against
Cuba 454
Directing Council of Paso 462
VENEZUELA: Effective date of Venezuelan
trade agreement 454
Asia
CHINA: Maltreatment of Americans in Com-
munist China (Acheson) 440
The Colombo Plan: New promise for Asia
(Malenbaum) 441
JAPAN: First anniversary of Japanese Peace
Conference (Allison) 448
KOREA:
Communiques regarding Korea to the Security
Council 464
General Assembly consideration of Korean
question (Acheson) 457
Point Pour's impact on the Middle East (Sea-
ger) 450
Claims and Property
Unsettled or unpaid claims against Cuba . . . 454
Communism
Maltreatment of Americans in Communist
China (Acheson) 440
Congress
Curren legislation on foreign policy .... 448
Europe
BELGIUM: Supplementary tax convention with
the U.S 427
GERMANY: Compensation to Jewish victims of
Nazi persecution (Acheson) 448
U.S.S.R.: Forced labor in the Soviet Union . . 428
Health
Directing Council of Paso 462
Human Rights
Compensation to Jewish victims of Nazi perse-
cution (Acheson) 448
Maltreatment of Americans in Communist
China (Acheson) 440
International Information
Courier to begin Voa broadcasts 466
International Meetings
Point Four study on key land problems . . . 453
Representatives appointed to General Assembly . 457
Scientific Committee for Trypanosomiasis . . 464
U.S. DELEGATIONS:
Chemical Industries Committee (Ilo) . . . 460
Civil Aviation Organization (Icao) .... 461
Committee on Restrictive Business Practices
(Ecosoc) 458
Conference of Artists (Unesco) 457
Conference of Statisticians (Ecafe) .... 463
Directing Council of Paso 462
Executive Committee of Wmo 460
International Astronomical Union (Iau) . . 462
Seminar on Role of Museums 461
U.N. to study territorial government .... 459
U.N. Committee on Information from non-
self-governing territories 459
Mutual Aid and Defense
The pattern of leadership — a pattern of respon-
sibility (Acheson) 423
Problems facing the North Atlantic community
(Draper) 433
Near East
IRAN:
Iranian student assistance continued by
Point Four 452
Point Four health units reach Iran . . . . 452
Publications
Forced Labor in the Soviet Union 428
Recent releases 423
State, Department of
Courier to begin Voa broadcasts 466
Taxation
Supplementary tax convention with Belgium . 427
Technical Cooperation and Development
POINT FOUR:
Appraising the growth of the Point Four
Program (Acheson) 449
Iranian student assistance continued by
Point Four 452
Point Four health units reach Iran .... 452
Point Four's impact on the Middle East (Sea-
ger) 450
Point Four study on key land problems . . . 453
Trade
Effective date of Venezuelan trade agreement . 454
Treaty Information
Convention for safety of life at sea 464
Effective date of Venezuelan trade agreement . 454
Supplementary tax convention with Belgium . 427
Trust Territories
U.N. to study territorial government .... 459
United Nations
Communiques regarding Korea to the Security
Council 464
GENERAL ASSEMBLY:
Consideration of Korean question 457
Representatives appointed 457
U.N. documents, a selected bibliography . . . 465
Name Index
Acheson, Secretary 423, 440, 448, 449, 457
Allison, John M 448
Austin, 'Warren R 457
Azar, Mehdi . . 452
Barnett, Robert M . . . 460
Burch, Thomas A . . 464
Concannon, C. C ' 460
Draper, ■William H., Jr . . . . 435
Edwards, Corwin D .' . .' 458
Gerig, Benjamin 459
Green, Theodore Francis , 457
Gross, Ernest A 457
Lamm, Donald W • • . ^^^
Leong, Y. S .'.'.' 463
Malenbaum, Wilfred 441
Nunneley, Emory T., Jr . . 461
Reichelderfer, Francis W '. 460
Roosevelt, Mrs. Franklin Delano 457
Sargeant, Howland H 455
Scheele, Leonard A 452
Seager, Cedric H , _ 450
Struve. Otto 462
■Warne, William E 452
Wilder, Thornton 457
Wiley, Alexander 457
U S GOVERNMENT PRINTING OFFICE: 1952
TV ,'
H
^S5. / r
tJAe/ zl)eha^'me7ii/ ,cw C/iate/
ol. XXVII, No. 692
September 29, 1952
^Vl^NT o^
RECENT PROGRESS IN ASIA • by Assistant Secretary
Allison 471
DISARMAMENT AND TECHNICAL ASSISTANCE • by
Durward V. Sandifer 478
ENCOURAGING A NEW SENSE OF WORLD
BROTHERHOOD • by Isador Lubin 482
U.S. POSTWAR AID TO GERISIANY 491
SUPPLEMENTARY TRADE AGREEMENT WITH
VENEZUELA 487
INTER-AMERICAN ACTION TO PRESERVE
FORESTS • Article by Frank H. Wadsworth .... 492
For index see back cover
^•BT O,
iJ. S. SUPERlNTENDEfi
OCT 22 iQbZ
^Ae
^eftci/yi^e^ ^£ ^fidCe VJ LI JL 1 Vl/ LIU
Vol. XXVII, No. 692 • Publication 4722
September 29, 1952
For snle by the Superintendent of Documents
U.S. Government Printing Office
Wasbington 25, D.C.
Price:
52 issues, domestic $7.50. foreign $10.25
Single copy, 20 cents
The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1952).
Note: Contents of this publication are not
copyrighted and items contained herein m;iy
be reprinted. Citation of the Departme.vt
OF State Bulleti."^ 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
selected press releases on foreign pol-
icy issued by the White House and
the Department, and statements and
addresses made by the President and
by the Secretary of Stat^ and other
officers of the Department, as well as
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.
Publications of the Department, as
teellas legislative material in the field
of international relations, are listed
currently.
Recent Progress in Asia
Remarhs hy John M. Allison
Assistant Secretary for Far Eastern Affairs *
Question : Let us begin with the general ques-
tion— Mr. Allison, ■would you say conditions in
Asia today are better or worse tlian tliey were, say,
a year ago ?
Mr. Allison : On the whole I believe conditions
in Asia are better today than they were a year ago.
There are, of course, still dark spots. There are
situations such as in Korea and Indochina where
actual fighting is taking place and where we can-
not see clearly at this time just what the end will
be. However, if we look at the whole area of Asia
there are, I believe, many things to point to which
show that progi-ess has been made.
First, a year ago we had just signed the Japa-
nese peace treaty. Since then it has gone into
effect, and Japan is again taking her place as a
free, independent and equal member of the family
of nations. This, I believe, is extremely impor-
tant, for the contribution which the SO million
vigorous Japanese can make to the welfare of
Asia is inestimable.
Formosa is getting stronger. The Government
on Formosa is making real strides in economic and
social pi-ogress and the people of Formosa are get-
ting progressively a lai-ger share in the Govern-
ment. American economic and military aid is
flowing into the island in increasing quantities,
and whereas a year or a year and a half ago there
was a definite threat of invasion from the main-
land, that does not seem imminent today.
In the Philippines we have seen vast improve-
ment in the security situation. A year ago there
were many parts of the islands, some close to Ma-
nila, where it was not safe to travel at night.
Today, you can travel almost anywhere witli little
or no danger.
A year ago the pessimists told us that Burma
was likely to fall by default into Communist
hands because of internal weaknesses. Today, the
' Made over CBS's "The Asia Story" progrnm on Sept. 14
(press release no. 727 dated Sept. 12).
Burmese Government is in a stronger position
than it has been since it achieved its independ-
ence. Popular elections have been held for the
first time, and the Government returned to power
with a large majority. Active steps have been
taken by the Government against the Commu-
nists within Burma and the effective writ of the
Burmese Government has been extended far be-
yond the borders of Rangoon itself.
A year ago hardly a start had been made toward
developing any sort of collective security system
in the Pacific. We had just signed a security
treaty with Japan, a mutual defense treaty with
the Philippines, and a mutual security treaty
with Australia and New Zealand. Today, all of
those security and defense treaties have been rati-
fied and have gone into effect, and we have had
the first meeting of the Council [Anzus
Council] provided for in the Australia-New
Zealand-United States Security Treaty, and it has
set up procedures for implementing that pact.
Question : In that connection, Mr. Allison, tell
us more about this meeting at Honolulu, the
Anzus meeting. There seems to be considerable
worry in some quarters regarding the fact that this
was a "white man's meeting" aiul that no Asian
nations were invited to Honolulu. What can
you tell us about this?
Background of Anzus Meeting
Mr. Allison : There has been considerable mis-
understanding aiid confusion regarding the meet-
ing last month at Honolulu of the Foreign Min-
isters of Australia, New Zealand, and the United
States. Many people seem to think that this meet-
ing was suddenly decided upon, that the United
States, out of the blue as it were, realized a need
for some sort of Pacific pact and that we then
invited just Australia and New Zealand to a meet-
ing to discuss the problem. That is very far from
the truth. As I said, the treaty with Australia
Sepfember 29, J 952
471
and New Zealand was signed over a year ago. It
was one of three similar treaties, all concluded
at about the same time as the Japanese peace
treaty and all of them with that peace treaty mak-
ing what we thought of in tlie Department of
State as the total Japanese peace settlement.
The Anzus Council meeting at Honolulu was
not an isolated event. It was held merely to bring
into effect the provisions of the treaty with Aus-
tralia and New Zealand. There ai'e only three
parties to that particular treaty, and because of
this there obviously could not be invited other pow-
ers unless all three agreed that this should be done.
This treaty was one of several treaties making
up the Japanese peace settlement. The United
States took the lead in bringing about a treaty
of peace with Japan which was not punitive and
which was based on trust and a spirit of reconcilia-
tion. It was believed that this treaty should be
nonrestrictive and that in the treaty itself it would
not be possible to seek certainty about Japan's
future actions by imposing restrictions which
would deny freedom to Japan.
The peoples of Australia, New Zealand, and
the Philippines were much closer to Japanese ag-
gression than we were, and there was a natural
reluctance in those countries to think in terms of
a peace treaty with Japan that would not make
impossible by its own terms the resurgence of
Japanese aggression. If the Governments of those
countries were to join with the United States in
the type of Japanese peace treaty which we be-
lieved essential, they had to be able to give their
people assurances about their future security.
As a result of the conclusion of these mutual
security and defense treaties they were able to
do so. But these treaties do not look only to the
past, they are the basis for hope in the future.
The best description of the real purpose of these
security pacts has been given by John Foster
Dulles, who was in charge of their negotiation,
w hen he stated before the Senate Foreign Relations
Committee :
It is highly appropriate that not only our friends,
but our potential enemies, should learn that our con-
cern with Europe, evidenced by the North Atlantic
Treaty, and our concern with Japan, in no sense imply
any lack of concern for our Pacific allies of World War
II or lack of desire to preserve and deepen our solidarity
with them for security. Tlie security treaties with
these three countries are a logical part of the effort
not merely to liquidate the old war, but to strengthen
tlie fabric of jjeace in the Pacific as against the hazard
of new war.
We have tried to make it clear that the meet-
ing at Honolulu last month was not a meeting of
a Pacific pact and that the Council set up is not a
Pacific council. We even went to some trouble to
coin a new word, "Anzus," to describe this Coun-
cil and to make sure that no one would think
that this Council was one which would decide the
problems of the whole Pacific area. As President
Truman said, when it was announced in April of
1951 that these treaties were to be concluded, they
are "initial steps" in the formation of an over-all
security system for the Pacific. We have found
that it is not possible at this time to have a Pa-
cific pact in the same sense that we have a North
Atlantic Pact. When you stop to look for a minute
at the countries of Asia you will readily see why
this is so. In Europe, members of the North At-
lantic Pact have, generally speaking, common
problems, complementary economies, and have all
reached approximately the same level of political,
economic, and social development. That is not so
in Asia. Here we have countries ranging from
crown colonies and satrapies such as Borneo to
modern industrialized Japan. We have countries
such as Japan and Thailand which have been in-
dependent for centuries. We have other countries
like Indonesia, Burma, and the Philippines which
have only achieved full independence in the last
6 years. We have some of the countries of Asia
which still recognize the National Government of
China as the only legitimate Chinese Government.
We have others who recognize the Communist
regime as the legitimate government of China.
We have countries such as the Philippines which
are willing to align themselves publicly on the
side of the West. We have other countries, par-
ticularly the newer ones such as Burma and In-
donesia, who say that their first task is to put
their own house in order and they wish to be left
alone to do that and do not wish to take sides in
the world struggle at this time.
Foundation Laid for Pacific Pact
With all these diversities, the time has not yet
come when we can have a single over-all Pacific
pact. But in my personal opinion that time will
come, and when it does and when the people of
Asia make clear that they wish to work together
to insure their free development and to help each
other maintain their independence, then the
United States will be ready and willing to play its
part in helping them to do so. The "initial steps"
such as the Anzus pact, our mutual defense treaty
with the Philippines, and our security pact with
Japan, can be the foundation for this greater co-
operation.
Question : Well that naturally, Mr. Allison,
brings us to the subject of neutralism in Asia of
which we hear so much. Do you think there is
such a thing as a real neutral out there?
Mr. Allison: I think it is only natural for us
to expect neutralism in an area where new coun-
tries are just getting on their feet. My own feel-
ing is that these countries are more neutral in
what they say than in what they do. All of the
countries of Asia outside of the mainland of
China have in one way or another demonstrated
by action that they wish to remain free and inde-
pendent and that they do not wish to be the slaves
of any foreign ism. They are all, I would say,
472
Department of State Bulletin
non-Communist if not actively anti-Communist.
I think before we juclg-e too hastily we should re-
member our own experience and recall that it took
two world wars before the people of this country
realized that in today's world one cannot long re-
main neutral. However, this is not something we
can tell the peoples of Burma and Indonesia.
Thoy must decide this matter for themselves. It
is important to emphasize that it is not America,
it is not the free nations of the world, that say neu-
tralism is impossible, but it is the Communists who
say it everyday and in every way. They said it
again as recently as last December when, in the
Moscow University Herald, the Communists set
forth a seven-point program forming in fact a
blueprint of Communist aggression in the East.
It begins with instructions to incite the peoples
of the East to nationalism, something which obvi-
ously they all are interested in. They are then
told to promote a "united front," and the various
steps are outlined to the point where the Commu-
nist Party seizes complete control and ousts all
others. Point 6 in this seven-point program is
worthy of special mention. It says: "Remember
that, true national independence can be achieved
only in unity with the Soviet Union. There is
no third, middle or neutral road."
Question : How does the American Govern-
ment define Russian objectives in Asia?
Mr. Allison : I don't think it is as important,
Mr. Costello, to know how the American Govern-
ment defines Russian objectives as it is to know
how the Soviet Government defines those objec-
tives. The Communists have made no secret of
their interest in the Far East, and what they are
trying to do has been made clear for all who will
read and understand. I have just mentioned the
seven-point program outlined in the Moscow Uni-
versity Herald of last December in an article
commenting upon the lessons to be learned from
China about advancing the revolution. We know
that this interest of the world Communist lead-
ers is of long standing although it has taken
its most aggressive form in recent years. Al-
most 30 years ago, in his lectures on the foun-
dation of Leninism, Stalin pointed out that "The
road to victory of the revolution in the West
lies through the revolutionary alliance with
the liberation movement of the colonies and de-
pendent countries against imperialism." Stalin
has also said that with Japan, Russia would be in-
vincible. It seems then that we can learn from the
lips of the Russians themselves what are their
main objectives in Asia. One is to promote world
revolution through revolutionary activity in the
East, and two, to get Japan into the Communist
camp if possible, or at least to weaken it so that it
can be no danger to the Soviets. In my opinion,
one of the reasons for the Communist aggression
in Korea was to make more easy the eventual con-
quest of Jai^an. With the Soviets already in the
Kuriles to the north of Japan, possession of the
Korean Peninsula by a Communist-dominated
state would place Japan in the grip of Soviet
pincers and make it difficult for the people of
Japan to maintain real independence.
QxjESTiON : Would you say Communist imperial-
ism today is a more immediate threat in Asia or in
Europe, and do you think the young nations of
Asia would be willing and able to defend them-
selves in the event of a Communist attack?
Mr. Allison : In my opinion. Communist im-
perialism is a greater immediate threat in Asia
than in Europe. Through the Marshall Plan and
the North Atlantic Pact the free nations of Europe
have built up strength to such a position that it
would be difficult for the Communist aggressors
to make further gains without engaging in all-out
war. This is not yet true in the Far East. As I
have said, there is wide divergence among the
countries of Asia in political, economic, and social
development. Many of the new countries are just
beginning to reach stability. They have many
problems still unsolved, and because of many
years of colonialism they do not yet have a suf-
ficient number of trained leaders. It is easy for
communism to spread chaos in Asia, and that is
why it seems to me the greater threat is there.
The second part of your question implies a situa-
tion which may not develop. You ask would the
young nations of Asia be willing and able to de-
fend themselves in the event of Communist attack.
It seems to me Communist attack in the conven-
tional sense may never come but that the greatest
danger is constant pressure, subversion, and infil-
tration whereby the new and weak governments
of Asia can be kept weak, can be kept divided
among themselves. The seeds of dissatisfaction
are being sown in these countries in the hope that
they will almost imperceptibly drift into the Com-
munist camp. That is the danger which we are
facing, that is what we are trying to fight against
by helping these countries to help themselves
through our economic and military aid programs.
At the two points in Asia where there is definite
Communist military aggi'ession, in Korea and
Indochina, the peoples of those areas have shown
that they are willing and able to fight, but they
need help, and that help we are giving them.
Question : In the past American attention has
centered more on Europe than on Asia — in a sense
it now becomes something of a political issue —
but would you say that it is fair to conclude that
it is our policy to treat Asians as "second-class
expendables" ?
Mr. Allison : I have no desire on this program
to get into any political argument, but I think it
is possible to look at what we have done and are
doing in Asia, and if we do, I believe we will see
that it is not the U.S. Government which looks on
Asians as "second-class expendables."
September 29, 1952
473
U. S. Policy in Asia
For 7 years the United States bore the main
burden of the occupation of Japan. Not only did
we do much to eliminate the vestiges of the old
Japanese militarism, but we spent nearly 2 billion
dollars to help feed the Japanese and make it pos-
sible for them to raise their war-shattered stand-
ard of living. The United States took the lead
under the energetic and imaginative guidance of
John Foster Dulles, but with the strong backing
of President Truman and Secretary Acheson, in
giving the Japanese people a liberal peace treaty
enabling them to take their place in the world com-
numity as equal partners. The treaty made them
completely free. We have signed a security treaty
with Japan and are keeping U. S. Forces in that
country in order to defend the Jai)anese against
attack, as for the present they have no adequate
defense force of their own. Is that the treatment
normally given to "second-class expendables"?
Wlien Communist aggi-essors invaded the Re-
public of Korea we, along with other members of
the United Nations, took immediate action. Since
then U. S. casualties in Korea up to July 25 of this
year have exceeded 113,000, including over 18,000
dead. We are spending approximately 5 billion
dollars a year for Korea, not including "troop pay,
food, or training costs, and, in addition, we have
given over 700 million dollars of economic aid to
the people of Korea. AVe have refused to agree
to an armistice in Korea, although that meant con-
tinuing loss of American and other free nations'
blood and treasure, on terms which would force
Koreans and Chinese to return to Communist
slavery and probable death.
In the Philippines, as a result of the Bell Mis-
sion Report and the Quii-ino-Foster Agreement,
the United States has been carrying on a program
of economic aid envisaging the expenditure of 250
million dollars over a 5-year period. This is in
addition to the large sum — almost a billion dol-
lars— which we have contributed to repair the dam-
ages of war in the Philippines. In addition to
this economic aid, we have military agi-eements
with the Government of the Philippines making
clear that the American people have not forgotten
what the Philippine people did between 1941 and
1945, and making clear that if trouble should come
to the Philippines again they would not stand
alone.
In Formosa, the United States has a military
and economic aid program involving the expendi-
ture of hundreds of millions of dollars. Our
Seventh Fleet makes certain that any Communist
aggression against Formosa shall not succeed. It
will continue to do so.
In Indochina, the French and the peoples of the
three Associated States are carrying the chief
burden — it is not often realized that France has
spent more in Indochina than she received through
Marshall Plan aid, that for the last 7 years one-
third of France's professional armed forces have
474
been engaged in Indochina, and that France is now
spendnig more than a billion dollars a year de-
fending that area. For our part, the United
States is contributing approximately one-third of
the cost of the Indochina operation. In addition,
we maintain there a military advisory mission to
assist in equipping the National Armies of the
three Associated States and the French Union
Army.
In Thailand, Burma, and Indonesia, there are
smaller ]5rograms of economic aid. In the case of
Thailand there is also a program of military aid
and a military advisory group.
^AYlien we look at the Far East from Japan and
Korea, down through Formosa, the Philippines,
to Indochina, Thailand, Burma, and Indonesia,
American blood or treasure (in Korea both) is
being poured out with that of other free nations
to help keep those countries secure from Commu-
nist aggression— actual or potential — and to give
them an opportunity to develop as free and inde-
pendent nations. Would these more than 100,000
American casualties and billions of American dol-
hirs have been sacrificed for people whom we con-
sidered "second-class expendables"? I think not.
But what of Russia ? What is its ultimate pur-
pose in Asia? To make the nations of Asia free?
No. Remember Stalin said the East was the road
to victory in the West— that is what they are
interested in. They are attempting to use the
jwople of Asia to achieve that victory. It is the
Soviets — it is the Communists — who really believe
the peo])le of Asia are "second-class expendables."
There have not been 100,000 Soviet casualties on
behalf of their North Korean and Chinese Com-
munist friends. No— they let them spend their
own blood.
Communist Motives for Delaying
Korean Armistice Agreement
Maj. Gen. Will/am K. Harrison, chief United
Nrtfions negotiator at the Panmunjom armistice
talks, made the following statement to Commimist
negotiators on Septemher 6:
Another week has passed and you continue to
reject an armistice, insisting as its price that we
return to you a few thousand Chinese prisoners
who are determined never again to live under Com-
munist control at any cost.' We have offered you
the opportunity to verify tlie attitude of those
prisoners. You have refused to do so.
Let us consider dispassionately the obvious con-
sequences of your continued delay in agi-eeing to
an armistice. First, you are preventing the re-
patriation of about 83,000 of your captured per-
sonnel who will not violently resist.
