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Full text of "Department of State bulletin"

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Given By 
U. S. SUPT. OF DOCm'rENTS 




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Vol. XXIX, No. 745 
October 5, 1953 




ORGANIZED LABOR'S FIGHT AGAINST WORLD 

COMMUNISM • Address by Secretary Dulles 443 

REAPPRAISING INTERNATIONAL TRADE PRAC- 
TICES • Address by Assistant Secretary Waugh 447 

INTERNATIONAL INVESTMENT AND ECONOMIC 

PROGRESS • Address by Eugene R. Black 451 

UNESCO NATIONAL COMMISSION'S FOURTH CON- 

FERENCE • Addresses by Under Secretary Smith and 
Assistant Secretary McCardle 463 

AGREEMENTS CONCLUDED WITH SPAIN 435 



For index see inside back cover 



Toston Public Li'irary 
Superintendent of Documents 

OCT 2 1 1953 




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9.^^.^,^ bulletin 



Vol. XXIX, No. 745 • Pubucation 5203 
Octofcer 5, 1953 



For sale by the Superintendent of Documcnta 

U.S. Qovemmont Printing OlBce 

Washington 26, D.C. 

Prici: 

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, 1062). 

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



The Department of State BULLETIN, 
a weekly publication issued by the 
Office of Public Affairs, provides the 
public and interested agencies of the 
Government with information on 
developments in the field of foreign 
relations and on the work of the 
Department of State and the Foreign 
Service. The BULLETIN includes 
selected press releases on foreign 
policy, issued by the White House 
and the Department, and statements 
and addresses made by the President 
and by the Secretary of State and 
other officers of the Department, as 
tcell as special articles on various 
phases of international affairs and the 
functions of the Department. Infor- 
mation is included concerning treaties 
and international agreements to 
which the United States is or may 
become a party and treaties of general 
international interest. 

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



Agreements Concluded With Spain 



Press release 519 dated September 26 

The Governments of Spain and the United 
States on September 26 conchided three bilateral 
agreements designed to strengthen the capabilities 
of the West for the maintenance of international 
peace and security. The three agreements cover 
(1) the construction and use of military facilities 
in Spain by the United States, (2) economic as- 
sistance, and (3) military end-item assistance. 
The agreements were signed at Madrid by Don 
Alberto Martin Artajo, Spanish Foreign Minister, 
and James C. Dunn, U. S. Ambassador to Spain. 
Under the tenns of these agreements, Spain be- 
comes eligible for U. S. economic, technical, and 
military assistance under the Mutual Security Pro- 
gram and the United States is authorized to de- 
velop, build, and use jointly with Spanish forces 
certain military airfields and naval facilities in 
Spain. 

Assistance to Spain totaling $226 million during 
fiscal year 1954 will be furnished under the terms 
of the Mutual Security Act. Funds for this pur- 
pose will include the $125 million for economic, 
technical, and military aid to Spain appropriated 
in 1951 and 1952 and now carried over by Con- 
gress, and $101 million included in the funds re- 
cently appropriated by Congress to carry on the 
Mutual Security Program during the fiscal year 
ending June 30, 1954. Of this amount $85 million 
is for defense-support assistance and $141 million 
is for military end-item assistance. 

Under the terms of these agreements, the 
United States will start construction to develop 
certain existing Spanish military airfields for joint 
use by the Spanish Air Force and the U. S. Air 
Force and will modernize certain naval facilities 
for use by the Spanish and U. S. navies. The 
agreements also provide for the subsequent de- 
velopment of additional military facilities as 
future conditions may require. 

Of the $125 million carried over from previous 
appropriations for aid to Spain, $50 million is to 
be expended on military end-items which will pro- 
vide training equipment and military materiel. 
The balance of these funds, $75 million, will be 
used for defense-support assistance to strengthen 
the economic foundation for the support of the 

October 5, 1953 



program of military cooperation. This assistance 
will finance Spanish imports of raw materials, 
commodities, and equipment and will provide such 
technical assistance as may be required in connec- 
tion with the program. 

In addition to the $125 million, Spain will re- 
ceive $91 million for military end-item assistance 
and $10 million for defense support assistance 
from funds appropriated for the Mutual Security 
Program in fiscal year 1954. 

The Government of Spain will make its con- 
tribution to the development and support of the 
jointly used military facilities by devoting a por- 
tion of the peseta counterpart resulting from U.S. 
defense-support assistance toward defraying con- 
struction costs which are payable in Spanish cur- 
rency. 

The militai-y areas to be used jointly remain 
under Spanish sovereignty and command. The 
U.S. command in each case is responsible for U.S. 
military and technical personnel and for the op- 
erational effectiveness of U.S. military facilities 
and equipment. 

To facilitate carrying out the terms of the agree- 
ments, two groups will be immediately established 
in Spain, under the general direction of the Am- 
bassador, similar to those which are normally 
maintained in countries receiving economic, tech- 
nical, and military aid from the United States. 
In connection with the economic and technical as- 
sistance to Spain, a U.S. Operations Mission is 
being set up. Similarly, a military assistance ad- 
visory group is being established to coordinate the 
military assistance program with the Spanish au- 
thorities. 

The signing on September 26 marked the suc- 
cessful conclusion of negotiations which were 
opened with the Spanish Government in April 
1952. Initial steps leading to these negotiations 
included an exploratory conversation which the 
late Admiral Forrest Sherman held with Gen. 
Francisco Franco at Madrid on July 16, 1951, to 
ascertain what Spain might be willing and able 
to contribute to the strengthening of the common 
defense against possible aggression. Following 
this visit, economic and military surveys were 
made in Spain prior to the opening of negotia- 
tions. 



435 



The negotiations were brought to a conchision 
by Ambassador Dunn. A joint U.S. militarj- 
group, headed by Maj. Gen. A. W. Kissner, 
tJ.S.A.F., assisted the Ambassador in the nego- 
tiations leading to the agreements on the con- 
struction and use of military facilities and on mili- 
tary end-item assistance; a Mutual Security 
Agency economic group, led by George F. Train, 
aided in the negotiations for the Economic Aid 
Agreement. 



TEXT OF DEFENSE AGREEMENT 



PREAMBLE 

Faced with the danger that threatens the western world, 
the Governments of the United States and Spain, desiring 
to contribute to the maintenance of international peace 
and security through foresighted measures which will 
increase their capability and that of the other nations 
which dedicate their efforts to the same high purposes to 
participate effectively in agreements for self defense, 

Have agreed as follows: 

Article I 

In consonance with the principles agreed upon in the 
Mutual Defense Assistance Agreement, the Governments 
of the United States and of Spain consider that the con- 
tingencies with which both countries may be faced indicate 
the advisability of developing their relations upon a basis 
of continued friendship, in support of the policy of 
strengthening the defense of the West. This policy shall 
include : 

1. On the part of the United States, the support of 
Spanish defense efforts for agreed purposes by providing 
military end item assistance to Spain during a period of 
several years to contribute to the effective air defense of 
Spain and to improve the equipment of its military and 
naval forces, to the extent to be agreed upon in technical 
discussions in the light of the circumstances, and with 
the cooperation of the resources of Spanish industry to 
the extent possible. Such support will be conditioned as 
in the case of other friendly nations by the priorities and 
limitations due to the international commitments of the 
United States and the exigencies of tlie international 
situation and will he subject to Congressional appropria- 
tions. 

2. In consequence of the above stated premises and for 
the same agreed purposes, the Government of Spain au- 
thorizes the Government of the United States, subject to 
terms and conditions to be agreed, to develop, maintain 
and utilize for military purposes, jointly with the Govern- 
ment of Spain, such areas and facilities iu territory under 
Spanish jurisdiction as may be agreed upon by the com- 
petent authorities of both Governments as necessary for 
the imrpo.ses of this agreement. 

'.'>. In granting assistance to Spain within the policy out- 
lined above, as the preparation of the agreed areas and 
facilities i)rogresses, the Government of the United States 
will satisfy, subject to the provisions of paragraph one, 
the iriininiuni rc(niiremcnls for etiuipnient necessary for 
the defense of Spanish territory, to the end that should 
a momenl requiring the wartime utilization of the areas 
and facilities arrive, from tins moment, the requirements 
are covered to the extent possible as regards the air 
defense of the territory and the equipment of the naval 
units; and that the armament and equipment of the 
Army units be as far advanced as jiossihle. 

AUTIOLB II 

For the purposes of this agreement and In accordance 
with technical arrangements to be agreed upon between 

436 



the competent authorities of both Governments, the Gov- 
ernment of the United States is authorized to improve 
and fit agreed areas and facilities for military use, as 
well as to undertake necessary construction in this con- 
nection in cooperation with the Government of Spain, to 
station and house therein the necessary military and 
civilian personnel, and to provide for their security, disci- 
pline, and welfare ; to store and maintain custody of provi- 
sions, supplies, equipment and materials ; and to maintain 
and operate the facilities and equipment necessary in 
support of such areas and personnel. 

Article III 

The areas which, by virtue of this Agreement, are pre- 
pared for joint utilization will remain under Spanish flag 
and command, and Spain will assume the obligation of 
adopting the necessary measures for the external security. 
However, the United States may, in all cases, exercise the 
necessary supervision of United States personnel, facili- 
ties, and equipment. 

The time and manner of wartime utilization of said 
areas and facilities will be as mutually agreed upon. 

Abticle IV 

The Government of Spain will acquire, free of all charge 
and servitude, the land which may be necessai-y for all 
military purposes and shall retain the ownership of the 
ground and of the permanent structures which may be 
c<mstructed thereon. The United States Government re- 
serves the right to remove all other constructions and 
facilities established at its own expense when it is deemed 
convenient by the Government of the United States or 
upon the termination of this Agreement ; in both cases 
the Spanish Government may acquire them, after previous 
assessment, whenever they are not installations of a classi- 
fied nature. 

The Spanish state will be responsible for all claims 
made against the United States Government by a third 
party, in all cases referring to the ownership and utiliza- 
tion of the above-mentioned land. 

Article V 

The present Agreement will become effective upon sig- 
nature and will be in force for a period of ten years, auto- 
matically extended for two successive periods of five years 
each unless the termination procedure hereafter outlined 
is followed. 

At the termination of the first ten years or of either of 
the two extensions of five years, either of the two Govern- 
ments may inform the other of its intention to cancel the 
Agreement, thus initiating a consultation period of siJ 
months. In the event concurrence Is not reached on exten- 
sion, this Agreement will terminate one year after the 
conclusion of the period of consultation. 

In witness whereof the respective representatives, duly I 
authorized for the purpose, have signed the present agree- 
ment. 

Done at Madrid, in duplicate, in the English and Span- 
ish languages, both texts authentic, this twenty-sixth day 
of September, 1953. 

For the Government of the United States of America : 
James Clement Dunn 
Ambassador of the United Statin of America 

For the Government of Spain : 

Albekto M.\rtis Autajo 
Minister of Foreign Affairs 



TEXT OF ECONOMIC AID AGREEMENT 

The Governments of the United States of America and 
Spain, 

Recognizing that individual liberty, free instituthms, 
and genuine indeiH'iulence In all countries, as well as de- 



Deparlment of Sfofe Bulletin 



fense against aggression, rest largely on the establish- 
ment of a sound economy ; 

Considering that the Congress of the United States of 
America has enacted legislation enabling the United 
States of America to furnish military, economic, and tech- 
nical assistance to Spain ; 

Desiring to set forth the principles which govern the 
furnishing of economic and technical assistance by the 
Government of the United States of America under the 
Mutual Security Act of 1951, as amended, and the meas- 
ures which the two governments will undertake individ- 
ually and together in furtherance of the objectives of the 
said legislation ; 

Have agreed as follows: 

Article I. Assistance. 

(a) The Government of the United States of America 
will furnish the Government of Spain, or any person, 
agency or organization which the latter may designate, 
such economic and technical assistance as may be re- 
quested by the Government of Spain and approved by the 
Government of the United States of America under the 
provisions and subject to all the terms, conditions and 
termination provisions of the then applicable United 
States laws as well as and subject to the arrangements 
provided in this agreement. 

(6) The two governments will establish procedures 
whereby the Spanish Government will so deposit, segre- 
gate or protect all the funds allocated to or derived from 
any program of assistance from the United States in or- 
der that such funds shall not be subject to attachment, 
confiscation, seizure or any other legal processes by any 
person, firm, agency, corporation, organization or gov- 
ernment when, in the opinion of the United States, any 
such legal process would interfere with the attainment 
of the objectives of the said program of assistance. 

Artict.e II. General Undertakings. 

(1) In order to further the objectives set forth in the 
Mutual Security Act of 1951 and to achieve the maximum 
benefits through the employment of assistance received 
from the Government of the United States of America, 
the Government of Spain will use its best endeavors: 

(a) To adopt or maintain the measures necessary to 
insure the effective and practical use of all resources 
available to it, including: 

(i) such measures as may be necessary to insure that 
the materials and services furnished under this Agree- 
ment, including materials and services obtained from the 
funds deposited in the Special Account under Article V 
of this Agreement, are used only for purposes agreed 
upon by the two governments ; 

(ii) the observation and review of the use of such ma- 
terials and services through an effective and mutually 
acceptable follow-up system ; 

(iii) to the extent practicable, measures to locate, iden- 
tify, and put into appropriate use assets and income lo- 
cated in the United States of America, its territories and 
possessions and belonging to Spanish subjects. This 
clause does not impose any obligation on the United 
States of America to assist in carrying out such measures. 

(6) To stabilize its currency, establish or maintain a 
valid rate of exchange, balance its governmental budget as 
soon as practicable, create or maintain internal financial 
stability, and generally restore or maintain confidence in 
its monetary system ; 

(c) To cooperate with the Government of the United 
States of America in ensuring that any procurement fi- 
nanced with assistance furnished by the Government of 
the United States of America to the Government of Spain 
will be effected at reasonable prices and on reasonable 
terms and that the distribution in Spain of such materials 
and services will be made in such a way that such goods 
and services will be effectively utilized for the purpose 
for which they were intended ; 



(d) To cooperate with the Government of the United 
States in ensuring that any procurement similarly financed 
and made from areas outside of the United States of 
America, its territories and possessions, will be similarly 
effected at reasonable prices and on reasonable terms, and 
so as to arrange that the dollars thereliy made available 
to the country from which the materials and services are 
procured are used in a manner consistent with any ar- 
rangements made by the Government of the United States 
of America with such country ; 

( c) To discourage cartel and monopolistic business prac- 
tices and business arrangements which I'esult in restrict- 
ing production and increasing prices or which curtail in- 
ternational trade, to encourage competition and produc- 
tivity and to facilitate and stimulate the growth of in- 
ternational trade by reducing barriers which may hamper 
such trade when the attainment of the agreed program 
may be affected. 

(/) To make as promptly as possible an agreement with 
the Government of the United States of America in which 
will be established for United States natioiuils and com- 
panies a system of payments and international transfers, 
including the progressive conversion of their accumulated 
peseta balances. 

(g) To assist the Government of the United States of 
America in observing and reporting on labor conditions in 
Spain as these relate to the aims and operations of the 
Mutual Security Program. 

(2) The Government of each country will: 

(a) join in promoting international understanding and 
good will and maintaining world peace ; 

(&) take such action as may be mutually agreed upon to 
eliminate causes of international tension; 

(c) fulfill the military obligations which it has assumed 
in multilateral or bilateral agreements or treaties to 
which both governments are parties. 

(3) The Government of Spain will: 

(o) make, consistent with its political and economic 
stability, the full contribution permitted by its manpower, 
resources, facilities, and general economic condition to 
the development and maintenance of its own defensive 
strength and the defensive strength of the free world ; 

(6) take all reasonable measures which may be needed 
to develop its defense capacities; and 

(c) take appropriate .steps to insure the effective utili- 
zation of the economic and military assistance provided 
by the United States. 

Article III. Guaranties. 

Both governments will, upon the request of either gov- 
ernment, consult respecting projects in Spain proposed by 
nationals of the United States of America with regard to 
which the Government of the United States of America 
may appropriately make guaranties in accordance with 
the provisions of the Mutual Security Act of 1951 as 
amended, as it incorporates section III (b) 3 of the 
Economic Cooperation Act of 1948, as amended. With 
respect to such guaranties extending to projects which 
are approved by the Government of Spain, the Govern- 
ment of Spain agrees: 

(a) that, if the Government of the United States of 
America makes payment in United States dollars to any 
person under such a guaranty, the Government of Spain 
will recognize the tran.sfer to the United States of any 
right, title or interest of such person in assets, currency, 
credits, or other property on account of which such pay- 
ment was made and the subrogation of the United States 
to any claim or cause of action of .such person arising in 
connection therewith. The Government of Spain shall 
also recognize any transfer to the Government of the 
United States of America pursuant to such guaranty of 
any compensation for loss covered by such guaranties re- 
ceived from any source other than the Government of 
the United States of America. 

(6) that peseta amounts acquired by the Government 
of the United States pursuant to such guaranties shall 
not receive less favorable treatment than that accorded 



October 5, 1953 



437 



at the time of such acquisition to private funds arising 
from transactions of United States nationals which are 
comparable to transactions covered by such guaranties, 
and that such peseta amounts will be freely available to 
the Government of the United States of America for ad- 
ministrative expenditures. 

(c) that any claim of the Government of the United 
States of America against the Government of Spain, 
which results from the aforesaid subrogation, or which 
relates to the aforesaid assets, currency, credits or other 
property, or any difference arising under this Article, 
shall be submitted to direct negotiation between the two 
governments. If, within a reasonable period, they are 
unable to settle the claim or difference by agreement, it 
shall be referred for final binding determination to a sole 
arbitrator selected by mutual agreement. If the Govern- 
ments are unable, within a period of three months, to 
agree upon such selection, the arbitrator shall be one 
who may be designated by the President of the Interna- 
tional Court of Justice at the request of either Government. 

Abticle IV. Access to Certain Products. 

(1) The Spanish Government will facilitate the acquisi- 
tion by the United States of America, upon reasonable 
terms of sale, exchange, barter, or otherwise, and in such 
quantities and for such period of time as may be agreed 
between both governments, of those materials originating 
in Spain which the United States of America might re- 
quire, as the result of deficiencies or potential deficiencies 
in its own resources and for stockpiling or other purposes. 
In such transactions due regard will be taken of the re- 
quirements of Spain for such products, both for domestic 
use as well as for its export trade. The Spanish Govern- 
ment will take such specific measures as may be necessary 
to carry out the provisions of this paragraph, including 
the promotion of the production of the materials in ques- 
tion and the removal of any hindrances to the acquisition 
of such materials by the United States of America or their 
receipt. At the request of either of the two governments, 
negotiations will be initiated for arrangements necessary 
to fulfill the provisions of this paragraph. The Govern- 
ment of the United States of America will endeavor to 
assist the Spanish Government to increase production in 
Spain of materials referred to in this Article if it is 
agreed that such action is practicable and consistent with 
the purposes of the Mutual Security Act, as amended. 

(2) With respect to materials produced outside of Spain, 
both governments, at the request of either of them, will 
always cooperate wherever appropriate to further the ob- 
jectives of paragraph 1 of this Article. 

Article V. Local Currency. 

(1) The provisions of this Article shall apply only with 
respect to economic and technical assistance which may 
be furnished by the Government of the United States of 
America on a grant basis. 

(2) A special account will be established in the Bank of 
Spain in the name of the Government of Spain (here- 
inafter called the Special Account) in which will be de- 
posited pesetas in amounts commensurate with the dollar 
cost to the Government of the United States of commodi- 
ties, services and technical information (including any 
costs of processing, storing, transporting, repairing or 
other services) made available to the Govcrntnent of 
Spain on a grant basis under this agreement. The Gov- 
ernment of the United States of America .shall, from time 
to time, notify the Government of Spain of the dollar cost 
of such commodities, services ami teclinical information 
and the Government of Spain will thereupon deposit In 
the Siieclal Account the equivalent amount of pesetas 
computed at the rate of exchange mutually aprreed be- 
tween the two governments. If, at such time or times of 
notification, the Government of Spain Is a member of the 
International Monetary Fund and shall have agreed with 
the International Monetary Fund upon a rate of exchange, 



the amount of pesetas to be deposited shall be computed 
at the rate of exchange which shall be the par value agreed 
at such time with the International Monetary Fund ; pro- 
vided that this agreed value is the single rate applicable 
to the purchase of dollars for imports into Spain. If at 
the time of notification a par value for the peseta is agreed 
with the Fund and there are one or more other rates ap- 
plicable to the purchase of dollars for imports into Spain, 
or, if at the time of notification no par value for the 
peseta is agreed with the Fund, the rate or rates for this 
purpose shall be mutually agreed upon between the two 
Governments. The Spanish Government shall be able at 
any time to make advance deposits in the Special Account 
which shall be credited against subsequent notifications 
pursuant to this paragraph. 