Second, you force the continuation of the mili-
tary conflict. The battleground is North Korea,
Department of State Bulletin
since you have failed to conquer and occupy the
Republic of Korea. The people whose land is the
battleground of the contending forces always
suffer. North Korea is a small country, economi-
cally poor. Its people have already suffered much
from the 2 years of conflict. Its economic life is
gi-adually being destroyecl as a result of your con-
tinued use of its area and facilities for the opera-
tions and support of your military forces.
The facts we have just stated are clear to all the
world. It is inevitable that intelligent and decent
people everywhere draw conclusions from these
facts, conclusions regarding your purposes and
methods. If you stop to consider what such opin-
ions must be, you will see that delay in agreeing
to an armistice works to your disadvantage.
First, let us examine the matter of those few
thousand Chinese prisoners of war. They are just
ordinary men, most of them of the lowest grade
of your army. By entering into this conflict in
Korea you have sent to death or serious injury
many thousands of others like them. By continu-
ing the fighting after your military invasion has
failed you condemn still others to death. It is
difffcult to evade the thought that this loss of life
stirs little regret in your minds. This inference
immediately leads to a question. Why should
these few thousand Chinese fear to return to their
homeland ? Why should men flee from their coun-
try, willing to go anywhere else in the world, but
not to return to the control of their own rulers.
Civilized rulers allow their people to emigrate
to other countries. You would have us force yours
to come back to you at bayonet point. It is diffi-
cult for us to escape giving credence to reports
which arise from many sources that you are afraid
to have your people learn how much better are
^sericlitions in non-Communist countries for those
masses of the population whom you call the pro-
letariat. Possibly the other stories which we hear
are true, that you intend to punish those who seek
to escape from Communist control. If this infor-
mation is accurate, you may as well recognize now
that there is no possibility that we will force to be
repatriated those who have begged us for asylum.
There may be still another reason for your con-
tinued insistence in making the forced repatria-
tion of a few thousand Chinese the issue which
delays or may prevent an armistice. There is a
widely held suspicion that you really do not desire
an armistice and that your negotiations are mere
camouflage to conceal your real purpose to con-
tinue the conflict. If this susi-)icion ultimately
IJroves to be true, the world will have discovered
once again and beyond any doubt the futility of
attempting to negotiate with Communists on any
reasonable and honorable grounds.
The Chinese prisoners concerned are few in
number. To recover them it appears that you are
satisfied to cause the population of Noith Korea
to suffer the gradual destruction of its economic
life in addition to hunger, disease, dislocations of
homes, and other troubles wdiich are the inevitable
consequences of the military operations which you
force them to support and maintain. These poor
people are your so called "proletariat." The
world asks you : "Have you no feeling of compas-
sion for these people? Do their lives, homes, and
happiness mean nothing to you ? "
It is difficult to understand how the Communist
rulers of North Korea can continue to support
Communist Chinese demands while their own
country and people suffer such great loss. In
civilized countries governments are not indifferent
to the needs of their people. In fact, much of
your propaganda talks loudly about the good you
seek to clo for your countrymen. How can you
expect anyone outside of communism, or in it for
that matter, to believe other than that you are
cruelly indifferent to your people, or that you are
mere puppets of an alien Communist ruler,
obedient to your master's command ?
Naturally we do not expect you to answer, or
admit the accuracy of these conclusions. But they
are really inescapable as you will see if you stop
to consider the matter from a logical and humane
point of view. Everyday the atmosphere is filled
with your propaganda. But propaganda uses
words only. All of us know that actions speak
much louder than words. People may believe oft
repeated propaganda until they learn that it is
false in fact; that the truth is just the opposite of
the words. For some years now and as a result
of Communist acts, not words, the people of the
world have been increasingly recognizing the
falseness of communism. Is the further delay of
the armistice to become just another of these les-
sons teaching men to distrust and resist everything
said or done by Communist rulers ? We leave the
answer to you.
If you are prepared to agree to an armistice we
are ready to exchange lists of prisoners of war to
be repatriated in accord with paragraph 51 of the
draft armistice agreement. We have approxi-
mately 83,000 whom we can repatriate. You have
stated often that you are prepared to repatriate
all of our personnel in your custody, who now
number over 12,000. If your list is in conformity
with your past statements there should be no dif-
ficulty in reaching an armistice agreement.
U.S. Facing Renewed Communist
Germ Warfare Charges
Press release 732 dated September 15
The United States is once more faced with a
new spate of phony evidence of bacteriological
warfare in Korea and China. This time we are
informed that an international commission of
scientists has conducted an investigation and has
come up with proof of the charges which the Com-
Sepf ember 29, 7952
475
munist propaganda organs have been spreading
around the woi'ld since last winter.
The Government of the United States has de-
nied these charges repeatedly. It has repeatedly
offered to submit them to impartial investigation.
In each instance, the Communist powers have
refused to jiermit an investigation by any body
or organization which was not completely sub-
servient to them.
Instead, they have produced a steady barrage
of so-called evidence, prefabricated from plans
drawn in Moscow, by persons whose allegiance
to the Communist cause outweighs their regard
for trutli and decency.
This latest report is no exception. Peiping
Radio acknowledges that the impetus for this so-
called investigation came from the World Peace
Council. The World Peace Council is the fore-
most Communist front organization in the field
of propaganda. It is distinguished by its com-
plete subservience to the Moscow line in all fields
of endeavor. The personnel of the so-called Inter-
national Commission of Scientists was selected by
Communist leaders; they were conducted on their
tour by Communist officials; and they have written
their rejiort under Communist aegis.
The United States stands before the tribunal
of world opinion with clean hands. It has re-
peatedly signified its willingness to submit to a
genuine investigation, asking only that the in-
vestigation be impartial and conducted by quali-
fied personnel.
This has been the American stand in discussion
of tliis question with other powers. It was the
jlmerican position before the organs of the
United Nations. It was the American position at
the 18th International Red Cross Conference,
where Communist delegates sought to inundate
the conferees with propaganda concerning these
charges. A^Hien the Red Cross Conference
adopted a resolution urging the powers involved
to agree uijon an impartial investigation, the chief
U. S. delegate immediately and publicly wel-
comed tlie action of tlie Conference.
The Communist leaders continue to turn a con-
veniently deaf ear to all proposals for a genuine
inquiry. Instead, they substitute the alleged find-
ings of their stooges, based upon lies, trumped-up
evidence, and forced confessions.
U.S. Views on General Assembly
Discussion of Korean Issue
Press release 731 dated September 15
Certain confusion appears to have arisen in the
public mind concerning the relationship of the
armistice negotiations at Pannumjom and the dis-
cussions of the Korean issue which may be ex-
pected in the U.N. General Assembly.
Since the establisliment of the Republic of
Korea, the United Nations has had a broad and
general interest in the political and economic de-
velopment of a unified Korea. These problems
have been discussed in various meetings of the
General Assembly since that time and will un-
doubtedly be discussed in the forthcoming ses-
sion at New York.
As distinct from these general considerations,
the United States, in consultation with other prin-
cipally concerned countries, has assumed the re-
sponsibility, as part of the military mission
assigned to it by the United Nations Security
Council, for the conduct of the negotiations with
the Communists for a military armistice. It con-
tinues to be the view of the U.S. Government
that this is the proper and appropriate means of
conducting these negotiations.
Secretary Acheson Comments
on New Sino-Soviet Agreement
Printed helow is an account of remarks regard-
ing the new Chinese-Soviet agreement made hy
Secretary Acheson at his press conference on Sep-
tember 17} When as'ked iy a correspondent
whether anything could be added to a cojnment
made the previous day on the matter iy Michael J.
McDermott, Special Assistant for Press Relations,
Secretary Acheson ansioered in the following
vein :
He had been looking that morning at a copy
of a memorandum of the press and radio news
conference of the 15th of February 1950, where,
he said, they had discussed together the treaty
between the Soviet Union and the Chinese Com-
munist Government, and that there were some
things there tliat might be interesting to recall.
Secretary Acheson recalled that at the begin-
ning of his comment he had pointed out that there
might very well have been and probably were
agreements which were not reduced to writing
and pei'haps would not be, and that he had added
that undoubtedly more would come out from time
to time. He had said that he thought that that
was very probably the case, and that all of what
had been done would never come out in printed
form. The Secretary reminded the correspond-
ents that he had commented that that would de-
velop, if at all, out of the conduct of the Soviet
Union over the next months and perhaps years,
because one of the most familiar patterns laiown
' The agreement, whose terms were announced at Mos-
cow on Sept. 15, provides that the Chanj-'chuu Railway
will be returned to the control of the Chinese Communist
regime but that Kussian forces will continue to be main-
tained at Port Arthur. The agreement relates to a treaty
made in Feb. lO.'iO between the two countries ; the latter
provided that Russia was to return both the railway and
Port Arthur to the Chinese Communist regime by the end
of 1952.
476
Department of State Bulletin
was tliat most of the agreements made by the
Soviet Union had their most important provisions
in secret protocols.
The Secretary continued by saying that he had
said that this treaty referred to eagerness of the
parties to it to agree with the rest of the world
on a Japanese peace treaty, and that he had com-
mented that tliat had not been demonstrated in
an outstanding manner over the recent past be-
cause so far we had not been able to agree with
them on the procedure within which to discuss a
treaty.
Secretary Acheson also recalled that a corre-
spondent had commented that the Chinese Na-
tionalists seemed to think that there was something
significant in the selection of the date 1952 for
the Eussian evacuation of Port Arthur and, of
course, that that year was important from other
points of view. The correspondent liad then in-
quired if it was possible to state if the Department
had any information that would give any par-
ticular significance to the year 195'2. The Secre-
tary said that lie had answered in the negative
ancl had stated that he had no information of any
sort on that, saying that it had the happy result
of putting it off quite a while. The Secretary
then had added that the Soviet Union had been
in occupation of those areas; that a great many
things might happen before 1952 which could pro-
long the period and that even if they did not
ha])pen, there again Soviet influence would be so
solidified that by the time one took away the
ostensible troops, control would be quite firmly
established.
The Secretary concluded by saying that he
thought that that had been an interesting com-
ment of more than 2 years ago and that we were
seeing some of it coming out now.
U.S. Encouraged by European
Unity Efforts
Press Conference Statement 'by Secretary Acheson
Press release 736 dated September 17
During the past week we have witnessed two
closely connected events which have far-reaching
significance for the future of free Europe. The
first was the initial meeting of the Assembly of the
European Coal and Steel Community. The sec-
ond was the decision by this Assembly to study
immediately the formation of a European Politi-
cal Authority.
It is not possible at this time to predict where
these studies will lead, nor to anticipate the na-
ture and scope of the political structure which may
be created. The important fact is that this deci-
sion demonstrates, perhaps more forcibly than any
action yet taken, the strength and momentum of
the movement toward European unity.
The United States will continue to encourage
and supijort the efforts of the statesmen and
peoples of Europe to achieve a close and enduring
unity because we are convinced that this unity will
contribute substantially to the strength and pros-
perity of our European friends and to the success
of our mutual efforts to maintain peace in the
world.
Department Publication on
Forced Labor in U.S.S.R.
Statement by the President
White House press release dated September 18
Most of you are probably aware that the United
Nations has been investigating the practice of
forced labor and the United States has been most
anxious that the facts be made known. I there-
fore want to call to your attention today this
factual expose of forced labor in the Soviet Union
and its satellites which was compiled by the De-
partment of State.^ It contains many vivid ex-
amples of what it means to live under the present
Soviet rulers and indicates the scope of this prac-
tice in the Russian sphere and its economic and
political significance.
With the urging and support of labor organi-
zations, particularly American labor and the In-
ternational Confederation of Free Trade Unions,
the United States and Great Britain requested the
United Nations to investigate forced labor where-
ever it exists in the world. As a result, the United
Nations created a special committee headed by an
outstanding Indian leader. Sir Eamaswami Muda-
liar. This committee held hearings in New York
in June and will continue its investigation in
Geneva beginning October 14. The U.S. Gov-
ernment made available to the U.N. committee
such evidence as it had of forced labor in the
Soviet sphere. The State Department has sum-
marized all these facts in this booklet.
'■ For excerpts from this publication, Forced Lator in
the Soviet Union, Department of State publication 4716.
see Bulletin of Sept. 22. 1952, p. 428.
September 29, 1952
477
Disarmament and Technical Assistance: Tlie Way to a Better Life
Address hy Durwurd V. Satvdifer
Deputy Assistant Sec-retaiy far United Nations Affairs ^
The occasion of tliis great Centennial of Engi-
neering recalls the remarkable degree to which
engineering and technology have in the past cen-
tury succeeded in overcoming obstacles standing
in the way of a better life. Your success has
opened a vast and undreamed of prospect for man-
kind— a i^rospect almost terrifying in its poten-
tiality for good or evil, de^Dending on the road
which mankind takes. That is where your calling
and mine join, for those of us who work in the
field of diplomacy are acutely aware of our respon-
sibility to assist in finding the road which leads
to peace and security, to the fuller enjoyment of
the fruits of your labors. This is a responsibility
which we share with you. That is why I am
happy to join in welcoming those of you who are
visiting from other countries and to wish you a
pleasant and profitable stay.
No one knows better than you the terrible neces-
sity for bringing to effective political control the
weapons of destruction with wliich men have peri-
odically slaughtered each other. Perhaps inter-
national anarchy and the persistence of the duel-
ing code among nations were tolerable in the days
of the battle-ax, the sword, and the spear, or even
in the day of tlie rifle and long-range artillery.
But it is unthinkable in the age of atomic bombs,
atomic weapons, hydrogen bombs, guided missiles,
and jet planes. We have moved from the day
when wars could only be carried out by killing in
hand-to-hand combat into the day when one man
in a jet bomber with a few assistants can destroy
a city. Man must subject these engines of destruc-
tion to mutual world control or perish. Others
may dismiss this as a dramatic figure of speech.
You engineers cannot escape the knowledge of its
awful reality.
I am reminded of an incident which took place
during the question period after an address made
by Dr. Einstein several years ago. A feminine
'Madp at the Centennial of Engineering celebration at
the Muscinn of Science and Industry at Chicago on Sept. 3.
listener said to Dr. Einstein : "Wliat weapons will
be used in the third world war?" Einstein re-
plied : "Madam, I cannot answer that question, but
I can tell you what weapons will be used in the
fourth world war. Rocks !"
While we strive to control destruction, we must
at the same time press forward the construction
of a better way of life.
The United Nations offers the best hope man
has developed to date for mastering both of these
tremendous problems. But it is only to the extent
that it finds a way to use your engineering know-
how that this hope can be made real. The build-up
of armaments for security, the technical knowl-
edge essential to safe disarmament, the prosecu-
tion of a technical assistance program — all depend
for successful execution upon the body of knowl-
edge represented by your profession. Engineer-
ing and multilateral diplomacy effectively linked
offer the world hope of peace and a better life.
An Apparent Inconsistency
It may seem inconsistent to you for the United
States and the United Nations to devote time and
energy to disarmament when at the same time we
are bending every effort to achieve a vast rearma-
ment program on our part and that of our allies.
Actually, the two programs are not inconsistent.
President Truman, in explaining the significance
of the disarmament proposals which were ad-
vanced in the U.N. General Assembly by the
United States, France, and the United Kingdom,
reaffirmed the determination of the United States
to win real peace, based on freedom and justice.^
He said that we will do it the hard way if we must,
by making the free world so strong that no would-
be aggressor will dare to break the peace. But
tlie United States will never give up trying for
another way to peace — the way of reducing the
^ For the President'.s address, made Nov. 7, 1951, see
Bulletin of Nov. 19, 19.51, p. 799.
478
Department of Sfafe Bulletin
armaments that make aggression possible. That
is vvliy we have made these disarmament proposals
in the United Nations and why we shall continue
to seek workable agreements on disarmament.
A disarmed world must rest upon two basic
principles. They are tersely stated in the "Essen-
tial Principles for a Disarmament Program," pre-
sented by the United States to the U.N. Disarma-
ment Commission on April 24:.^ In the first place,
"the goal of disarmament is not to regulate, but
to prevent war by relaxing the tensions and fears
created by armaments and by making war inher-
ently, as it is constitutionally under the Chai'ter,
impossible as a means of settling disputes between
nations." Secondly, in order to achieve this goal
■'all states must cooperate to establish an open and
substantially disarmed world" — a world "in which
armed forces and armaments will be reduced to
such a point and in such a thorough fashion that
no state will be in a condition of armed prepared-
ness to start a war," and "in which no state will
be in a position to undertake preparations for war
without other states having knowledge of such
preparations long before an offending state could
start a war."
Wliat we have been doing in the Disarmament
Commission since its organization in February
pursuant to the Disarmament Resolution adopted
by the General Assembly last fall is trying to put
meat on the bare bones of these propositions.
The United States, the United Kingdom, and
France have presented a concrete program to the
Disarmament Commission in a series of four pa-
jDers. This program stems from the basic premise
that an effective system of inspection and control
is essential to any safe disarmament program.
The plan starts, therefore, and must start with the
proposals for progressive and continuing disclo-
sure and verification of all armed forces and arma-
ments. We must know in the beginning and at all
times exactly what armaments eveiy nation has.
This disclosure and verification would be carried
out in a series of stages, each stage to follow when
the previous one had been satisfactorily complet-
ed. But even the first stage would include impor-
tant information. For example, the disclosures in
the atomic field would give a clear indication of
existing atomic strength — our own and that of
other countries. Most important of all, disclosure
and verification would be carried out by an inter-
national organ with full authority to guarantee
faithful performance by all states.
Next, tJie program envisages a progressive re-
duction of armed forces and permitted armaments
to maximum levels, radically lower than present
levels.
The essence of our proposal for fixing numeri-
cal limits on armed forces is the suggestion that
there should be maximum ceilings for the United
States, the Union of Soviet Socialist Republics,
and China, which should be, say, between 1,000,000
'Ibid., May 12, 19.52, p. 752.
and 1,500,000 men; that the maximum ceilings for
the United Kingdom and France should be, say,
between 700,000 and 800,000.
In addition, there would be agreed maximum
ceilings for all other states having substantial
armed forces, fixed in relation to the ceilings
agreed upon for the Five Powers. The ceilings
to be aimed at would normally be less than one
percent of the population and would normally be
less than current levels.
The numerical limitations proposed are flexible,
and are not intended to be final or exhaustive.
They are offered not as fixed limitations but as
tentative standards to serve as a basis for
negotiation.
These numerical limitation proposals stress one
of our fundamental objectives in the disarmament
field. We would eliminate as far as possible the
danger of resort to war by reducing the prac-
ticability of successful aggression. Genuine en-
forcement of agreed levels of armaments would
prevent the excessive concentration of power which
has always been such a threat to peace and security.
Five Power Conference Proposed
Next, as a means of implementing these pro-
posals, we have suggested that when we can get
agreement on some of the basic ideas, the repre-
sentatives of the Five Great Powers should get
together to seek agreement on three particular
points: How they would allocate their permitted
armed forces among their respective armed serv-
ices ; what armaments and how much of them they
would consider necessary and appropriate to sup-
poit these limited armed forces; and how they
would prohibit and eliminate all armed forces
and all armaments other than those expressly per-
mitted. This might be followed by regional con-
ferences including all other governments having
substantial military forces, in order to reach sim-
ilar agreement on the over-all numerical ceilings
for their armed forces and on the three problems
^dllch I have just mentioned. The drafting of
treaties on the basis of agi-eements thus reached
would follow. Again the international control
authority is central to the plan with full power to
insure the carrying out of the limitations, reduc-
tions, and prohibitions.
Finally, an essential part of this comprehensive
disarmament plan is the system for atomic energy
control. Until a better or no less effective system
is devised, we continue to support the U.N. plan
approved by the overwhelming majority of the
members of the United Nations in the General As-
sembly of 1948. This plan was the product of the
most thorough study in the U.N. Atomic Energy
Commission. It calls for the elimination of atomic
weapons through an iron-clad system of interna-
tional control to insure that atomic energy is used
for peaceful purposes only.
That is but a brief sketch of what, I submit, is a
major and sincere effort by the United States, the
Sepfember 29, J 952
479
United Kingdom, and France to promote disarma-
ment— an effort which has i-eceived general sup-
port from all members of the Disarmament Com-
mission except the Soviet Union. What is the
record of the Soviet Union ?
The Soviet Record
The Soviet Government rejects out of hand all
these proposals. It offers nothing in their place
but the discredited program decisively rejected by
the General Assembly in Paris and in previous ses-
sions of the General Assembly, the Atomic Energy
Commission, and other U.N. bodies. That is an
immediate prohibition of the use of atomic energy
and a reduction by one-third of the armaments of
the Big Five — this without the institution of any
effective system for the inspection and control of
armaments. They talk about an organ for the
control of disarmament, but one which would not
have the right to interfere in the domestic affairs
of any state. They would rob us of our principal
weapon of defense against aggression while leav-
ing substantially intact their great mass armies
with their existing ratio of superiority over the
armies of other countries — and even this without
any guaranties of compliance or enforcement. As
our representatives have repeatedly declared, we
will not accept mere paper guaranties. We will
entrust our security only to a bona fide system of
control and enforcement with real authority to see
that every state lives up to its promises.
In the Disarmament Commission, the Soviet
representative has resorted to an unceasing bar-
rage of vilification of our motives, deliberate mis-
interpretation of the tripartite proposals, and at-
tempts to divert the Disarmament Commission's
attention by the repetition of monstrous false-
hoods about the alleged use of bacteriological
weapons by the United Nations in Korea. Appar-
ently the Soviet Union prefers to use the disarma-
ment discussions as a propaganda platform rather
than engage in a bona fide mutual negotiation on
concrete ways in which to achieve it.
Nevertheless, we intend to press forward in the
Commission in the hope that the time will come
when the Soviet Union will decide that it really
wants to consider the substance of these problems.
The proposals which we make are concrete and
sincere. They are the result of wide examination
and mature consideration within the U.S. Govern-
ment and the other sponsoring governments. Our
proposals are business propositions. They are not
mere propaganda. We are prepared to live with
them.
We want to reach effective agreements on dis-
armament. We deeply hope we can reach these
agreements. Until we do, however, we must con-
tinue to seek security in the other way which
President Truman described : By making ourselves
so strong that a would-be aggressor would not
dare attack.
Technical Assistance To Raise Living Standards
The disarmament program is intended to free
men from the threat and destruction of war. Its
counterpart, the technical assistance program
(more popularly known as the Point Four Pro-
gram ) , is designed to give man the food and health
and knowledge with which he can enjoy this free-
dom. This is to be done by carrying to the under-
developed areas of the world the technical and
industrial know-how of our industrial age. The
aim is to raise the barometer of peace by lifting
the level of man's life.
I will not attempt a technical review of the
program. I will only give you a glimpse of its po-
tentialities through specific examples of what it is
doing.
The technical assistance program of the United
Nations and the specialized agencies is now op-
erating in about 70 countries and is providing
assistance in many fields. Of the 742 experts now
actually at work in these countries (with some four
to five hundred having finished their tasks) , a very
large number are from engineering or allied fields.
They are sanitary, electronic, hydraulic, or aero-
nautical engineers, specialists in land reclamation
and irrigation, in industrial methods and proc-
esses, et cetera.
Since the U.N. agencies have no operating re-
si^onsibility for the various development projects
under way in these countries, the work of these
experts takes the form of teaching or training, of
advising or demonstrating. This is not, in other
words, a program of capital investment nor of
contracting for the actual construction or manage-
ment of these various development projects.
But, as a result of the work of these experts, a
number of governments are already beginning to
provide increased capital for projects whose feasi-
bility has now been established.
Let us take Pakistan as an example. Here the
U.N. Food and Agriculture Organization (Fao)
has made available an American refrigeration
engineer to assist in planning a modern meat-i^ack-
ing plant. Having helped in drawing up the
plans, he is now in this country getting bids for
the necessary equipment. Pakistan is supplying
the capital, the Fad's contribution being limited to
the cost of the expert's salary and maintenance.
In Pakistan, the Fao has also made available two
experts in harbor development from the Nether-
lands to assist in planning modern fisli-processing
facilities in the port of Karachi, with modern
warehouses and iceplants. Also in Pakistan an-
other Netherlands eiigineer assigned by the U.N.
Technical Assistance Administration is drawing
up a multipurpose scheme to improve the coun-
try's inland water-transport system. The United
Nations Educational, Scientific and Cultural Or-
ganization (Unesco), the U.N. agency concerned
with promoting international cooperation in
.science and education, has jirovided engineers, one
from Switzerland and one from New Zealand, to
480
Department of State Bulletin
advise on radio transmission problems as part of
a project to develop a modern educational broad-
casting service in Pakistan, a land of isolated vil-
lages. This work is now being taken over by the
International Telecommunication Union.
Or take the case of Ecuador. Here a French
hydraulic engineer provided by Unesco is helping
the Government to prepare a program of hydro-
electrical and irrigation development and has pre-
pared a plan for the creation of a national insti-
tute of electrical engineering. Experts provided
jointly by the International Labor Organization
and Unesco are advising the Govei'nment con-
cerning the promotion of teclinical education and
scientific i-esearch. Sanitary engineers from the
United States assisted in the construction of water
supply and sewage disposal systems.
An expert on lignite surveyed the deposits in the
province of Lanar, and it was determined that lig-
nite could be pi'ocessed successfully and economi-
cally for use as an industrial fuel. A second ex-
pert was then sent down to plan the introduction
of appropriate mining methods and for the intro-
duction of the necessary up-grading processes.
Programs in Ethiopia
In Ethiopia — a country where economic devel-
opment and the development of communications
anct transportation go hand in hand — the United
Nations, the International Civil Aviation Organi-
zation, the International Telecommunication
Union, and the International Bank have all been
giving assistance to the Government in overcoming
its transportation and communication problems.
In addition to providing experts to help draw up
plans for a road-building program and for reha-
bilitating and expanding the telecommunications
system, the International Bank has loaned the
country some 8.5 million dollars for implement-
ing these plans.
The Civil Aviation Organization has been
training Ethiopian nationals in all phases of air-
transport operations, including both ground forces
and fliers. A small civil aviation training school
was established, where instruction was given
in radio communications, aeroengine mainte-
nance, and meteorology. Since the middle of 1951,
12 mechanics have been trained and are working
in the repair shops of Ethiopian airlines; 25
radio mechanics have been trained and are now
maintaining and repairing radio equipment of the
Addis Ababa airport; 25 meteorological observers
have completed their course and are now stalling a
network of weather reporting stations, the first
that Ethiopia has ever had. Five Ethiopians have
been trained as pilots, have obtained their li-
censes, and are continuing their advanced studies
to form the nucleus of a well-trained corps of
pilots.
These are examples of what is going on in
many countries which liave requested technical
assistance from the United Nations and the spe-
cialized agencies.
A Formidable Recruiting Task
Tlie i^roblem of reci'uiting men and women who
are technically qualified and also have the flexi-
bility, understanding, and human qualities to do
this kind of pioneer work is formidable — and the
success of this program depends on those who
carry it out. Hundreds of engineers of all kinds
will be required in the years ahead — -a challenge
which tiie engineering profession will, I am sure,
be glad to accept.
So long as the United Nations continues to dem-
onstrate such vitality and vision we need not be
discouraged by the alarms of those of little faith
crying failure through the land. You whose lives
are dedicated to overcoming physical and techni-
cal obstacles which, to the layman, seem insuper-
able well appreciate the value of patience and the
indispensable need for persistence, vision, and tlie
courage of one's convictions. But: for these qual-
ities, few of the technical feats whose accomplish-
ment is commemorated by this great centennial
would have come to pass.
Surely these same qualities are equally required
for meeting the great challenges confronting the
United Nations. We cannot admit that the po-
litical differences wliich now impede its work are
insuperable nor that they should be permitted to
paralyze action in fields where action is possible.
The United Nations is but a social and political
agency of its members. Like all such agencies it
must depend for its motive power upon the devo-
tion and energy of its constituents. This can only
come from the persistence, courage, and vision of
the people of the member governments of the
United Nations. Lacking these, it cannot go for-
ward. If these are forthcoming in full measure,
no obstacle will long delay its forward progress.
The great body of engineers will, I am confident,
in the future as in the past be found in the van-
guard of that progress.
September 29, 1952
481
i
Encouraging a New Sense of World Brotherhood
iy Isador Lubin
U.S. Rep7'esentatlve to U.N. Ecoiiomic and Social Council ^
U.S. /U.N. press release dated September 12
You have asked me to bring you today a mes-
sage of our responsibility in international affairs.
It may be useful if I share with you some of the
experience I have gained while representing the
United States in the Economic and Social Council
of the United Nations.
I would like to say at the outset that our re-
sponsibility in world affairs is commensui-ate with
the problems we face. A foreign policy fails if
it is unable to coj^e with the day-to-day tasks
that confront it. But it is not enough that we
face up to our problems as they present them-
selves. We must ferret out our problems in their
incipient stages. We must define them as well
as we can. Then we must take stock of the meas-
ures at hand to meet them and go into action.
Helping us to discern and define our many for-
eign-policy problems, we have, in the United Na-
tions, one of our most useful implements. No
longer do we depend for our information solely
on the coded telegrams from diplomatic missions
or upon reports in the diplomatic pouch supple-
mented by newspaper dispatches. Voices repre-
senting people living in every quarter of the globe
now tell their own stories in United Nations
forums of their difficulties and their accomplish-
ments, in public, for all to hear.
Many of these voices are strange and new, com-
ing from countries unfamiliar to many of us in
America. Indonesia, Pakistan, Lebanon, Burma,
Libya — these are only a few. Until the United
Nations was foundecl, these countries had little
or no opportunity to make themselves heard as
independent nations in any world council. Not
only are their voices and their accents strange
but the things they say we sometimes do not un-
derstand. Sometimes they make us angry. We
' Address made before the National Conference of
Catholic Charities at Cleveland Sept. 14.
482
are learning to live with people whose histories
and whose viewpoints are sometimes very far from
our own.
The speeches I have heard around the Council
table and in the General Assembly, coming from
rejDresentatives of underdeveloped countries, tell
a consistent story of hardship and suffering
throughout a vast area of the world — Asia, the
Middle East, Africa, Latin America. We do not
have to take their word for their plight. The
United Nations has gone out to get the facts. The
facts give cause for dismay — and for prompt and
concerted action.
Recently the United Nations completed a
thorough survey of world social conditions.^ It
is one of the important documents of our times and
I commend it to you if you have not already read
it. Let me review for a moment some of the facts
it revealed.
The population of the world has now gi'own to
some 2,400 million persons. It is growing at a
rate that exceeds 1 percent per year. The new
population amounts annually to from 26 million
to 32 million. This is about equal to the popula-
tion of Spain. It is considered likely that the peak
of acceleration which has been going on for 2
decades now has been reached. But, even at the
present rate of growth, the population problems
are immense.
Problems Confronting Underdeveloped Countries
Associated with this population problem is one
that is equally dangerous — that is, the wide dis-
parity in the conditions of life among these nearly
2^ billion persons. Half the population of the
- The Secretarj'-General's Preliminary Report on the
World Social Situation (U.N. doc. E/CN.5/267). For a
summary statement on the report by Walter M. Kotschnig,
Deputy U.S. Repre.sentative to the U.N. Economic and
Social Council, see Bulletin of July 28, 1952, p. 142.
Department of State Bulletin
world lives in Asia but they receive only 11 per-
cent of the world income. In North America,
which contains about 10 percent of the population,
the people earn nearly 45 percent of the world's
income. Africa has 8 percent of the population
and 3 percent of the income; the remainder of
the world — Europe, the Soviet Union, and
Oceania — has 25 percent of the population and
40 percent of the income. And the tragic fact is
that these disparities are widening rather than
narrowing.
Sixty percent of the world's population de-
pends on agriculture for a livelihood, but in under-
developed countries the percentage ranges up to
80 percent. In many instances these farmers
are crowded to the point where the so-called rural
population is packed into what virtually consti-
tutes an endless village. In Japan, despite the
enlightened land-reform progi-am initiated there
under the American occupation, an average of
698 persons live on every square kilometer of
cultivated land. In Egypt, 500 persons live on
each square kilometer in the Nile Valley. On
the island of Java in Indonesia, there is a density
of 360 persons. The comparable figure for the
United States is 21 persons.
The first and most important problem which
confronts these people is the life-and-deatli mat-
ter of food. And, to compound this problem,
there is the fact that restoration of destruction
both in Europe and Asia, caused by World War
II, still has not been fully completed. This dam-
age was not only to the land. Livestock and
machinery were desti'oyed and carried off, build-
ings burned, storage capacity destroyed, process-
ing plants ripi^ed up, and the skills of the people
diverted. In Asia, production of rice, which con-
stitutes 70 percent of the food in that area, still
is 2^ percent below prewar levels. In contrast,
the jjopulation is up 10 percent. Europe, with the
aid of the Marshall Plan and, moi'e recently, of
mutual security funds, has shown the best come-
back. Still, despite increased output in the
United States and Canada, food production per
person the world over is today less than it was be-
fore the war.
So, we have three items on the negative side
of the balance, namely : enormously increasing
populations; dangerous diversities among con-
ditions of life; and, despite all the improvements
that have been brought to bear, dangerous under-
production of food.
Hand in hand with these goes a more positive
item, namely, world-wide improvement in health.
Modern methods of medicine and the treatment of
disease have contributed to a lowering of death
rates, which in some instances — Puerto Eico, for
example — have dropped as much as 50 percent in
a relatively few years. The discovery of DDT
and similar chemicals has made it possible to elim-
inate malaria from Italy, Brazil, and Ceylon.
These are actual accomplishments. Yet, 300 mil-
lion persons still continue to suifer from malaria,
and, of these, 3 million die annually. The discov-
ery of penicillin has enabled attacks on other mass
diseases. Yaws, which once was rampant over
most of the land area between the two tropics, now
can be stamped out at a modest cost per person.
Developments such as these have the effect of
increasing total population. But — and this is the
hopeful side — these developments can at the same
time be a factor in increasing the food supply.
A farmer free of malaria is better able physically
to tend his crops.
I have mentioned merely the principal aspects
of the broad panorama of how the world lives. I
have not mentioned the very severe shortage of
housing — a shortage which contributes to such
basic ills of society as disease, delinquency, and
other maladjustments. It is estimated that the
world housing deficiency amounts to 180 million
dwelling units.
Nor have I mentioned the millions of refugees
who have fled or been driven from their homes —
by the Nazis, before and during the war, and later
by the Soviets and their satellites.
Now, I am an economist by profession, but I
know only too well that some of the most impor-
tant facts in the world cannot be measured by fig-
ures and facts. The conditions I have just out-
lined are only half the story. The other half — the
more important half — is the fact that a revolution
of epochal pi-oportions is taking place in the
minds of the people most affected by abysmal con-
ditions. Let me read a brief passage from this
same U.N. social report :
To an extent which might have seemed inconceivable
even fifty years ago, there has come increasing recogni-
tion that 2,400 million people have somehow to contrive
to live together, and share together the resources of the
earth ; that the general impoverishment of any area is a
matter of concern to all areas ; and that the technical
experience and knowledge acquired in rapidly changing
industrialized societies have somehow to be made avail-
able to those communities that are less advanced and
less well-equipped.
The report quoted from a distinguished histo-
rian to the effect that, in the broad sweep, the
twentieth century will be chiefly remembered in
future centuries not as an age of political conflicts
or technical inventions but as an age in which
human society dared to think of the welfare of the
whole human race as a practical objective.
This objective of over-all human welfare is not
only a practical objective. It is also a vitally
necessary one. As the report continues :
Simultaneous with the growth of an international ethic
of mutual aid, there has spread among impoverished peo-
ples of the world an awareness — heightened liy modern
communications and movements of men — that higher
standards of living not only exist for others but are pos-
sible for themselves. Fatalistic resignation to poverty
and disease is giving way to the demand for a better life.
The demand is groping and uncertain in direction, charged
with conflicting emotions regarding the old and the new,
but it is nonetheless a force that is establishing an ir-
reversible trend in history.
September 29, 7952
483
And there we have the nub of our problem.
People no longer accept hunger, disease, and mis-
ery with fatalism or despair. They demand that
their conditions be improved.
Where women cook on stones and clean their
dishes with ashes, as in parts of the Caribbean;
where nearly half the children die before they are
15 and the average person dies before he is 30, as
in some sections of India — under such circum-
stances life is bitter and hostile, full of frustration
and despair. But today, modern means of com-
rnunication penetrate the most remote communi-
ties. Those who cannot read and write— and that
means nearly half the world— can listen to the
loudspeaker set up in the village square. Their
tlioughts are stirring and they seek answers to
their pressing needs.
Where Communism Makes Its Greatest Gains
The mere statement of the conditions under
which a billion people are living today is a state-
ment of a problem that clearly affects" the Ameri-
can people and their future security. This prob-
lem is : life under such conditions breeds a psycho-
logical climate in which communism makes its
greatest gains.
To the struggling peasant, the Communists cry,
"Land for the landless !" The farmer, oppressed
by burdensome taxes and exhorbitant rents, sees
hope in tliis jiromise. His limited experience does
not enable him to realize that the Communist sys-
tem of land distribution leads not to individual
ownership, in which those who till the soil reap
the benefits of the harvest, but rather to a col-
lective system which exploits the individual to
enlarge the power of a cruel and dictatorial state.
To the masses, the Communists cry, "Death to
the bloody imperialists. Down with the greedy
capitalists!" The impoverished wage earne'i-
listens often with a heart full of resentment, for
the capitalism he knows is a feudal and repressive
landlord, and the overseas record of the capitalism
of free and enlightened countries, we must unfor-
tunately admit, has not always been witliout its
unsavory chajiters. But what the unwary listener
does not know is that communism itself is the most
vicious imperialism yet conceived by man and that
a so-called "liberation" by a Soviet-type govern-
ment leads not to freedom but to the forced-labor
camp.
But even if the threat of communism should bv
magic fade away, there is no assurance that the
festering sores of poverty and ignorance would
not spread into another totalitarian disease fully
as virulent and destructive as comnnmism. In a
state of suffering, aggravated by the belief that a
scientifically advanced world cannot end that suf-
fering, peoples may well turn to false leaders and
to other vengeful ideologies, still unformulated,
holding dire consequences for all mankind.
These, then, are the facts and factors involved
in one of the most baffling problems of foreign
policy facing the American people. The first is
widespread, deplorable standards of living— so
low as to be incomprehensible to the American
mind, for few of us have ever experienced any-
thing like it. The second is afflicted people stir-
ring in a new-found hope that the developments of
science and a new sense of world brotherhood will
aid them in emerging from their dark way of life.
The third is hundreds of millions of people at-
tracted by communism's glittering propaganda of
false promises.
What is the answer to these problems that are
basic to the formulation of American foreign
policy? It is futile to expect a sudden end to the
conditions that now prevail. Development is a
matter of growtli over an extended period of time.
Even if the world had the financial and technical
resources to flood Asia, the Middle East, Africa,
and Latin America with outside assistance, mini-
mum modern standards could be achieved only
within decades and generations. Education,
skills, technology do not spring up overnight.
Kesources are not developed in a few weeks' time.
Nor can we compete with Communist promises
by otfering more promises than they do. Un-
restrained by truth or by any moral code, the
Communists can out-promise the Western world
until the devil himself won't have it. We can
answer, we can explain, we can argue, we can
educate — and we do, because we must. But words
alone are not enough. Many of the people of the
underdeveloped regions feel themselves caught
between two great barrages of propaganda.
Many do not know which to believe, which way
to turn. They are neutral, and neutralism in the
struggle for men's understanding is one of our
most stubborn problems of foreign policy.
There is an old piece of advice, customarily
meted out to young ladies, that the way to a man's
heart is through his stomach. As a representa-
tive of the male species of human beings, I feel
that I possess some qualifications for expressing
the opinion that, while this adage is not completely
accurate, it is good advice. The stomach route
is an excellent route, though not the only one, to
a man's affections.
Encouraging Individual Initiative
By the same token, one of the best routes to the
mmds of the people of the underdeveloped coun-
tries is through their own well-being. It takes no
literacy at all for a farmer to understand that once
his malaria is cured he can make his fields produce
more bread. It takes only the most elementary
understanding to comprehend that improved seeds
grow better crops, or that a safe water supply
makes for a healthy community. A mother
knows without expert advice why her children die
and rejoices when modern medicine diminishes the
death rate.
484
Deparlmenf of Slate Bulletin
These are techniques which people can master
by themselves. The greatest resource of the less
developed areas of the world is their human re-
source. As sick bodies are made well, as adidt
education finds new skills and talents among the
illiterate, as hunger is dissipated, and the mind
is applied with ingenuity to their local problems,
the people themselves take over their development
in their own ways. We don't expect miracles.
We can expect progress.
One of the best illustrations I know is a program
undertaken by the Indonesian Government with
the assistance of the World Health Organization.
With a few shots of penicillin costing about two
dollars a person, 300,000 people in a selected area
were cured of yaws, a painful and debilitating
tropical skin disease. In the villages where this
occurred, the transformation was startling as corn-
pared with yaws-infested communities. Their
houses and children are clean, their livestock and
crops are well cared for. Farmers' clubs and
rural extension courses have new popularity. In
one section, a 60-mile canal is being dug with vol-
unteer labor to bring water for wet rice produc-
tion. They are using only picks, shovels, and
baskets, and a powerful new asset — their new zest
for life.
This is practical experience in the advantages of
freedom. The Indonesians in this instance found
out for themselves what they could do by their
own efforts. We call it individual initiative, the
heart of our free-enterprise system. In this ca.se
it was transplanted to a distant part of the world.
Those seeds, if nourished, will grow.
This is the practical experience that best com-
bats neutralism and communism. Progress re-
places stagnation. Hope drives out despair and
the outlook of entire peoples is transformed. The
free system can be sold more readily than the
Communist system because it is practical. But it
won't sell itself to people who have not had experi-
ence with its usefulness. They must see with their
own eyes how freedom works for their benefit.
This, I want to add, is the policy of your Gov-
ernment for meeting the problems I have de-
scribed. It is carried out on a world-wide basis
under the programs of technical assistance oper-
ated under the Point Four Program and, in col-
laboration with other contributing countries,
under a special United Nations program. It is
one of the most effective tools of international
diplomacy ever discovered. We must apply it
with greater vigor.
One of its best features is that by arousing the
maximum participation of local resources, it di-
minishes the need for financial assistance from
outside sources. It likewise contributes to the
kind of economic and political stability favorable
to private investment.
This is not to say, however, that it eliminates the
need for intergovernment assistance. Economic
development requires electric power, port facili-
Sepfember 29, 7952
223238—52 3
ties, railroads, and irrigation developments.
These and other projects pay a return on invest-
ment over the years, but they sometimes require
capital assistance to get started. The Inter-
national Bank is doing this type of lending.
Development also calls for schoolhouses and
roads, and sewers, which do not ever pay a direct
return in dollars. The United States, under the
Mutual Security Act, is providing grants for
worthwhile projects of this kind.
Tliese are only our economic tools. Thei-e are
many others. Our task is so huge, and the danger
from unfriendly ideologies so great, that no im-
plement should be left unused.
Some General Practitioners in Social and Economic
Welfare
I was fascinated recently when I read in one of
your Catholic publications a story related by
Bishop Raymond A. Lane concerning the work of
Catholic priests in South America.
One was Father Gordon N. Fritz, who set out
to work among the jungle folk of northern Bolivia
who live among the treacherous, green tributaries
of the Amazon. "With the help of a dozen ox-
carts and a new tractor, the first ever seen in the
region, they worked together to haul all their
crude ruljber out of the jungle at one time," Bishop
I^ane wrote. "Besides cutting down the work in-
volved, this method produced a larger supply of
rubber which commanded a better price than indi-
vidual quantities would."
Afterward, Father Fritz sent this message to
Bishop Lane: "Hauling rubber seems a far cry
from baptisms and catechism classes, but it has
a direct effect on the lives of the people. No
rubber, no clothes. No clothes, no school. And
with no school, there is little chance for religion.
So to keep religion going, we have to keep the
rubber rolling, too."
Another priest. Father Felix J. McGowan, toil-
ing in the same region, put it succinctly by say-
ing : "We don't expect to find our people practic-
ing virtue on an empty stomach."
Nor, may I personally add, do we expect to find
people fighting communism on an empty stomach.
If we continue to lag— as we are lagging— in the
struggle to provide food for a growing world
population, we must consider what can be done
in good conscience and with moral forthrightness
to shape the problem of population growth within
manageable proportions. This, too, is part of the
total struggle for a free way of life. I need not
tell this audience that where communism takes
over, religious institutions are the first to be
killed off.