(3) (a) The Government of the United States of Amer- 
ica will, from time to time, notify the Spanish Govern- 
ment of its requirements in pesetas for administrative 
and operating expenses incident to operations in Spain 
under the Mutual Security Act of 1951 and acts amenda- 
tory or supplementary thereto, and the Spanish Govern- 
ment will thereupon place at the disposition of the Gov- 
ernment of the United States such sums, withdrawing 
them from any balances in the Special Account in the 
manner requested by the Government of the United States i 
in the notification. Such sums will be charged to the per- 
centage referred to in this paragraph. Ten percent (10%) 
of each deposit made pursuant to this Article will be ■ 
l)laced at the disposition of the Government of the United I 
States of America. It is understood that the Government ) 
of the United States of America will not convert funds < 
acquired pursuant to this paragraph into any other cur- 
rency without prior consultation with the Spanish 
Government. 

(6) Both Governments will agree to the number of and ' 
fceneral characteristics of military facilities for mutual 
defense to be constructe<l in Spain and the Government 
of tlie United States of America will, from time to time, i 
notify the Spanish Government of requirements for peseta 
expenses which arise from the construction and mainte- 
nance of such military facilities. The Government oti 
Spain will thereupon make such amounts available out ofl 
any balances existing in the Special Account, in the man- 
ner requested by the Government of the United States ini 
the notification. 

(4) Recognizing the priority of expenses referred to in i 
Paragraph 3 of this Article, the Spanish Government may; 
withdraw funds from any balance existing in the Special i 
Account for such expenditures as may be agreed periodi- 
cally with the Government of the United States of America, 
and which will be in accord with the objectives prescrlbedl 
in the Mutual Security Act of 19,")1, as amended. 

(5) Any unencumbered balance remaining in the Spe-I 
cial Account ui)on the termination of assistance under 
this agreement other than unexpended amounts allocated 
under Paragraph 3 (a) of this Article shall be disposed 
of within Spain for such purposes as may hereafter be 
agreed upon by the Governments of the United States of' 
America and Spain; it being understood that the Agree- 
ment of the United States of America shall be subject to 
approval by Act or joint resolution of the Congress of tlie 
United Slates of America. 

Article VI. Consultation and Transmittal of Information,' 

(1) The two Governments will, upon the request of either 
of them, consult regarding any matter relating to the ap- 
plication of this agreement or to operations or arrange- 
ments carried out pursuant to this .Agreement. 

(2) The Government of Spain will communicate to the 
Government of the United States of America in a form and' 
at Intervals to be determined t>y the latter after consulta-i 
(ion with the Government of Spain : 

(a) detailed Information concerning projects, program* 
and measures i)r()poscd or adopted by the Government oti 
Spain to carry out the provisions of this Agreement; 

(b) full statements of operations under this AgreementJ 



438 



Department of Stale Bulletin\ 



Including a statement of the use of funds, commodities 
and services received tliereunder, sucti statements to be 
made in each calendar quarter ; 

(c) information relating to the Spanish economy, in- 
cluding national and international accounts, which the 
Government of the United States of America may need 
to determine the nature and scope of operations under 
the Agreement and to evaluate the effectiveness of as- 
sistance furnished or contemplated under this Agreement 
and generally the progress realized in this field during 
the period of this Agreement. 

(3) The Government of Spain will assist the Govern- 
ment of the United States of America to obtain information 
relatmg to the materials originating in Spain referred to in 
Article IV which is necessary to the formulation and 
execution of the arrangements provided for in that Article. 

Article VII. Publicity. 

(1) The Government of the United States of America 
and the Government of Spain recognize that it is in their 
mutual interest that full publicity be given to the ob- 
jectives and progress of the assistance being rendered 
pursuant to this Agreement and that all pertinent informa- 
tion be made available to the people of Spain. The Span- 
ish Government will encourage the dissemination of such 
information, giving to the assistance furnished by the 
United States Government pursuant to this Agreement, 
full and continuous publicity through the press, radio and 
all other available media in Spain and will allow to the 
United States Government, by agreement with the Spanish 

i Government, the use of such media as may be required 
to accomplish this purpose. 

(2) The Government of Spain will grant to representa- 
tives of the United States press full freedom to observe 
and report on the operation of the economic and technical 
assistance programs conducted pursuant to this Agree- 
ment. 

(3) The Government of Spain will make public in Spain, 
in each calendar quarter, full statements of operations 
under this Agreement, including information as to the 
use of funds, commodities and services received. 

Article VIII. Special Economic Mission. 

(1) The Government of Spain agrees to receive a special 
Economic Mission which will discharge the responsibilities 
of the Government of the United States of America in 
Spain under this agreement. 

(2) The Spanish Government will, upon appropriate 
notification from the Ambassador of the United States 
of America in Spain, consider the Special Mission and 

I its personnel and the United States Special Representa- 
tive in Europe as part of the Embassy of the United 
States of America in Spain for the purpose of enjoying 
the privileges and immunities accorded to that Embassy 
and its personnel of comparable rank. 
(8) The Spanish Government will extend full coopera- 
tion to the personnel of the Special Mission and to the 
aforementioned U. S. Representative in Europe and his 
staff. Such cooperation shall include the provision of all 
information and facilities necessary to the observation 
and review of the carrying out of this Agreement, includ- 
ing the use of assistance furnished under it. 

Article IX. Settlement of Claims of Nationals. 

(1) The Governments of the United States of America 
and Spain agree to submit to the decision of the Inter- 
national Court of Justice, or of a court of arbitration or 
arbitral tribunal to be mutually agreed upon, any claim 
espoused or presented by either Government on behalf 
of one of its nationals arising as a consequence of gov- 
ernmental measures (other than measures taken by the 
Government of the United States of America concerning 
enemy property or interests) taken after April 3, 194S 
by the other Government and affecting property or inter- 
est of such national, including contracts with or conces- 



sions granted by the duly authorized authorities of such 
other Government. It is understood that the undertaking 
of the Government of the United States of America in re- 
spect of claims espoused by the Government of Spain 
pursuant to this paragraph is made under the authority 
of and is limited by the terms and conditions of the rec- 
ognition by the United States of America of the compul- 
sory jurisdiction of the International Court of Justice 
under Article 36 of the Statute of the Court, as set forth 
in the Declaration of the President of the United States 
of America dated August 14, 1946. 

(2) It is further understood that neither Government 
will espouse or present a claim pursuant to this Article 
imtil its national has exhausted the administrative and 
judicial procedures of the country in which the claim 
arose. 

(3) The provisions of this Article shall be in all re- 
spects without prejudice to other rights of access, if any, 
of either Government to the International Court of Jus- 
tice or other arbitral tribunal or to the espousal and 
presentation of claims based upon alleged violations by 
either Government of rights and duties arising under 
treaties, agreements or principles of international law. 

Article X. Entry into Force, Amendment, Duration. 

(1) This Agreement shall become effective on this 
day's date. Subject to the provisions of paragraphs 2 
and 3 of this Article, it shall remain in force until June 
30, 19.56. and unless at least six months before June 30, 
1956, either Government .shall have given notice in writ- 
ing to the other of intention to terminate the Agreement 
on that date, it shall remain in force thereafter until the 
expiration of sis months from the date on which such 
notice shall have been given. 

(2) If during the life of this Agreement, either Gov- 
ernment should consider there has been a fundamental 
change in the basic assumptions underlying this Agree- 
ment, it shall so notify the other Government in writing 
and the two Governments will thereupon consult with a 
view to agreeing upon the amendment, modification or 
termination of this Agreement. If, after three months 
from such notification, the two Governments have not 
agreed upon the action to be taken in the circumstances, 
either Government may give notice in writing to the 
other of intention to terminate this Agreement. Then, 
subject to the provisions of paragraph 3 of this Article, 
this Agreement shall terminate either: 

(ft) six months after date of such notice of intention to 
terminate, or 

(6) after such shorter period as may be agreed to be 
sufficient to ensure that the obligations of the Govern- 
ment of Spain are performed in respect of any assistance 
which may continue to be furnished by the Government of 
the United States of America after the date of such notice ; 
provided, however, that Article IV and paragraph 3 of 
Article VI shall remain in effect until two years after the 
date of such notice of intention to terminate, but not 
later than June 30, 1956. 

(3) Subsidiary agreements and arrangements negotiated 
pur.suant to this Agreement may remain in force beyond 
the date of termination of this Agreement and the period 
of effectiveness of such subsidiary agreements and ar- 
rangements shall be governed by their own terms. Article 
V .shall remain in effect until all the sums in the currency 
of Spain required to be deposited in accordance with its 
own terms have been disposed of as provided in that 
Article. 

(4) This agreement may be amended at any time by 
agreement between the two Governments. 

(5) The Government of the United States will register 
this agreement with the Secretariat of the United Nations. 

In witness whereof the respective representatives, duly 
authorized for the purpose, have signed the present 
Agreement. 



Ocfober 5, 1953 



439 



Done, at Madrid, in duplicate. In the English and 
Spanish languages, l)oth texts authentic, this twenty-sixth 
day of September, 1953. 

For the Government of the United States of America : 
James Clement Dunn 
Ambassador of the United States of America 

For the Government of Spain : 

Albekto Martin Artajo 
Minister of Foreign Affairs 



The United States will, whenever necessary, inform the 
Spanish Government of its requirements for pesetas and 
agrees that its requests to the Spanish Government to 
meet such requirements shall not exceed the amount of 
economic and technical assistance firmly allotted to Spain 
on a grant basis at the time of making such requests. 
(8) It is understood that any agreements which might 
be arrived at pursuant to paragraph (1) of Article IX 
would be subject to approval by the Senate of the United 
States of America. 



Annex 



Inteepretative Notes 



(1) It is understood that the requirements of paragraph 

(1) (a) of Article II, relating to the adoption of measures 
for the efficient use of resources, would include, with 
respect to commodities furnished under the Agreement, 
effective measures for safeguarding such commodities and 
for preventing their diversion to illegal or irregular 
marlfets or channels of trade. 

(2) It is understood that paragraph (1) (c) of Article 
II does not diminish the right and responsibility of the 
United States of America to specify whatever terms and 
conditions of aid are deemed necessary. 

(3) It is understood that the business practices and 
business arrangements referred to in paragraph (1) (e) of 
Article II mean : 

(a) fixing prices, terms or conditions to be observed in 
dealing with others in the purchase, sale or lease of any 
product ; 

(6) excluding enterprises from, or allocating or divid- 
ing, any territorial market or field of business activity, or 
allocating customers, or fixing sales quotas or purchase 
quotas ; 

(c) discriminating against particular enterprises; 

(d) limiting production or fixing production quotas ; 

(e) preventing by agreement the development or appli- 
cation of technology or invention whether patented or 
unpatented ; 

(/) extending the use of rights under patents, trade 
marks or copyrights granted by either country to matters 
which, according to its laws and regulations, are not 
within the scope of such grants, or to products or condi- 
tions of production, use or sale of which are likewise not 
the subject of such grants ; and 

((?) such other practices as the two governments may 
agree to include. 

(4) It is understood tliat the agreement referred to in 
section (1), paragrapli (f), of Article II will provide a 
.system of conversion of peseta balances which takes into 
account at all times fluctuations in Spanish dollar avail- 
abilities. 

(5) It is understood that the United States of America 
does not intend to resell within Spain any of the materials 
which it may acquire pursuant to paragraph (1) of Article 
IV. 

(6) It is understood that the time of notification to 
which refereiico is made in Article V, paragra|ih 2, for Ihe 
purpose rjf (leteiinining the rate of exchange to bo used in 
computing the deposits to be made iipon notifications to 
the (iovcriiment of Sliain of the indicated dollar costs of 
commodities, services, and technical information shall, 
in the case of each notification covering a dislinr.senient 
period, be deemed to lie the d.'ite of tlie last day of the dis- 
bursement period covered iiy the notifliation. 

(7)11 is understood that it is tlie sense and intent of 
the last sentence of paragraph (2) of Article V that the 
Government (jf S|iMin will make arrangements to assui'o 
tliat tlie amounts of pesetas on deposit in the SpeciMl .\c- 
count are sufBiienI at all times to pi'rniit the Government 
of the United States to meet its obligations for ])eseta pay- 
nients for the purposes contem|ilated by this Agreement. 

440 



TEXT OF MUTUAL DEFENSE ASSISTANCE AGREE- 
MENT 

The Governments of the United States of America and 
of Spain, 

Desiring to foster international peace and security, 
to promote understanding and good will and to main- 
tain world peace ; 

Considering that the Congress of the United States 
of America has enacted legislation enabling the United 
States of America to furnish military, economic and 
technical assistance to Spain so that Spain may ac-. 
complish such objectives ; 

Desiring to set forth the undertakings and conditions 
which govern the furnishing of military assistance by 
the Government of the United States of America under 
such legislation and the measures which the two gov- 
ernments will undertake individually and together in fur- 
therance of the above objectives ; 

Have agreed as follows : 

Article I 

1. Each Government will make available to the other, 
and to such other governments as the Parties may in 
each case agree uix)n, equipment, materials, services or 
other assistance in such quantities and in accordance 
with such terms and conditions as may be agreed. The 
furnishing and use of such assistance shall be consistent 
with the Charter of the United Nations. Such assistance 
as may be made available by the Government of the 
United States pursuant to this Agreement will be 
furnishe<l under the provisions and subject to all the 
terms, conditions and other provisions of the Mutual De- 
fense Assistance Act of 1949 and the Mutual Security 
Act of 19.51, acts amendatory or supplementary thereto 
and appropriation acts thereunder. The two Govern- 
ments will, when it is considered necessar>', negotiate 
detailed arrangements necessary to carry out the pro- 
visions of this paragraph. 

2. Botli Governments will utilize this assistance ex- 
clusively for the promotion of international peace and 
security, in accordance with arrangements .satisfactory to 
both Governments, and will not, without prior and mutual 
consent, devote such assistance to puri>oses other than 
those for which it was furnished. 

3. Arrangements will be entered into tinder which 
equiimienl and materials furnislied pursuant to this Agree- 
ment, and no longer required for tlie purposes for which 
originally made available, will be offered for return 
to the country which furnished such equipment and 
materials. 

4. Without prior and mutual consent, neither Govern- 
ment sliall transfer to any jwrson outside that Govern- 
ment, or to any other nation, title to or pos.session of 
any equipment, materials, property. Information, or 
services receive<l under this Agreement. 

.'■>. The Government of Spain will take such .security 
measures as may be agreed in each case betwtrn the two j 
tlovernments in order to |)revent the disclosure or com- 
promise of classified military arlieles, services or infor- 
mation furnished pursuant to this Agreement. 

C. Eacli Government will take apiiropriale measures 

Department of State Bulletin 



consistent with security to Ijeep the public informed of 
operations under this Agreement. 

7. The two Governments will establish procedures 
whereby the Government of Spain will so deposit, segre- 
gate or assure title to all funds allocated to or derived 
from any program of assistance of the United States 
so that such funds shall not be subject to garnishment, 
attachment, seizure or other legal process by any person, 
entity or government when in the opinion of the United 
States any such legal process would interfere with the 
attainment of the objectives of the said program of 
assistance. 

Article II 

The two Governments will, upon request of either of 
them, negotiate appropriate arrangements between them 
providing for the methods and terms of the exchange of 
patent rights and technical information for defense which 
will expedite such exchanges and at the same time pro- 
tect private interests and maintain security safeguards. 

Article III 

1. The Government of Spain, in addition to its com- 
mitments under other agreements with the Government 
of the United States, undertakes to make available to 
the Government of the United States pesetas for the use 
of the latter Government for its administrative and oper- 
ating expenditures in connection with carrying out the 
purposes of the United States foreign aid program. The 
two Governments will forthwith initiate discussions with 
a view to determining the amount of such pesetas and to 
establishing arrangements for the adequate furnishing 
thereof. 

2. The Government of Spain will, except as otherwise 
agreed to, guarantee duty free treatment on importation 
or exportation and exemption from internal taxation ujKin 
products, property, materials or equipment imported into 
its territory in connection with this Agreement or any 
similar Agreement between the Government of the United 
States and the Government of any other country receiv- 
ing military assistance. 

3. a. The operations and expenditures effected in Spain 
by or on behalf of the Government of the United States 
for the common defense effort including those carried out 
as a consequence of any other foreign aid program will 
be relieved from all taxation. To this end the Spanish 
Government will prescribe pertinent procedures satisfac- 
tory to both parties. 

b. A Technical Annex attached to this Agreement and 
authorized by it will establish the terms and general pro- 
cedures for the implementation of this paragraph. 

c. The tax relief authorized above will apply to those 
operations and expenditures of the United States which 
are authorized by the Defense Agreement and arrange- 
ments to be concluded thereunder and the Economic Aid 
Agreement as concluded between the two Governments. 

Article IV 

1. The Government of Spain will admit personnel of 
the Government of the United States who will discharge 
in Spanish territory the responsibilities acquired under 
this Agreement and who will be accorded facilities to 
observe the progress of the assistance made available. 
Sijch personnel, who will be United States nationals, in- 
eluding personnel terajwrarily assigned, will, in their re- 
lations with the Government of Spain, operate as a part 
of the Embassy of the United States of America under 
the direction and control of the Chief of the Diplomatic 
Mission and will have the same status as that of other 
personnel with corresponding rank of the Embassy of 
the United States of America. Upon appropriate notifi- 
cation by the Government of the United States, the Gov- 
ernment of Spain will grant full diplomatic status to an 
agreed number of personnel designated under this 
Article. 



2. The Government of Spain will grant exemption from 
import and export duties on personal property imported 
for the personal use of such personnel or of their families 
and will take adequate administrative measures to facili- 
tate and expedite the importation and exportation of the 
personal property of such individuals and their families. 

Article V 

1. The Government of each country will : 

0. Join in promoting international understanding and 
good will and maintaining world peace ; 

6. Take such action as may be mutually agreed upon 
to eliminate causes of international tension ; 

c. Fulfill the military obligations which it has assumed 
in multilateral or bilateral agreements or treaties to 
which both Governments are parties. 

2. The Government of Spain will : 

a. Make, consistent with its political and economic sta- 
bility the full contribution permitted by its manpower, 
resources, facilities, and general economic condition to 
the development and maintenance of its own defensive 
strength and the defensive strength of the free world ; 

b. Take all reasonable measures which may be needed 
to develop its defense capacities ; and 

c. Take appropriate steps to insure the effective utili- 
zation of the economic and military assistance provided 
by the United States. 

3. Both Governments are prepared to cooperate in in- 
ternational efforts to obtain agreement on universal reg- 
ulation and reduction of armaments under adequate safe- 
guards against violation or evasion. 

Article VI 

In the interest of their mutual security the Govern- 
ment of Spain will cooperate with the Government of 
the United States in taking measures designed to control 
trade with nations which threaten the maintenance of 
world peace. 

Article VII 

1. This Agreement shall enter into force on the date 
of signature and will continue in force until one year 
after the receipt by either party of written notice of the 
intention of the other party to terminate it, provided that 
the provisions of Article I, paragraphs 2 and 4, and ar- 
rangements entered into under Article I, paragraphs 3, 
5 and 7, and under Article II and Article III, paragraph 
3, shall remain in force unless otherwise agreed by the 
two Governments. 

2. The two Governments will, upon the request of either 
of them, consult regarding any matter relating to the 
application or amendment of this Agreement. 

3. This Agreement shall be registered with the Secre- 
tariat of the United Nations by the Government of the 
United States of America. 

In witness whereof the respective representatives, duly 
authorized for the purpose, have signed the present Agree- 
ment. 

Done, at Madrid, in duplicate, in the English and Span- 
ish languages, both texts authentic, this twenty-sixth day 
of September, 19.53. 
For the Government of the United States of America : 

James Clement Dunn 
Ambassador of the United States of America 

For the Government of Spain : 

Alberto Martin Artajo 
Minister of Foreign Affairs 



Sole Annex to the Mutual Defense Assistance Agree- 
ment — Fiscal Relief 

1. a. In accordance with Article III, paragraph 3, of the 
Mutual Defense Assistance Agreement, the Government 
of Spain agrees and guarantees that all activities and 



October 5, 1953 



441 



expenditures undertaken within the jurisdiction of the 
same by or on behalf of the United States for the com- 
mon defense, including the activities or expenditures car- 
ried out in connection with any foreign aid profrram 
agreed to by the United States and the activities and ex- 
penditures carried on for the common defense under the 
terms of this Agreement or otherwise, will be exempt 
from taxation (including surcharges, contributions, or 
other charges of any nature, other than reasonable com- 
pensation which may be made by the United States for 
services requested and received) by or for the benefit of 
the Spanish Government, political subdivisions thereof, or 
quasi-governmental organizations. 

b. The relief will apply in all cases in which the United 
States is finally subject to the payment of the tax, in 
all cases of taxes which apply directly to expenditures 
effected by the United States, and in all cases covered in 
the Defense Agreement and arrangements to be con- 
cluded thereunder, and the Mutual Defense Assistance 
Agreement and Economic Aid Agreement as concluded 
on September 26, 1953. The fiscal relief will not apply, 
except as stated above, to taxes on the incomes, profits 
and operations of those persons or entities who render 
service to, or work for, the account of the United States. 

c. The taxes from which relief is granted by the present 
Annex, and in any other manner as may hereafter be 
agreed upon between the parties, shall include, but not be 
limited to : 

(1) Tax on transfer of property and rights to real estate. 

(2) Import duties (any tax or duty payable on the 
Importation of articles, materials or components or parts 
of the same purchased by means of the aforesaid expendi- 
tures ) . 

(3) Export duties. 