The work of missionaries such as Father Fritz
and Father McGowan is typical of the jobs that
have to be done in literally millions of communi-
ties in all parts of the world. They are acting
as general practitioners in social and economic
485
welfare. They have gone into the outlying com-
munities with their sleeves rolled up. They have
sought out the crucial problems of the village or
the countryside and used their resourcefulness to
solve them, to bring about higher standards of
living.
Frequently, a single individual who has the
knack of making friends with ordinary people can
become a catalyst for an entire community. He
can demonstrate how, through their own efforts,
they can take the clay at their doorstep and build
a better house — how they can use the materials
and the implements at hand to fashion a better
life.
This is foreign policy in shirt sleeves. It is
diplomacy that brings one people in friendly con-
tact with another, far away. It is hard work. It
will take many hands, including your own. But
it is indispensable in the construction of a peace
that will benefit generations yet to come as well
as our own.
MSA Allotments for U.K., Iceland,
and West German Republic
The Mutual Security Agency (Msa) announced
on September 15 that allotments of 1952-53 de-
fense-support funds totalmg $139,705,000 have
been made so far this fiscal year to three European
countries.
The allotments provide $137,318,000 for the
United Kingdom, $1,787,000 for the West German
Eepublic, and $600,000 for Iceland.
The allotment to the United Kingdom includes
$37,318,000, which is an obligation of the United
States to the United Kingdom arising out of oper-
ations of the European Payments Union (Epu).
This sum, plus $50,000,000 which was allotted dur-
ing fiscal year 1951-52, covers Msa's obligation to
the United Kingdom through May 31, 1952, under
an agreement made when the Epu was formed.
Under this agreement, the United States is to reim-
burse the United Kingdom for losses of gold re-
sulting from the use through June 30, 1952, by
other Epu countries of certain pre-Epu sterling
holdings.
Allotments are made to permit the participating
countries to plan their dollar-import programs and
submit specific procurement authorization re-
quests to Msa. The allotments do not necessarily
represent either a fixed proportion of total aid for
the whole fiscal year or aid for any specified time
period within the year.
Discussions and negotiations are currently being
conducted with the other Western European coun-
tries participating in the Mutual Security Pro-
gram and initial allotments of funds will be made
to them in the near future. Total aid figures for
486
the year, however, will not be determined until
later in the fiscal year.
In the case of the North Atlantic Treaty Or
ganization (Nato) countries, the annual aid fig-
ures will not be finalized until the Organization
for European Economic Cooperation (Oeec) and
Nato have completed reviews of the militai-y
g:oaIs, defense programs, and economic capabili
ties of member countries. Both reviews are ex-
pected to be completed prior to the December 15
meeting at Paris of the North Atlantic Council
(Nac), at which the Ministers of the Nato coun-
tries including U.S. Cabinet officers will agree
upon defense build-up goals for each countiy and
recommend methods for achieving them. On the
basis of the action agreed upon at the Nac meet-
ing and the findings of the two annual reviews,
Msa will finally fix the level of defense support
for each country for fiscal year 1953. The aid will
be directly related to each country's militai-y goals
under the Nato defense plan.
The allotments announced today are the first
to be made from Msa's $1,282 billion defense-sup-
Port appropriation for this fiscal year. Besides
the Nato countries, defense support will be given
also to Yugoslavia, a uou-Nato country which is
opposing Communist aggression. Msa funds also
will provide economic aid to Austria, still jointly
occupied by the United States, the United King-
dom, France, and the Soviet Union.
Tax Convention With Switzerland
Press release 742 dated September 19
According to information received from the
American Legation at Bern, the American Minis-
ter to Switzerland, Eichard C. Patterson, Jr., and
the Chief of the Swiss Federal Political Depart-
ment, Max Petitpierre, on September 17, 1952, ex-
changed the instruments of ratification of the con-
vention between the United States and Switzer-
land for tlie avoidance of double taxation with re-
spect to taxes on estates and inheritances, signed at
Washington on July 9, 1951. The convention
thereupon entered into force and will be applicable
to estates or inheritances in the cases of persons
who die on or after September 17, 1952. As ap-
plied to the taxes imposed in the United States, the
convention deals solely with the Federal estate
taxes and does not affect the estate or inheritance
taxes imposed by the several states, territories, or
possessions of the United States or the District of
Columbia.
The Senate gave its advice and consent to ratifi-
cation of the convention on July 4, 1952, and the
President ratified it on July 21, 1952. A procla-
mation with respect to the entry into force of the
convention will be issued by the President.
Department of State Bulletin
President Proclaims Venezuelan Trade Agreement
A PROCLAMATION!
Whereas, pursuant to section 350 of the Tariff Act of
1930, as amended and extended (cli. 474, 48 Stat. 943; ch.
118, 57 Stat. 125 ; cii. 269, 59 Stat. 410 ; cli. 585, 63 Stat.
697; Public Law 50, S2d Congress), on August 28, 1952 I
entered into a supplementary trade agreement, through
my duly empowered Plenipotentiary, with the Junta of
Government of the United States of Venezuela, through
its duly empowered Plenipotentiary, the said supplemen-
tary agreement to become effective on and after the thir-
tieth day following the exchange of my proclamation and
the instrument of ratification of the Government of the
United States of Venezuela, as provided for in Article 13
of the said supplementary agreement ;
And whereas I proclaimed the said supplementary
agreement on September 10, 1952 and my proclamation and
the instrument of ratification of the Government of the
United States of Venezuela were duly exchanged at the
city of Washington on September 11, 1952 ;
Now, THEREFORE, be It kuowu that I, Harry S. Truman,
President of the United States of America, supplementing
my said proclamation of September 10, 19.52, do hereby
make known and proclaim that the said supplementary
agreement, signed on August 28, 1952, will come into force
on October 11, 1952.
In WITNESS WHEREOF, I have hereunto set my hand and
caused the Seal of the United States of America to be
affixed.
Done at the city of Washington this nineteenth day of
September, in the year of our Lord one
[seal] thousand nine hundred and fifty-two and
of the Independence of the United States of
America the one hundred seventy-seventh.
By the President :
Dean Acheson
Secretary of State
SUPPLEMENTARY TRADE AGREEMENT
WITH VENEZUELA
The President of the United States of America and
the Junta of Government of the United States of Vene-
zuela, guided by the same objectives which motivated
the two Governments to conclude the recii'.roeal tiade
agreement of November 6, 1939 (hereinafter referred to
as the original trade agreement) with related n( tes of
the same date, namely, to strengthen the traditional bonds
of friendship between the two countries, to maintain the
principle of equality of treatment in their commercial
' No. 2989, Fed. Reg. 8469 ; for terms of effective date see
Btjlij:tin of Sept. 22, 1952, p. 454.
September 29, 1952
relations, and to promote such relations by granting
reciprocal concessions and advantages, have agreed to
modify the said agreement in order to adapt it to present
circumstances and conditions and in order that it will
better correspond to those objectives and for that pur-
Ijose have designated as their Plenipotentiaries;
The President of the United States of America ;
His Excellency Fletcher Warren, Ambassador Extraor-
dinary and Plenipotentiary of the United States of Amer-
ica to Venezula ;
The Junta of Government of the United States or
Venezuela :
His Excellency Doctor Luis E. Gomez Ruiz, Minister of
Foreign Relations of the United States of Venezuela;
Who, having exchanged their full powers, found to
be in good and due form, have agreed upcm the following
Articles :
Article 1
Schedule I of the original trade agreement is replaced
by Schedule I of this supplementary agreement annexed
hereto and made a part hereof.'
Article 2
Schedule II of the original trade agreement is amended
by inserting therein, in their proper numerical order, the
items contained in Schedule II-A of this supplementary
agreement annexed hereto and made a part hereof, and
by substituting for item 1733 and item 3422 of said
Schedule II the item 1733 and the items 3422 set forth
in Schedule II-B of this supplementary agreement an-
nexed hereto and made a part hereof.^
Article 3
The following new Article Il-bis is added to the original
trade agreement following Article II thereof;
"Article II-B is
"In each case in which Articles I and II of the original
trade agreement refer to the day of the signatttre of that
agreement, the applicable date in respect of all articles
added to Schedules I and II of that agreement is the date
of this supplementary agreement."
Article 4
The following new Article V-bis is added to the original
trade agreement following Article V thereof :
"Article V-Bis
"Any article the growth, produce or manufacture of the
United States of America enumerated and described in
' Schedules I, II-A, and II-B are not printed here.
Texts of these annexes are included in an analysis of the
reciprocal concessions and general provisions of the agree-
ment, prepared by the Department of State; a copy of
the analysis may be obtained by writing the Division of
Commercial Policy, Department of State, Washington
25, D.C. For a statement by the President concerning
concessions relating to petroleum products, see Bulletin
of Sept. 15, 1952, p. 401.
487
Schedule I imported into tJie United States of Venezuela,
and any artiele the growth, produce or manufacture of the
United States of Venezuela enumerated and described in
Schedule II imported into the United States of America,
shall be accorded treatment no less favorable than that
accorded to the like article of national origin in respect of
all laws, regulations and requirements affecting their in-
ternal sale, offering for sale, pttrdMse, transportation, dis-
tribution or use. The provisions of this Article shall not
apply to laws, regulations or requirements governing the
procurement by governmental agencies of lyrodticts pur-
chased for governmental purposes and not icith a view to
commercial resale or with a view to use in the production
of goods for commercial sale."
Article 5
Article VI of the original trade agreement is amended
to read as follows :
"I. \o prohibition, restriction or any other form of
quantitative regulation shall be imposed by the Oovern-
ment of the United States of Venezuela on the importation
of any article, the growth, produce or manufacture of the
United States of America enumerated and described in
Schedule I, or by the Government of the United States of
America on the importation of any article the growth,
produce or manufacture of the United States of Venezuela
enumerated and described in Schedule II.
■'2. The provisions of paragraph 1 .'ihall not prevent the
Government of the United States of America or the Gov-
ernment of the United States of Venezuela from imposing
quantitative regulations in whatever form on the importa-
tion or sale of any agricultural or fisheries article, im-
ported in any form, if necessary to secure the effective
operation of governmental measures or measures under
governmental authority operating to regulate or control
the production, market supplii, quality or prices of like
domestic articles, ^yhenevcr the Government of either
country proposes to impose or to make more restrictive
any quantitative regulation authorized by this paragraph,
it shall give notice thereof in writing to the other Govern-
ment and shall afford such other Oovcrnment an oppor-
tunity to consult with it in respect of the proposed action;
and if agreement nith respect thereto is not reached the
Government which proposes to take such action .ihall,
nevertheless, be free to do so a)id the other Government
shall be free within ninety days after such action is taken
to terminate this Agreem,ent in whole or in part on thirty
days' written notice."
Article 6
The first paragraph of Article IX of the original trade
agreement is amended to read as follows :
"In the event thnt the Government of the United States
of America or the Government of the United States of
Venezuela establishes or maintains, directly or indirectly,
any form of control of the means of international payment,
it shall, in the administration of such control:
"(a) Impose no restrictions or delays on the transfer of
payment for any imported article the growth, produce or
manufacture of the other country, or on the transfer of
payments necessary for or incidental to the importation
of such article, greater or more onerous than those im-
posed on the transfer of payment for the importation of
the like artiele from, any third country.
"(b) Accord unconditionally, with respect to rates of
exchange and taxes or surcharges on exchange tran.i-
actions in connection, with payments for or payments
necessary and incidental to the importation of any artiele
the growth, produce or manufacture of the other country,
and with respect to all rules and formalities relative
thereto, treatment no less favorable than that accorded
in connection with the importation of the like article the
growth, produce or manufacture of any third country."
Article 7
Article XIII of the original trade agreement is amended
to read as follows :
"i. The Government of each of the Contracting Parties
recognizes the desirability of limiting fees and charges,
other than duties, imposed by governmental authorities
on or in connection with importation or exportation, to
the approximate cost of services rendered. Each Gov-
ernment al.'io recognizes the desirability of reducing the
number and diversity of such fees and charges, of mini-
mizing the incidence and complexity of import and export
formalities, and of decreasing and simplifying import and
export documentations requirements.
"2. Both Governments recognize the desirability of not
imposing substantial penalties for minor breaches of
customs j-egulations or procedural requirements. Each
Government shall accord the most favorable treatment
permitted by law in regard to penalties applicable in the
case of errors in the documentation for importation of
articles the growth, produce or manufacture of the other
country, when the nature of the infraction leaves no doubt
with respect to good faith or when the errors are evidently
clerical in origin.
"3. The Government of each of the Contracting Parties
shall accord .sympathetic consideration to the representa-
tions which the Government of the other country may
make with respect to the operation of customs regulations
and quantitative restrictions on imports, the observance
of customs formalities and the application of sanitary
laivs and regulations for the protection of human, animal
or plant life or health. If there should be disagreement
ivith respect to the application of said sanitary Uncs and
regulations there shall be established, upon the request of
either of the Contracting Parties, a committee of experts
on which both Oovernmcnts .ihall be represented. The
committee, after considering the matter, shall submit its
report to both Governments."
Article 8
The following new Article Xlll-bis is added to the
original trade agreement following Article XIII thereof :
"Article XIII-Bis
"1. If, as a result of unforeseen developments and of
the effect of the obligations incurred by the Government
of the United States of America or of the United States
of Venezuela under this .igreement, including tariff con-
cessions, any product is being imported into the territory
of either country in such relatively increased quantities
and under such conditions as to cause or threaten serious
injury to the domestic industry in that territory producing
like or directly competitive products, the Government of
the United States of America or of the United States of
Venezuela .shall be free, in respect of such product, and to
the extent and for .such time as may be necessary to pre-
vent or remedy such injury, to suspend the obligation in
whole or in part or to withdraw or modify the concession.
"2. Before the Government of the United States of
America or of the United States of Venezuela shall take
action pursuant to the provisions of paragraph 1 above, it
shall give notice in writing to the other Government as far
in advance as may be practicable and shall afford such
other Government an opportunity to consult with it in
respect of the proposed action and with respect to such
compensatory modifications ejf this Agreement as may be
deemed appropriate to the extent practicable maintaining
the general lei^el of reciprocal and mutually advantageous
concessiotis in the Agreement. If agreement between the
two Governments is not reached as a result of such con-
sultation, the Goi-ernment which proposes to take the
action under paragraph 1 shall, nevertheless, be free to do
so and, if such action is taken, the other Government shall
be free, not later than ninety days after the action has
been taken and on thirty days' written notice, either to
suspend the application to the trade of the Government
488
Department of State Bulletin
taking action under paragraph 1 of substantially equiva-
lent obligations or concessions under this Agreement, or,
if the action nullifies or seriously impairs a principal objec-
tive of this Agreement, to terminate the Agreement.
Within 30 days after any such suspension has taken effect,
the Oovernment taking action under paragraph 1 shall be
free to terminate this Agreement on thirty days' written
notice. In critical circumstances, where delay would cause
dameigc which it wottld be difficult to repair, action under
paragraph 1 may be taken provisionally without prior con-
sultation, under the condition that consultation shall be
effected immediately after taking such action."
Article 9
Article XV of the original trade agreement is amended
to read as follows :
"1. The provisions of this Agreement do not extend to:
"(a) The advantages now accorded or which may here-
after be accorded by the United States of America or the
United States of Venezuela to adjacent countries in order
to facilitate frontier traffic, or adranlagcs resulting from a
customs union or a free-trade area which either the United
States of America or the United States of Venezuela may
enter so long as such advantages are not extended to any
other country;
"(b) The advantages notv accorded or which, may here-
after be accorded by the United States of America, its terri-
tories or possessions or the Panama Canal Zone or the
Trust Territory of the Pacific Ishnids to one another or
to the Republic of Cuba or to the Republic of the Philip-
pines, irrespective of any eha?ige in the political status of
any of the territories or possessions of the United Slates
of America, so long as such advantages are not extended
to any other country.
"2. The Oovernment of the United States of Venezuela
reserves the right to apply to articles imported into the
United States of Venezuela from the Antilles under the
sovereignty or authority of the United States of America
but not included in the customs territory of that country
the special surtax applicable to such articles, according to
the existing latvs of Venezuela, provided the said articles
do not originate in the said Antilles."
Article 10
The first paragraph of Article XVI of the original trade
agreement is amended by changing the period at the end
thereof to a semicolon and adding the following:
"(5) relating to public security, or imposed for the pro-
tection of the country's essential interests in time of war
or other national emergency."
Article 11
Article XVII of the original trade agreement is amended
by adding the following sentence at the end thereof :
"If agreement is not reached with respect to the matter
within thirty days after such representations or proposals
are received, the Government tchich made them shall be
free, within ninety days after the expiration of the afore-
said period of thirty days, to terminate this agreement in
whole or in part on thirty days' written notice."
Article 12
The provisions of the original trade agreement which
are not abrogated or modified by this supplementary agree-
ment shall constitute, together with the provisions of this
supplementary agreement, the amended reciprocal trade
agreement between the two Governments, which shall re-
main in force, subject to the provisions of Articles VI, IX,
XII, Xlll-bis and XVII until six months from the date on
which either Government shall have given to the other
Government written notice of intention to terminate the
amended reciprocal trade agreement.
Article 13
The present supplementary agreement shall be pro-
claimed by the President of the United States of America
and ratified and published by the Government of the
United States of Venezuela, in conformity with the laws
of the respective countries. It shall enter into force thirty
days after the exchange of the proclamation and the in-
strument of ratification, which shall take place in the City
of Washington as soon as possible.
In witness whereof, the respective Plenipotentiaries
have signed this Agreement and have affixed their seals
hereto.
Done in duplicate in the English and Spanish languages,
both authentic, at the City of Caracas this twenty-eighth
day of August nineteen hundred and fifty-two.
For the President of the United States of America:
Fletcher Warren
For the Junta of Government of the United States of
Venezuela :
Luis E. G6mez Ruiz
Consular Convention With U.K.
Enters Into Force
Press release 711 dated September 9
On September 8, 1952, the President issued his
proclamation of the consular convention and ac-
companying protocol of signature between the
United States and the United Kingdom of Great
Britain and Northern Ireland, which, in accord-
ance with article 29 of the convention, entered into
force on September 7, 1952, the 30th day after the
date of the exchange of the instruments of rati-
fication.
The convention and protocol were signed at
Washington on June 6, 1951, by the Secretary of
State and the British Ambassador. The U.S.
Senate gave its advice and consent to ratification
on June 13, 1952, and the President ratified the
convention and protocol on June 26, 1952. The
exchange of the respective instruments of ratifica-
tion of the United States and the United Kingdom
took place at London on August 8, 1952.
The convention is the first comprehensive treaty
relating to consular officers concluded between the
two countries. The only treaty provisions on this
subject between the two countries in force at the
time of the convention was signed were those in
article IV of the Treaty of Commerce and Navi-
gation of July 3, 1815, and article III of the con-
vention of March 2, 1899, relating to the tenure
and disposition of real and personal property. As
is customary in the case of consular conventions
negotiated between the United States and other
countries, the present convention contains provi-
sions relating to the appointment and districts of
consular officers; their legal rights and immuni-
ties ; the inviolability of consular offices, archives,
and correspondence; the financial privileges of
September 29, 1952
489
consular officers and employees, including certain
tax exemptions and customs privileges; the rights
of consular officers in connection with the protec-
tion of nationals of tlieir country; notarial acts
and other services; the authority of consular offi-
cers in connection with transfers of property ; and
their authority in regard to shipping matters.
Provision is also made regarding the rights of
each country to acquire real estate for official pur-
poses.
Article IV of the treaty of July 3, 1815, is super-
seded by the present convention in respect of the
territories to which the convention applies. The
authority of consular officers in connection with
the settlement of estates will, however, be gov-
erned by the terms of article III of the convention
of March 2, 1899, together with articles 18 and 19
of the 1951 convention.
Turkish Road-Building Program
To Be Extended With MSA Grant
A program of modern highway construction
and maintenance in Turkey, begun more than 4
years ago as a major factor in the counti-y's eco-
nomic development, is being extended as an im-
portant defense need, the Mutual Security Agen-
cy (Msa) announced on September 17.
Extension of the road program in Turkey—
whose borders include the Mediterranean Sea and
the borders of the Soviet Union and Bulgaria, as
well as the Black Sea Coast — will be made pos-
sible by a $3,155,000 grant just approved by Msa.
The Turkish highway project, one of tlie first
large European projects to be sponsored under
the Marshall Plan by the Economic Cooperation
Administration, predecessor agency to Msa, has
previously received some $16,060,000 in dollar fi-
nancing, out of a total over-all cost estimate of
$58,000,000 equivalent.
Most of the new financing— $2,655,000— will be
used to purchase additional needed road-construc-
tion and maintenance equipment, including grad-
ers, maintainers, crushers, a screening plant, dump
trucks, bridge-foundation testing devices, and
other machinery.
Tlie remaining $500,000 will be available for
technical services, largely to pay salaries and
dollar expenses of experts from the U.S. Bureau
of Public Roads. The American highway special-
ists, of whom there are at present 37 in Turkey,
are supervising the Turkish program and train-
ing Turkish personnel in the construction and
maintenance work.
Fifteen highway-maintenance shops have been
set up under the direction of the Bureau of Pub-
lic Roads personnel, and five more will be equip-
ped through the supplementary financing.
The roads project in Turkey began in December
1947, and received Marshall Plan financing from
April 1949 to the present. More than 3,500 miles
of roads, many of them previously wagon tracks
usable only in the dry seasons, have been built into
two-lane, all-weather highways.
$15 Million Loan to Pakistan
for Purchase of U.S. Wheat
White House press release dated September 17
On September 17 His Excellency Mohammed
Ali, Pakistani Ambassador to Washington, Sec-
retary of State Dean G. Acheson, and Herbert E.
Gaston, Chairman of the Board of Directors of
the Export-Import Bank, participated with the
President in a Wliite House ceremony covering
the signing and exchange of loan documents pro-
\'iding for a loan of 15 million dollars to Pakistan
for the purchase of wheat.
Pakistan, which in good years has sufficient
wheat for its own needs and some for export, must
this year import large quantities of wheat from
abroad. The Pakistani Goverimient has used its
available financial resources to purchase wheat
wherever it was most readily found. However,
the extent of Pakistan's wheat shortage and the
limitations of its financial position are such that
the Government of the United States has decided
tliat prompt measures should be taken to meet the
request of the Government of Pakistan for assist-
ance for the purchase of American wheat.