(4) Transportation and entry or exit tax. 

(5) Tonnage tax. 

(6) Stamp tax. 

(7) Use and consumption tax (excepting in the case 
of those products [petroleum and its by-products and 
tobacco] whose production or sale is monopolized by the 
State). Should purchases be made from other sources 
than the manufacturers themselves, this tax will be ap- 
plicable, but refund will be made, in accordance with 
procedures to be developed, of that part of the price which 
includes this tax. These procedures will include the 
method to be used in ascertaining the amount of this tax 
to be so refunded. 

(8) Provincial taxes (except where attributable to 
services rendered). 

(9) Municipal taxes (except where attributable to 
services rendered). 

(10) Tax on industries, trades and professions in the 
amount, if any, that such tax may be increased due to the 
activities and expenditures referred to in paragraph la 
above. 

(11) Any additional taxes as appropriate. 

d. The tax relief granted in accordance with the pro- 
visions of this Agreement will be considered as supple- 
menting any tax relief normally enjo.ved by the United 
States within the Jurisdiction of tlie Spanish Government. 
The relief so accorded will apply to all operations ami 
expenditures of the character described in subparagr.iph 
a hereof, which may occur after the date of this Agree- 
ment. 

e. With respect to any other tax not specifically men- 
tioned in subparagraph c hereof and which may be found 
to be aiiplicable to expenditures or activities of the char- 
acter described heroin, the two governments will consult 
with a view to arriving at mutually satisfactory arransro- 
ments regarding [irocedures to assure relief from such 
taxes in ticcordance with the principle of tax relief granted 
by subparagraph a of i)aragraph 1. 

/. In the .same manner, should special situations or cir- 
cumstances arise with respect to taxes of the type covered 
by subparagraph c which may affect the compliance with 
the terms of relief granted herein, such situations or cir- 

442 



cumstances will be discussed between the two govern- 
ments with a view to supplementing this Agreement In 
accordance with the spirit and the terms of this Annex. 
If necessary, the Spanish Government will examine the 
feasibility of appropriate legislation to accomplish this 
end. 

g. The requirements of Spanish legislation of a social 
character and any other contributions relating to the' 
employment of individuals are not affected by this 
Agreement. 

2. The relief specified above will be granted by means 
of the procedures described below. Changes in these pro- 
cedures that may appear to be advantageous in order 
to facilitate the administrative work and the enforce- 
ment of the exemption granted above may be initiated 
as mutually agreed between competent United States and 
Spanish authorities. The record of these changes may 
be in the form of an annex or annexes to be attached 
hereto when needed. 

The United States will Inform the Spanish Govern- 
ment (Ministry of Finance) of the operations and ex- 
penditures it effects which in its judgment should enjoy 
the fiscal exemptions granted by the present Agreement. 
The information furnished by the United States to the 
Spanish Government should be sufficiently detailed to 
permit the best identification of the concept and quan- 
tity of the operation. Upon receipt of this information 
report, the Government of Spain (Ministry of Finance) 
will issue the pertinent orders to the appropriate serv- 
ices — (Directorates General, Customs, Ministry of Fi- 
nance representatives, etc.) for the exemption from 
taxes. In the event that these taxes have already been 
paid, their return shall be ordered. 

An office will be created within the Ministry of Finance 
expressly for the implementation of tliis Annex. 

Should differences arise concerning the implementation 
of this Annex, they may be referred for the considera- 
tion of a board composed of competent authorities of both 
governments. 

3. The Government of Spain (Ministry of Finance) 
may, in agreement with the United States Government, 
and in a manner to be established in each case, take 
the necessary measures to insure that materials and 
products, imported or acquired, exempt from taxes, 
are not used or destined for purposes other than those 
indicated in paragraph lo above. 



Talks on Chile's Request for 
U. S. Purchase of Surplus Copper 

Press release 510 dated September 21 

Chilean and U.S. representatives held their first 
formal session on September 21 in the Department 
of State for the purpose of discussing the Chilean 
Government's request that the United States pur- 
chase Chile's accumulated copper surplus. 

The Chilean representatives are : 

Anibal Jara, Ambassador of Chile to the United States 
Luis MacKenna, General Counsel of the Chilean Central 
Bank 

The U.S. representatives are : 

Rollin S. Atwood, Director of the Office of South Ameri- 
can Affairs, Department of State 

Edmund Getzin, Chief, Non-Ferrous Metals Branch, De- 
I)aitnient of State 

Milton Barall, Acting Chief, West Coast AITairs, Office of 
South American Affairs, Department of State 

Irving Gnnibel, Director, Metals Division, Kmergency Pro- 
curenient Service, General Services Administration 



Department of State Bulletin 



Organized Labor's Fight Against World Communism 



Address hy Secretary Dulles ' 



I am happy to be with you today and to talk 
with you about the task of winning peace and 
security for the United States. It is indispen- 
sable that your organization should share in that 
task, and I am very much aware of the fact that 
you have done so. Had you not done so, our Na- 
tion would now have less chance for peace and 
for the preservation of values even more precious 
than peace. You and your leaders have been in 
the struggle where it has been most intense. You 
have gained an experience and a wisdom, and you 
have possibilities of action, which indispensably 
supplement those of government. 

I would rather listen than talk, as I listened to 
President Meany a few days ago, when he was 
good enough to come to see me. But since you 
have asked me to talk, I will, first of all, give you 
my estimate of some of the more critical pi'oblems 
with which your Government is actively dealing. 
Then I want to discuss the basic overall problem 
of how to rout the Communist menace. That is 
where the workers of America can play a prin- 
cipal role. 

Korea was a matter of first concern. The ar- 
mistice negotiations liad been going on for a year 
and a half and had come to a standstill. The 
fighting was taking a steady toll of the lives of 
Americans and others under the United Nations 
Command. There was a growing public demand 
that, unless an honorable armistice could be soon 
achieved, the fighting should be enlarged. 

We achieved an armistice. The future, natu- 
rally, is still obscure. But at least the fighting is 
stopped, the aggression ended. Most of our men 
wlio were prisoners of the enemy have been re- 
turned — about 3,600 — and we shall do all within 
our power to insure that all are returned. A po- 
litical conference is in prospect, designed to turn 
the armistice into permanent peace. The Chinese 



' Made before the American Federation of Labor at 
St. Louis, Mo., on Sept. 24 (press release 514). 



Communists seem to be pursuing tactics of delay, 
but we hope that steadfastness on our side will 
bring the conference into existence and that peace 
will come out of it. I pledge you that we shall 
do all within our power to assure this. 

I am glad to add that we and our allies are now 
united in this matter. 



Indochina 

In Indochina another war goes on. There has 
been danger that resistance to Communist aggres- 
sion might collapse, with resultant jeopardy to 
our vital interests in the West Pacific. Many of 
the people of Indochina had been persuaded that 
their choice was between colonialism and com- 
munism. A choice between two forms of subjec- 
tion never gives rise to much enthusiasm or much 
willingness to sacrifice and die. 

Now, the French, by declaration of July 3, 
have made clear their intention to gi'ant full in- 
dependence to the Associated States of Indo- 
china as these States desire it. They are in the 
process of implementing that declaration, and 
there is every evidence that they are doing so in 
complete good faith. Thus, the character of the 
war becomes transformed. The United States can, 
in good conscience, contribute substantially, in 
money and materiel, to the successful conclusion 
of this war. It has become genuinely a "war for 
independence," and the aggi'essive character of the 
Communist warfare now stands exposed. 

In the Middle East it seemed that Iran might 
become the gateway for a Soviet Communist sei- 
zure of the world's largest oil reserves. These pro- 
vide livelihood for several Near East nations and 
help to sustain the air, sea, and land defenses 
of the Mediterranean and Western Europe. 

But the people of Iran, who have learned much 
from living next door to Russian ambitions, rose 
up in loyalty to the Shah to prevent the illegal 
retention of power by a regime which was becom- 



Ocfober 5, J 953 



443 



ing increasingly identified with the Communist 
Party in Iran. There will thus be a new oppor- 
tunity for Iran to tackle its internal problems and 
to strengthen its ties with the other free nations. 

In Europe, the progi-am for a European com- 
munity had bogged down. That meant a con- 
tinuance of the ancient division between France 
and Germany, out of which past wars have often 
come. 

But now the plans for European unity are mov- 
ing ahead. There have been ratifications of the 
European Defense Community Treaty by both 
Houses in Germany and by one House in the 
Netherland.s, and parliamentary proceedings 
elsewhere are imminent. A positive result is not 
yet assured, but the prospects are much brighter. 

The political victory of Cliancellor Adenauer in- 
crejises the stature and influence of a statesman 
who faces international problems, not in terms of 
a nationalist Germany, but in terms of the long- 
range welfare of a Europe which includes a 
democratic Germany. The results of the election 
involve a spectacular endorsement of the policies 
which the United States has pursued jointly with 
its allies and with the West German Republic. 

A sharp contrast is provided by the people of 
East Germany, in the Soviet Zone. Last June 
they spontaneously held widespread protest dem- 
onstrations — the only means of free e.xpression 
they could seize upon — to show tlie world their 
opposition to oppression and to demand free elec- 
tions, a decent standard of living, and Germany's 
reunification in freedom. East Germany's work- 
ing people — the very people who according to 
Communist propaganda were supposed to be 
favored — were those who started the demonstra- 
tions. 

The United States is seeking a four-power 
meeting to satisfy the aspirations of the German 
people for unification. Tlie British, French and 
ourselves sent the Soviet Union an invitation to 
such a meeting on September 2.= That invitation 
is still unanswered. But we still await hopefully 
a reply. 

We have tried to alleviate in some measure the 
physical suffering of the East Germans through 
a food program in Berlin, and President Eisen- 
hower is asking the American people to help out 
with clothing for the coming winter. 



New Weapons 

A i)rob]em which preoccupies us gravely is the 
problem of new weapons. The forces of destruc- 
tion, largely in terms of atom and hydrogen 
bombs, are being developed on a scale which 
tiireatcns the survival of civilization as we know 



it. Furthermore, the possibility of setting 
these destructive forces into motion may be pos- 
sessed by Communist rulers who openly repudiate 
the restraints of moral law. That is an ultimate 
in peril which mankind has never had to face 
before. 

The response is not to cringe or become panicky. 
The situation calls for a hardening of resolve to 
dispose of the present wars and present causes of 
war and to inaugurate an effective control of 
armaments. 

These things are easier to say than to do. But 
we are so situated that strength of will, clarity of 
mind, and sustaining faith are all that; stand be- 
tween humanity and self-destruction. Therefore, 
we must invoke, in greatest possible measure, these 
qualities needed for our salvation. 

Your Government does not believe that salva- 
tion can be won merely by making concessions 
which enhance the power and increase the arro- 
gance of those who have already extended their 
rule over one-third of the human race. W^e do be- 
lieve that if our national purposes are honorable, 
if we understand the just aspirations of other 
peoples, if we set forth reasonable positions so 
clearly that others will not miscalculate, if we are 
good craftsmen in carrying out our aims, then a 
just and durable peace is obtainable. 

At the United Nations Assembly last week I set 
forth the overall policies of the United States, 
particularly with relation to the Soviet Union.^ 
The position of the United States is clear. We are 
willing — indeed eager — to deal with each of the 
principal situations of tension — such as Germany, 
Austria, Korea, Indochina, and the burdens of 
armaments. Also we are not inflexible, except as 
to matters of basic principle. We claim no mo- 
nopoly of wisdom or virtue. We feel that we can 
learn from others, and we are quite prepared to 
do so. 

We appealed to the Soviet Government to meet 
us in an effort both to control armament and to 
eliminate the situations which might bring arma- 
ment into use. 

Four days later, last Monday, the Soviet delega- 
tion replied. The reply consisted merely of a rep- 
etition of their old refrains. But, as we said to 
the United Nations, we shall not grow weary or 
discouraged in our quest for peace. 

Before passing on to the second phase of my re- 
marks, I sliould like to point out that, in our han- 
dling of foreign affairs, there has been bipartisan 
cooperation between the Executive and the 
Congress. 

Let me here reassert my dedication to the bi- 
partisan approach, so far as regards foreign 
policy. I have jiracticed that for many years — 
since, indeed, working with Woodrow Wilson. 
The United States can be successfully served only 



' Bnr,LETiN of Sept. 14, 1953, p. 351. 



'Ibid., Sept. 28, 195.!, p. 403. 



Deparfmenf of Stafe Bulletin 



by foreign policies which command the support 
of the American people generally and of their 
representatives, of both parties, in the Congress. 

The Bolshevik Plot 

Let me now turn from the work of government 
to the basic task in which all citizens should take 
pait. That is the task of making our American 
society so sound and so wholesome that it, rather 
than communism, will attract the admiration and 
following of the workers of the world. In this 
task, your Federation and other like-minded labor 
organizations can and do help mightily in the 
quest for peace. 

The Bolshevik Communists are perpetrating 
what, in nondiplomatic language, is called a 
swindle. They portray a "workere' paradise" and 
they get control over many workers as the workers' 
friend. 

It is primarily by such methods that communism 
has made its enormous gains. 

Since 1939 the Bolshevik Communists have ex- 
tended their grip to some 600,000,000 additional 
people of some 15 other countries. In no case has 
this come about through the voluntary and peace- 
ful choice of the peoples concerned. But the co- 
ercion that was applied was in no case the coercion 
of military conquest, although in some cases the 
fear of this was potent. The actual method of 
operation was to seize political power from within. 
Sometimes this was done by civil war. Sometimes 
it was done by a sudden political stroke. But in 
all cases success was largely due to the fact that 
the Communists had previously won control of 
what they call "mass organizations." And I do 
not have to tell you that one of their primary 
targets has been and is the labor unions. The 
professional Communist agitators, largely work- 
ing in secret, have sought to persuade the dissatis- 
fied workei-s that a Communist government would 
greatly improve their lot. 

The capacity of communism to extend its sway 
by this falsehood is a dangerous fact. It means 
that we could be encircled, penetrated, and per- 
haps even overcome without the Soviets ever hav- 
ing to fight us in open battle. Indeed, Stalin 
boasted that our defeat would come that way. No 
task is more important for us than that of ex- 
ploding the Conmiunist myth. 

The Communist Hoax 

That should be possible. Indeed, you in your 
worldwide eflForts have proved that it is possible. 
The facts are all in our favor. The Russian 
worker is the most underpaid, overworked 
person in any modern industrial state. He is the 
most managed, checked, spied on, and unrepre- 
sented worker in the world today. He has full 
employment, to be sure, because prison camps see 
to that. He earns his pay through a piecework 



system which would make the authors of the 
Taylor-Bedeaux system gape with envy. 

Legally, the Russian worker is not allowed to 
leave his job and shift to another job, because he 
is bound to his job by his labor book. That is his 
only pass to any future work. 

In Moscow, the capital and show place of com- 
munism, the average worker's apartment has 12 
persons living in it. This comes to an average liv- 
ing space per worker of only 6 feet by 7 feet. 
Whole families must live in one room and share a 
bath and kitchen with three or four other families. 

Prices are so high that, for most workers, only 
bare existence can be paid for. I obtained some 
figures. I hesitate about using them here, because 
I know that the story is a familiar one to many of 
you. Indeed, the data upon which my figures are 
based may in considerable pai't have been obtained 
through your organization. The figures are, how- 
ever, so striking that, at the risk of repeating what 
you already know, I should like to give them. 

For a worker to buy a pound of butter in New 
York, it takes 27 minutes of work; for a similar 
worker in Moscow it takes over 6 hours of work. 
For a pound of sugar, 31/3 minutes in New York ; 
84 minutes in Moscow. For a quart of milk, 7 
minutes in New York ; 42 minutes in Moscow. For 
a dozen eggs, 25 minutes in New York ; nearly 3 
hours in Moscow. For a cotton shirt, 1 hour in 
New York ; 22 houi-s in Moscow. For a man's suit, 
3 days in New York; 47 days in Moscow. For 
overshoes, 1 day in New York; 13 days in Moscow. 
For a woman's wool suit, 22 hours in New York; 
22 days in Moscow. For a cake of soap, 3 minutes 
in New York; 30 minutes in Moscow. 

Some classes, such as party leaders, factory 
bosses, secret police leaders, and ballet dancers, get 
well paid and they live well. In the misnamed 
"classless society" of communism, there are the 
most extreme class distinctions, and in the hier- 
archy of class the working man and the farmer are 
classed close to the bottom. 

Statistics, such as those I have just recited, are 
not easy to get. The Soviet Government main- 
tains fantastic secrecy over even the most basic 
data in the field of labor. What is the average 
wage of a Russian worker? We search Soviet 
sources in vain, for that figure has not been pub- 
lished for many years. What is the trend of Rus- 
sian cost of living? The Soviet Union has not 
published a cost-of-living index for two decades. 
This fact of secrecy speaks for itself. If the So- 
viet Government were not afraid of what the true 
figures would show, it would publish them. Only 
by secrecy is the Communist myth maintained. 

There is a United Nations Report on Forced La- 
bor which will be presented to the United Nations 
Assembly during this session.^ Your Federation 



* For text of the section of the report dealing with the 
Soviet Union, see iUd., Aug. 10, 1953, p. 167. 



October 5, 1953 



445 



had a large part in getting this report made. Its 
authors are three eminent and independent per- 
sonalities from India, Norway, and Peru. Tlie re- 
port says that the Soviet Union and its satellites 
use the forced labor of convicts on a vast scale. It 
points out "whole groups of persons are obligated 
by order of public authority to take up, or remain 
in, a given job against tlieir will if necessary and 
may be penalized for not doing so." It calls the 
Soviet methods of training and allocating man- 
power "a system of forced or compulsory labor." 

The so-called "labor unions" in the Communist 
world do nothing to impi'ove these conditions. 
That is because the Communist union is simply 
the largest "company" union in the world. The 
company there is the totalitarian State. 

Let me at this point read you a statement : 

Trade unions which by nature are designed to safeguard 
worlsers' rights have become in fact the organs of official 
Communist control and oppression. Membership is oblig- 
atory ; meetings are rubber-stamps for "resolutions" dic- 
tated from above, and objections cannot conceivably be 
raised. In short, the trade union is a mechanism for 
exacting the greatest amount of labor out of the worker. 

This statement was given to me last Tuesday by 
Dr. Marek Korowicz, who came to the United 
Nations as a member of the Communist delegation 
from Poland and who took that opportunity to 
seek asylum in a land of freedom. 



Peaceful Change vs. Violent Change 

We should not be surprised at the tragedy which 
has befallen the Kussians. 

Rulers who invoke violence, hatred, and false- 
hood to win their ends usually reproduce the very 
conditions which they set out to destroy. The ex- 
tremely violent character of the Bolshevik move- 
ment destroyed not only the reactionary Czarist 
elements within Russia, but also the moderate ele- 
ments. So, the revolution has largely reproduced 
for the workers the conditions which prevailed 
under the Czars. 

Much lip service is given the worker; a few ex- 
hibits are created for foreign observers. But that 
is where the "workers' paradise" ends. The rest is 
misery. 

It is tragic that this fate should have befallen 
the Russian people. They possess fine qualities 
whicli we admire. They liave always had the 
friendship of the American people. Today, they 
deserve also our sympathy. 

The history of the United States tells another 
story. Our social progress lias been achieved by 
peaceful change. The political institutions witli 
which our founders endowed us were flexible. 
Tims, as our people gained a clearer perception of 
right and wiong, tliat perception could be trans- 
lated into law and practice, by orderly methods. 

Under that system, social and economic clianges 
have been inmiense. Human beings have less and 
less been treated as mere tools of production. 



There has developed an increasing sense of social 
responsibility. No longer can the social order be 
described as "each for himself and the devil take 
the hindmost." Social security has rapidly ex- 
panded in scope. Graduated income and inherit- 
ance taxes effect a very considerable distribution 
in accordance witli need. 

Average hours of labor have steadily been re- 
duced and hours of leisure correspondingly in- 
creased. Wages, not only in terms of dollars but 
in terms of effective purchasing power, have in- 
creased. This has primarily been made possible 
by cooperation between labor, management and 
capital to use the inventive capacity of a free 
society, to improve steadily the tools of production. 

I do not pretend that the situation is perfect. 
And you know well that it is not. Injustices and 
inequalities remain. There are still those wlio are 
underprivileged. Intolerance and bigotry still 
survive. These defects we naturally emphasize as 
we strive, domestically, for better tilings. 

But from the standpoint of foreign relations, 
the status which has been won for the worker in 
this country is a tremendous asset. What the Com- 
munists pretend, we do. When we Americans face 
the outer world, we can do so proudly. 



Exposing the Facts 

The facts about the Communist world and the 
facts about the American world ought to be known 
tliroughout all the world. Then the Communist 
menace would recede. Then Soviet power, which 
uses communism as its Trojan Horse, would go 
back to where it belongs, that is Russia. And in 
Russia despotism would relax its grip and freedom 
would be reborn. 

As it is today, the Communist Party still holds 
control of many labor unions throughout the free 
world, on the theory that the Commimist system 
provides a "workers' paradise." In France and 
Italy the largest labor unions are still Communist- 
dominated. In many other free countries the 
Communists dominate unions which have special 
power in relation to transportation and kej' de- 
fense activities. 