The loan to the Pakistani Government is being
made by the Export-Import Bank, using funds
made available under the authority provided in
the Mutual Security Act of 1951, as amended.
The loan is to run for 35 years with interest at
21,4 percent per annum, interest payments to begin
after 4 years and repayment of principal to begin
after 6 years. The American wheat thus provided
is to be distributed through Pakistan's rationing
system to supplement the quantities procured
locally and tlie imports already arranged by the
Pakistani Government. The Government of
Pakistan is defraying distribution and ocean
transport costs.
Western Pakistan, the bread basket of the coun-
try, suffered a severe drought in the winter of
1951-52. This section is usually a surplus wheat-
producing area but this year has become a deficit
area. Last year's small crop prevented the Gov-
ernment from procuring locally enough grain to
supply the rationing system in the most densely
populated urban disti'icts.
490
Department of State Bulletin
U.S. Postwar Aid to Germany From V-E Day to June 30, 1951
{millions of dollars)
1945-46
194&-47
1947-48
1948-49
1949-50
1950-51
Cumulative
Gross Aid
PRFi-CrARIOA
- 276. 3
0
0
0
0
0
0
0
0
0
243.2
0
0
0
17.5
0
0
0
0
551. 8
0
0
0
0
66. 7
91. 6
38. 1
0
550. 4
'sia 0
97.4
108.3
0
0
0
20.5
0
189. 1
«335. 9
121.2
12.0
0
0
0
0
0
0
399. 1
0
0
0
0
0
0
276.3
CtARIOA
1, 534. 5
Eca:
Allotments, exclusive of conditional aid . . .
1, 251. 0
218. 6
Intra-European aid received ■*
Swedish Accord
120. 3
17. 5
Surplus property:
66. 7
Kticom sales '
91.6
58.6
Total
276.3
260.7
748.2
1, 292. 6
658. 2
399. 1
3, 635. 1
Deductions
TTirorj oneratinff budgets
0
0
0
0
0
0
0
0
0
0
0
0
0
0
36.0
97.4
21.4
0
11. 5
121.2
60. 7
7.9
20.0
0
82. 1
7.9
Reverse payments (5 percent C/P) /
67.5
218. 6
Total
0
0
0
133.4
154. 1
88. 6
376. 1
276.3
260.7
748. 2
1, 159. 2
504. 1
310. 5
3, 259. 0
" Includes deliveries which extended through December 31, 1949.
' Covers 15-month period April 3, 1948 through June 30, 1949.
■ Including Qarioa administered by Eca.
<^ Allotment basis.
• Bulk sales.
/ Based upon allotted aid.
These figures show the cost of postwar U.S. aid to Germany through June
30, 1951, and were used as a basis for negotiating tlie settlement of U.S. postwar
claims with the Federal Republic of Germany. These figures differ somewhat
from those appearing in Foreign Aid by the United States Government, pub-
lished by the Department of Commerce, since Eca aid is here shown on an
allotment rather than a paid-shipments basis, and Government and Eelief in
Occupied Areas (Garioa) aid is shown on the basis of expenditures charged by
fiscal year of Garioa appropriations rather than on the basis of current value
at time of shipment.
The statement of the amount of the debt presented to the Germans excludes
such items as Unrra funds, which were used primarily for refugees, and post-
Unrra funds, which subsidized freight parcels sent through the Advisoi-y Com-
mittee on Voluntary Aid. The reverse payment of the 5 percent counterpart
is the only deduction appearing in Foreign Aid hy the United States Gov-
ernvient.
Aid extended to Germany by other countries which in turn received com-
pensating shipments from the United States under inter-Eui'opean aid arrange-
ments is not debited to Germany in the Department of Commerce publica-
tion. That publication also excludes the Swedish Accord and European Com-
mand (Eucom) sale, although the latter is scheduled for inclusion.
Sepfember 29, 1952
491
I titer- American Action To Preserve Forests
FOURTH SESSION OF THE FAO LATIN AMERICAN FORESTRY COMMISSION,
BUENOS AIRES, JUNE 16-23, 1952
hy Frank H. Wadsworth
The Latin American Foresti-y Commission of
the Food and Agricidture Organization of the
United Nations (Fao) is an international body
of technicians advisory to tlie Fao and serviced by
the Latin American Office for Forestry and Forest
Products, located at Rio de Janeiro. The Com-
mission, set up in 19-19, held three sessions prior to
this year, at Rio de Janeiro, Lima, and Santiago,
Chile. At Santiago it was decided to hold ses-
sions every second year, between the years of the
general Fao conferences, with the result that the
fourth session was scheduled for 1952.
The fourth session was called primarily to con-
sider and offer advice concerning (1) the progress
of the Fao regional forestry program, (2) the
significance of the sixth Fao Conference in 1951
to forestry in Latin America, and (3) plans and
prospects for an Fao forestry program in the fu-
ture. Specific subjects covered under these head-
ings follow :
1. Fao progress since the third session
a. Resolutions from the third session
b. The expanded technical assistance program
c. Tlie pulp and paper study
2. The significance of the sixth Fao Conference
in 1951
3. Plans and prospects for the future
a. The Latin American Institute for Forestry
Training and Research
h. Forestry training centers
c. Forest policy reports
d. The proposed International Congress on
Tropical Forestry
e. The proposed eucalyptus study tour to Aus-
tralia
/. Coordination of Arbor Day activities
At the invitation of Argentina, the fourth ses-
sion was held at Buenos Aires. Invitations were
sent to all governments within Latin America, to
outside governments with possessions within the
Latin American region, and to interested inter-
national agencies. Delegations were sent by
Argentina, Brazil, Chile, the Dominican Republic,
France, Mexico, Paraguay, the United States, Uru-
guay, and Venezuela. Colombia, Honduras, and
the Netherlands assigned diplomatic representa-
tives in Buenos Aires as their delegates. In ad-
dition, observers represented the Vatican, the
Caribbean Commission, the United Nations Eco-
nomic Commission for Latin America, the central
and regional offices of Fao, the International
Labor Office, and the Organization of American
States.
The U.S. delegation included, as delegate,
Frank H. Wadsworth of the Forest Service,
Puerto Rico, and, as advisers, Clarence A. Boon-
stra, agricultural attache, Argentina, and Edward
B. Hamill of the Institute of Inter-American
Affairs, Paraguay.
Tlie accomplishments of the session, in the form
of opinions expressed and formal resolutions ap-
proved, are described in accordance with the
agenda already outlined.
FAO Progress Since the Third Session
A number of the resolutions of the third session
called for specific action by Fao or the Latin
American governments. Some progress has been
made on these. Technical assistance has ex-
panded. Facihties for research have been sur-
veyed, although no regional program has begun.
Chemical utilization is being studied in coopera-
tion with the Economic Commission for Latin
America. On the other hand, no notable progress
has been made on the recommendations to stand-
ardize forest terminology and word nomenclatiire.
The technical-assistance program of Fao has
492
Department of State Bulletin
expanded materially in the past 2 years. Forestry
missions includino; about 20 specialists are now
active in Mexico, Honduras, Haiti, Chile, Brazil,
and Paraguay. Some of these missions, such as
those in Mexico and Chile, are large and contain a
balanced group of specialists for a broad study
program. Others, such as those in Haiti and
Brazil, consist of but one specialist who is working
in a narrow field yet is laying a foundation for a
broader future program. A short-term mission
to Uruguay has already been completed.
The Commission, after hearing the reports of
the directors of all active missions, commended
Fao for good progress in this field. Special refer-
ence was made to the technical competence and
the understanding of the mission specialists. It
was recommended, however, that Fao make full
use of available Latin American technicians quali-
fied as specialists for such missions. To this end,
Latin American governments were requested to
send lists of technicians to Fao with descriptions
of qualifications.
The Latin American Fao office was requested
to study the techniques of technical-assistance pro-
grams outside of this region to assure that every
desirable type of assistance is available to Latin
America.
Without exception, representatives from coun-
tries with missions expressed enthusiasm about the
pi-ogram. It was recommended that govern-
ments, in order to get the most from the missions,
make available such local technical help as is
needed. This might well include young men who
could receive valuable training as a result of their
participation.
Consideration of the character of requests for
technical assistance and of the scope of missions
now active showed that some of these concern
problems which transcend international bound-
aries. It was recommended that for most efficient
use of mission specialists, Fao consider organizing
such missions on a regional rather than a national
basis.
A session concerning the pulp and paper study
under way throughout Latin America jointly by
Fao and the Economic Commission for Latin
America (Ecla) proved to be of great interest and
was exceptionally well attended by the general
public. As an introduction, Fao pointed out that
merely for self-sufficiency in pulp and pulp prod-
ucts (excluding any rise in per capita consump-
tion) a minimum of 22 mills of 30,000-ton annual
capacity must be constructed in Latin America.
Needs in 1960 are estimated at twice that figure.
The field party, including specialists from Mexico
and Brazil, has surveyed several countries, but the
final reports will not be available for several
months. The study is considering the broader
aspects of this problem, including nonwood fiber
sources, and is going into some detail as to approx-
imate quantities available and prospective mill
sites.
September 29, 1952
In recognition of the importance of the Fao-
Ecla pulp and paper study, the Commission urged
local governments to lend all possible assistance.
Fao was asked to eventually broaden this study to
include production techniques, i.e., silviculture,
regeneration, and management in pulpwood
regions.
Four recommendations of the sixth Fao Confer-
ence, held at Rome in 1951, were considered to
carry a special significance for forestry and apply
to Latin America as well as to the rest of the world.
These recommendations, entitled "Objectives and
programs for agricultural development," "Farm-
ing practices," "Agrarian reform," ancl "Invest-
ments for agricultural development" are believed
to deserve special attention by Latin American
governments, which were invited to prepare 5-year
plans for forest production for submission to Fao.
Plans and Prospects for the Future
Fao for 3 years has made an effort to establish a
Latin American Institute for Forestry Training
and Research. As conceived, the institute would
consist of a center for professional forestry train-
ing and for such research as could be centralized.
The institute would also embrace a number of co-
ordinated regional forest experiment stations in-
vestigating local problems.
In past sessions the Commission has received
proposals for some of the regional experiment
stations but none for the center itself, so that
establishment of the institute has been precluded.
At the fourth session this agenda item was one
of the most important because the Government of
"Venezuela had formally offered the National Uni-
versity of the Andes, at Merida, as a seat for this
center. This offer, which included the use of ex-
isting facilities and material cooperation from the
newly formed forestry school of the university,
was accepted unanimously by the Commission.
This action represents an outstanding concerted
regional effoi't to solve regional problems on a
regional basis, and as such it may well be the most
important accomplishment of the fourth session.
The Commission recognized the importance of
designating the regional forest experiment sta-
tions promptly, and suggested as a preliminary
basis for such selection six large regions : Mexico
and Central America, the Caribbean, the tropical
Andes, the southern Andes, the Parana-Plata-
Paraguay region, and Amazonia. Considering
existing forest research stations and facilities
throughout Latin America and past offers to Fao
for such stations, the following were recommended
for these regions, respectively : Inter- American
Institute of Agricultural Sciences, in Costa Rica ;
the Tropical Forest Experiment Station, in
Puerto Rico; Tingo Maria Station, in Peru; the
University of Concepcion, in Chile ; and two as yet
unnamed localities in Argentina and Brazil.
To implement the proposed regional research
493
progi'am, the Commission set up a subcommission
of representatives of directly interested govern-
ments and agencies: Argentina, Brazil, Chile,
Mexico, Peru, the United States, Venezuela, and
the Inter-American Institute of Agricultural
Sciences. This subcommission is to meet as soon
as formal offers are received from Argentina and
Brazil and has the responsibility of drawing up
coordinated plans of operation for submission to
the Latin American governments.
The Commission recognized the need for local
subjDrofessional training in theory and practice of
forest administration, organization, and manage-
ment. This need, which cannot be filled by the
Institute, apparently can best be met by regional
short courses or temporary training centers, each
of which, regardless of political boundaries, would
serve the entire geographic region faced with the
problems to be treated. Two courses of this na-
ture have already been held in Central America,
sponsored jointly by Fao and the Inter- American
Institute of Agi-icultural Sciences.
The Commission recommended that Fao draw
up a list of important regional forest problems
which might serve as themes for these courses and
then gradually embark upon this program, using
technical-assistance funds but obtaining maximum
help and coordination from other agencies and
governments concerned. Fao was requested to
make full use of qualified Latin American tech-
nicians for leadership in these courses.
The Rio de Janeiro office of Fao had requested
prior to the session that each delegation bring a
report describing the forest policy of its country
as a means to better mutual understanding of prob-
lems and programs. It was proposed that such
reports might be requested from time to time in
the future by Fao and distributed generally for
regional benefit. The reports prepared were read
before the Commission and discussed by a special
subcommission.
The Commission considered these reports to be
of considerable importance to the region and re-
quested Fao to summarize and combine them into
a single document for general distribution. In
addition, study of the content of these reports led
the Commission to make certain immediate recom-
mendations for the advancement of foresti\y
throughout Latin America. It was reconnnended
that Latin American governments study their
local woods to increase their utility and "utiliza-
tion; that they adopt measures to eliminate waste
in utilization of forest products; that, by provi-
sion for credit and other means, they encourage
such new industries as can be supported perma-
nently by forest resources available and prospec-
tive; and that they encourage rational manage-
ment and utilization of privately owned forests.
It was also recommended that Fao encourage the
federation of existing local associations of forest-
ers within Latin America.
The sixth Fao Conference suggested that an
International Tropical Forestry Congress, origi-
nally proposed 2 years ago, might well be held in
conjunction with the World Forestry Congress
planned for 1954. The Commission was not in
favor of merging the two, since that might obscure
tropical subjects within broader themes. How-
ever, the Commission considered it desirable that
the two Congresses be held at the same place in
succession to make possible attendance of both at
a minimum of expense.
The Commission considers it essential that the
Tropical Congress be held in the tropical zone and,
for this reason, asked Fao to give preference to
a tropical location for the World Congress. If
this is not possible, the Tropical Congress should
be held separately at an appropriate location.
Fao was asked to consult the various govern-
ments concerning the agenda, the nature of the
material to be presented, and the type of repre-
sentation desired when location and date shall
have been decided.
Study Tours
Fao, after carrying out a successful forest-fire-
control study tour in the United States, has ar-
ranged with the Australian Government for a
similar tour for study of the habitat, management,
and utilization of eucalyptus. Fao has offered
to pay half the transportation cost to Australia
and all living costs of students while they are
there. This subject was included in the agenda
to get the reaction of the Commission to these
study tours, fii-st in the general sense, and then
specilically to this proposed tour.
The Commission considered these study tours
a worthy project. It recommended that govern-
ments take full advantage of the eucalyptus tour
and, to that end, that they initiate studies of local
problems related to eucalyptus.
Celebration of Arbor Day was included in the
agenda because Fao wanted opinion as to
whetlier celebration on a coordinated inter-
national scale might increase the educational value
of this activity in countries where it is least effec-
tive at present. The delegates pointed out that
conditions for tree planting and conservation
practices which should be emphasized in the cele-
bration vary so widely throughout the region that
synchronization would be difficult at this time.
The Cornmission recommended that Fao collect
information regarding the celebration and its
effectiveness in the different countries and dis-
tribute a statement of experience throughout the
region for the benefit of all.
Other matters considered by the Commission
included the meeting of the International Union
for the Protection of Nature, which was held at
Caracas in September of this year. The Commis-
sion, in recognition of the interest of foresters in
the work of this organization, recommended that
governments consider sending foresters as their
494
Departmenf of State Bulletin
[representatives. In this same connection, it was
recommended that the Organization of American
l-5tates consider a revision of tlie Washington Con-
irention for the Protection of Fauna and Flora,
aow about 12 years old. Such a revision should
oe submitted to the Pan American Union for its
i^onsideration.
Regarding the standardization of forestry ter-
minology, which had been discussed at the third
session, the Commission recommended that the
Spanish-English glossary of forestry terminology
in preparation at the Tropical Forest Experiment
Station in Puerto Rico serve as a basis for a Latin
American forestry terminology. It also recom-
mended that the Tropical Station submit the as yet
incomplete work to Fag for distribution through-
out Latin America for comment, amendments,
and additions.
Finally, the Commission elected as its chairman
for the next 2 years Lucas A. Tortorelli, General
Administrator of Forests of Argentina. The date
of the fifth session was set for 1954. Venezuela
offered Merida as a site, but a final decision is to
await future developments.
• Mr. Wadsworth, author of the above article.,
is a forester in the U.S. Department of Agricul-
ture Forest Service, Tropical Region.
fleport of U.N. Command Operations in Korea
FORTY-SIXTH REPORT: FOR THE PERIOD MAY 16-31, 19521
Q.N. doe. S/2768
Transmitted September &, 1952
I herewith submit report number 46 of the United
Nations Command Operations in Korea for the iJeriod
16-31 Jlay 1952, inclusive. United Nations Command
communiques numbers 126.5-12S1 provide detailed ac-
counts of these operations.
Plenary sessions of the military Armistice Conference
met daily with the exception of a three-day recess from
24 May through 26 May. These meetings were charac-
terized by an endless repetition of Communist propaganda
themes. In order to illustrate the illogical approach of
the Communists to the Prisoner of War problem and to
refute the implications of the daily charges by the Com-
munists, the senior United Nations Command Delegate
made the following statement on 21 May :
"Your side continues to display crass hypocrisy on the
Prisoner of War issue. Have you, for example, under-
taken to settle the problem of the more than .50,000 mili-
tary persons of our side whose capture you reported but
whose names you have omitted from the lists of Prisoners
of War to be exchanged? Have you undertaken to re-
store to these 50,000 Prisoners of War the rights ac-
' Transmitted to the Security Council by the representa-
tive of the U.S. to the U.N. on September 8. Texts of the
30th, 31st, and 32d reports appear in the Bulletin of
Feb. 18, 1952, p. 266 ; tlie 33rl report, ihld., Mar. 10, 19.52,
p. .395 ; the 34th report, ihld.. Mar. 17, 1952, p. 430 ; the 35th
report, iUd., Mar. 31, 19.52, p. 512; the 36th and 37th
reports, iUd., Apr. 14, 1952, p. .594; the 38th report, ihid.,
Mav 5, 19.52, p. 715 ; the 39th report, ihid.. May 19, 1952,
p. 788 ; the 40th report, ihid., June 23, 1952, p. 998 ; the 41st
report, ihid., .June 30, 1952, p. 1038; the 42d report, ihid.,
July 21, 1952, p. 114 ; the 43d report, ihid., Aug. 4, 1952, p.
194 ; the 44tli report, ihid.. Aug. 11, 1952, p. 231 ; and the
45th report, ihid., Aug. 18, 1952, p. 272.
corded them by the Geneva Convention? Have you
reported their capture to the Information Bureau at
Geneva as required by the Convention of War Prisoners?
Have you opened your Prisoner of War camps to visits by
neutral benevolent societies as required by the Geneva
Convention? Have you agreed to the exchange during
hostilities of the seriously sick and injured as required
by the Geneva Convention? Have you undertaken to re-
frain from using captured personnel in a military capacity
or in labor directly contributing to military operations as
is required by the Geneva Convention, or do you adhere
to your announced policy of incorporating captured mili-
tary personnel into your military forces? Have you un-
dertaken to restore to Prisoner of War status those
captured personnel whom you have incorporated into your
armed forces or have transiiorted to China or elsewhere?
You have not.
"Never before in modern history has a belligerent dis-
played less regard for the rights and welfare of Prisoners
of War. Never before have the rights of Prisoners of War
been so fully and completely violated. Never before has a
belligerent unilaterally disposed of four-fifths of the cap-
tured personnel of the other side before sitting down at
the conference table."
Since presenting its proposal of 28 April - for solution
of the remaining problems, the United Nations Command
Delegation has attempted to impress tlie Communists that
this offer is firm, final and irrevocable. Typical of the
statements made to this end by the Delegation is the fol-
lowing quotation from the proceedings of 20 May :
"Your side should be fully aware that the United
Nations Command cannot and will not accept a solution
to the Prisoner of War problem unless that solution pro-
vides for and respects fundamental human rights and
fully considers the dignity and worth of the human per-
• Ihid., Aug. 18, 1952, p. 272.
September 29, J 952
495
son. The United Nations Command has proposed such
a solution. It must be obvious to you that the United
Nations Command cannot accept any compromise in its
basic and fundamental principles. It must also be obvious
to you that the United Nations Command proposal of April
2Sth, by its very nature, is firm, final, and irrevocable.
"Durinff the Item 4 Staff Officers' meetincs, our side
entered into in good faith an arrangement to determine
the approximate number of Prisoners of War held by our
side who would not forcibly resist returning to .your side.
The procedures used by our side to accomplish this were
scrupulously fair. No amount of slander and false alle-
gations by your side can change the truth of this matter.
Nevertheless, our side has .stated many times our willing-
ness to have the results of our survey examined and veri-
fied by an impartial group and witnessed by your side.
In order that your side can have no excuse to avoid the
witnessing of this procedure, our side has stated its will-
ingness to have it conducted at the exchange point in the
demilitarized zone. For your side to refuse this reason-
able proposition is to deny the human rights of individuals.
"The counterproposal your side made on May 2nd is
one which would compel the United Nations Command to
jeopardize the lives of numerous human beings by using
force and violence In sending them to your side "against
their will. The United Nations Command will not accede
to such an inhuman proposition. To do so would be to
repudiate one of the purposes and principles upon which
the United Nations is founded.
"It should be quite clear to you now that the United
Nations Command cannot accept your inhuman counter-
proposal of May 2nd. It should be quite clear to you now
that the United Nations Command solution to the Prisoner
of War problem proposed on April 28th is the only solu-
tion which can be accepted by the United Nations Com-
mand. It should be obvious to you that the United Na-
tions Command proposal of 28 April cannot and will not
be other than its firm, final, and irrevocable position."
On 23 May, Major General William K. Harrison re-
placed Vice Admiral C. Turner Joy as the senior United
Nations Command Delegate to the Military Armistice
Conference. At the meeting of 22 May, Admiral Joy in-
formed the Communist Delegation of this change.
On 28 May, Brigadier General Lee Han Lim replaced
Major General J. H. Yu as the United Nations Command
Delegate from the Republic of Korea.
Following the release of Brigadier General Francis T.