I know that the persisting influence of commu- 
nism is a matter of great concern to the free labor 
unions, and that you of the A. F. of L. are taking 
the lead in combating this situation. Also I know 
that the world situation would be far worse than 
it is if it had not been for your timely and vigorous 
engagement in the struggle for freedom. 

You have done more than any other single body 
to explode the Connnunist myth. In this matter 
there should be a more intimate partnership be- 
tween us. You have not always received the otli- 
cial supjiort and backing you deserve. 

I recall vividly the first meeting of the United 
Nations Assembly in London in January 1946. 



446 



Departmenf of Slate Bulletin 



At this time the Soviet delegation was attempting 
to bring the Communist-dominated World Feder- 
ation of Trade Unions into the United Nations 
and into other political conferences as spokesman 
tor all the workers of all the world. It was the 
representatives of the A. F. of L. who largely 
helped to circumvent that plot. Then you helped 
to create the International Confederation of Free 
Trade Unions as an alternative to the Communist 
Federation. The Free Trade Unions' Confedera- 
tion has gone on to perform a great service for 
the free trade unions of 73 lands. 

I have given one example of your effort, drawn 
from my own firsthand knowledge. The total 
chapter of your effort is long and honorable. Here 
at home you have striven, with much success, to 
make the American record one of which all of us 
can be proud. Also, you have vigorously and suc- 



cessfully combated the Communist menace on for- 
eign fronts. In so doing, you have made a great 
contribution both to the glory of America and to 
the safety of America. 

In the past the most dependable defense of our 
nation has been the goodwill created abroad by 
what was called the gi'eat American experi- 
ment." It was no military experiment, but a dem- 
onstration of political and social progress. Today 
we do have a great military establishment and, 
unhappily, we need it. But it would be disastrous 
if we made the mistake of looking on armed might 
as an all-sufficient defense. The greatest asset of 
our Nation has always been, still is, and always 
will be, not military force but that same "great 
American experiment," an experiment in which 
the free labor movement plays the essential role 
of a dynamic force. 



Reappraising International Trade Practices 



hy Samuel C. Waugh 

Assistant Secretary for Economic Affairs ^ 



Almost every day that has passed since I arrived 
at the State Department a few months ago has 
brought to my desk one or more of the many 
problems involved in the relations between my 
country and your countries under the general 
agreement. The fact is that Gatt has come to oc- 
cupy a significant place in the fabric of our com- 
mon international life. 

President Eisenhower and Secretary Dulles 
have asked me to express to this meeting their 
hope that the business which will occupy us will 
be brought to a successful conclusion. The Pres- 
ident has also asked that the following message 
be read to you : 

The eighth session of the Contracting Parties to the 
General Agreement on Tariffs and Trade seems to me 
to be one of special significance. Many nations of the 
free world, including the United States, are now ac- 
tively engaged in reexamining their International eco- 
nomic policies. 

In this process of reappraisal it is important that we 
keep our sights clear — that the nations of the free world 
remain firmly dedicated to our common purpose re devel- 



' Address made at the eighth session of the Contracting 
Parties to the General Agreement on Tariffs and Trade 
(Gatt) at Geneva on Sept. IS (press release 509). 



oping that higher level of profitable international trade 
necessary to the economic strength and well-being of 
all our peoples. 

I am confident that through the accomplishments of this 
session the Contracting Parties will again demonstrate 
that the nations of the free world have the will and 
the means to reach this goal. 

In the United States President Eisenhower has 
established a broadly based governmental com- 
mission to review the economic foreign policy of 
the country. The President stated in his mes- 
sage to Congress recommending the interim ex- 
tension of the Reciprocal Trade Agreements Act 
such a review "is imperative in order to develop 
more effective solutions to the international eco- 
nomic problems today confronting the United 
States and its partners in the community of free 
nations." ^ These solutions must include trade 
arrangements aimed at the widest possible multi- 
lateral trade, balanced at high levels. 

We have come through the period of postwar 
economic troubles and turmoil. The Marshall 
plan has fulfilled its task and has passed into 
history. The economic challenge presented by 



' Bulletin of Apr. 27, 1953, p. 634. 



Ocfober 5, J 953 



447 



the Korean emergency has been met, and sub- 
stantial progress in building our defenses against 
the threat of future aggression is now evident. 
Nevertheless, too many parts of the free world 
are still too far short of achieving that degree 
of economic strength and resiliency which is 
needed to protect our common security and en- 
rich the lives of our people. 

An effective multilateral trading system, gen- 
eral convertibility of currencies, an adequate now 
of international capital, satisfactory development 
of underdeveloped areas — these essential ingi'edi- 
ents of a productive international economic sys- 
tem are not yet within our grasp. 

It is appropriate, therefore, that all should now 
begin to reassess our present policies and institu- 
tions, to see how they can be improved, and to 
chart a course for the future which can lead us 
more surely and effectively toward our common 
goals. 

All will enter on this task of reassessment faced 
with certain basic, inescapable facts. Events of 
the past 15 years make us realize that there is no 
longer any such thing as isolation on this shrunken 
globe of ours — that no people can remain long 
aloof from all the rest, secure from military threat 
and free of economic cost. We know that in the 
years immediately ahead we must find ways of 
living with one another by rules and institutions 
which do not lead to a terrible war in every gen- 
eration. 

The people of my country, like those of virtu- 
ally every other country of the free world, have 
come to accept these propositions as fundamental. 
For us, as for other countries, there is no longer 
any such thing as splendid isolation. We are in 
the business of international cooperation to stay. 



Bases for Economic Planning 

Planning ahead for a period of gi-eater and 
more effective cooperation on economic matters, 
there are a few basic tenets on whicli we can build. 
To begin with, it is crystal clear that the trade 
relations of nations cannot be effectively estab- 
lished on a bilateral basis. Tlie basic rules by 
which nations allow goods to move across their 
borders must be developed jointly by all the na- 
tions concerned and must have their common 
consent. Today modern transportation allows 
nations to draw their basic raw materials from 
the four corners of the globe. Nations find their 
markets thousands of miles away. At virtually 
every jjoint iTi the free woi-ld the interests of three 
or four or a dozen trading nations have to be rec- 
onciled. There is no bilateral method, or any 
other kind of "closed" system, which can deal 
with this situation in a way which gives trade an 
()pi)<)r( unity to flf)Ui'ish and to bring nations the 
full bt'iK'fit of whicii ti-ade is capable. 

Another lesson has been learned from the events 



of recent years. We now know there is an insep- 
arable link between the "internal" policies of na- 
tions and their trade patterns. There was a time 
when nations felt that the waves of destructive 
inflation or equally disastrous deflation to which 
their economies were being periodically subjected 
were purely internal matters, on which other na- 
tions were not entitled to express an interest. But 
this view, too, has passed. We now recognize that 
the ability of the free world to create a multilat- 
eral system of trade and payments requires action 
not only in the field of international trade and 
monetary policy but also the adoption of appro- 
priate internal policies. Persistent inflation in 
important trading countries can easily wipe out 
any prospect of a wider and freer system of 
international trade. Serious deflation can do the 
same. International cooperation of the future 
must be built upon a fuller recognition of these 
relationships than has been had in the past. 

A word or two about current economic condi- 
tions in the United States might be appropriate. 
And in making these comments I hope I will not 
be accused of being immodest. 

The United States is a large importer, also a 
large exporter, and one of the world's important 
sources of capital for investment purposes. For 
these reasons, economic conditions and prospects 
in our country are naturally and properly matters 
of great interest to other nations. What, then, is 
the present situation, and what is the outlook for 
the immediate future? 

This is an area in which it is not possible, with 
any degree of reliability, to look very far ahead. 
The tools of economic science are not sufficiently 
scientific to yield predictions for more than a 
short period in the future. 

Limiting comments to the short term, economic 
conditions in the United States are on the whole 
good. Production, consumption, and imports 
continue at high levels. The gross national prod- 
uct in 1952 was $350 billion. The estimate, in 
comparable prices, for the year 1953 is 5 percent 
higher. And overall economic activity in the 
United States may continue to rise during tlie 
first half of 1954. 

The general price level has remained stable and 
is not expected to change significantly during the 
next 9 months. The prices of industrial com- 
modities, as a group, showed a slight upward 
trend. The only area in which price weaknesses 
have appeared has been in farm products. By 
the end of 1952, wholesale prices of farm products 
were 16 percent below the 1951 peak levels, and 
they sank another 3 percent during the first half 
of 1953. 

Total civilian employment has more than kept 
j)ace with the growth in the labor force and has 
reached the highest levels in history. Unem- 
l)l()yment is reuuirkably low, having averaged 1.6 
million — 2.6 percent of the civilian labor force — 



448 



Department of State Bulletin 



during the first half of 1953. This figure is lower 
than the proportion in 1952, which in turn was 
lower than the rate in 1951. 

Wage levels, too, have continued their upward 
trend, but at a slower rate. Substantial in- 
creases were obtained during 1952 by workers in 
a number of major industries. Defense expendi- 
tures are scheduled to reach their peak during 
the current half year and to be somewhat lower 
in the first 6 months of 1954. For the year end- 
ing June 30, 1954, they will total about $5 million 
above the amount spent during the 1953 fiscal 
year. 



Change in the Balance-of-Payments Picture 

The United States balance-of-payments pic- 
ture has changed significantly since early 1952. 
Between the middle of 1951 and the end of March 
1952 the United States accumulated approxi- 
mately $1 billion in gold and dollar assets from 
other countries. Since the end of March 1952, 
however, the trend has been reversed and other 
countries have been accumulating gold and dol- 
lar assets. It is expected that, over the months 
ahead, a further accumulation will occur, with 
the result that the gold and dollar holdings of 
other countries should soon be well above the 
amounts held in 1945, which represented the pre- 
vious peak in such holdings. 

The changed balance-of-payments position of 
the United States is due primarily to the decline 
in our merchandise exports. During the first 
half of 1952 we were exporting at an annual rate 
of $14.5 billion. During the second half the rate 
declined to $11.9 billion. At the same time im- 
ports by the United States have remained steady 
during 1952 and at a considerably higher level 
than during the latter half of 1951. Further in- 
creases in imports are anticipated in the months 
ahead. 

A great deal has been learned about the opera- 
tions of our economy during the past quarter of a 
century. We do not yet know enough to avoid all 
downward fluctuations in economic activity. 
Nevertheless, my Government is studying a wide 
range of policies and measures to avert, if possible, 
a future decline or to minimize it if it occurs. 

Encouraging signs are seen as we look toward 
conditions in other countries. A number of im- 
portant trading nations and areas, in addition to 
increasing their gold and dollar reserves, have 
succeeded in bringing inflationary trends under 
control ; industrial production in Western Eu- 
rope has risen from last year's levels. In many — 
although not all- — of the underdeveloped areas, the 
record is one of gradual progress. 

Perhaps more significant than these immediate 
situations, there have been heartening evidences 
of a fresh determination by governments to move 
away from direct economic regimentation and con- 

Ocfober 5, 7953 

273052—53 3 



trol, to allow greater leeway for the strengthening 
forces of competition, and to encourage greater 
efficiency and fiexibility within national econo- 
mies. The statement of the Commonwealth gov- 
ernments late last year of their intention to pursue 
the internal policies requisite to a freer exchange 
of currencies and trade is a noteworthy and wel- 
come example of constructive policies in the mak- 
ing.^ 

Many of our governments are now in the midst 
of a healthy process of reassessment and reap- 
praisal, taking stock and formulating plans for 
the future. It is important, however, that this 
process should not take too long. It is our hope 
and aim that our own Commission on Economic 
Foreign Policy will be in a position to report to 
the President and the Congress in time for appro- 
priate legislative and other necessary action to be 
taken during the early months of next year. If 
these plans materialize, our Govermnent would 
then be able to discuss more definitively the role 
which it is prepared to play in further interna- 
tional cooperative efi'orts in the economic field. 

Of primary importance for the future will be 
the kind of international trading arrangements 
and institutions which will best serve our com- 
mon interests. Our chairman yesterday sug- 
gested that we look forward to plans for under- 
taking a basic review of the operation of the Gen- 
eral Agreement on Tariffs and Trade and for 
considering proposals which governments may put 
forward for such changes or such new arrange- 
ments as may prove desirable. While it may be 
unwise to establish too rigid a timetable for in- 
ternational discussions on this subject, it is the 
present thinking of my Government that the com- 
ing year may prove to be an appropriate time. 

In the months ahead the free world may well be 
in a better position to move toward more effective 
international cooperation than at any time since 
the end of the Second World War. Those of us 
attending this eighth session of the Contracting 
Parties to the General Agi-eement on Taritfs and 
Trade as representing our respective governments 
should put forth every possible effort toward the 
creating of a sound and productive economic sys- 
tem which is the goal of all free nations. 



Assistant Secretary Waugh 
Leaves for GATT Meeting 

Press release 495 dated September 14 

Samuel C. Waugh, Assistant Secretary for Eco- 
nomic Affairs, left on September 14 for Geneva 
where he will serve as chairman of tlie U.S. dele- 
gation to the eighth session of the General Agree- 



' Ibid., Mar. 16, 1953, p. 397. 



449 



ment on Tariffs and Trade (Gatt), scheduled to 
convene on September 17. 

In addition to the United States, there will be 
representatives from 32 other countries at the 
meeting. The General Agreement on Tariffs and 
Trade is a multilateral agreement under which the 
member countries have agreed to general rules for 
the conduct of international trade and to specific 
tariff concessions. 

Mr. Waugh will depart from Geneva on Sep- 
tember 29, by way of Rome, Beirut, and Karachi, 
for New Delhi, India, to attend the Ministerial 
Meeting for the Colombo Plan which will begin 
October 13. This will be the fifth meeting of the 
Consultative Committee since the inception of the 
Colombo Plan in 1950. It will be the third in 
which the United States will have participated 
as a member. The Consultative Committee is an 
organization of countries interested in the eco- 
nomic development of free- world nations in South 
and Southeast Asia. The annual meeting of the 
Committee provides an occasion for the inter- 
change of ideas, consultation, and advice on the 
economic development of the Asian area. 

En route to New Delhi, Mr. Waugh will stop 
briefly in Rome, Beirut, and Karachi for consul- 
tation with officials of the American missions in 
those capitals and discussion with government 
officials. 



U.S. Delegation 

The Department of State announced on Sep- 
tember 15 (press release 499) that members of the 
U.S. delegation to the Gatt session, in addition 
to Mr. Waugh, would be as follows : 

Vice Chairman 

Winthrop O. Brown, Counselor, American Embassy, 
London 

Advisers 

Carl D. Corse. Chief, Commercial Policy Staff, Office of 
Economic Defense and Trade Policy, Department of 
State 

Morris J. Fields, Chief, Commercial Policy and United 
Nations Division, Office of International Finance, 
Department of the Treasury 

Joseph A. Greenwald, Economic Officer, American Con- 
sulate (ienernl, Geneva 

Walter Hollis, Assistant to the Legal Adviser, Depart- 
ment of State 

John M. Leddy, Director, Office of Economic Defense and 
Tiaile Policy, Department of State 

P. K. Norris, Agricultural Economist, Foreign Agricultural 
Service, Deimrtment of Agriculture 

Bernard Norwood, International lOconomist, Office of 
Economic Defense and Trade Policy, Department of 
State 

Richard H. Roberts, Acting Director, Office of Require- 
ments and Allocations, Production and Marketing 
Adininistraticjn, Department of Agriculture 

Alexander Udsenson, Chief, Monetary AlTalrs Stuff, Office 
of Financial and Development Policy, Department 
of State 



Robert E. Simpson, Deputy Assistant Director for Eco- 
nomic Affairs, t)ffice of International Trade, Depart- 
ment of Commerce 

Secretary of the delegation 

Mason A. LaSelle, Office of the Resident United States 
Delegation to International Organizations, Geneva 

Pursuant to a recommendation of the Prepara- 
tory Committee of the United Nations Conference 
on Trade and Employment, negotiations in which 
23 countries participated were carried on at Ge- 
neva in 1947 for the purpose of affecting a reduc- 
tion of tariffs and other trade barriers and of 
eliminating preferences on a reciprocal and mutu- 
ally advantageous basis. Those negotiations re- 
sulted in the formulation of the General Agree- 
ment and of a Protocol of Provisional Application 
of that agreement. Further tariff negotiations 
have taken place and the number of contracting 
states is now 33. 

The General Agreement provides that rep- 
resentatives of the contracting parties shall meet 
from time to time for the purpose of facilitating 
tlie operation and furtliering the objectives of 
tlie agreement. The seventh session was held at 
Geneva, October 2-November 10, 1952. 



Organization of Commission 
on Foreign Economic Policy 

Statement by the President ^ 

Wblte House press release dated September 22 

No group of citizens has been called to a higher 
mission than the one on which you are setting 
forth today. 

The economic health of our own country and 
that of otlier friendly nations depends in good 
measure on the success of your work. Your task 
is to find acceptable ways and means of widening 
and deepening the channels of economic inter- 
course between ourselves and our partners of the 
free world. It is essential that we lielp develop 
new markets for our great productive power and 
at the same time assist other nations to earn their 
own living in the world. 

Because your inquiry is so basic, you will en- 
counter difficulties — some old and some new. In 
dealing with them, I commend to you an attitude 
both realistic and bold. Above all, I urge ^.'ou to 
follow one guiding principle: What is best in the 
national interest. 



'Made before the Organization Meeting of tlie Cnra- 
nilssion on Ftireign Economic Policy at Washington, 
I). C, on Sept. 22. For names of the Commission's 17 
members and a statement iletininK its duties and powers, 
see Bulletin of Aug. 31, 1903, p. 270. 



450 



Department of Slate Bulletin 



International Investment and Economic Progress 



hy Eugene R. Black ■ 



Since our meeting last September in Mexico 
City, I think we can look back on another period of 
progress and solid achievement in the bank's rec- 
ord of operations. Loans signed during the fiscal 
year totaled $179 million. This brought our com- 
mitments at the end of the year to almost $1,600 
million. Studies and negotiations intended to 
clear the way for further lending have been going 
forward on an unusually wide range of projects. 
At the same time we have carried out a great deal 
of technical and advisory work. Our tenth gen- 
eral sui'vey mission — the mission to British 
Guiana — has completed its task, and we have sent 
out a large number of missions with more special- 
ized objectives. 

Both public and private enterprise are to benefit 
from the loans made during the fiscal year. One 
of them will make more than $30 million available 
to expand the production of steel by a privately 
owned plant in India; others will support vital 
industries in two countries in Europe; others will 
enable Colombia to integrate her railway system 
and Brazil to expand her supplies of electric 
power. 

The work done during the fiscal year in prepar- 
ing the ground for new loans has already begun 
to bring results. Since the first of July, seven ad- 
ditional loans have been made — to Brazil, Iceland, 
Nicaragua, and South Africa — amounting to $73 
million. 

As our commitments increase, so does the rate of 
our disbursements. In the year to June 30 last we 
disbursed $227 million. This was more than in any 
year except 1948, when our large postwar recon- 



' Excerpts from an address made on Sept. 9 before the 
8th aiiuual meetinj; of the Board of Governors of the 
luternational Bank for Retoustruction and Development 
at Washington. Mr. Black, president of the International 
Bank, on this occasion presented the bank's 8th annual 
report to tlie Board of Governors. For a summary of the 
report, see Bulletin of Sept. 7, 1953, p. 319. For Mr. 
Black's address before the 7th annual meeting at Mexico 
City, see ibid., Sept. 15, 1952, p. 385. 

Ocfober 5, ?953 



struction loans in Europe were being rapidly 
drawn down. 

Nearly a third of the year's disbursements were 
made in Europe. The equivalent of $68 million 
was spent there. Almost $15 million was spent 
in other regions outside the United States. In this 
way the bank is helping to enlist the products and 
skills of the world, wherever they may be recruited 
to best advantage. 

To increase its financial resources, the bank has 
sold three new bond issues. An issue of $60 million 
was sold in the United States, and two issues, each 
equivalent to about $12 million, in Switzerland. 
As a result of changes in money-market conditions, 
interest rates in the United States rose during the 
fiscal year. Some rise in the rates charged on new 
bank loans consequently became unavoidable. 

The bank's resources have also been augmented 
by various releases of the 18 percent capital sub- 
scriptions paid in by member countries in their 
own currencies. By the end of the last fiscal year, 
we had loaned or allocated to loans the equivalent 
of $65 million from the 18 percent subscriptions 
of countries outside North America. 

Use of Released 18 Percent Funds 

I continue to attach the greatest importance to 
further releases of 18 percent subscriptions. Ad- 
ditional resources of nondollar capital would in- 
crease the scope of the bank's lending operations. 
They would also enable the bank's borrowers to 
take more advantage of the increased availabili- 
ties of nondollar goods and services. We would 
continue, of course, to adhere to our existing prac- 
tice of conserving our nondollar funds to finance 
purchases by borrowers least able to support addi- 
tional dollar debt. 

Hitherto, in many instances, the use by the bank 
of released 18 percent funds has been subject to 
limitations. Sometimes, released funds may be 
used only for lending to specified member coun- 
tries ; sometimes they may be used only to finance 

451 



the purchase of specified categories of goods; 
sometimes there are restrictions in both respects. 
Frequently the release is subject to prior consul- 
tation on each project between the bank and the 
releasing member government. 

I welcome any addition of resources to our 
capita] funds. At the same time, I must empha- 
size that releases subject to such restrictions or 
limitations do not adequately meet the require- 
ments of the bank or of our borrowers. Nor do 
I think that they carry full advantage to the re- 
leasing country. In the very early stages of the 
preparation of a project, it is important that the 
bank should know what currencies will be avail- 
able to finance the borrower's requirements. It is 
also important that the borrower should know 
that the widest possible field of procurement will 
be open. Unless there is assurance that a contract 
can be financed in the currency of a particular 
supplying country, the borrower may not ask for, 



U.S. Support for Objectives of 
International Bank and Fund 

Following is the text of a message from President 
Eisenhower which was read at the annual meeting 
of the International Bank and Fund on Septem- 
her 9: 

To the Chairman and Members of the Board of 
Governors of the International Bank for Recon- 
struction and Development and the International 
Monetary Fund : 

It is a pleasure to welcome you to Washington 
for the Eighth Annual Meeting of the Bank and 
Fund. 

The United States fully supports the great objec- 
tives of these two institutions: the establishment 
and maintenance of sound money, the quickening 
of trade, and the development of natural resources. 
The Fund and Bank are outstanding examples of 
cooperative endeavor and achievement. They are 
instruments through which the member countries 
work together to help achieve a better life for 
their peoples. 

I congratulate you on the progress thus far won 
and wish you success both in your deliberations 
and in your operations in the year ahead. 



or consider, tenders for equipment or services 
from that country. This assurance may well 
determine in what country the contract is placed. 
Indeed, it may be the determining factor in the 
borrower's ability to obtain a bank loan, in those 
cases where the borrower's capacity to incur fur- 
ther external debt depends on the currency which 
he is obligated to repay. 

With all these considerations in mind I have 
continued to press our Western European member 
governments to liberalize the use by the bank of 
their 18 percent subscriptions, so that the bank 
may be able to rely upon substantial resources of 
nondollar currencies, free from the restrictions 
that I have mentioned. 



I am glad to inform the Board of Governors 
that my representations have met with consider- 
able success. Several of our European member 
governments have already accepted the principle 
mat I have been advocating. In some cases, de- 
tails are now being worked out, and I expect to 
be able to report more fully to the Board on this 
subject before this annual meeting closes. 

• • • • • 

I shall not attempt in the time at my disposal 
to analyze the present state of the world economy. 
The year just behind us has had its ups and 
downs — its record of pluses and minuses in the bal- 
ance sheet. But no brief summary could do justice 
to the various factors that enter into the complex 
and still precariously balanced play of economic 
forces. I shall therefore confine my remarks to 
certain aspects of the situation which immediately 
concern the job which the bank is trying to do in 
the field of economic development. 

There can be no doubt that an indispensable 
element in the financing of long-term develop- 
ment is the increased flow into the underdeveloped 
world of private investment capital from abroad. 
The stimulation of this flow should in my opinion 
rank as one of the primary objectives of the 
bank. . . . 

The existence of unsettled external obligations 
can be a serious barrier against a renewed flow of 
foreign private investment. I am therefore 
pleased to note the progress that has been made 
in recent years in wiping the slate clean of un- 
settled foreign debts. Efforts are being made by 
various member countries to come to agreements 
with their creditors. The most recent settlement 
has been that negotiated by Ecuador. You will 
remember too that agreements have been arrived 
at with their main creditors by Germany and 
Japan and that settlements of certain smaller 
amounts have been reached by other countries. 
In several other instances active discussions have 
been going on between the debtor country and 
bondholders abroad. As a result of all this ac- 
tivity nearly two-thirds of the publicly held ex- 
ternal debt of member countries which was in 
default at the end of 1946 has now been settled 
or is under negotiation. 

I should now like to deal with a subject whose 
significance has impressed itself increasingly upon 
us in the bank in tlie course of our activities over 
the past 6 years. 



Need for More Power Facilities 

The bulk of our investment operations has been 
in the field of public utilities, especially of electric 
power, and we are constantly encountering the im- 
portance of ]50wer, even where we are financing 
projects outside the immediate power field. The 
authorities and the industrialists, and indeed the 
community at large, in our underdeveloped mem- 



452 



Department of Slate Bulletin 



ber countries, are highly "power conscious." The 
slogan almost everywhere is "cheap power, and 
more of it." 

I certainly share the view that if plans for 
general economic development are to go forward 
at the desired pace, an expansion of power facili- 
ties is essential. The technical advances which 
have made it possible to produce electricity at a 
central point and to distribute it over wide areas 
have given the world the most economical and 
convenient source of heat, light, and power yet 
known to man. There is an ever-growing tend- 
ency towards the substitution of electricity for 
other forms of energy. With the expansion of 
industry and agriculture and the rise in the stand- 
ard of living, the demand for power is ever- 
increasing; and as availabilities of power increase, 
new demands are created. 

Consequently, in a developing country, there is 
likely to be a legitimate need for a steady increase 
in power supplies over the foreseeable future, for 
purposes necessary to orderly economic progress. 
But, in most places, there are stubborn factors 
which operate in such a way that the supply tends 
always to lag behind the demand. 

The approach to a power-expansion policy of a 
nation deserves, I think, more serious study and 
more careful planning than have sometimes been 
given to it. For example, there are the alterna- 
tives of hydropower and thermal power. Techni- 
cal considerations aside, the choice between the 
two must be carefully weighed. Hydrosources 
may provide power at cheaper costs of production, 
but the amount of the capital investment may 
present a serious financial problem. Thermal 
sources, on the other hand, may necessitate the use 
of scarce foreign exchange for the importation of 
needed fuel. 

But given even the most prudently planned ex- 
pansion program, acute problems arise in the field 
of finance. 

In 1950 some 20 countries with a population 
of about 500 million had an average annual per 
capita consumption of electricity of about 500 
kilowatt hours. These countries, with less than 
one-third of the world's population (excluding 
Russia and China), used over 90 percent of the 
world's electric power. In the rest of the world 
(again excluding Russia and China), with a pop- 
ulation of over 1,100 million, per capita use av- 
eraged only 50 kilowatt hours per year. 

To visualize what this low level of consumption 
means, imagine each family of five confined to the 
use of one moderate-sized lamp and no power at 
all for industrial or any other purposes. 

Even if, over the next 10 years, the present low 
per capita consumption in the less developed coun- 
tries were to be no more than doubled, an invest- 
ment of as much as 10 billion dollars would prob- 
ably be needed, of which more than half would 
have to be spent on imports. 



The funds for expansion should come, to some 
extent, from reinvested earnings of the under- 
takings themselves. But usually the demand for 
expansion is on a scale certainly greater than could 
be financed on a cash basis out of normal operating 
revenues. Permanent investment of this kind 
should properly be financed on a long-term basis. 
But here a serious obstacle presents itself. In 
most of the underdeveloped countries a capital 
market does not exist to which recourse can be had 
for funds for power development in the manner 
that has become routine in North America and 
in Western Europe. 

In my opinion, the mobilization of investment 
funds for the expansion of power services in our 
underdeveloped member countries presents a fi- 
nancial problem of the most urgent importance 
and of the greatest complexity. The development 
of a capital market that will be receptive to offer- 
ings of bonds or shares of power undertakings will 
be a slow process at best. In the meantime, the 
only alternative sources of the needed investment 
funds are the government or the consumers them- 
selves. But in a developing country the simulta- 
neous claims on government funds for public in- 
vestment are heavy and pressing ; it seems to me a 
prudent policy to conserve those funds for neces- 
sary projects which are not themselves direct reve- 
nue-producers. I therefore see considerable merit 
in the view that, to the maximum possible extent, 
those who are the users of power should contribute 
more than they have done in the past toward pro- 
viding the funds for expansion. I do not believe 
that such an approach should impose an unduly 
heavy burden ; the cost of power, within any likely 
limits, can only be a small factor in the production 
costs of industry or in the domestic budget. 

If the needed flow of funds is to be induced, 
novel and ingenious financing techniques will have 
to be adopted to meet conditions where orthodox 
financial institutions, or mechanisms, or invest- 
ment habits are, so far, in their infancy. For ex- 
ample, I think it is worth considering the possi- 
bility of imposing a "construction funds sur- 
charge" on the basic rates, which would be paid 
by the consumer in cash, but in return for which 
he would be entitled to receive an equivalent in 
stock or debentures of the undertaking. 

It is, I think, regrettable that, at some times 
in some countries, the rates charged to the con- 
sumer for power are fixed by the authorities more 
with reference to the political factors of the times 
than with proper regard to the economic neces- 
sities of particular situations. When this hap- 
pens, every sound financial and business consid- 
eration runs the risk of being sacrificed in what 
is believed to be the cause of cheap power. But 
if power can be made cheap only by charging rates 
that do not provide an economic return, the power 
undertakings are denied the ability to raise not 
only funds to finance needed expansion but even 
the funds to maintain their existing plants in 



Pcfober 5, 1953 



453 



good Older. In such circumstances, a community 
in the long run must be a heavy loser. 

All these considerations that I have mentioned 
apply with equal force whether the industry is 
government-owned or privately owned, and 
whether the private segment is in domestic owner- 
ship or in foreign ownership. The economic facts 
of life are no respecters either of govermuents or 
of persons. 

It is encouraging to note that a better under- 
standing of this important and complex problem 
is beginning to be shown and that more realistic 
policies are beginning to emerge. 

In one of our member countries where the bank 
has financed power development on a substantial 
scale, the proolems of future financing have re- 
cently become pressing. The authorities in that 
country have agreed with the bank that a joint 
study should be undertaken of the power-expan- 
sion program and of the measures required to 
finance development both in the private and in the 
government sector. I hope that conclusions and 
recommendations will emerge that will evoke wide 
interest. 



Obstacles to Economic Progress 

Looking at the international investment picture 
as a whole, it can be said without undue compla- 
cency that the flow of funds across national 
borders is now a somewhat less hazardous opera- 
tion than it was in the first postwar years. But 
■world economic conditions remain in a variety of 
ways unfavorable to the international movement 
of capital. It should be the concern of all of us 
to see how these conditions can be improved in the 
coming years. 

There is, I think, too much of a tendency to 
single out some one among the many factors that 
impede the world's economic progress and to at- 
tribute all the world's difficulties to that one factor 
alone. I am sure that this approach is too narrow 
to provide a correct appreciation of the economic 
problems facing the world. 

It is true, for instance, that, without a great ef- 
fort and a growing hospitality toward foreign 
capital in the underdeveloped regions, economic 
progress in these regions will continue to be slow 
and unsatisfactory. But it is also true that the 
extent to which production will increase in the 
underdeveloped regions will depend in large part 
on conditions and ptjlicies elsewhere. Especially 
it will depend on whether the more advanced coun- 
tries will continue to provide a satisfactory mar- 
ket for the products of these regions and supply 
to them the funds needed for their development. 

Similarly, it is true that there must be an in- 
crea.se in European industrial efficiency if Euro- 
pean countries are to restore a satisfactory balance 
in their external accounts and raise the living 
standards of their people. But it is also true that 



an increase in efficiency will not solve the pay- 
ments problem of European countries unless Eu- 
rope is given the opportunity to sell its goods in 
the markets which supply its primary products. 
This means that European difficulties cannot be 
solved by increased efficiency alone. There must 
also be an expansion of trade between Europe and 
other regions which does not depend only on Eu- 
ropean policies. Moreover, the bank's experience 
in recent years has convinced us that an increase 
in European efficiency may itself partly depend 
upon increased availability of capital from the 
Western Hemisphere. 

Finally, while it is true that the liberalization 
of U.S. imports is an essential condition for the 
elimination of the dollar shortage and the ex- 
pansion of international investment, it is equally 
true that liberalization alone will not restore bal- 
ance in the world economy. There is also urgent 
need for the rest of the world to drive back the 
inflationary tide and to remove other major ob- 
stacles to progress. 

It will therefore require the joint efforts of all 
of us to deal effectively with the difficulties still 
facing the world. But the United States, because 
of its towering position, has no doubt special re- 
sponsibilities in this field and must play a leading 
part in every effort to improve world economic 
conditions. 

The United States can hardly reconcile her po- 
sition as the giant of the world economy with the 
fear of foreign competition, which is implied, and 
is indeed expressed, in the maintenance of high 
trade barriers and other restrictions against 
foreign goods. The consequence of these restric- 
tions is to deprive foreign countries of the oppor- 
tunity of earning dollars with which to purchase 
American goods and to service American capital. 
These barriers make the world, including the 
United States, poorer than it would be if foreign 
products had easier access to the American market. 



More Liberal Import Policy Needed 

In this context, I should like to stress my 
opinion that the recent improvement in the world 
payments position has certainly not removed the 
need for a more liberal U.S. policy on foreign 
trade. The improvement was not achieved witn- 
out severe restrictions upon the imports of the non- 
dollar world and upon American exports. Many 
markets have, ever since the war, been hedged 
round with quotas and similar restrictions. These 
restrictions were sharply increased last year in 
response to the payments crisis. Balance was re- 
stored largely as a result of the fall in imports 
from hard currency areas- A considerably higher 
level of buying from hard currency areas could 
be expected if a more stable payments position 
permitted the abandonment of these restrictions. 

The world balance recently achieved is, in fact, 



454 



Department of State Bulletin 



precarious. Merely to refrain from reversing the 
downward trend in U.S. import tariffs over the 
last two decades would not be enough to put in- 
ternational trade on an even keel. Fresh action 
is required if a durable contribution is to be made 
by the United States to the postwar dollar short- 
age and to the avoidance of the periodic crises 
which this has induced in many parts of the free 
world. A further reduction in the obstacles to 
imports into the United States could make this 
durable contribution. 

But I do not need to labor this point. The case 
for a more liberal import policy has already been 
argued not only in the world at large but also 
within the United States. Two important official 
reports to the U.S. Government during the pres- 
ent year have strongly advocated this policy.^ It 
is my hope that due attention will be paid to these 
reports by the commission which is shortly to 
begin a thorough study of the whole question of 
the future foreign economic policy of the United 
States. Prominent U.S. industrialists, also, have 
recommended the lowering of tariffs and have ex- 
pressed their confidence in the ability of their en- 
terprises to stand up to the full force of foreign 
competition. A step in the direction of more lib- 
eral trade has indeed already been taken. The 
customs procedure of the United States has to 
some extent been simplified by a law passed this 
summer. But much else remains to he done if 
the flow of international trade is to reflect a grow- 
ing and dynamic world economy. 

Let me conclude by expressing my conviction 
that, in the years ahead, international investment 
will play an increasingly important part in the 
worldwide effort to encourage trade and raise 
production. Helped by the improvements that 
have already taken place in the world economy 
and by those that could follow from the policies 
that are being advocated, I believe that private 
capital would make a large contribution to this 
investment. 

A swelling stream of international investment 
would benefit recipient countries by helping to 
speed their development and to raise their pro- 
ductivity and their living standards. It would 
also benefit investing countries. They would find 
eager new markets for their products and wide 
new applications for their techniques. They 
would find new sources of the supplies needed by 
their own economies. Like the recipients, they 
would gain from the more stable world trade bal- 
ance to which international investment would 
make its own substantial contribution. 

The bank has a mandate to keep within the 
field of productive investment and of projects 
yielding a sound economic return. But our man- 
date gives full recognition to the place of the 



'The Bell report (Bulletin of Mar. 23, 1953, p. 436) 
and the Douglas report (ibid., Aug. 31, 1953, p. 275). 



private investor within this field and precludes 
the bank from undertaking projects for which 
private capital is available. Indeed, the bank's 
work helps to pave tlie way for other investment. 
It penetrates territory unfamiliar to most in- 
vestors and helps to lay the basis on which other 
investment can be built. By the sale of its own 
bonds and of securities from its portfolio, it also 
provides a channel through which investors 
around the world can participate in the develop- 
ment projects which the bank is supporting. 
With larger opportunities for international in- 
vestment in prospect, I am confident that the 
scope of the bank's activities will widen and its 
services to the world economy increase. 



International Bank Announcements 

$14,350,000 Loan to Colombia 

The International Bank for Reconstruction and 
Development on September 10 announced a loan 
of $14,350,000 to the Republic of Colombia. The 
loan will help carry forward improvements in the 
national highway system which were begun in 
1951. It will also support a long-range, compre- 
hensive road-maintenance program being under- 
taken for the first time in Colombia. 

Completion of the rehabilitation program now 
under way on the arteries carrying the heaviest 
traffic will enable the roads to bear the steadily in- 
creasing volume of commercial traffic, will reduce 
transportation costs, and will improve access to 
rapidly developing areas. A well-organized and 
continuing program of highway maintenance will 
assure that the new roads, as well as the whole 
network of national highways, will be kept in 
good condition and be of lasting benefit to the 
country. 

Since 1945 there has been a sharp increase in 
all kinds of traffic on Colombia's roads. The reg- 
istration of trucks has almost tripled; the regis- 
tration of buses and automobiles has doubled. 
Trucks, of which there were nearly 28,000 in 1951, 
account for two-fifths of all motor vehicle regis- 
tration, and for two-thirds of all road traffic; and 
their number is increasing by about 15 percent a 
year. 

In April 1951 the bank made a loan of $16.5 
million to pay for imported equipment and ma- 
terials neecled to rehabilitate about 1,800 miles of 
Colombia's principal highways. Difficulties of 
construction on Colombia's rough mountainous 
terrain, frequent landslides, and delays in deliv- 
ery of heavy equipment, have made it necessary 
to revise the cost estimates upwai'd and to extend 
the construction period from inid-1954 to the end 
of 1955. In addition, as the project progressed, ex- 
perience showed that more paving would be neces- 
sary to enable the roads to withstand traffic and 
weather conditions, and it is now planned to pave 



Ocfober 5, ?953 



455 



over 80 percent of the total mileage ratlier than 
the 15 percent originally planned. 

The proceeds of the new loan will be used to 
help finance foreign exchange costs required to 
complete the original project to adequate stand- 
ards, with some minor clianges and additions, to 
increase the percentage of roads to be paved, and 
to establish a comprehensive maintenance program 
for the entire national-highway system. 



$9 Million Loan to Turkish Bank 

The International Bank for Reconstruction and 
Development on September 10 announced a loan 
of $9 million to the Industrial Development Bank 
of Turkey. The Turkish Bank is a privately 
owned institution which helps to finance the es- 
tablishment or expansion of private industrial en- 
terprises in Turkey, and it will re-lend funds from 
the International Bank's loan for projects requir- 
ing imports of equipment from abroad. 

This is the second loan which the International 
Bank has made to the Turkish Bank. In October 
1950 a loan of $9 million was made to provide the 
Development Bank with its initial foreign-ex- 
change resources. Both loans are guaranteed by 
the Republic of Turkey. 

Since it began operations early in 1951, the De- 
velopment Bank lias been instrumental in bringing 
about an unprecedented increase in private invest- 
ment and private operation in Turkish industry. 
Prior to its establishment, the growth of private 
industry was handicapped by the absence of me- 
dium- and long-term credit facilities. 



Loans to Iceland 

The International Bank for Reconstruction and 
Development announced on September 4 that it 
had made two loans for Iceland in European cur- 
rencies. One, in various currencies equivalent to 
$1,350,000, will assist in carrying forward a pro- 
gram of agricultural development. The other, of 
£90,000 ($252,000), is to finance the construction 
of a building to house radio-transmitter equip- 
ment serving North Atlantic air traffic. The 
loans were made to Framkvaemdabanki Islands 
(the Iceland Bank of Development) and are guar- 
anteed by the Government of Iceland. 

The Bank has now made five loans for Iceland's 
economic development, all in European cur- 
rencies, totaling the equivalent of $5,914,000. The 
earlier loans were for two hydroelectric power sta- 
tions, a nitrogen fertilizer plant and for agricul- 
tural develoi)ment.' 

The new agricultural loan, like the one made in 
1951, is to further a program begun in 1951 to in- 



' Bulletin of Sept. 8, 1052, p. 367. 
456 



crease Iceland^s agricultural production. The 
purpose of the program is to restore agriculture to 
its former place of importance and lessen Ice- 
land's dependence on the fishing industry. The 
program aims to increase agricultural production 
50 percent by 1965 and should improve Iceland's 
foreign exchange position considerably through 
import savings and export earnings. 

The loan is for a term of 22 years and carries 
interest of 5 percent including the 1 percent com- 
mission which, under the Bank's Articles of 
Agreement, is allocated to a special reserve. 
Amortization payments will begin September 1, 
1958. 

The second loan, of £90,000, will pay for the 
construction of a building to house some of the 
radio equipment operated by the Icelandic Post 
and Telegraph Administration for the safety and 
convenience of civilian aircraft flying over the 
North Atlantic. Transmitters used by the ad- 
ministration for ground-air communications and 
for broadcasting weather information are at pres- 
ent sheltered in an inadequate temporary struc- 
ture, and a new building is needed to assure the 
continuance of adequate and reliable service. 