Dodd by fanatical Communists on Koje-do who had held
him prisoner for approximately three days, a board of
officers was appointed by the Commanding General, Eighth
Army, to ascertain the facts leading up to General Dodd's
seizure and to the circumstances surrounding the nego-
tiations which resulted in his relea.se. The report of the
investigation together with the recommendations of the
Commanding General, Eighth Army, were reviewed by
the Commander-in-Chief, United Nations Command, and
forwarded with his recommendations, to the Department
of the Army.
Brigadier General Haydon L. Boatner, an outstanding
combat oflicer with extensive experience in the Far East,
was appointed Commanding General of United Nations
Command Prisoner of War Camp Number One. He
immediately put into effect a directive received from the
Commander-in-Chief, United Nations Command, to take
immediate steps to seize uncontested control of the re-
bellious Communist prisoners at Koje-do. The following
statement was issued by the Commander-in-Chief, United
Nations Command, concurrent with this movement :
"Communist prisoners of war and civilian internees
on Koje-do have not only resorted, on repeated occasions,
to unlawful violence but, obviously acting under instruc-
tions from outside agents of the international Communist
power conspiracy, have threatened mass outbreaks which
inevitably would result in additional violence and blood-
shed. I do not propose to countenance for one moment
496
further unlawful acts on the part of these prisoners of
war and civilian internees.
"The United Nations authorities will continue to ob-
serve the provisions of the Geneva Convention in the
administration of United Nations Command Prisoner of
War Camp Number One and at all other Prisoner of War
camps under their control. At the same time, they will
require that the prisoners of war and civilian internees
observe the responsibilities placed on them by the provi-
sions of the same convention. Good order and discipline
will be required of them at all times."
The security forces at the United Nations Command
Prisoner of War Camp Number One on Koje-do were re-
inforced by one company of the King's Shrofishire Light
Infantry, the First Company of the lloyal Canadian
Regiment, and the First Company of the Greek Expedi-
tionary Forces. The United States 187th Airl)orue In-
fantry Regiment had been ordered previously to the
island. These units were integrated rapidly "into the
over-all camp structure. Plans have been iformulated
for separating the Communist Prisoner of War popula-
tion into smaller, more easily administered groups.
The United Nations press representatives interested in
the Prisoner of War situation were provided additional
transportation, over-night accommodations and commu-
nications facilities on Koje-do, thus enabling the prompt
reporting and maximum coverage for all news media.
On 20 May prompt and firm action by United Nations
Command personnel averted what might have been a
serious incident at the Prisoner of War hospital com-
pound in Pusan. Fanatical Communist agitators, who
had been serving as hospital attendants in this com-
pound, had refused to admit camp medical personnel or
to permit ill patients to leave the compound for medical
attention. The camp authorities directed the prison at-
tendants to report to the compound gate for transfer to
another inelo.sure in order that patients needing medical
attention could be handled without interference. An-
nouncements designed to segregate the agitators from
other prisoners went overtly unanswered for half an hour.
It was then evident that the terroristic Communist Pris-
oner of War leaders would resist by violence. Armed
United States military personnel moved into the com-
pound where they met stiff opposition from Communist
prisoners, led by fanatical leaders, all employing spears,
barbed wire flails, rocks, and a variety of other weapons
against security troops.
United Nations Command troops used a show of force
to overcome the opposition. No shots were fired and only
riot control tactics were used. In gaining control of the
compound one prisoner was killed and eighty-five others
suffered injuries, most of them minor. One member of
the United Nations Command forces suffered a minor
wound. The situation was well in hand two hours after
the action started. The remaining compounds at Pusan
are now under complete control of the camp's authorities
and no other casualties have resulted from these
operations.
In the new camps which have been established at
Cheju-do and on the mainland of Korea to accommodate
the prisoners of war and civilian internees who indicated
their strong opposition to return to Communist control,
little difficulty has been encountered. The attitude of
the.se individuals has been generally favorable and
cooperative.
Minor clashes continued to typify the ground action
along the Korean battle line. Both United Nations Com-
mand and enemy units offered determined and effective
resistance to the raids and patrol of opposing elements
during the period. The most noteworthy enemy-initiated
action consisted of an attack by two companies against
United Nations Command positions on the western front
which was repulsed despite the aggressiveness displayed
by the attacking units. Generally, hostile forces limited
their activities to widely scattered probing efforts against
United Nations Command forward positions during the
hours of darkness, and to the interception of United
Department of State Bulletin
Nations Command patrols. Enemy forward troop dis-
positions and front lines remained unclianged.
On the western front, enemy aggressiveness was more
ipronouneed than elsewhere. On 27 May, two enemy
^Companies struck a United Nations Command outpost five
Imiles south-southwest of Mabang. The attack was pre-
ceded by a thirty-flve minute artillery and mortar prepara-
kion of -over two thousand rounds and was supported by
fire from hostile tanks and self-propelled guns. The
hostile force vigorously pressed the attack for four hours
but was unable to penetrate the United Nations Command
defenses. The enemy attempted other unsuccessful prob-
ing attacks of lesser size against United Nations Com-
mand positions. Such attacks were particularly numer-
ous in the Sangnyong, Punji and Kigong areas during the
latter part of the period. These actions, usually of one
hour duration or less, were all repulsed by local United
Nations Command elements without loss of ground.
United Nations Command patrols along the western front,
as elsewhere, met with determined resistance and were
generally unable to penetrate the enemy's main battle
positions. An exception occurred on 28 May when
United Nations Command elements, in a three-pronged
raid, forced the withdrawal of hostile units defending
three objectives in the Punji area. The defenders en-
gaged in hand-to-hand combat and employed the largest
concentration of artillery and mortar fire in recent months
in a vain attempt to retain their positions.
Hostile action on the central front remained minor.
The largest single enemy action consisted of an attack,
employing a company, against United Nations Command
positions south of Yulsa. This engagement terminated
with the withdrawal of the enemy unit. In numerous
instances United Nations Command armored units ranged
forward to engage hostile positions and targets of oppor-
tunity on the central front. In the largest such operation,
United Nations Command tanks fired on hostile troops
and installations in the Sutae and Kumsoiig areas, re-
sulting in the destruction of 103 enemy bunkers and gun
positions, and damage to seventy-four others. Hostile
reaction to these forays was meager, consisting of a light
volume of mortar and artillery fire.
There was no appreciable change in the character of
battle action on the eastern front. Forward enemy units
maintained a tight and effective defense against the nu-
merous United Nations Command patrols seeking enemy
dispositions and activities. The majority of these United
Nations Command-initiated patrol clashes were fought in
the Talchon-Mulguji areas of the eastern front. Enemy
offensive inclination was limited to brief, ineffective
probes by units of squad and platoon size. United Nations
Command elements on the eastern front continued to re-
ceive the bulk of enemy's Ineffectual front-line propa-
ganda efforts, including broadcasts and leaflets dissemi-
nated by mortar and artillery fire.
During the period the enemy continued to improve his
combat capabilities. Indications remained predominantly
defensive. Enemy units, both in forward and rear areas,
continued to improve their defensive positions. Prisoner
of War statements were still indicative of an enemy
defensive attitude. In addition, prisoners of war were not
cognizant of any preparations for an imminent offensive.
Nevertheless, Communist military forces in Korea were
steadily improving their offensive capability. The level
of hostile vehicle and rail activity, coupled with other
indications, clearly reveals the improvement of the
enemy's logistical position. Indicated troop movements
in the enemy's rear areas also point toward an improved
offensive capability. Indications at present fail to dis-
close the imminence of a hostile attack. However, Com-
munist forces are capable of launching a major offensive
with little additional iireparation or warning.
United Nations Command fast carriers operating in the
Sea of Japan, despite three days of non-operational
weather during the period, operated against North Korean
transportation facilities and supply routes. Attacks by
the jet and propeller driven aircraft were concentrated
on the vulnerable rail lines along the Korean east coast
September 29, J 952
in continuation of the interdiction program. Rail lines
were cut and bridges and liy-passes, locomotives, and rail
cars were destroyed. Additional destruction included
military structures, trucks, boats, and numerous supplies,
storage facilities and gun positions. No enemy air oppo-
sition was encountered.
United Nations Command carriers operated in the Tel-
low Sea with their planes furnishing cover and air spot
for the surface units on blockade patrols and anti-invasion
stations. They also i\e\v reconnaissance missions and
offensive strikes as far north as Sukchon and into the
Chinnampo area and the Hwanghae Province and in close
support of the front line troops and friendly guerrilla
raids behind enemy lines. Additional destruction and
damage included numerous supplies, bunkers, warehouses,
rail cars, trucks, vehicles, and supply routes.
United Nations Command naval aircraft based ashore
in Korea flew in support of friendly front line nnits,
destroying bunkers, mortar and gun positions, military
buildings, troop shelters, and trucks. Kails were cut and
trenches were torn up.
Patrol planes based in Japan and Okinawa conducted
daylight reconnaissance missions over the Sea of Japan
and the Yellow Sea. They also flew day and night anti-
submarine patrols and weather reconnaissance missions
for surface units in the Japan and Yellow Seas.
The naval blockade continued along the Korean east
coast from the bombline to Chongjin with surface units
making day and night coastal patrols, firing on key rail
targets along the coastal main supply route daily to main-
tain rail cuts, bridge cuts, and tunnel blocks at several
specific points. The siege by surface units continued at
the major ports of Wonsan, Hungnaiu and Pongjin. Fire
support vessels at the bombline provided gunfire on call
for the front line troops.
The bombardment along the east coast, reported by
spotting aircraft, shore fire control parties and the firing
vessels themselves, resulted in the destruction and damage
of bunkers, mortar, artillery, and coastal gun positions,
boats, rail cars, and trucks. Armed raiding parties, using
boats of the blockading vessels continued nightly coastal
sweeps. Three sampans and twenty prisoners were cap-
tured. In other cases, the motor whale boats searched
out enemy targets and furnished spot for the firing ship,
materially aiding in the effectiveness of the interdiction
of the coastal main supply route.
Enemy shore batteries continued active along the coast,
although in many cases only a few rounds were fired. At
Songjin two minesweepers received hits. Although shrap-
nel damage was considerable, there were no personnel
casualties and neither vessel suffered a loss of operational
efficiency.
On the Korean west coast, the United Nations Com-
mand surface units manned anti-invasion stations along
the coast, from Chinnampo to the Han River Estuary,
in support of the friendly islands north of the battle line.
Daylight firing into enemy positions started many fires
and secondary explosions, destroying military buildings
and inflicting "many casualties. Three guerrilla raids dur-
ing the period were supported by surface and air units in
the Haeju approaches. Many casualties were inflicted
and several Chinese Communist Forces prisoners taken.
In addition, many guns and mortars were destroyed and
damaged and large quantities of enemy equipment and
cattle were captured by friendly forces.
Vessels of the Republic of Korea Navy conducted close
inshore patrols and blockade along both coasts and as-
sisted United Nations Command forces in minesweeping
duties.
The United Nations minesweepers continued operations
to keep the channels, gunfire support areas and anchor-
ages free of mines of all types. Sweepers also enlarged
areas as needed by the operating forces.
United States naval auxiliary vessels, Military Sea
Transportation Service and merchant vessels under con-
tract provided personnel lift and logistic support for the
United Nations air, ground and naval forces in Japan
and Korea.
497
Fighter interceptor aircraft of the United Nations Com-
mand air forces continued their mission of maintaining
air superiority over Korea and providing a screening force
for fighter bombers cutting rail lines. Certain changes,
which may prove to be significant, were noticed in "the
pattern of enemy air activity. Communist jet aircraft
were encountered in smaller formations and at lower al-
titudes than previously noted and were apparently more
willing to engage in combat. United Nations Command
fighter bombers highlighted their activity by a massive
raid on a Communist supply and manufacturing center
southwest of Pyongyang. The tighter bombers continued
the systematic cutting of main rail lines, flew legular
armed reconnaissance missions and provided close air
support to ground units in the almost stationary ground
battle against the Communist forces. Light "bombers
were utilized on night armed reconnaissance missions to
attack trains and vehicular convoys attempting to move
under the cover of darkne.ss. Medium bombers continued
to knock out rail bridges and by-passes on the two main
rail lines in northwest Korea to stop movement of enemy
supplies from Manchuria.
In the area between Sinuiju and Sinanju and along the
"ialu River, fighter interceptors encountered enemy MIG
aircraft in formation of only three or four planes. Until
recently the enemy fighters were appearing in mucli larger
formations. The total number of eneniv lets sighted dur-
ing the period was slightly lower than reported during
the first half of the month. However, the enemy aircraft
were engaged in combat on forty occasions.
The heaviest aerial fighting occurred on 2.'i May when
fighter interceptor pilots destroyed four MIGs and dam-
aged one. During the day, ninet.v-three enemy jet air-
craft were sighted and sixty engaged in sixteen separate
battles. Ten of the engagements occurred when small
groups of Red fighters attacked United Nations Com-
mand fighter bombers on rail cutting missions deep in
enemy territory.
United Nations Command pilots reported a continued
increase in the aggressiveness of enemy pilots • however
the fighter interceptors continued to "attack the Com-
niunist .lets at every opportunity resulting in a total score
of eleven MIGs destro.ved and five damaged.
Fighter bombers conducted a large scale attack on the
Communist supply and manufacturing center near Kivan"-
ni on 22 May. The fighter bombers hit military targefs
in this area on three consecutive days with capacity loads
of bombs, rockets, napalm and .',0 calilier ammunition in
a closely timed operation which reduced the important
storage and manufacturing center to charred rubble
United Nations Commanil fighter bombers, after care-
fully planning attacks on the principal eneniv rail lines
claimed extensive rail cuts and damage to' road beds'
Concentrated bombing in certain mountain pass areas
caused landslides which blocked the railroad lines
United Nations Command aircraft flew in direct sup-
port of United Nations ground forces providing an ad-
vantage not enjoyed by the Communist troops'" These
close support sorties and missions included pre-briefed
attacks on the enemy's heavy artillerv positions In
bomb, rocket and strafing attacks the enemy's gun posi-
tions were silenced, bunkers destroyed and casualties
inflicted on Communist troops.
Night attacks on enerny truck convovs were conducted
by United Nations Command light bombers resnltin" in
the destruction of numertjus vehicles trving to move sup-
^,.-Z}^2.^ enemy's ground forces on the front lines
itie light bombers continued to decrease the enemy's rail
repair capability by dropping delaved fuse bombs" .at the
points where fighter bombers had made daylight attacks
on the rail lines.
Because of the tremendous bridge repair capability of
the enemy, the United Nations Command medium bom'bers
continued to concentrate tlieir effort on the bridges along
t!ie rail lines between Sinanju and Sinuiiu and between
Kunuri and Kanggye. On the first line, traflic was
lilocked by three attacks which destroyed portions of the
bridge at Kwak.san and by a single attack on the bridge
498
at Kogunyongdong. The bombers were not affected by
the occasional passes made by enemy night fighters or by
the anti-aircraft fire. Missions were scheduled against
the Sinhungdong bridge, on the second line, on four occa-
sions and post-strike photography showed the bridge to be
out of commission after each attack. Traflic was also
stopped on this line by three attacks on bridges near
Huichon.
The Third Air Rescue Squadron of the United States
Air Force continued to perform its rescue mission In
support of the United Nations Command operations in
Korea. On 18 May the Third Air Rescue Squadron, in
two operations, successfully rescued United Nations Com-
mand personnel who had lieen downed within thirty and
sixty-five miles respectively of the Communist air' com-
plex of Antung. These operations were efl'ected while
fiying unarmed aircraft in the face of potentially over-
whelming air opposition l)y the enemy.
In reporting the continued Communist obstruction of
an Armistice Agreement, United Nations Command leaf-
lets and radio broadcasts have made known the heroic
determination of thousands of Communist prisoners to
resist forcible repatriation at all costs. The United Na-
tnms Command media have shown how the action of
these prisoners has for all time disproved the Com-
munists' cynical pretense to speak for the people of Korea
and China. Other United Nations Command broadcasts
and leaflets have exixi.sed the subservience of the Com-
munist puppet regimes to alien interests inimical to
Korea and China. Attention has also been focu.sed on
the inherently destructive character of Communism as
manifested in Korea by its record of provoking internal
strife, inculcating racial and national hatred, and ulti-
mately in launching unprovoked and wanton aggression.
An Agreement on Economic Co-ordination l)etween the
Republic of Korea and the Unified Command was signed
on 24 May 10.52 at Pusan. (A copy of the Agreement is
enclosed). The Unified Command Mission was headed
by Mr. Clarence E. Meyer, Special Representative of
President Truman, and the delegation of the Republic of
Korea was headed by Finance Minister Pack Tu-chin.
The agreement provides for the establishment oif a
Combined Economic Board composed of one representa-
tive from the Republic of Korea, and one representative
from the United Nations Command. The primary func-
tion of the Board is to promote effective economic co-ordi-
nation between the Republic of Korea and the Unified
Command. Under the agreement, the Unified Command
will assist the Republic of Korea Government in ascer-
taining their requirements for equipment, supplies and
services ; and within the limits of resources made avail-
able will provide food, clothing and shelter for the popu-
lation as necessary to prevent epidemics, disease and
unrest. The Unified Command will also assist the Re-
public of Korea in rehabilitation projects which will per-
mit early indigenous production of necessities.
The Government of the Republic of Korea on its part
has agreed to take further measures to prevent inflation,
hoarding and harmful speculative activities; to apply
sound, comprehensive, and adequate budgetary, fiscal
and monetary policies, including maximum collection of
revenue; and to maintain adequate controls over public
and private credit. The Republic of Korea Government
has also agreed to promote wage and price stability ; to
make the most effective use of all foreign exchange re-
sources; and to maximize production for export.
In a corollary exchange of notes,' the United States
has agreed to (1) pay for all whan drawn by the United
Nations Forces and sold to United States "personnel at
the rate at which the whan was sold and (2) pay for
all whan expended by the United States for bona fide
military purposes during the period 1 January ia.'i2-.31
May 1952. The United States has also agreed to make a
partial payment to the Korean Government of $4,000,000
monthly for whan expended by United States Forces for
■■' Not printed here.
Deparfmenf of State Bulletin
J)ona fide military purposes during the period 1 June
1952-31 March 19fi3. In addition, as soon as practicable,
after 31 March 1953, the United States has agreed to
make full and final settlement for all whan used between
1 June 1952 and 31 March 1953 for ho>ia fide military pur-
poses not previously settled. The Repulilic of Korea
Government has agreed to utilize the proceeds of the sale
of foreign exchange or imports derived from the payments
in accordance with principles contained in the agreement.
The above settlements are without prejudice to settlement
of any other claims arising from the provision and use of
curreiacy and credits for periods prior to 1 January 1952
for which settlement has not yet been made.
[Enclosure]
Agreement oisr Economic Coordination Between
THE Republic of Korea and the Unified
Command
24 May 1952
Whereas by the aggression of Communist forces the
Republic of Korea became in need of assistance from the
United Nations ;
And whereas the United Nations by the resolution of
the Security Council of 27 June 19.50, recommended that
members of the United Nations furnish such assistance
to the Republic of Korea as may be necessary to repel the
armed attack and to restore international peace and
security in the area ;
And whereas the United Nations by the resolution of
the Security Council of 7 July 1950, reconnnended that
members furnishing military forces and other assistance
to the Republic of Korea make such forces and other
assistance available to a imified command under the
United States ;
And whereas the United Nations, by the resolution of
the Security Council of 31 July 1950, requested the Unified
Command to exercise responsibility for determining the
requirements for the relief and support of the civilian
population of Korea and for establishing in the field the
procedures for providing such relief and support ;
And whereas it became necessary to carry out collective
action against aggression on Korean soil ;
And whereas, pursuant to the 7 July 19.50, resolution of
the Security Council of the United Nations, the Unified
Command "has designated the Commander-in-Chief,
United Nations Command, to exercise command responsi-
bilities in Korea :
And whereas the Unified Command has already fur-
nished and is furnishing substantial assistance to the Re-
public of Korea ;
And whereas it is desirable to coordinate economic
matters between the Unified Command and the Republic
of Korea, in order to insure effective support of the mili-
tary forces of the United Nations Command, to relieve the
hardships of the people of Korea, and to establish and
maintain a stable economy in the Republic of Korea ; all
without infringing upon the sovereign rights of the Re-
public of Korea ;
Therefore, the Republic of Korea and the United States
of America acting pursuant to the resolutions of the Secu-
rity Council of the United Nations of 7 July 19.50, and 31
July 19.50, (hereinafter referred to as the Unified Com-
mand) have entered into this agreement in terms as set
forth below:
Article I
Board ^
1. There shall be established a Combined Economic Board,
hereafter referred to as the Board.
2. The Board shall be composed of one representative
from the Republic of Korea and one representative of
the Commander-in-Chief. United Nations Command
(CINCUNC). Before apiwinting its representative each
September 29, 1952
party shall ascertain that such appointment is agreeable
to the other party. Tlie Board shall establish such sub-
ordinate organization as may be necessary to perform its
functions and shall determine its own procedures. It
shall meet regularly at an appropriate location In the
Republic of Korea.
3. The primary function of the Board shall be to pro-
mote effective economic coordination between the Re-
public of Korea and the Unified Command. The Board
shall be the principal means for consultation between
the parties on economic matters and shall make appro-
priate and timely recommendations to the parties con-
cerning the implementation of this Agreement. Such
recommendations shall be made only upon mutual agree-
ment of both representatives. The Board shall be a
coordinating and advisory body; it shall not be an
operating body. . , , ,
4. The Board and the parties hereto will be guided by
the following general principles :
(a) The Board will consider all economic aspects of the
Unified Command programs for assistance to the Re-
public of Korea and all pertinent aspects of the economy
and programs of the Republic of Korea, in order that each
of the Board's recommendations may be a part of a
consistent overall program designed to provide maximum
support to the military effort of the United Nations Com-
mand in Korea, relieve the hardships of the ijeople of
Korea, and develop a stable Korean economy.
(6) It is an objective of the parties to increase the capa-
bilities of the Republic of Korea for economic self-sup-
port so far as is possible within the limits of available
resources and consistent with the attainment of fiscal
and monetary stability.
(e) Successful conduct of military operations against
the aggression of the Communists is the primary con-
sideration of the parties. Accordingly, the command pre-
rogatives of the Commander-in-Chief, United Nations
Command are recognized ; and the Commander-in-Chief,
United Nations Command, shall continue to retain all
authority deemed necessary by him for the successful
conduct "of such operations and the authority to withdraw
and to distribute supplies and services furnished under
this Agreement in order to meet emergencies arising
during the course of military operations or in the execu-
tion of civil assistance programs. On the other hand, the
prerogatives of the Government of the Republic of Korea
are recognized, and the Government of the Republic of
Korea shall continue to retain all the authority of a
sovereign and independent state.