Under an arrangement administered by the In- 
ternational Civil Aviation Organization (Icao), 
the cost of the service is paid from contributions 
by 11 countries, including Iceland, whose airlines 
operate over the North Atlantic. Ic.\o has ar- 
ranged with the participating countries for an 
increased contribution of funds to assure sufficient 
revenue to pay interest and amortization on the 
Bank's loan. RIaintenance of the navigation serv- 
ice of the Telegraph Administration will help 
Iceland to continue earnings of foreign exchange 
from international aviation, and will be of benefit 
to airlines of Belgium, Canada, Denmark, France, 
Iceland, the Netherlands, Norway, Sweden, Swit- 
zerland, the United Kingdom, and the United 
States. 

The loan is for a term of 12 years and carries 
interest of i% percent, including the statutory 1 
percent commission. Amortization payments will 
begin on July 15, 1954. 

After having been approved by the Bank's exec- 
utive directors, the loan documents were signed on 
September 4 by Thor Thors, Minister of Iceland 
in Washington, on behalf of the Government of 
Iceland, by Benjamin Eiriksson, general manager 
of the Iceland Bank of Development, on behalf 
of the borrower, and by Eugene R. Black, presi- 
dent, on behalf of the International Bank. 



Trials of Polish Clergy 

Prrss release 611 dated September 22 

Bishop Czeslaw Kaczmarek of Kielce and sev- 
eral of his diocesan assistants have been sentenced 



Deparlmenf of Stale Bulletin 



by the Polish Communists to severe punishments 
at the end of a "trial" in which various false 
charges have also been made against several for- 
mer membei-s of the American Embassy at War- 
saw. Such a mockery of justice under the guise 
of a trial against a high and venerated clei'gyman 
has been seen before in Communist states, but this 
trespass of the spiritual realm, so incompatible 
with civilization and human dignity, will always 
arouse the indignation of those who respect the 
fundamental rights and freedoms of man. 

It becomes more apparent with each new ex- 
ample of such carefully prepared and staged spec- 
tacles what violations of justice and reason they 
really are. It is also abundantly clear, as the 
[William N.] Oatis story again emphasizes, by 
what methods the victims are induced to confess 
to crimes they never committed and how worth- 
less are these confessions. This trial is reminis- 
cent of the religious persecution which existed in 
Stalin's day. 

World public opinion will recognize this per- 
formance for what it is and will condemn this 
attempt to accomplish the ends of the Communist 
regime in attacking and trying to discredit organ- 
ized religion which is endeavoring to remain loyal 
to all its principles and teachings in the face of 
calculated repression. 



Significance of tlie U.N. 

Statement hy the President ^ 

White House press release dated September 23 

There is obviously one deep and abiding bond 
that joins together those of us here this morn- 
ing. You have faith and belief in the United 
Nations, and so do I. Mr. Watson ^ has thanked 
me for my efforts on its behalf. Rather, I think, 
it is up to me, as the political head of this govern- 
ment, to thank each of you for your voluntary 
efforts in support of that great institution. 

With all its defects, with all the failures that 
we can check up against it, it still represents man's 
best organized hope to substitute the conference 
table for the battlefield. It has had its failures, 
but it has had its successes. Who knows what 
could have happened in these past years of strain 
and struggle if we hadn't had the United Nations ? 
I think it is far more than merely a desirable or- 
ganization in these days. Where every new in- 
vention of the scientist seems to make it more 
nearly possible for man to insure his own elimina- 
tion from this globe, I think the United Nations 
has become sheer necessity. 



' Made at the White House on Sept. 23 to the members 
of the U. S. Committee for United Nations Day. 
' Thomas J. Watson, Jr., chairman of the committee. 



So when I thank each of you, I am thanking 
you not only as an official act from a government 
that is committed irrevocably to the support of 
this United Nations, but I am thanking you for 
having the wisdom to see what the alternatives 
are facing humanity and civilization in the world 
today. And moreover I am also thanking you 
for your initiative, your readiness to get forward 
and support something so necessary to decency, 
to justice, and to peace in the world. 



U. S. Concern for Economic Needs 
of Berlin 

Following are the texts of letters which Presi- 
dent Eisenhower exchanged with Chancellor Kon- 
rad Adenauer and Ernst Renter, late Mayor of 
West Berlin, concerning Berlin's economic needs : 

Unemployment in West Berlin 

White House press release dated September 18 

Mayor Renter to the President 

Mr. PRESroENT : 

Mr. Leo Cherne forwarded to me the picture 
taken in Washington in March 1953 when you 
were kind enough to receive me. It was very kind 
of you to write on this photograph a personal dedi- 
cation in remembrance of my visit to you. 
Thanking you for your kindness I should like to 
avail myself of the opportunity to express my 
warmest thanks for the food gift which we are at 
present distributing to the people of the Soviet 
Zone and East Berlin. 

As a matter of fact, this gift is the most effective 
way of assisting these really destitute people. 
Everybody attending the distribution of the food 
is deeply touched by the patience with which these 
people wait for hours, by their poor clothing and 
also by their joy upon receiving their sliare. We 
shall do all we can in order to organize the distri- 
bution of the gift so that as many of these dis- 
tressed people as possible are given an opportunity 
to participate in this relief program. There is no 
doubt that the distribution of food contributes 
much to demonstrate to these people that they have 
not been forgotten by the free world and that the 
free world backs them and is determined to help 
them wherever possible. Every food parcel so 
distributed strengthens the natural and unalter- 
able ties between these people living under un- 
believably difficult economic and political condi- 
tions and the free world. 

In order to cope with the unexpectedly great 
rush numerous West-Berliners have volunteered 
their help for the distribution. This attitude of 
the people of West Berlin is all the more remark- 
able as a considerable part of the people of West 



October 5, 1953 



457 



Berlin :ire also living in needy circumstances. In 
spite of every effort made by us, there are still 
225,000 unemployed who have to live on unemploy- 
ment insurance and unemployment benefit. You 
know that in spite of all difficulties, the people of 
Berlin have never been diverted from their deter- 
mination to maintain and defend the freedom and 
independence of Berlin. "Without the unparalleled 
attitude of the Berliners durinp; the last years, the 
revolts of June 16 and 17 which attracted the at- 
tention of the whole world would have never liap- 
pened. Therefore, I should like to express my con- 
viction and hope that, the stronger and healthier 
Berlin is as a whole, the greater will also be the 
power radiating from the city into the surround- 
ing Soviet Zone. Therefore, the reduction of the 
number of unemployed in Berlin is an urgent polit- 
ical and moral concern of the entire free world. 
If we succeed in creating before long another 50 
to 100 thousand places of work, we shall be in a 
position to add another decisive victory to the 
moral and political success achieved by the events 
of June 16 and 17 and the distribution of food 
which is still being carried through. 

If, besides expressing my thanks for the kind 
dedication you wrote on the photograph, I spoke 
of the sorrows and needs of Berlin, I have done 
so, Mr. President, because I am well aware of the 
understanding and sympathy you have always 
shown for the needs of this city and its people. 

With the renewed assurance of my highest es- 
teem, I remain, Mr. President, 
Yours sincerely, 

Ernst Rexjter 



The President to Mayor Reuter 

My de.\r Mayor Reuter : 

Thank you very much for your kind letter of 
August 10. I also am most gratified by the success 
which the cooperation of the Berlin authorities, 
the Federal Republic and the United States Gov- 
ernment has achieved in bringing urgently needed 
food as tangible evidence of our friendship to the 
unfortunate people of Soviet occupied Germany. 
I am impressed with the overwhelming response 
and with the courage displayed in the face of the 
many obstacles which the communist authorities 
have put in the way of these people. It is clear to 
me that the people of Soviet occupied Germany un- 
derstand that their welfare deeply concerns the 
free world which, as you point out, is determined 
to help them in every way possible. 

The American people have not lost sight of the 
serious diniculties with which the people of West 
Beilin must cope so long as tliey are separated 
from their fellow Germans in the East and West, 
and cannot enjoy free communication and unim- 
peded access to supplies of raw materials and 
markets for their production. While great prog- 

458 



ress has been made in raising the level of economic 
activity and employment in West Berlin we all 
realize that much remains to be done. The present 
investment and work relief programs in Berlin 
were, I am informed, carefully developed in the 
light of the needs of Berlin and the abilitj' of the 
Berlin authorities, business and labor, to assist 
in the creation of additional jobs in existing or 
new enterprises. 

I have no doubt that the Berlin authorities can 
improve present programs in consultation with 
the Bonn authorities and the Office of the United 
States High Commissioner. If proposals can be 
devised which would give promise of a further 
substantial increase in employment in Berlin, the 
United States Government would be prepared to 
explore with the Federal Republic what further 
steps the two governments might find it possible to 
take to achieve this objective. 

DWIGHT D. EISENIIO^VER 



Clothing for East Berlin, Soviet Zone 

white House press release dated September 22 

Chancellor Adenauer to the President 

Bonn 

August 30, 1953 
My dear Mr. President: 

It is with deep gratitude that the people of East 
Berlin and of the Soviet occupied zone receive the 
food relief granted them thanks to speedy action 
of the United States administration. I on my 
part should like to express again my sincere grati- 
tude for this relief. Your generous readiness to 
help these people in distress encourages me to sub- 
mit to you another wish : 

Winter will come within a few months, and we 
must reckon with the fact that the population of 
the East Sector and of the Soviet occupied zone 
will be in great need of warm clothing and 
footwear. The Federal Government will do every- 
thing in its power to alleviate distress in that re- 
spect as well. However, I should be particularly 
grateful if the United States administration woul(i 
see its way of promoting that relief program by 
making warm clothing, underwear, stockings and 
shoes available to the men, women and children 
in the distressed areas. 

Accej)t, Mr. President, the renewed assurance 
of my highest esteem. 

Adenauer 



The President to Chancellor Adenauer 

September 21, 1953 

Dear Mr. Chancellor: 

Thank you for your letter of August 30, 1953, 
in which you expressed the gratitude of the people 

Department of State Bulletin 



of East Berlin and the Soviet occupied zone for 
the help given by the United States in the food 
relief program. I am glad that this program has 
helped to alleviate the great need of these un- 
fortunate people whose courage in the face of op- 
pression has been admired the world over. 

At the same time you call my attention to the 
need for warm clothing and footwear for these 
same people — need which might become acute dur- 
ing the coming winter. I can assure you that this 
Government is aware of this need. It is my belief 
that the American people will gladly and liber- 
ally respond to your plea as many of them have 
done in similar situations in the past through va- 
rious voluntary agencies. I shall therefore bring 
your letter to the attention of the American peo- 
ple knowing that they will contribute generously 
to the organizations which will undertake to pro- 
vide such clothing and other required and related 
items. 

Accept, Mr. Chancellor, the renewed assurance 
of my highest esteem. 
Sincerely, 

DwiGHT D. Eisenhower 



Application of Handicraft Order 
in U.S. Zone of Germany 

Following are texts of letters exchanged by 
Ambassador James B. Conant, U.S. High Com- 
missioner for Germany .1 and West German Chan- 
cellor Konrad Adenauer: 

Chancellor Adenauer to Ambassador Conant, Sep- 
tember 1 

In connection with the negotiation of the con- 
tractual agreements there were lengthy discus- 
sions with regard to questions of Geioerbefreiheit 
[freedom of economic opportunity] and its rela- 
tion to the basic law for the Federal Republic of 
Germany.^ Following these discussions it was 
agreed that the Federal Constitutional Court 
should have the exclusive right to make binding 
decisions on the interpretation of the basic law 
and the Allied representatives waived their orig- 
inal desire to incorporate provisions re Geioerbe- 
freiheit in the contractual agreements. In con- 
nection therewith I wrote to your predecessor, Mr. 



' Article 12, section 1, of the Basic Law for the Federal 
Republic of Germany reads : "All Germans have the right 
freely to choose their occupation, place of work and place 
of training. The practice of an occupation may lie regu- 
lated by legislation." (Oermany 19/i7-19.'i9, the Story in 
Documents, Department of State publication 3556, p. 284.) 
For further background information, see Report on Oer- 
many, Sept. 21, 19Ji9-Juty 31, 1952, Office of the U.S. High 
Commissioner for Germany, pp. 157-162. 

October S, 1953 



John J. McCloy, under date of 25 May, 1952, 
"that an early clarification of the issues deriving 
from the basic law is desirable, particularly in 
consideration of future legislation". I added 
that if certain proceedings then pending did not 
result in an adequate clarification of the issues, 
the Federal Government would seek a decision or 
the Federal Constitutional Court, as soon as an 
occasion should arise for the filing of an applica- 
tion under Article 76, Section 2 of the law con- 
cerning the Federal Constitutional Court. 

Unfortunately, because of the existing legal po- 
sition, it has not yet been possible to obtain a de- 
cision of the Federal Constitutional Court which 
would clarify the question of the constitutionality 
of certain restrictions of Gewerbefreiheit. In the 
meantime a federal handicraft order has been 
adopted by a great majority comprising all demo- 
cratic parties, and of which the Bundesrat has 
also approved. It also contains restrictions of 
Gewerbefreiheit which raise the same question. 

Under the circumstances I very much appre- 
ciate the decision of your government taken at 
my request to abrogate the U.S. military gov- 
ernment directives relating to Gewerbefreiheit in- 
sofar as they conflict with certain provisions of 
the law of the federal handicraft order. I know 
that this decision is based on the desire of your 
government to give effect to the laws adopted by 
parliamentary bodies in accordance with the spirit 
of democracy, even though I recognize that some 
of the provisions of the federal handicraft order 
are contrary to U.S. traditions and that the deci- 
sion of your government is not to be construed 
as a change in its view that freedom of economic 
opportunity is essential to the continued strength 
of free nations. 

In view of the general importance of the ques- 
tion of the compatibility of the federal handicraft 
order with the basic law and in view of tlie great in- 
terest of the German public in the clarification of 
this issue, I am confident that the Federal Con- 
stitutional Court will consider the matter as soon 
as the issue can be presented to it in accordance 
with the provisions of the basic law and the law 
concerning the Federal Constitutional Court. The 
president of the Federal Constitutional Court has 
advised my government that he believes that if 
the matter is brought before the Federal Consti- 
tutional Court, priority will be given to the con- 
sideration of tlie question. 

In all probability the matter will be brought 
before the Federal Constitutional Court either on 
the basis of an individual constitutional complaint 
or upon tlie request of a German court which is 
confronted with the issue. But on behalf of my 
government I want to reiterate what I said in my 
letter of May 25, 1952 and add the assurance that 
(other than itself asserting that the federal handi- 
craft order as adopted by the Bundestag and 
Bundesrat is unconstitutional), my government 

459 



will do whatever it can legally do under applicable 
laws to expedite presentation of the question to 
the Federal Constitutional Court. 

Accept, Mr. Ambassador, the assurance of my 
highest consideration. 

Adenauer 



Ambassador Conant to Chancellor Adenauer, Sep- 
tember 9 

I have the honor to confirm the receipt of your 
letter of September 1, 1953, concerning the deci- 
sion of my government to amend the pertinent 
United States military government directives re- 
lating to Gewerhefreiheit to the extent necessary 
to permit the law on the federal handicraft order 
to go into effect in the United States Zone. 

In this connection I wish to state again that 
freedom of economic opportunity appears and has 
always appeared to my government as essential to 
the continued strength of free nations. I am grati- 
fied that you recognize that this continues to be 
the view of my government. You also appreciate 
that it is for this reason that my government con- 
tinues to attach such importance to a prompt clari- 
fication of the constitutionality of the federal 
handicraft order. 

The Allied High Commission and the Federal 
Government have agreed that on this issue of con- 
stitutionality the basic law of the Federal Republic 
is alone decisive. I therefore particularly welcome 
your statement that the question of compatibility 
of the federal handicraft order with the basic law 
is one of general importance, in the clarification 
of which the German public is greatly interested, 
and your assurance of the cooperation of your gov- 
ernment in expediting presentation of the question 
to the Federal Constitutional Court. I have also 
noted that the president of the Federal Constitu- 
tional Court has advised your government that he 
believes that if the matter is brought before the 
P'ederal Constitutional Court priority will be 
given to the consideration of the matter. 

In the light of the foregoing, my government is 
satisfied that it should be possible to obtain a 
prompt judicial decision as to the compatibility 
of the federal handicraft order with the basic law. 
Accordingly, the Minister Presidents of the 
Laender in the United States Zone and the Presi- 
dent of the Bremen Senate are being informed 
today that the United States Militai-y Govern- 
ment directives on Gewerhefreiheit issued by the 
directors of the offices of United States Land mili- 
tary governments under the Omgiis directives of 
November 29, 1948, and March 28, 1940, shall bo 
considered as having been aniended to the ex- 
tent necessary to permit the application of the fed- 
oral handicraft order in the United States Zone. 

Accept, Excellency, the renewed assurances of 
iny highest consideration. 

CoNANT 



Visit of French Leaders 

white House press release dated September 16 

President Eisenhower has invited Joseph Laniel, 
President of the French Council of Ministers, to 
visit him this autumn in Washington, accompanied 
by Foreign Minister Bidault, for a friendly visit 
and a general exchange of views on matters of 
common interest. Mr. Laniel has accepted this 
invitation. 

A mutually convenient date will be agreed later, 
depending on the engagements of the President 
of the United States and the French Prime 
Minister. 



Tax Conventions With Belgium 
Enter Into Force 

Press release 487 dated Sept. 9 

On September 9 the income-tax convention of 
October 28, 1948, between the United States and 
Belgium and the supplementary convention of 
September 9, 1952, were brought into force by the 
exchange of instruments of ratification. 

These conventions relating to the avoidance of 
double taxation and the prevention of fiscal eva- 
sion were approved by the U.S. Senate on July 9, 
1953, and were ratified by the President on July 23. 

The provisions of the 1948 convention, with 
modifications and supplementary provisions con- 
tained in the 1952 convention, follow in general 
the pattern of income-tax conventions entered into 
by the United States with a number of other coun- 
tries. They are designed to remove an impedi- 
ment to international trade and economic develop- 
ment by doing away as far as possible with double 
taxation on the same income. 

So far as the United States is concerned' the 
conventions apply only to Federal income tax. 
They do not apply to taxes imposed by the several 
States, the District of Columbia, or the territories 
or possessions of the United States. 

Pursuant to article XXIII of the 1948 conven- 
tion, as amended by the 1952 convention, the con- 
ventions are effective "with respect to income de- 
rived in taxable years beginning on or after" Jan- 
uary 1, 1953. 



Letters of Credence 

Ethiopia 

The newly appointed Ambassador of Ethiopia, 

Ato Yilina Dcressa, presented his credentials to 
the President on September 26. For the text of 
the Ambassador's remarks and the text of the 
President's reply, see Department of State press 
release 520 of September 20. 



460 



Department of State Bulletin 



Calendar of Meetings' 

Adjourned During September 1953 

Wmo (World Meteorological Organization): 

Commission for Aerology: 1st Session Toronto Aug. 10-Sept. 5 

Technical Commission for Instruments & Methods: 1st Session . Toronto Aug. 10-Sept. 5 

Regional Association for South America: 1st Session Rio de Janeiro Sept. 15-25 

14th International Exhibition of Cinematographic Art Venice Aug. 11-Sept. 4 

U. N. (United Nations): 

Committee on Information from Non-Self-Governing Territories: New York Aug. 18-Sept. 15 

4th Session. 

Ad Hoc Commission on Prisoners of War: 4th Session Geneva Aug. 24-Sept. 12 

EcAFE Subcommittee on Iron and Steel Bangkok Aug. 31-Sept. 3 

International Workshop on Budgetary Classification and Manage- Mexico Sept. 3-14 

msnt. 

EcAFE Working Party on Financing Economic Development in Bangkok Sept. 7-12 

Asia. 

International Children's Emergency Fund: Executive Board and New York Sept. 8-16 

Program Committee. 

EcAFE Highway Subcommittee: 2d Session Bangkok Sept. 14-19 

EcAFE Working Party on Small-Scale Industries and Handicraft Bangkok Sept. 21-28 

Marketing: 3d Meeting. 

7th Edinburgh Film Festival Edinburgh Aug. 23-Sept. 13 

IcAO (International Civil Aviation Organization): 

Legal Committee: 9th Session Rio de Janeiro Aug. 25-Sept. 12 

8th International Congress of Geometricians Paris Aug. 28-Sept. 6 

5th Intsrnational Congre.ss on Tropical Medicine and Malaria . . . Istanbul Aug. 28-Sept. 4 

UNESCO (United Nations Educational, Scientific and Cultural Organi- 
zation) : 

Seminar on Visual Aids in Fundamental Education Messina Aug. 29-Sept. 27 

2d Atlantic Community Conference Copenhagen Aug. 30-Sept. 5 

International Association for Hydraulic Rssearch Minneapolis Aug. 30-Sept. 4 

4th International Congress of the International Association on Quater- Roma & Pisa Aug. 30-Sept. 10 

nary Research. 

3d International Biometric Conference Bellagio Sept. 1-5 

Fao (Food and Agriculture Organization) : 

Near East Pre-Conference Regional Meeting Cairo Sept. 1-9 

Working Party on Fertilizers: 3d Meeting Bangkok Sept. 21-27 

Working Party on Rice Breeding: 4th Meeting Bangkok Sept. 21-27 

Who (World Health Organization) : 

Regional Committee for the Western Pacific: 4th Session .... Tokyo Sept. 3-8 

9th General Assembly of the Inter-American Commission of Women. Asuncion Sept. 5-23 

International Institute of Administrative Sciences: IXth Congress. . Istanbul Sept. 6-14 

6th International Congress for Microbiology Rome ' Sept. 6-12 

International Statistical Institute: 28th Session Rome Sept. 6-12 

Anziis (Australia-New Zealand-United States): 

2d Meeting of the Council Washington Sept. 9 and 10 

International Bank for Reconstruction and Development and Inter- Washington Sept. 9-12 

national Monetary Fund: 8th Annual Meeting of Boards of Gov- 
ernors. 

Meeting on North Atlantic Ice Patrol Washington Sept. 11 (1 day) 

7th International Congress on Vineyards and Wine Rome Sept. 12-20 

Ad Hoc Committee for the Study of the Low-Cost Housing Problem Washington Sept. 14-23 

(Ia-Eco.soc). 
Ilo (International Labor Organization): 

Asian Regional Conference Tokyo Sept. 14-26 

Permanent International Association of Navigation Congresses: Rome Sept. 15-22 

■ ■■'XVIIIth Congress. 

International Conference on Theoretical Physics Kyoto & Tokyo Sept. 1.5-23 

3d Congress of the International Union of Architects Lisbon Sept. 20-28 

In Session'as of September 30, 1953 

International Materials Conference Washington Feb. 26, 1951- 

Hortieultural Congress and Exposition Hamburg .\pr. 30- 

Itu (International Telecommunication Union): 

International Radio Consultative Committee: Vnth Plenary Session . London Sept. 3- 

U.N. (United Nations): 

General Assembly: 8th Session New York Sept. 15- 

' Prepared in the Division of International Conferences, Department of State, Sept. 24, 1953. Asterisks indicate 
tentative dates. 

Ocfober 5, 1953 461 



Calendar oj Meetings — Continued 

In Session as of September 30, 1953 — Continued 

Gatt (General Agreement on Tariffs and Trade): 

8th Session of the Contracting Parties to Gatt Geneva Sept. 17- 

International Exhibition and Fair at Jerusalem ("Conquest of the Jerusalem Sept. 22- 

Desert"). 

6th International Congress of Criminal Law Rome Sept. 27- 

Consultative Coniniittee on Economic Development of South and New Delhi Sept. 28- 

Southeast Asia ("Colombo Plan"). 
International Council for Exploration of the Sea: 

41st Statutory Meeting Copenhagen Sept. 28- 

Scheduled October 1-December 31, 1953 

Tripartite Working Group for Austrian Treaty Paris Oct. 1- 

Ilo (International Labor Organization): 

Asian Advisory Committee: 5th Session Nuwara-Eliya Oct. 2- 

Asian Maritinie Conference Nuwara-Eliya Oct. 5- 

Building, Civil Engineering and Public Works: 4th Session .... Geneva Oct. 26- 

Governing Body (and its Committees): 123d Session Geneva Nov. 18- 

Coal Mines: 5th Session Dusseldorf Nov. 30- 

6th International Congress for Leprosy Madrid Oct. 3- 

Fad (Food and Agriculture Organization): 

Joint Fag/Ece Timber Committee Rome Oct. 5- 

European Forestry and Forest Products Commission: 6th Session . Rome Oct. 8- 

Technical Meeting on Fishing Vessel Design Paris Oct. 12- 

Joint Fag/Who 3d Latin American Nutrition Conference Caracas Oct. 19- 

Joint Fao/Who Technical Conmiittee on Dietary Requirements . West Indies Nov. 2- 

Committee on Commodity Problems: 22d Session Rome Nov. 13- 

Technical Meeting on Fishing Vessel Design Miami Nov. 16- 

18th Session of the Council Rome Nov. 18- 

Annual Conference: 7th Session Rome Nov. 23- 

19th Session of the Council Rome Dec. 

Pasg (Pan American Sanitary Organization): 

Executive Committee: 20t"h Meeting Washington Oct. 5- 

7th Session of the Directing Council and 5th Regional Committee of Washington Oct. 9- 

the World Health Organization. 

Executive Committee: 21st Meeting Washington Oct. 22- 

International Meeting on Sulphur Paris Oct. 5- 

U.N. (United Nations): 

EcAFE Subcommittee on Electric Power: 3d Session Bangkok Oct. 5- 

EcAFE Railway Subcommittee: 2d Session Undetermined Oct. 5- 

4th Conference on Technical Assistance New York Oct. 15- 

Economic Commission for Europe, Coal Classification Meeting . . Geneva Nov. 9- 

Ecosoc Resumed 16th Session of the Council New York Nov. 

Reconvening of Intergovernmental Tin Conference Geneva Nov.* 

Narcotic Drugs Supervisory Body Geneva Oct. 26 

Permanent Central Opium Board: 64th Session Creneva Oct. 26 

Permanent Central Opium Board and Narcotic Drugs Supervisory Geneva Oct. 26 

Body: 8tli Joint Session. 

Wmo (World Meteorological Organization): 

Executive Committee: 4th Session G«neva Oct. 6- 

Commission for Agricultural Meteorology: 1st Session Paris Nov. 3- 

Commission for Bibliography and Publications: 1st Session . . . Paris Nov. 21- 

Unesco (United Nations Educational, Scientific and Cultural Organi- 
zation) : 

Regional Study and Information Seminar for Youth Leaders of Tokyo Oct. 6- 

South and East Asia. 

1st International Communications Conference Genoa Oct. 7- 

IcEM (Intergovernmental Committee for European Migration): 

Finance Subcommittee Venice Oct. 8- 

6th Session of the Committee Venice Oct. 12- 

Ist International Congress of Engineers Rome Oct. 8- 

42d Conference of the Interparliamentary Union Washington Oct. 9- 

Oeec (Organization for European Economic Cooperation) : 

Conference on European Inland Transport Brussels. Oct. 12- 

Special Meeting of the Management Committee of the Rubber Study London Oct. 12- 

Group. 

South Pacific Commission: 12th Session Noumea Oct. 12- 

Who (World Health Organization): 

International ('onference of Representatives of National Commit- London Oct. 12- 

tees on Vital and Health Statistics. 

Cfm (Council of Foreign Ministers): 

7th Session of the C^ouncil Lugano Oct. 15- 

13th and 14th Sessions of the International Wheat Council Madrid. . .^ Oct. 20- 

Highway Congre.ss: Meeting of the Technical Committee on the Mdxico, D. F Oct. 26- 

Financing of tlie Pan American Highway. 

Post Armistice Political Conference on Korea. Undetermined Oct. 27- 

462 Oeparfmenr of S/afe bulletin 



Calendar of Meetings — Continued 

Scheduled October 1-December 31, 1953 — Continued 

International Cotton Advisory Committee: 2d Session of 12th Plenary Washington Nov. 2- 

IMeeting. 

1st International Congress of Tribunals of Accounts (General Account- Habana Nov. 2- 

ing Offices). 
Icsu (International Council of Scientific Unions) : 

Joint Commission on Radio-Meteorology. Austin (Texas) Nov. 9- 

Sth Pacific Science Congress Manila Nov. 16- 

Symposium on Physical and Biological Oceanography (In conjunction Quezon City Nov. 16- 

with 8th Pacific Science Congress). 
IcAO (International Civil Aviation Organization) : 

African-Indian Ocean Regional Air Navigation Meeting: 2d Ses- Santa Cruz de Tenerife . . . Nov. 17- 
sion. 

Caribbean Commission: 17th Meeting Trinidad Nov. 23- 

1st Meeting of the International North Pacific Fisheries United States Nov.* 

World Coffee Congress, and International Coffee Culture Exposition . Curitiba Dec. 11- 

Nato (North Atlantic Treaty Organization) : 

Ministerial Meeting of the North Atlantic Council Paris Dec. 15- 

3d International Conference on Low Temperature Physics .... Houston Dec. 17- 



UNESCO National Commission Holds Fourth Conference 



Under Secretary Smith delivered the keynote 
address at the opening session of the fourth annual 
conference of the UNESCO National Commission 
at Minneapolis, Minn., on September 15. At the 
same session, Carl W. McCardle, Assistant Secre- 
tary for Puhlic Affairs, conveyed tnessages from 
President Eisenhower and Secretary Dulles. Fol- 
lowing are texts of General SmitK's and Mr. 
McCardle''s statements: 



BUILDING A COOPERATIVE PEACE 

hy Under Secretary Smith ^ 



Your presence here is a unique demonstration 
of our belief, as a nation, that decent people every- 
where want to live at peace with one another, and 
that giving the people generally an opportunity 
to be heard in the world's councils is itself a con- 
tribution to peace building. It is a very fine thing 
to see a group of distinguished private citizens 
gathered in a council established by federal stat- 
ute and considering international relations. In- 



* Press release 503 dated Sept. 16. 
Oefober 5, J 953 



deed, the legal establishment and continued 
support of the U.S. National Commission by the 
Congress are evidence of the simple fact that our 
effort to build peace is an undertaking that in- 
volves all of us. 

If our people are to help constructively, they 
must be better informed than they have been in 
the past. The decisions to be made now and in 
the future are vast in scope and tremendous in 
import; judgments must not be shaped either on 
emotional impressions or prejudice. We must un- 
derstand other peoples, their cultures, their his- 
tories, and their philosophies. If we don't, we 
cannot understand the forces and motives which 
impel their decisions. We must be able to evaluate 
those specific economic, political, and human situ- 
ations whose solutions may sometimes be the dif- 
ference between peace and war. And we must 
surely understand the clashing political philoso- 
phies and the intellectual divisions which charac- 
terize our modern world. 

The building of a cooperative peace demands, 
in the free countries of the world, citizen minds 
which are capable of thinking with equal facility 
and with as much accuracy in global terms as most 
of us thought in mere community terms when we 
were younger. 

463 



Unfortunately, neither here nor in any nation 
of the world have we achieved the level of under- 
standing which our modern complex situation re- 
quires. Developing relevant understanding is 
going to take time, and the responsibility for doing 
it must be widely shared. Every individual must 
do what he can to educate himself. Every scliool, 
church, civic club, government, great private or- 
ganization, and international organization — each 
must do its part. 

UNESCO's role in this manifold task of learning 
is, as I see it, to promote that educational, scientific, 
and cultural collaboration among organizations 
and peoples which will help build the understand- 
ing essential to peace. 

UNESCO has now been at its task for about 7 
years. It must be admitted that it has not fully 
realized the high hopes entertained by the noble 
men and women who carved out its charter and 
then launched the organization. Unesco has made 
mistakes. At times it has tried to do too much, 
with too little — thus diffusing its efforts sometimes 
to a point of near-disappearance. 

But UNESCO has also achieved a great deal of 
good. It has, for example, done much to muster 
the educational, scientific, and cultural strength 
of the United States in support of broadly based 
programs for peace. It has helped to initiate 
important programs in fundamental education. 
It has given educational support to a multitude 
of technical-cooperation projects. The mass 
media of the world have been supplied with basic 
information designed to promote understanding 
among peoples. 

Before Unesco and the cooperating national 
commissions in the member states were estab- 
lished, a great many careful thinkers argued that 
this educational task should remain exclusively in 
private hands. They thought Unesco should be 
a private international organization which 
worked through existing educational, scientific, 
and cultural agencies that abound in the inter- 
national area. 

Others felt that the job required such substan- 
tial financial sup])ort and such continuous effort 
that only an international governmental agency, 
perhaps as a unit of the United Nations itself, 
could get the job done. 

UNESCO as it was finally established represented 
a compromise of these extreme views. Unesco 
itself is an international governmental organiza- 
tion, but for its successful functioning it must 
work with a great many private agencies, and 
especially with the national commissions of the 
member states, which are an experiment in pub- 
lic-private cooperation. 

Whether the structure as it evolved is the best 
that can be devised is open to question. This 
does not mean that I am now presuming to offer 
a better pattern. But just as the time is ap- 



proaching to review the United Nations Charter 
and instruments, so too we should now, I believe, 
take a new look at Unesco. 

I think that this reexamination should be a 
cooperative enterprise involving the U.S. Na- 
tional Commission for Unesco and the State De- 
partment, and I would like at this time to pledge 
the Department's support to such a project. 
Since President Eisenhower's administration 
took office, it has had to cope with international 
emergencies of the gravest character in many 
parts of the world. Nevertheless, there has been 
time to reassess our efforts toward peace in most 
areas of the globe. Secretary Dulles has made 
visits to Europe and to the Middle and Far East. 
The Assistant Secretaries of State have all vis- 
ited the areas of their particular responsibility. 
A special mission headed by Dr. Eisenhower, the 
first chairman of the U.S. National Commission 
for Unesco, has visited the 10 republics of South 
America. 



Lack of Mutual Understanding 

In these visits, through regular diplomatic re- 
ports, and in a myriad of other data which 
reaches the State Department, there is one per- 
sistent theme: The lack of understanding among 
peoples and governments is a constant impedi- 
ment to the building of a cooperative, enduring 
peace. 

This is an awesome shortcoming. A totalitar- 
ian power enfoi'ces its will upon its own people 
and its satellites. The less they know, the easier 
the task of control by the central power. 

But among the free nations of the world the 
situation is very different indeed. We are equal 
partners, and we equally abhor control of one 
nation by another. 

We are utterly dependent on genuine abiding 
cooperation, but cooperation is not something that 
springs up by itself. It is the result of careful 
planning, systematic action, and adherence to 
clear and well-miderstood principles. 

There is misunderstanding and, indeed, a great 
deal of suspicion among our friends throughout 
the world regarding the motives and objectives 
of the United States. For example. Dr. Eisen- 
hower reported tliat he found mucli misunder- 
standing of the United States in South America 
even among our staunchest friends and allies.* 
It exists to as great or greater degi'ee elsewhere. 
Wo ai'e so conscious of the basic decency of our 
own motives that we unconsciously expect them to 
be taken for granted by others — to believe that 
truth will prevail without the necessity of estab- 



' For a statement made by Milton Elsenhower on his 
return from South America, see Bulletin of Aug. 10, 
li)53, p. 184. 



464 



Department of State Bulletin 



lishing it as truth. It is in this significant sphere 
that the work of Unesco becomes of such gi-eat 
and immediate importance to the United States. 
UNESCO's work in the dissemination of knowl- 
edge — without favoring any national state — can- 
not but be beneficial to the United States by con- 
tributing to a greater understanding of our mo- 
tives and our beliefs. For we have nothing to 
fear and everything to gain from the truth — 
from a genuine understanding of our own coun- 
try by otliers. 

I have heard it said that American prestige has 
declined, and that our influence in world affairs 
is waning. I do not accept this, nor should you. 
Events of the past few months, beginning with the 
cessation of hostilities in Korea and culminating 
in the demonstration of triumphant democracy in 
the free German elections, have shown that our 
foreign policy is firm and wise and that it is reap- 
ing the rewards of firmness, restraint, and wis- 
dom. But this very fact makes the work of 
advancing mutual trust and understanding all 
the more important. 

Since our concern is not for the past, but for 
the future, there is every incentive to increase 
the scope and effectiveness of Unesco's activities. 
I have suggested that an analysis of Unescx) 
machinery and methods, based on experience 
which did not exist at the time it was founded, 
may indicate that both the structure and the tech- 
niques could be improved. 

And I believe that this reexamination can pro- 
ceed from the point of view of developing wider 
and more energetic public support for Unesco 
activities. It might also explore ways of revital- 
izing the enthusiasm of those who were originally 
active. 

There is room for improvement in the rela- 
tionship between Unesco and the Department of 
State, and this should be the easiest part of the 
problem to solve, since we need each other. 

You now have the Salomon Report.^ The find- 
ings of this inquiry should go far toward rebut- 
ting much unjustified criticism and should do a 
great deal to reassure the people of this country 
as to the real mission of Unesco. 

When we talk of the need for understanding 
both at home and abroad, it would be difficult to 
find a more pointed illustration than in the pres- 
ent situation in the Far East and the policy this 
country is developing to deal with it. 



' Irving Salomon, chairman of the U.S. delegation to 
the second extraordinary session of Unesco held at Paris 
in July, was asked by President Eisenhower to prepare 
an appraisal of the organization. His reiwrt was trans- 
mitted to Secretary Dulles on Aug. 25 and presented to 
the National Commission for Unesco during the Min- 
neapolis meeting. Copies of the report may be obtained 
by writing to the Unesco Relations Staff, Department of 
State, Washington 25, D.C. 



U.S. Policy in the Far East 

We now have an armistice in Korea. We have 
made clear the action we would take if the other 
side were to violate that armistice. In concert 
with the other 15 member nations of the United 
Nations who fought in Korea beside the Eok 
forces, we have declared formally that we would 
be prompt to resist further aggression and that in 
such circumstances it would probably not be pos- 
sible to limit the hostilities to Korean territory.* 

We have subscribed to this joint statement for 
two reasons. The first is our determination to 
stand on the principle which led us to take up 
arms in Korea in the first place — the conviction 
that aggressive forces must be turned back from 
their assault on the free nations of the world. The 
second is our belief that the aggressors are less 
likely to strike when they know in advance our 
determination and our ability to react swiftly and 
strongly. 

There can be no misunderstanding now. 

We have also made clear to the Communists 
that they cannot make a farce of the Korean 
truce by aggression elsewhere in Asia. We are 
fully aware of the fact that Communist China has 
been an active sponsor of the Communist move- 
ment in Indochina and has provided the Red 
troops there with training, equipment, and sup- 
plies. 

We are equally alive to the possibility that the 
Peiping regime might attempt to take advantage 
of a truce in Korea to move its so-called "volun- 
teer'' units to Indochina to reinforce the Viet 
Minh. By any process of reasoning, a shift of 
this sort constitutes aggression quite as clearly as 
did the movement of these same troops into the 
lines in Korea. 

Accordingly, we have stated officially that the 
appearance of Chinese Communist troops in the 
fighting in Indochina would be regarded as re- 
newed aggression — that the consequences of such 
a move would be grave and that they might not 
be confined to Indochina. 

During the war in Korea, the United Nations 
exercised a restraint which is equaled in few in- 
stances in military history. We scrupulously 
confined our actions to Korean territory. 

But should the Chinese Communists reopen hos- 
tilities, renew their aggressive behavior — either in 
Korea or in Indochina — we would be confronted 
with a very different situation. We would be 
forced to the conclusion that the Peiping regime 
is bent on a reckless course of conquest. It would 
then be clear that Communist intent was to invest 
all Southeast Asia and by force of arms to subject 
the free peoples of that area to the tyranny of Red 
control. Our reaction would have to be adequate 
to meet such a grave situation. 



' Bulletin of Aug. 24, 1053, p. 247. 



Oc/ober 5, 1953 



465 



As a corollary we strongly oppose the repre- 
sentation of China in the United Nations by the 
Chinese Communists. 

The Chinese Communists have openly waged 
war against the United Nations. They have dis- 
regarded all accepted standards of international 
conduct in their relations with the free world. 
The United Nations overwhelmingly voted to 
brand them as aggressors. The United States 
cannot accept the theory that the Chinese Com- 
munists should be rewarded for their entry into 
the Korean conflict on the side of the enemy and 
for their years of violent warfare against the com- 
munity of nations. Our position is that by no 
standard do they qualify for admission into this 
community of nations. 

To so reward them now would be to make a 
mockery of the sacrifices of life by the forces of 
the United Nations and the Republic of Korea 
in defense of Korean freedom. How could we 
possibly deal with future aggressions if we re- 
warded the aggressors in the first major test of the 
United Nations' ability to undertake collective 
action ? We are opposed even to consideration of 
any proposal to seat the Chinese Communists and 
are confident that a large majority of the Gen- 
eral Assembly will continue to stand with us on 
this. 



The Korean Political Conference 

I would like to turn now for a few moments to 
the political conference on Korea and some of 
the events wliich have preceded its convention. 
The factor of understanding enters here too, 
although in a somewhat different way. We are, 
of course, continuing our planning for a political 
conference on Korea as recommended in the ar- 
mistice agreement and approved by the General 
Assembly on August 28. The Communist reaction 
to the General Assembly resolution, which you 
have seen in the press, was not entirely surprising 
but it was disappointing. It was not surprising to 
find the Chinese Communists taking the same line 
which the Soviet delegation took in the General 
Assembly 2 weeks ago. It was disappointing, 
however, for it might have been hoped that in 
view of the recommendation in the armistice 
agreement and the action of the General Assem- 
bly, the Chinese Communists would cease their ob- 
structive tactics. Yet this has not been the case. 

There appears to be little about the conference 
arrangements to which the other side could legiti- 
mately take exception. The minor matters of date 
and location are difficult to transform into major 
issues of controversy. And it is certainly not rea- 
sonable for them to object to the proposed form 
of the conference, because it is exactly what they 
themselves proposed. 



x\s you know, in the special session of the Gen- 
eral Assembly there was some debate over the form 
the conference would take. You will recall that 
the United States believed that it would be a cross- 
table negotiation between the United Nations and 
the Communists who fought against them. AVe 
felt strongly that the United Nations representa- 
tion should be confined to those members who 
participated in the Korean fighting. The pres- 
ence of the Republic of Korea was, of course, indis- 
pensable. We recognized also that the presence 
of the Soviet Union — while not making the nego- 
tiations any easier — would give added weight to 
whatever agi'eements were reached. 