5. The Board shall make recommendations necessary
to Insure (a) that the expenses of the Board, and the
expenses (i. e., local currency (won) exiienses and ex-
penses paid from assistance funds) of all operating agen-
cies established by the Unified Command or the Republic
of Korea to carry out assistance programs under this
Agreement, shall be kept to the minimum amounts reason-
ably necessary, and (b) that personnel, funds, equipment,
supplies and services provided for assistance purposes are
not diverted to other purposes.
Article II
The Unified Command
The Unified Command undertakes :
1. To support the recommendations of the Board to the
extent of the resources made available to the Unified
Command.
2. To require the Commander-in-Chief, United Nations
Command, to designate his representative on the Board
and to furnish to the Board such personnel and other
necessary administrative support from the United Na-
tions Command as the Board may recommend.
3 To furnish to the Board timely information on all
civil assistance programs of the Unified Command and
on the status of such programs.
4. Within the limitations of the resources made avail-
499
aMe by governments or organizations to the Unified Com-
mand, to assist the Republic of Korea in providing for
the basic necessities of food, clothing and shelter for
the population of Korea ; for measures to prevent epi-
demics, disease, and unrest ; and for projects which will
yield early results in the indigenous production of neces-
sities. Such measures and projects may include the re-
construction and replacement of facilities necessary for
relief and support of the civilian population.
5. To ascertain, in consultation with the appropriate
authorities of the Government of the Republic of Korea,
the requirement for equipment, supplies, and services for
assisting the Republic of Korea.
6. To provide for the procurement and shipment of
equipment, supplies, and other assistance furnished by
the Unified Command ; to supervise the distribution and
utilization of this assistance; and to administer such
assistance in accordance with the above cited resolutions
of the United Nations.
7. To consult with and to utilize the services of the
appropriate authorities of the Government of the Republic
of Korea, to the greatest extent feasible, in drawing up
and implementing plans and programs for assisting the
Republic of Korea, Including the employment of Korean
personnel and the procurement, allocation, distribution
and sale of equipment, supplies and services.
8. To carry out the Unified Command program of assist-
ance to the Republic of Korea in such a way as to facili-
tate the conduct of military operations, relieve hardship,
and contribute to the stabilization of the Korean econ-
omy.
9. To make available in Korea to authorized representa-
tives of the Government of the Republic of Korea ap-
propriate documents relating to the civil assistance pro-
grams of the Unified Command.
Article III
Republic of Korea
The Republic of Korea undertakes :
1. To support the recommendations of the Board.
2. To designate the representative of the Republic of
Korea on the Board and to furnish to the Board such
personnel and other necessary administrative support
from the Republic of Korea as the Board may recommend.
3. To furnish to the Board timely information on the
economy of Korea and on those activities and plans of
the Government of the Republic of Korea pertinent to
the functions of the Board.
4. While continuing those measures which the Govern-
ment of the Republic of Korea has endeavored heretofore
to make effective, to take further measures to combat
inflation, hoarding, and harmful speculative activities;
to apply sound, comprehensive, and adequate budgetary,
fiscal, and monetary policies, including maximum collec-
tion of revenue; to maintain adequate controls over the
extension of public and private credit, to provide requisite
and feasible pricing, rationing and allocation controls;
to promote wage and price stability ; to make most efiicient
use of all foreign exchange resources ; to maximize the
anti-inflationary effect that can be derived from relief
and other imixirted essential commodities through effec-
tive programming, distribution and sales ; to provide the
maximum efl3ciency in utilization of available production
facilities; and to maximize production for export.
5. With reference to assistance furnished under this
Agreement :
(a) To provide operating agencies which will develop
and execute, in consultation with operating agencies of
the United Nations Command, programs relating to re-
quirements, allocations, distribution, sale, use and ac-
counting for equipment, .supplies and services furnished
under this Agreement; to submit to the Board budget
estimates of the expenses of such Republic of Korea
500
agencies ; to include such estimates in the national
budget ; to defray those expenses from the resources
available to the Government of the Republic of Korea,
including, where the Board so recommends, such funds
as may be made available under clause Td (2) of this
article ; and to insure that .such expenses are kept at a
minimum. It is Intended that such expen.ses will be de-
frayed from the general account revenues of the Re-
public of Korea when the economy of the Republic of
Korea so permits.
(6) To permit the Commander-in-Chief, United Nations
Command, to exercise such control over assistance fur-
nished hereunder as may be necessary to enable him to
exercise his responsibilities under the above cited resolu-
tions of the United Nations.
(c) To achieve maximum sales consistent with relief
needs and to be guided by the recommendations of the
Board in determining what equipment, supplies, and serv-
ices are to be distributed free of charge and what are to
be sold.
(d) To require Republic of Korea agencies handling
equipment and supplies furnished under this Agreement
to make and maintain such records and reports as the
Commander-in-Chief, United Nations Command, or the
Board may consider to be necessary in order to show the
import, distribution, sale and utilization of such equip-
ment and supplies.
(e) To Impose import duties or charges, or internal
taxes or charges, on goods and services furnished by the
United Nations Command only as recommended by the
Board.
(/) To permit and to assist the authorized representa-
tives of the Commander-in-Chief, ITnlted Nations Com-
mand, freely to inspect the distribution and use of equij)-
ment. supplies, or services provided under this Agreement,
including all storage and distribution facilities and all
pertinent records.
(0) To insure (1) that the people of Korea are in-
formed of the sources and purposes of contributions of
funds, equipment, supplies, and services and (2) that all
equipment and supplies (and the containers thereof)
made available by the Unified Command to the civilian
economy of the Republic of Korea, to the extent practica-
ble, as determined by the Commander-in-Chief, United
Nations Command, are marked, stamped, branded, or
labeled in a conspicuous place as legibly, indelibly, and
permanently as the nature of such equipment .-md supplies
will permit and in such manner as to indicate to the people
of the Republic of Korea the sources and purposes of
such supplies.
6. With reference to the assistance furnished wider
this Agreement which is to be distributed free of charge
for the relief of the people of Korea, to in.sure that the
special needs of refugees and other distressed grovips of
tlie population are alleviated without discrimination
through appropriate public welfare programs.
7. With reference to assistance furnished under this
Agreement which is to be sold :
(a) To sell equipment and supplies at prices recom-
mended by the Board, such prices to be those designed to
yield the maximum feasible proceeds.
(6) To sell equipment and supplies furnished under
this Agreement for cash, unless otherwise recommended
by the Board. If the Board should recommend that any
such equipment and supplies may be sold to intermediate
parties or ultimate users on a credit basis, the amount
and duration of such ci-edit shall be no more liberal than
that recommended by the Board.
(c) To establish and maintain a special account in the
Bank of Korea to which will be transfen-ed the balance
now In the "Special United Nations Aid Goods Deposit
Account" at the Bank of Korea and to which will be
deposited the gross won proceeds of sales of all equip-
ment and supplies (1) furnished under this Agreement
or (2) locally procured by expenditure of won funds pre-
viously deposited.
Department of Stale Bulletin
(d) To )ise the special noconnt established in (c) above
:o the maximum extent possible as a stabilizing device and
IS an offset to harmful monetary expansion. To this end
vithdrawals from this account shall be made only upon
he recommendation of the Board, only for the following
Hirposes, and only in the following order of priority:
(1) For defraying reasonable local currency costs
'nvolved in carrying out the responsibilities of the Unitied
j:!ommand for relief and support of the civilian population
i)f Korea, provided, however, that such local currency ex-
i:enses shall not include won advances to the United Na-
'ions Command for its bona fide military expenses or for
S^ale to personnel of the United Nations Command.
j (2) ITor defraying such proportion of the reasonable
operating expenses of opt^rating agencies of the Govern-
ment of the Republic of Korea provided under clause
5 (o) above as may be recommended by the Board.
(3) The balance remaining in this special account,
ifter withdrawals for the above purposes have been made
\m\ after provision has been made for an operating re-
serve, shall periodically upon the recommendation of the
Board be applied against any then existing indebtedness
Df the Government of the Republic of Korea to the Bank
of Korea or to any other tinancial institution organized
under the laws of the Republic of Korea.
S. To prevent the export from the Republic of Korea of
any of the equipment or supplies furnished by the Unified
Command or any items of the same or similar character
produced locally or otherwise procured, except upon the
recommendation of the Board.
9. To make prudent use of its foreign exchange and
foreign credit resources and to utilize these resources to
the extent necessary first toward stabilization (l)y prompt
importation into Korea of salable essential conmiodities)
and then toward revitalization and reconstruction of the
economy of ICorea. The use of such foreign exchange and
foreign credit resources shall be controlled or coordinated
as follows :
(a.) All foreign exchange (both pulilic and private) of
the Republic of Korea accruing hereafter from indigenous
exports, visible and invisible, except as described in (b)
below, shall be controlled solely by the Government of the
Reimblic of Korea.
{b) All foreign exchange (both public and private, and
from whatever source acquired ) now held liy the Republic
of Korea and that foreign exchange which, subsequent
to the effective date of this Agreement, is derived by the
Republic of Korea from any settlement for advances of
Korean currency to the United Nations Conmiand shall
be used only as recommended by the Board.
(e) All foreign exchange described in (<i) and (b)
above shall be coordinated by the Board, in order to in-
tegrate the use made of such foreign exchange with the
imports included in the Unified Command assistance
programs.
10. In order properly to adapt the assistance programs
of the Unified Coujmand to the needs of the economy of
Korea, and in order to coordinate imports under those
programs with imports purchased with foreign exchange,
to support the recommendations of the Board in making
of periodic plans for the import and export of commodities
and to use such plans as a basis for the issuance of export
and import licenses.
11. In order to make most effective use of the foreign
exchange resources of the Government of the Republic of
Korea in stabilizing the Korean economy :
(«) To maximize the won proceeds from the sale of
such exchange or from the sale of imports derived from
such exchange.
(,b) To apply such proceeds first against any existing
overdrafts of the Government of the Republic of Korea
upon the Bank of Korea, except as otherwise recom-
mended by the Board.
September 29, 7952
(c) To hold or spend the balance of such won proceeds
with due regard to the effect of such action on the total
money supply.
12 To provide logistic support to the armed forces of
the Republic of Korea to the maximum extent feasible
and to furnish to the United Nations Command timely
information concerning the details of this support in order
to permit coordinated budgetary planning.
13. To grant to individuals and agencies of the Unified
Command, except Korean nationals, such privileges, im-
munities, and facilities as are necessary for the fulfillment
of their function within the Republic of Korea under the
above cited resolutions of the United Nations, or as have
been heretofore granted by agreement, arrangement or
understanding or as may be agreed upon formally or
informally hereafter by the parties or their agencies.
14. To insure that funds, equipment, supplies and serv-
ices provided by the Unified Command or derived there-
from shall not be subject to garnishment, attachment,
seizure, or other legal process by any person, firm, agency,
corporation, organization or government, except upon rec-
ommendation of the Board.
Article IV
Transfer
1. The parties recognize that all or any portion of the
responsibilities of the Unified Command may be assumed
from time to time by another agency <u- agencies of the
United Nations. Trior to such transfer, the parties shall
consult together concerning any modification in this
Agreement which may be required thereby.
2. It is the current expectation of the parties that the
United Nations Korean Reconstruction Agency (Unkra),
established by resolution of the General Assembly of the
United Nations of 1 December 1950, will assume respon-
sibility for all United Nations relief and rehabilitation
activities for Korea at the termination of a period of 180
days following the cessation of hostilities in Korea, as
determined by the Unified Command, unless it is deter-
mined by the" Unified Command, in consultation with the
Agent General of the United Nations Korean Reconstruc-
tion Agency, that military operations do not so permit
at that time, or unless an earlier transfer of responsi-
bility is agreed upon.
Article V
Existing Agreetnents
This Agreement does not supersede in whole or in part
any existing agreement between the parties hereto.
Article VI
Registration, Effective Date, and Termination
1. This Agreement shall be registered with the Secretary-
General of the United Nations in comiiliance with the
provisions of Article 102 of the Charter of the United
Nations.
2. This Agreement shall enter into operation and effect
immediately upon signature hereto. This Agreement shall
remain in force so long as the Unitied Command continues
in existence and retains responsibilities hereunder, unless
earlier terminated by agreement between the parties.
Done in duplicate in the English and Korean languages,
at I'usan, Korea, on this day of May, 1952. The Eng-
li.sh and Korean texts shall have equal force, but in case
of divergence, the English text shall prevail.
In witness whereof, the respective Representatives,
duly authorized for the purpose, have signed the present
Agreement.
l''or the Government of the Republic of Korea :
For the Government of the United States of America :
501
Executive Director of Immigration
and Naturalization Commission
The President's Commission on Immigration
and Natnralization on September 10 annoiuiced
the appointment of Harry N. Eosenfield of New
York, formerly U.S. Displaced Persons Commis-
sioner, as its Executive Director.
Mr. Rosenfield served for 4 years as a member
of the Displaced Persons Commission, by Presi-
dential appointment. The DP's Commission
terminated its work on August 31, 1952. Previ-
ously, ]\Ir. Rosenfield had been a member of the
U.S. delegation to the U.N. Economic and Social
Council and assistant to the Federal Security
Administrator.
In announcing the appointment. Commission
Chairman Philip B. Perlman, former Solicitor
General of the United States, said: "The Presi-
dent's Commission is happy to be able to obtain
the services of Commissioner Eosenfield as its
Executive Director. His familiarity with this
general field and his enviable reputation through-
out the country will be of great assistance to the
Comniission in completing its important work
within the short time at its disposal."
The Commission was established by the Presi-
dent on September 4, 1952, to "study and evaluate
the immigration and naturalization" policies of the
United States," and was asked for its report by
January 1, 1953. The President directed the
Commission to give particular attention to the re-
qTiii-ements of the innnigration law, the admission
of immigrants into the United States, and the
effect of our immigration laws upon the Nation's
foreign relations.
The Commission's first meeting was attended
by all seven members, including Vice Chairman
Earl (t. Harrison and Clarence Pickett of Phila-
delphia; Rev. Thaddeus F. (Jullixson of St. Paul,
Minn.; Monsignor John O'Grady, Adrian S.
Fisher, and Thomas G. Finucane,' all of Wash-
ington, D.C.
At the conclusion of its first session on Sep-
tember 17 the Commiasion will meet with the
President at the White House.
U.S. Delegations
to international Conferences
Congress of Housing and Urbanization
On September 19 the Department of State an-
nounced that the U.S. Government will participate
in the twenty-first International Congress of
Housing and Urbanization, to be held at Lisbon,
September 21-27, 1952. The U.S. delegate will
be B. Douglas Stone, International Housing Staff,
Housing and Home Finance Agency.
This Congress is one of a series of international
502
meetings convened by the International Federa
tion of Housing and Town Planning for the pur
pose of coordinating information on these sub-
jects. The Federation, which is a semigovern-
mental organization and has consultative status
with the United Nations, ])ublishes a quarterly
journal containing information on developments
in housing in countries all over the world and acts
as an international clearing house for information
concerning housing.
Wliile the United States is not a member, it has,
upon the invitation of the Federation, also par-
ticipated in several previous meetings of the
Congress.
Delegates to the meeting at Lisbon will discuss
town planning, housing economics, sanitation, and
techniques and methods of using prefabricated
materials and other materials not customarily used
in house and building construction in the past.
Libya's Application for
Admission to U.N.
StateTiient by Ambassador Warren R. Austin ^
U.S. Representative in the Security Council
U.S. /U.N. press relea.se dated Sept. 16
The repetition of the unrealistic condition laid
down in the case of the application of Libya is
apparently the only obstruction in the path of the
admission of that country, which is a creation of
the United Nations. There is no realism in a posi-
tion such as that to which we have listened today,
when we view at the same time document S/2773,
a draft resolution concerning the application of
the Democratic Rejniblic of Vietnam for admis-
sion to membership in the United Nations whicli
was submitted by the representative of the Union
of Soviet Socialist Republics on September 15,
1952. Apparently there is no logic in such a
position.
Under the Treaty of Peace with Italy, the Four
Powers agreed in advance that, if the disposition
of Libya could not be worked out within a fixed
period, they would submit the question to the Gen-
eral Assembly and carry out its recommendations.
As we are aware, the fourth regular session of the
General Assembly adopted a resolution providing
that Libya be constituted an independent and sov-
ereign state, with independence to become effective
not later than January 1, 1952. When Libyan in-
dependence was proclaimed on December 24, 1951,
as I have recalled in tlie Security Council, my Gov-
ernment announced its strong support for the im-
mediate admission of Libya to membership in this
organization. Libya's application for member-
' Made in the Security Council on Sept. 16. In the vote
the same day, the U.S.S.R. cast its 51st veto to defeat
Libya'.s application for admi.ssion.
Department of State Bulletin
■1
-Ilip was filed on January 3, 1952, and a few days
t luieafter — on January 18 — Pakistan's draft reso-
lution was put before "the Security Council.
Today the members of the Security Council have
tlie opportunity to consider the Libyan applica-
tion in the light of the Charter. Membership in
till' United Nations is no more than Libya deserves
from this oro;anization, which is so intimately con-
nected with Libya's creation. The United States
most warmly supports the application of Libya
and will vote in favor of it.
New Member Governments for
IVIanganese-Nickel-Cobalt Committee
The International Materials Conference (Imc)
announced on September 17 that Italy, Japan, and
Sweden have accepted invitations to be i-epi-e-
sented on the Manganese-Nickel-Cobalt Com-
mittee.
This brings to 14 the ninnber of countries now
represented on this Committee. They are Bel-
gium, Brazil, Canada, Cuba, France, the Federal
Republic of Germany, India, Italy, Japan, Nor-
way, Sweden, the Union of South Africa, the
United Kingdom, and the United States.
The three new member Governments have des-
ignated the following as representatives, alter-
nates, and advisers:
Italy: Representative
Alberto- Baroni, Director, Nickel Infoiiiuition Center,
Milan
Alter7iates
Clemente B. Colonna, Italian Technical Delegation, Wash-
ington, D. C.
Gino Cecchl, Italian Minerals Agency (AMMI), Rome
Japax : Representative
Rynji Takcuchi, Minister Plenipotentiary
Alternates
Shoichi Inouye, Commercial Counselor
Keiiehi Matsumura, Commercial Secretary
Klyohiko Tsurumi, Second Secretary
SwEDEx : Representative
Hubert de Besche, Economic Counselor
Alternates
Lennart Masreliez. Commercial Attache
Baron C. II. von Platen, First Secretary
Anders Forsse, Attach^
Hans Colliander, Attache
Adviser
Gunnar Lilliekvist, Engineer, AB Avesta, Jarnverk,
Avesta
Italy is also presently a member of the Central
Group and the Copper-Zinc-Lead, Pulp-Paper,
Sulphur, and Wool Committees.
Japan is already represented on the Pulp-Paper
and Tungsten-Molybdenum Committees of the
lArc
Sweden is represented on the Pulp-Paper, Sul-
phur, and Tungsten-Molybdenum Committees.
Current United Nations Documents:
A Selected Bibliography^
General Assembly
Information From Non-Self-Governing Territories: Sum-
mary and Analysis of Information Transmitted Under
Article 73 e of 'the Charter. Report of the Secretary-
General. Summary of Information Transmitted by
the Government of Belgiiim. A/2129/Add. 1, Aug. 28,
1952. r> pp. miiueo; Summary of Information Trans-
mitted by the Government of the Netherlands.
A/2132, Aug. 22, 1952. 30 pp. mimeo; Summary of
Information Transmitted by the Government of the
United Kingdom of Great Britain and Northern Ire-
land. A/2134/Add. 2, Augu.st 1952. 112 pp. mimeo ;
A/2131/Add. 3, August 1952. 116 pp. mimeo ; A/2131/
Add. 5, Aug. 18, 1952. 81 pp. mimeo ; A/2131/Add. 6,
Aug. 1952. 40 pp. mimeo ; Summary of General
Trends in Territories Under United Kingdom Ad-
ministration. A/2134/Add. 4, Aug. 18, 1952. 14 pp.
mimeo.
Constitutions, Electoral Laws and Other Legal Instru-
ments Relating to the Franchise of Women and Their
Eligibility to Public Office and Functions. Memo-
randum by the Secretary-General. A/2154, Aug. 13,
1952. 12 pp. mimeo.
Comments Received From Governments Regarding the
Draft Code of Offences Against the Peace and Se-
curity of Mankind and the Question of Defining Ag-
gres.s"ion. A/2162, Aug. 27, 19.52. 37 pp. mimeo.
.\pplication of Vietnam for Admission to Membership in
the United Nations. Letter dated 7 August 1952 from
the Minister for Foreign Affairs of Vietnam addressed
to the Secretary-General. A/2168, Sept. 3, 1952. 5
pp. mimeo.
Trusteeship Council
Trusteeship Council Tenth Session, 27 February to 1 April
1952, Disposition of Agenda Items. T/INF/24, Aug.
13, 1952. 54 pp. mimeo.
Draft Report of the Trusteeship Council to the General
Assembly Covering its Fourth Special Session and
its Tentii and Eleventh Sessions (18 December 1951
to . . . July 19.52). Prepared by the Secretariat.
T/L. 307, July IS, 1952. 61 pp. mimeo.
^ Printed materials may be secured in the United States
from the International Documents Service, Columbia Uni-
versity Press, 2960 Broadway, New York 27, N. Y. Other
materials (mimeographed or processed documents) may
be consulted at certain designated libraries in the United
States. ^^
The United Nations Secretariat has established an Offi-
cial Records series for the General 'Assembly, the Security
Council, the Economic and Social Council, the Trustee-
ship Council, and the Atomic Energy Commission, which in-
cludes summaries of proceedings, resolutions, and reports
of the various commissions and committees. Informa-
tion on securing subscriptions to the series may be ob-
tained from the International Documents Service.
Sepfemfaer 29, J952
503
The United States in tlie United Nations
[Sept. 15-26, 1952]
Security Council
Admission of Neio Members — The Council, on
September 12, voted to consider directly, witliout
referral to its Committee on the Admission of
New ^lembers, the applications of Libya, Japan,
Vietnam, Laos, and Cambodia for membership in
the United Nations.
■On September 16, the Council voted 10-1
(U.S.S.R.) on the Pakistan proposal to recommend
the admission of Libya. The draft resolution was
not adopted because of the negative vote of a per-
manent member of the Council.
Jacob A. Malik (U.S.S.R.), in explaining his
negative vote, declared that, although his Govern-
ment favored the admission of Libya, it was op-
posed to the admission of "favorites" of the United
States and its supporters alone, while states
equally qualified for membership were rejected.^
The application of JajDan was considered at
meetings on September 17 and 18. Ten members
of the Council spoke in favor of the United States
draft resolution calling upon the Council to rec-
ommend to the General Assembly the admission
of Japan.
Warren R. Austin (U.S.) said that the "great
nation" of Japan had succeeded in establishing a
new structure of government and leadership versed
in the ways of freedom and peace. Japan was a
sovereign and independent state and already had
"a long history of cooperation in many areas with
the United Nations," he declared. The United
States was "proud to recognize Japan's return to
the international community of nations."
The vote on the admission of Japan, taken Sep-
tember 18, was 10-1 (U.S.S.R.). Mr. Malik, in
explaining his stand, said that Japan was not an
independent and sovereign state but "an American
colony" and an American base for aggression in
Korea and the Far East.
Mr. Austin, in commenting on some of the
charges made by Mr. Malik, stated in part :
What Mr. Malik calls a separate peace treaty i.s a
treaty with Japan signed by 48 states, all members of
the United Nations or applicants for membership. . . .
If the U.S.S.R. is still at war with .Tapan it is the choice
of the U.S.S.R. Incidentally, the U.S.S.R. declared war
on .Japan but six days before the cessation of hostilities.
' For statement by Ambassador Warren R. Austin on
Libya's application for admission, see p. 502.
The Soviet Union refused to become a party to the peace
settlement with Japan reached at San Francisco. Ef-
forts of the United States to consult with the U.S.S.R.
were rebuffed during the preliminary stages of negotia-
tions which led to the draft peace treaty. The U.S.S.R.
sent a delegation to San Francisco ostensibly to be pres-
ent on the occasion of signing the treaty. In fact, this
delegation attempted to obstruct the conclusion of the
treaty which, as I have said before, was signed by 48
states. ...
The Soviet charges that Japan is undemocratic, that
it is being tyrannized by the United States, and that its
sovereignty is subject to United States control and there-
fore ineligible for membership in the United Nations
have already been repudiated by the members of the
Security Council who spoke yesterday in favor of Japan's
admission to the United Nations.
The imity of ten out of the eleven members of the
Security Council increases the strength and moral power
of those countries of the world which believe the gospel
of the Charter of the United Nations.
The applications of Vietnam, Laos, and Cam-
bodia were considered together at meetings on
September 18 and 19. Votes were taken sep-
arately on September 19 on the three draft reso-
lutions submitted by France to recommend the ad-
mission of the three states. The result on each
was 10-1 (U.S.S.R.).
In support of the applications of Vietnam, Laos,
and Cambodia, Mr. Austin (U.S.) cited concrete
ways in which each of these states has shown its
desire "to make constructive contributions to the
LTnited Nations and to the principles of the Char-
ter." He pointed out that all three are members
of the United Nations Educational, Scientific and
Cultural Organization, the Food and Agriculture
Organization, the World Health Organization, the
International Telecommunication Union, and the
Universal Postal Union, and that Vietnam is also
a member of the International Labor Organi-
zation.
Each of these states is also an associate member
of the Economic Commission for Asia and the
Far East.
Furtliermore, Vietnam has made or pledged con-
tributions to the United Nations program for
Korea, Palestine, and technical assistance. Cam-
bodia has made or pledged its contributions for
Korea and technical assistance.
Later, on September 19, a vote was taken on the
Soviet draft resolution recommending the admis-
sion of the Democratic Republic of Vietnam for
admission to membership. The vote, taken by a
show of hands, was 10-1 (U.S.S.R.).
504
Department of State Bulletin
[conomic and Social Council (ECOSOC)
^ubcommission. on Prercnthii of Discrimi-nation
md Protection of Minorities— T\\& Subconmiis-
;ion began discussions September 22 on the ques-
ion of wliat further action the United Nations
should take to help reduce prejudice and remove
iiscrimination. A resolution adopted at the last
Greneral Assembly session declared that these are
'two of the most important branches of the posi-
;ive work undertaken by the United Nations" and
requested the Subconmiission to propose practical
steps to continue this work within the framework
3f the United Nations.
Among the subjects under discussion are dis-
crimination in employment, in education, in resi-
dence and movement, in political rights, in imnii-
gi-ation and travel, and in the right to choose a
spouse. The Subcommission will recommend to
the Economic and Social Council which of these
studies should be initiated.
Members were elected by Ecosoc to serve m their
individual capacity as experts and not as repre-
sentatives of their governments. Jonathan
Daniels is the United States member. Other
countries represented are India, Haiti, Ecuador,
China. Sweden, the U.S.S.R., the United King-
dom, Belgium, Iran, and Poland.
At their first meeting, the experts sustained a
ruling of the former chairman, M. R. Masani of
India, that the Soviet proposal to unseat the
Chinese expert was out of order. The vote was
8-2 (Poland, U.S.S.R.)-! (India). H. Eoy of
Haiti was elected chairman of the fifth session.
In a statement at the second meeting, on Sep-
tember 23, Mr. Daniels observed that the Sub-
commission's past reports had been largely
disregarded and that its work had not had an
impact on the mind of the world. At this session,
he advised, the Subcommission must demonstrate
that it has "some relationship to reality."
General Assembly
As the result of a drawing held September 23
in the Secretary-General's office, the delegation
of the U.S.S.R. to the seventh General Assembly
opening at New York October 14 will occupy the
first position in the front row of the Assembly
Hall, to the right of the President as he faces
the delegates.
The other 59 delegations will be seated m
alphabetical order.
Committee on Administrative Unions — The
Committee at its first meeting September 23 elected
A. D. Mani of India as chairman. Its function
is to consider questions arising from the joint ad-
ministration of a United Nations trust territory
with neighboring territories in customs, fiscal, or
administrative fields, in order to enable the Gen-
eral Assembly to arrive at conclusions as to
whether such administrative arrangements are
compatible with the United Nations Charter and
the trusteeship agreements.
September 29, 1952
The Committee has before it a comprehensive
report, already adopted by the Trusteeship Coun-
cil, which analyzes administrative unions affecting
certain trust territories. It is to submit its obser-
vations to the forthcoming General Assembly
session.
Members in addition to the chairman are "Wil-
liam I. Cargo (U.S.), Jacques Houard (Belgium),
and Carlos Calero Rodriques (Brazil).
Committee on Information from N on-Self -Goy-
eming Territories — In the course of the Commit-
tee's discussion of economic conditions in non-self-
governing territories, William Cargo (U.S.)
declared that the principles embodied in the Com-
mittee's 1950 report on education and its 1951
report on economic development coincide in gen-
eral with the principles which the United States
strived to attain in its territories. The United
States Government, he said, would keep the Com-
mittee informed of developments relating to the
special reports.
Mr. Cargo repudiated criticisms made by the
Soviet representative. He pointed out that the
Committee's special report on economic develop-
ment recognized that considerable financial help
to the non-self-governing territories was being
provided by the metropolitan countries by loans or
other forms of controlled investment.
This was true of the territories administered by
the United States, Mr. Cargo said, and he was sure
that it applied equally to other territories.
On September 16 the Committee completed dis-
cussion of economic conditions and began to dis-
cuss the main item before the present session—so-
cial conditions in non-self-governing territories.
Speaking for the United States, Mason Barr, its
special adviser on social matters, on September 17
described the progi'ess achieved in the United
States territories and the aid extended by the
Federal Govermnent. In connection with local
programs, he spoke of the policy of matching the
funds called for, dollar for dollar, sometimes
three for one, with Federal aid. He also de-
scribed the progress achieved in the fields of so-
cial security, old-age pensions, vocational train-
ing, and housing. In Puerto Rico, for instance,
he said that 60 percent of the total budget was
spent on education, health, and public welfare.
At the meeting on September 23, Henry Holle,
special adviser to the United States delegation,
cited the improvement in birth and death rates
in the six U.S.-administered territories. He
noted that research was carried on at the gov-
ernmental level and through special grants which
amounted to $23,000,000 in 1951. During this
same year these grants per capita had been five
times greater in the territories than in the United
States itself, he pointed out. The shortage of
personnel, a foremost problem, would take time
to solve, he added; in this connection, he called
attention to the United States officials engaged in
raising health standards throughout the world.
505
Economic Development Program
Recommended for Nicaragua
Recommendations for a 5-year program for the
economic development of Nicaragua were made
public on September 16 in the report of a mission
sent to Nicaragua under the joint sponsorship of
the Government of Nicaragua and the Interna-
tional Bank for Reconstruction and Development.
The mission's report was presented in Managua
to Anastasio Somoza, President of the Republic
of Nicaragua, by Robert L. Garner, Vice President
of the International Bank.
In organizing this mission, the Bank departed
from its usual procedure of sending a gi'oup of
experts for 2 or 3 months and instead stationed two
members of its staff in Nicaragua from July 1951
to May 1952. The mission was headed by E. Har-
rison Clark as special representative, with Walter
J. Armstrong as engineering adviser. Specialists
in various fields went to Nicaragua to assist in the
work. In addition, tlie International Monetary
Fund sent a mission on banking and credit.
The mission's objectives were to assist the gov-
ernment in the preparation of an over-all long-
range development program, to advise the govern-
ment on current economic policies as well as im-
provement in the existing administrative and
financial structure to prepare the way for sucli a
development progi'am, and to coordinate the work
of experts from the Bank and other ageiicies and
to assist the government in carrying out their
recommendations.
From its extensive travel in the country, the
Bank's mission concluded that —
few iindei'developetl countries have so great a ijhysical
potential for growth and economic development as does
Nicaragua. By making effective use of its resources, the
country can become, in the future, an important exporter
of meat and dairy products and of a diversitied list of
other agricultural products. It .should continue as a pro-
ducer of timber and mineral.?. It should develop a sound
and well-balanced relationship between industry and
agriculture.
The mission found that the Government of
Nicaragua was fully aware of the needs of the
country and desired to push ahead with economic
development. In line with recommendations of
the mission, the Government already has («)
brought into operation a National Economic
Council to coordinate the development effort ;
(b) completed plans for a National Development
Institute to plan and finance the long-range agri-
cultural and industrial program; (c) undertaken
a sharp increase in development expenditures to
go into effect in 1952-53; (d) taken steps for a
major fiscal reform, including the proposed intro-
duction of an income tax, more effective enforce-
ment of existing direct taxes, and a revision of the
tariff system. Other measures, undertaken before
the mission's arrival, have resulted in increased
internal financial stability.
The program formulated by the mission is de-
signed to help the country move forward simul-
taneously in health, education, transportation,
agriculture, industry, and power. The program
aims within the next 5 years to increase real per
capita income by 15 percent and to increase the
physical volume of agi-icultural and industrial
production by 25 percent.
The population is small in relation to the area
of the country, and as development proceeds labor
shortages may occur in some sectors of the
economy. The mission believes, however, that
modern industrial and agricultural techniques can
offset this handicap.
The mission lists the following specific ob-
jectives :
(a) completion of a major hishway network (now being
constructed under a Bank loan) linking Managua with
Granada, Leon, Chinandega, Jinotega, San .Juan del Sur,
the Tuma Valley and with the east coast; (6) establish-
ment of a complete network of farm-to-raarket roads ;
(c) modernization of the railway; (d) rehabilitation of
the major ocean ports and improvement of lake trans-
portation : (e) establishment of pure water and sanita-
tion facilities In the main towns and many of the smaller
conjmunities ; (f) expansion of the present power capacity
of Managua to triple its present size and formation of a
network to connect with other important cities; (p) in-
creasiuK the number of coffee trees by 25 percent and
expansion of cattle production to the status of a major
industry; (h) e.stablishnient of several new industries, as
well as a number of grain-storage plants; (t) reduction
in the rate of illiteracy and a rise in vocational and tech-
nical education and training; (j) creation of an adequate
medium and long-term credit system and technical assist-
ance for Industry and agriculture.
The mission recommends a minimum program
of investment of 59 million dollars and an opti-
mum program of 7G million dollars during the
period 1952-57. Under either program, about
half the expenditures would be in foreign ex-
change. The mission believes that these invest-
ment goals are within the capacity of the country.
The mission found that in every sector of the
economy high disease rates, low standards of nu-
trition, and low educational and training stand-
ards are the major factors inhibiting the growth
of productivity. Farm mechanization, improved
transportation, and modem industrial machinery
will increase total production, but this increase
will be limited unless there is basic improvement
in the health and living conditions of the coun-
try's limited working population. Community
Corrections
Bulletin of Aug. IS, 1952, p. 245. The italic
sentence, under the heading "German Elections
Commis.sion Adjourns Indefinitely," should read as
follows: Tlir following was released to the press
at Geneva on Angtist 5 by the United Nations In-
jiinnntion Center.
Bi'LLETiN of Sept. 15, 19.52. p. 3S5. Last sentence
of footnote 1 .should read ; See p. .300.
506
Department of State Bulletin
ction in cooperation with government agencies
3 suggested to meet the twin problems of health
,nd education.
In the agricultural sector, the mission's first
ecommendation is that coffee production be in-
reased, in view of the quality of the crop and
he favorable conditions for cultivation. The
lission believes that production should be raised
loth by new plantings and by improved manage-
leut of existing plantings. The program for
grirulture would also provide for improvement
ud expansion of the cattle industry, increased
)roduction of vegetable oils, organization of a
oil-conservation program, construction of addi-
idual crop-storage capacity, development of iri-i-
;ation, initiation of land-use studies, and estab-
ishment of a forestry service.
New industries recommended include milk-con-
entration and pasteurization plants, modern
laugh terhouses, vegetable-oil processing plants,
,nd a small feed-mixing plant. Further study
nay show that such industries as hardboard mills
mcl wire-products manufacture are possible.
The pressing need for textile processing facilities
s now being filled through private investment.
The report points out that although hydro-
hlectric-power development is possible, the basic
echnical data is lacking. The present urgent
jower needs should be filled through the installa-
ion of steam-generating facilities until such time
IS it is possible to develop hydroelectric resources.
Wherever it went, the mission found impressive
lividence of development stimulated by the build-
ing of roads. "V^Hiole areas once isolated from the
capital now trade with it daily, and a considerable
amount of international freight is now being
hauled on the Inter- American Highway. Many
regions, however, are still dependent upon slow
and expensive methods of transporting crops to
market. Since rapid economic gains may be ex-
pected from the opening of these regions, the mis-
sion puts major emphasis on the completion of the
primary highway system as well as a network of
farm-to-market I'oads.
Current Legislation on Foreign Policy
Admission of 300,000 Immigrants. Hearings Before
Sutieommittee No. 1, Committee on the Judiciary,
House of Representatives, S2cl Cong., 2d sess. on
H.K. 737G. A Bill To Autliorize the Issuance of
Three Hundred Thousand Special Nonquota Inmii-
gration Visas to Certain Refugees, Persons of Ger-
man Ethnic Origin, and Natives of Italy, Greece, and
the Netherlands, and for Other Puriwses. May 22,
23, June 2, and 3, 19.52. Serial No. 17. Committee
print. 232 pp.
Federal Supply Management (Over.seas Survey). Con-
ferences Held by a Subcommittee of the Committee
on Expenditures in the Executive Departments
(name changed to Committee on Government Opera-
tions, July 4, 19.52), House of Representatives, S2d
Cong., 1st sess. Oct. 10, 11, 12. IG, 17, IS, 19, 22, 23,
24, 27, 28, 29, Nov. 1, 2, 3, 5, 12, 13, 14, 16, 17, 19, 20,
21, 23, 24, 26, and 28, 1951. Committee print. 1463 pp.
Institute of Pacific Relations. Hearings Before the Sub-
committee To Investigate the Administration of the
Internal Security Act and Other Internal Security
Laws of the Committee on the Judiciary, U.S.
Senate, S2d Cong., 2d sess. on the Institute of Pacific
Relations. Part 12. March 28, 29, 31, and Ai^r. 1,
1952. Committee print. 322 pp.
THE DEPARTMENT
Appointment of Officers
Alfred H. Morton as Head of the Voice of America,
effective October 1.
Parker T. Hart as Director, Office of Near Eastern
Affairs, effective June IS.
Clarke L. Willard as Chief, Division of International
Conferences, effective July 15.
John W. Ford as Chief, Division of Security, effective
July 21.
Edward S. Maney as Chief, Visa Division, effective
Aug. 30.
THE FOREIGN SERVICE
Appointments
John M. Cabot as Ambassador to Pakistan ; effective
Sei)tember 17.
Jack K. McFall as Minister to Finland, effective Sep-
tember 10.
Check List of Department of State
Press Releases: Sept. 15-19, 1952
Releases may be obtained from the Office of the
Special Assistant for Press Relations, Department
of State, Washington 25, D.C.
Press releases issued prior to Sept. 15 which ap-
[loar in this issue of the Bulletin are Nos. 711 of
Sept. 9 and 727 of Sept. 12.
Subject
"U.S. views on Korea at U.N.
Soviet propaganda on germ warfare
Exchange of persons
Exchange of persons
Civil aviation organization
Acheson : European unity
Exchange of persons
Cabot : Ambassador to Paki.stan
Pt. 4 aid to Iran on division of land
Housing and urbanization congress
Proclamation of Venezuelan agreement
Swiss estate tax convention
fHeld for a later issue of the Bulletin
*Not printed
No.
Date
7;!1
9/15
732
9/15
*733
9/16
*734
9/16
1735
9/16
736
9/17
*TA1
9/17
738
9/17
1739
9/lS
740
9/19
741
9/19
742
9/19
September 29, J 952
507
September 29, 1952
Africa
LIBYA: Application for admission to U.N. . . 502
Aid to Foreign Countries
GERMANY: U.S. postwar aid (table) .... 491
KOREA: Agreement on economic coordination
with the Unified Command 499
PAKISTAN: 15 milliou dollar loan for purchase
of U.S. wheat 490
American Republics
Inter-American action to preserve forests . . 492
NICARAGUA: Economic development program
recommended 506
VENEZUELA: President proclaims trade agree-
ment 487
Asia
CHINA: Acheson comments on new Sino-Soviet
agreement 476
KOREA:
Agreement on economic coordination with the
Unified Command 499
Conununist motives for delaying armistice
agreement (Harrison) 474
Report of U.N. Command operations (46tli
report) 495
U.S. views on General Assembly discussion of
Korean issue 476
PAKISTAN: 15 million dollar loan for purchase
of U.S. wheat 490
Recent progress in Asia (Allison) 471
U.S. facing renewed Communist germ warfare
charges 475
Communism
Acheson comments on new Sino-Soviet agree-
ment 476
Communist motives for delaying Korean armi-
stice agreement (Harrison) 474
Encouraging a new sense of world brotherhood
(Lubin) 482
Recent progress in Asia (Allison) 471
U.S. facing renewed Communist germ warfare
charges 475
U.S. publication on forced labor in U.S.S.R.
(Truman) 477
Congress
Current legislation on foreign policy listed . . 507
Europe
GERMANY: U.S. postwar aid (table) .... 491
SWITZERLAND: Tax convention with U.S. . . 486
UNITED KINGDOM:
Consular convention enters into force . . . 489
MsA allotments tor U.K 486
U.S. encouraged by European unity efforts
(Acheson) 477
U.S.S.R.:
Acheson comments on new Sino-Soviet
agreement 476
U.S. publication on forced labor in U.S.S.R.
(Truman) 477
WEST GERMANY: Msa allotments for West
German Republic 486
Finance
Economic development program recommended
for Nicaragua 506
Foreign Service
Appointments 507
Consular convention with U.K. enters into
force 489
Human Rights
Encouraging a new sense of world brotherhood
(Lubin) 482
U.S. publication on forced labor in U.S.S.R.
(Truman) 477
Iceland
Executive director of Immigration and Naturali-
zation Commission appointed 502
Msa allotments for Iceland 486
Index Vol. XXVII, No. 692
International Meetings
Inter-American action to preserve forests . . 492
New member governments for Manganese-
Nickel-Cobalt Committee 503
U.S. DELEGATIONS: Congress of Housing and
Urbanization 502
Labor
U.S. publication on forced labor in U.S.S.R.
(Truman) 477
Mutual Aid and Defense
Msa allotments for U.K., Iceland, and West
German Republic 486
Recent progress in Asia (Allison) 471
Turkish road-building program to be extended
under Msa grant 490
U.S. postwar aid to Germany (table) .... 491
Near East
TURKEY: Road-building program to be extend-
ed with Msa grant 490
Presidential Documents
PROCLAMATIONS: Venezuelan trade agree-
ment 487
Publications
U.S. publication on forced labor in U.S.S.R.
(Truman) 477
State, Department of
Appointments 507
Strategic Materials
New member governments for Manganese-
Nickel-Cobalt Committee 503
Trade
President proclaims Venezuelan trade agree-
ment 487
Treaty Information
KOREA: Agreement on economic coordination
with Unified Command 499
SWITZERLAND: Tax convention with U.S. . . 486
UNITED KINGDOM: Consular convention en-
ters into force 489
VENEZUELA: President proclaims trade agree-
ment 487
United Nations
Disarmament and technical assistance: the way
to a better life (Sandifer) 478
Economic development program for Nicaragua . 506
Encouraging a new sense of world brotherhood
(Lubin) 482
Inter-American action to preserve forests . . 492
Libya's application for admission to U.N. . . 502
Report of Command operations in Korea (46th
report) 495
U.N. documents : a selected bibliography . . . 503
U.S. in the U.N 504
U.S. views on General Assembly discussion of
Korean issue 476
Name Index
Acheson, Secretary 476, 477
Allison, John M 471
Austin, Warren R 502
Cabot, John M 507
Ford. John W 507
Garner. Robert L 506
Harrison, William K 474
Hart, Parker T 507
Lubin, Isador 482
McFall, Jack K 507
Maney, Edward S 507
Morton, Alfred H 507
Rosenfeld, Harry N 502
Sandifer. Durward V 478
Somoza, Anastasio 506
Stone, B. Douglas 502
Truman, President 477,487
Wadsworth, Frank H 492
Willard, Clarke L 507
U. S. GOVERNMENT PRINTING OFFICE: 1952
BOSTON PUBLIC LIBBARV
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