However, the Soviet Union obviously could not 
take part as a member nation of the United Na- 
tions Command. It was equally apparent that 
Russia could not qualify as a neutral — no matter 
how far the term was stretched. Thus, if Russia 
was to sit anywhere, she should sit beside the 
North Korean and Chinese Communist representa- 
tives. 

On the floor of the Assembly, the Soviet Union 
advocated an entii'ely different conference format. 
They supported a "roundtable" arrangement 
composed of a few United Nations representa- 
tives, some neutrals — including Poland — and a 
Communist contingent. 

We have proceeded on the assumption that 
North Korean and Chinese Commimist positions 
are cleared in advance with Moscow. I think the 
assumption is well founded. 

The conference format which this country sup- 
ported in the Assembly debate was in strict accord 
with article 60 of the armistice agreement. And 
article 60 of the armistice agreement was pro- 
posed by the Communist negotiators at Panmun- 
jom and accepted by us ! 

In other woi-ds, the conference which we pressed 
for was the kind of conference which the Com- 
munists themselves proposed during the armistice 
negotiations and which we there agreed to. We 
continue to believe that that is the kind of con- 
ference most conducive to agreement on the dif- 
ficult questions involved in a Korean settlement. 
The United Nations overwhelmingly supported 
this view and, I am confident, will continue to 
support it. 

After the Assembly resolution was adopted on 
August 28, the United States, in accordance with 
the terms of that I'esolution, communicated with 
the Communists in regard to a time and place of 
the conference. We have not yet received any of- 
ficial reply to (hat conununication. We under- 
stand, however, from a Chinese Communist radio 
broadcast, that (hey have communicated with the 
Secretary General of the United Nations. 

From this, it would appear that the Chinese 
Comnninists have simply revived, with minor 
variations, the Soviet proposal for a roundtable 



466 



Department of Slate Bulletin 



conference which was overwhelmingly rejected at 
the General Assembly at the end of August. 

We see no reason whatever for reopening this 
question in the General Assembly. The Assem- 
bly has already had the Communists' position be- 
fore it. We see no reason whatever for inviting 
the Chinese Communists to appear before the Gen- 
eral Assembly. The way is clear for them to 
agree on a time and place of the conference with 
the United kStates, which was autliorized by the 
General Assembly to speak for the United Na- 
tions side on this matter. 

However, in spite of these obstructions, the 
U. S. Government has not been, and is not now, 
unduly pessimistic about the possibilities of a suc- 
cessful conference. 

We do not indulge in overoptimism, nor in 
overpessimism. We know that the issues to be 
discussed have been long in controversy. We 
realize that the interests of the contending parties 
are very strong. Korea, you will recall, has been 
a bone of contention in the Far East for centuries. 

The American attitude is simply one of realism. 
We believe that some of the problems relating to 
Korea can be resolved. And we know that our 
every move will derive from a sincere desire to 
reach a settlement. We are watchfully hopeful 
that the other side will also negotiate in sood 
faith. 

If this should be the case, we believe that there 
is a good chance that we can produce from the 
conference that free, unified, and independent 
Korea which for years has been our objective. 
Once this is achieved, the second U.N. objective — 
the withdrawal of foreign troops from the penin- 
sula — should not offer insuperable difficulties. 



Agenda of the Eighth General Assembly 

This afternoon, the General Assembly opened 
its eighth session. Once more the General As- 
sembly faces an impressive range of problems. 
There are about 80 items on the agenda. Some 
deal with very involved political questions — some 
■with economic and social problems, such as the 
development of underdeveloped countries and 
technical assistance — others with problems con- 
cerning the progress toward self-government in 
the trust territories and non-self-governing ter- 
ritories. None of these is easy to solve. If that 
were the case they wouldn't come before the 
General Assembly. 

We face tliese difficult questions with under- 
standing and confidence. On United States 
leadership rests a large part of the responsibility 
for insuring the essential unity of purpose and 
understanding among the free nations. We must 
be one of those catalytic agents which prevent 
the unavoidable differences of views among 
fi-iends from becoming major divisive forces. 
If we are to maintain the essential focus of the 



free world against the world threat of the Soviet 
bloc, it is in the American national interest that 
the United States play a harmonious role in the 
settlement of the differences that arise among 
our allies. The General Assembly provides a 
means for hai-monizing these differences. 

Every American lias a personal stake in the 
great w^ork of increasing the strength of the 
United Nations. There is significance in a recent 
public opinion poll wliich indicates broad support 
for the United Nations as a force for peace. It 
is apparent that this support is based on a more 
mature and sensible approach to the United 
Nations — an approach that recognizes both the 
limitations and capabilities of the Organization. 

This more mature approach to the United Na- 
tions will be of great importance during the next 
few years. As I mentioned before, in 1956 we will 
have an opportunity to review the United Nations 
Charter at a Charter Review Conference. This 
gives the world tlie opportunity to strengthen 
the United Nations. We ourselves will make full 
use of this opportunity only if the American 
people exercise their responsibility by carefully 
studying and then expressing their considered 
views on the charter. 

I wish that all people everywhere had the same 
opportunity to do this that "you have. But it is 
a tragic fact that today a vast number of the 
world's inhabitants live behind walls of censor- 
ship. They are permitted to know only what 
their political leaders want them to know. And 
while this terrible power is being used to keep 
peoples from knowing the truth, these same Com- 
munist leaders, with powerful instruments of 
communication, are filling human minds every- 
where with lies and with distortions of the truth. 
There is the more reason for you to intensify your 
own unselfish efforts to understand and grasp 
the problems which confront our country and 
our world. The Government and people of this 
country are committed to a program of mutual 
cooperation with the other nations of the free 
world. The single all-pervasive element upon 
which this vital effort rests is mutual understand- 
ing. The stake, broadly speaking, is our survival 
as a free, self-governing, peace-loving, civilized 
people. It is as fundamental as that. 



PROGRESS TOWARD UNESCO'S GOALS 

Remarhs hy Assistant Secretary McCardle 

It is a pleasure to greet you tonight and to read 
to you personal messages from President Eisen- 
hower and Secretary of State Dulles. 

President Eisenhower sends this message : 

This expression of our citizens' confident support of 
the United Nations and its Specialized Agencies should 
encourage the peoples of all other nations also working 
toward true peace. 



Oc/ober 5, 1953 



467 



I cannot urge too strongly or too often the dedication 
of the energies, resources, and imaginations of peoples 
throughout the world to the waging of a total war upon 
the brute forces of ignorance and poverty. 

The United Nations and its family of related inter- 
national organizations, of which Unksco is an essential 
member, furnish all these peoples with a reason for hope 
and a means of action in this struggle. 

I wish every success to the U.S. National Commission 
for Unksco, and your Fourth National Conference now 
being held at a famous seat of learning, in your dedicated 
task of deepening that international understanding so 
indispensable to just and enduring peace. 

Secretary of State Dulles sends this message : 

I wish that I could be at your meetings because the 
U.S. National Commission for Unesco, and its Fourth 
National Conference — both examples of the high degree 
of citizen responsibility in a free republic — are worliing 
for peace and advancement. 

The Department of State appreciates the contribution 
being made by the officers, members, "alumni," and organ- 
izations of the National Commission in improving our 
understanding of and participation in world affairs. 

You and your Government have supported the prin- 
ciples of UNESCO and constantly work to strengthen and 
improve the Unesco program. With this in mind, the 
President asked his Delegates to the recent Special Ses- 
sion of the UNESCO General Conference to explore and 
consult in Paris with the representatives of other govern- 
ments, the individual members of Unesco's Executive 
Board, and the international Secretariat. 

I want to share with you — as an example of our con- 
tinuous study in international collaboration — the conclu- 
sions transmitted in .July by this distinguished delega- 
tion — Irving Salomon of California, chairman; Mrs. Eliza- 
beth Heffelfinger of Minnesota, and President John A. 
Perkins of the University of Delaware. The Delegation 
reported that : 

"1. The top officers in the Secretariat, both Americans 
and non-Americans, who are responsible for administra- 
tion and program execution, are doing so with fidelity 
to UNESCO's aims and purposes. 

"2. The influences which predominate in the Organiza- 
tion derive from a full regard for the Human Rights and 
fundamental freedoms affirmed in the Charter of the 
United Nations. 

"3. UNESCO does not advocate world government, or 
world citizen.ship in the political sense. The U.S. dele- 
gation found no official expression of the General Confer- 
ence, The Executive Board, the Director General, or the 
Secretariat that gives the slightest support to this charge. 
They found no fear on this point among the representa- 
tives of other governments who, on the contrary, find it 
difficult to comprehend the American fear on this matter. 

"4. The delegatiim reported that Unesco does not at- 
tempt, directly or indirectly, to undermine national loyal- 
ties or to encourage the substitution of loyalty to and love 
for a supranational authority for loyalty to and love for 
one's own country, as has been alleged in scmie quarters. 

"5. The delegates reaffirmed that the olficial bodies and 
the personnel of Unesco observe tho provision of the 
UNESCO Constitution which prohibits Unesco from inter- 
fering in matters within tlie domestic jurisdiction of 
Member States. Unesco does not attempt to interfere in 
the American school system. 



468 



"6. The delegation could find no evidence of atheism or 
anti-religious bias in any of Unesco's work." 

I am happy to report to you these observations of the 
delegation. The people of the United States do gain or 
can gain many valuable benefits from their participation 
in UNESCO. The advancement by Unesco of human wel- 
fare through education, science and culture promotes in- 
ternational understanding which contributes to peace. 

For myself, I greatly appreciated the opportu- 
nity to meet and talk with many of you this 
afternoon. 

These talks have encouraged and enlightened me 
immeasurably concerning your aims and desires 
for perfecting Unesco. 

The purpose of Unesco, as stated in its Consti- 
tution, is to "Contribute to peace and security by 
promoting collaboration among the nations 
through education, science and culture in order to 
further universal respect for justice, for the rule 
of law and for the human rights and fundamental 
freedoms which are affirmed for the peoples of the 
world by the Charter of the United Nations." 

Considerable progress has been made by the 
member nations in the 7 years of this organization 
toward achieving these high goals. To have visual 
proof of actual accomplishment we have only to 
look to such Unesco institutions as the fundamen- 
tal teaching centers, the bookmobile units operat- 
ing in Thailand, Latin America, and elsewhere, 
and the teams of educational, scientific, and cul- 
tural experts presently hard at work around the 
globe. 

We have all discovered, I am sure, that there are 
times in our lives when we must ask ourselves deep 
and searching questions. 

I believe one of the serious questions which we 
should ask of ourselves here tonight is this : 

"How well are our goals understood and sup- 
ported by the American people who sponsor our 
participation in this undertaking?" 

Another question that each of us sliould ask 
ourselves : 

"What can I personally do to further the under- 
standing of these goals ?" 

We must have the underst^inding of these pro- 
grams by America. Tlie support and cooperation 
of the people will follow. 

It is essential that an intensive effort be made to 
acquaint the American people with Unesco. The 
Department of State will join witli you in this task. 
I want to make it perfectly clear that I don't be- 
lieve this shoidd be done through a propaganda 
campaign, but ratlier through education. There 
are many avenues open for tiie accomplishment 
of this end, including written and visual-aid ma- 
terials, motion pictures, and related educational 
media. Tliese sliould be in sup])ly in the Depart- 
ment of State and constantly used at the local 
level by individuals and groups well grounded in | 
Unesco's ideals and purposes. 

Department of Stale Bulletin 



You National Commission members can be the 
middle men between the many thousands of mem- 
bers of voluntary organizations which you repre- 
sent and the Department of State. Unesco rep- 
resents mankind's dream for peace. Its goals are 
the goals which everyone desires to see established 
here and throughout the world. If I may say so, 
Unesco should speak to the people in terms the 
people can understand and Unesco will benefit 
from the enriching blood and beliefs of the people. 
Surely the people, all over the world, will benefit 
from Unesco. Let us dedicate oui-selves to a sim- 
ple, educational program that will help in our aim 
of world cordiality and peace. 

The State Department is with you. 



U.S. Opposes Assembly Discussion 
of Korean Political Conference 

Statements hy Henry Cabot Lodge, Jr. 

U.S. Representative to the Getieral Assembly 

t'.S. delegation press releases dated September 22 

Following are texts of statements made hy Am- 
bassador Lodge on Seftemher 22 before the Gen- 
eral (Steemig) Committee of the General Assein- 
bly and, later the same day, before a plenary ses- 
sion of the Assembly. 



Statement in General Committee 

The United States opposes the inscription on 
the agenda of the eighth session of the matters 
raised by the communications of the Central Peo- 
ples Government of China dated September 13, 
1953, and the Peoples Democratic Republic of 
Korea dated September 14, 1953.^ These com- 
munications propose that the resolution of August 
28, 1953,^ taken less than 3 weeks ago after pro- 
longed debate, should be reconsidered and that in 
this connection the regimes of Communist China 
and Communist Korea should be invited here to 
participate in the rediscussion of this matter. 

The seventh session in the resolution referred to 
recommended that the United Nations side in the 
political conference, in accordance with the armi- 
stice agreement, should be governments which had 
contributed forces to the United Nations Com- 
mand and that the United States should act as 
spokesman for this group in arranging for the con- 
ference. This group has met, and on their behalf 
the Government of the United States on Septem- 
ber 5, 1953, made concrete proposals to the other 



' U.N. docs. A/2469 and A/2476 ; the Soviet proposal for 
inscription of the item is U.N. doc. A/2484. 
' Bulletin of Sept. 14, 1953, p. 366. 



side with reference to a time and place of meeting. 
October 15, 1953, was proposed as the time and 
San Francisco, Honolulu, and Geneva as places, 
any one of which would be acceptable to the 
United Nations side. To this communication 
there has been no reply except to refer to the com- 
munication of the Chinese Communist regime to 
the Secretary-General proposing that all the 
matters decided here last month should be recon- 
sidered. 

The United States Government, on behalf of the 
United Nations side, on September 18, 1953, re- 
peated its proposals to the other side^ and has 
asked for a prompt reply because without that it 
will be impossible to hold a conference within the 
period which the Communist side itself recom- 
mended as the latest date for the conference, 
namely, October 28, 1953. 

We consider that if all aspects of the confer- 
ence must be debated in the United Nations Gen- 
eral Assembly before the conference occurs, there 
may never be a conference — nothing but contin- 
uous debate and controversy. 

The United States, acting in conformity with 
the General Assembly resolution of August 28, is 
prepared, in consultation with the designated 
group, to deal with the arrangements necessary to 
insure the convening of the conference as recom- 
mended by the armistice agreement and that the 
conference itself, when it convenes, can deal with 
any matters not otherwise disposed of to the satis- 
faction of both sides. 

We observe that the note of the Korean Com- 
munist regime states that "the question of the 
composition of the political conference cannot be 
resolved unilaterally but only by agreement be- 
tween both sides." "The United "Nations side has 
been selected and is functioning. The other side 
is defined in the armistice agreement, together 
with the U. S. S. R., if the other side desires. The 
question of whether any neutrals should be in- 
vited, as the North Korean note declares, is a mat- 
ter for agreement between both sides. Therefore, 
if developments during the conference warrant it 
and the other side desires to raise the question of 
additional participants, it will of course be open 
to them to do so since at the conference both sides 
will be present and will be able to consider this 
matter. 

Through the good offices of the Swedish Gov- 
ernment we again propose to have the substance of 
this statement communicated to the Chinese and 
North Korean Communists and to urge that they 
reply promptly. We are most anxious to facili- 
tate the work of the conference. Indeed, in view 
of the urgency of the situation, if it would facili- 
tate the negotiations for the arrangements of the 
proposed political conference, we are prepared at 
once to dispatch a representative to meet with the 



' Ibid., Sept. 28, 1953, p. 422. 



OcJofaer 5, 1953 



469 



Chinese and North Korean Communists at any of 
the phvces which we have already suggested for 
the conference, namely, San Francisco, Hono- 
lulu, or Geneva. 

There seems to be an impression here that be- 
cause there is an armistice in Korea the fighting 
has therefore stopped for good and that we can 
thus assume that the whole Korean difficulty is 
behind us. This predisposes some to act as though 
the time had arrived for making political gestures 
and for striking attitudes for propaganda pur- 
poses so as to develop favor with some nations and 
incidentally to put the United States in an un- 
favorable light. 

The representative of the United States has 
some awareness of political factors, and he likes 
as well as any one here to make gestures which 
will ingratiate his country with other countries. 
But let us be utterly candid with ourselves. If 
we are candid, we must see that the time has not 
come when we can indulge ourselves in the luxury 
of political gestures and maneuvering. We are 
up against the very stark fact that all that exists 
so far is an armistice, which, even though it pur- 
ports to be indefinite in duration, is of course high- 
ly vulnerable to incidents, charges, and counter- 
charges of violations. If we are to do our duty to 
suffering humanity, our conduct here must be 
real. That means prompt action to hold the con- 
ference as an indispensable first step toward last- 
ing peace and not a rehash of the whole debate of 
last August on how the conference is to be com- 
posed. 

For these reasons the United States opposes the 
consideration of the Chinese Communist and Ko- 
rean Communist regime notes to this eighth 
session. 



Statement in Plenary Session 

[Excerpts] 

The action taken only a few hours ago by the 
General Committee * in recommending against the 
inclusion of the item proposed by the Soviet dele- 
gation, which would have had the effect of reopen- 
ing discussion in the Assembly on the arrange- 
ments for the Korean Political Conference, speaks 
for itself. I take the floor at this time to state 
briefly the reasons for which the United States 
opposes inclusion of this item. 

It was just about 3 weeks ago that we met in 
this vei-y hall to adopt on August 28 a resolution 
by which the General Assembly expressed itself 
on this problem. It would be not only the height 



' Tlio (Jpneral Committee rejected the Soviet request for 
inscription of the item by a vote of 2 (roliind, U.S.S.R.)- 
11-1 ( YnRosliivin). 'I'lio Sopt. 22 ploiiary session upheld 
the Commlttco's action, 40-8 (Soviet bloc, Burma, Indo- 
nesia, Sweden) -10. 

470 



of folly to reopen a matter on which the Assem- 
bly has decisively spoken after searching and thor- 
ough-going debate, but it might well, as many dis- 
tinguished representatives said this morning in 
the General Committee, be extremely dangerous to 
our objective, and that is the prompt convening 
of the Political Conference. The deadline for this 
meeting is fast approaching, and the proposal be- 
fore us would cause serious delay. Any action that 
we took now could but repeat what took place some 
3 weeks ago and would simply jeopardize what 
most of us here have at heart. 

Let me repeat two statements I made this morn- 
ing on behalf of the United States in the General 
Committee. 

In conclusion, it would seem to us that the best 
course to follow, and it is both constructive and 
reasonable, is the one already approved by the 
General Assembly. We await with hope the an- 
swer of the other side to the two communiques 
made by the United States on behalf of the 16 
member nations acting under the authorization of 
the General Assembly in its resolution of August 
28. We say to the Communists in good faith and 
complete sincerity, we offer to meet you halfway. 



THE DEPARTMENT 



Arthur H. Dean Named Deputy 
for Korean Political Conference 

It was announced on September 15 (press release 501) 
that on that date Arthur II. Dean of New York City, an 
outstanding international lawyer, was appointed to serve 
as deputy to the Secretary of State in preparation for 
the prospective Korean political conference and to serve 
at that conference as deputy chairman for the Secretary 
of State on the U.S. delegation. Mr. Dean will have the 
personal rank of Ambassador. The full membership of 
the delegation will not be (iotcrrained until the time and 
place of the conference have been agreed upon. 

Mr. Dean, as a consultant, accompanied Secretary Dulles, 
Ambassador Lodge, and Assistant Secretary Roliertson on 
their recent trip to Korea. Mr. Dean has also acted in 
an advisory capacity to Ambassador Lodge in relation 
to the special session of the U.N. Assembly which dean 
with the Korean problem. 



Appointment of Officers 

Herbert Hoover, Jr., as special adviser to Secretary 
Dulles on problems concerning worldwide petroleum 
matters. 



Department of Sfofe Bulletin 



October 5, 1953 



Ind 



ex 



Vol. XXIX, No. 745 



Aid to Foreign Countries 

U.S. concern for economic needs of Berlin 457 

American Republics 

CHILE: Talks on Chile's request for U.S. purchase 

of surplus copper 442 

COLOMBIA: International Bank announces $14,350,000 

loan to Colombia 455 

Asia 

KOREA: 

Arthur H Dean named deputy for Korean Political 

Conference 470 

Building a cooperative peace (Smith) 463 

U.S. opposes Assembly discussion of Korean Political 

Conference 469 

Communism 

Building a cooperative peace (Smith) 463 

Organized labor's fight against world communism 

(Dulles) 443 

Trials of Polish clergy 456 

Europe 

BELGIUM: Tax conventions with Belgium enter into 

force 460 

FRANCE: Visit of French leaders 460 

GERMANY: 

Application of handicraft order in U.S. zone of 

Germany 459 

U.S. concern for needs of Berlin 457 

POLAND: Trials of Polish clergy 456 

SPAIN: Agreements concluded with Spain 435 



Check List of Department of State 
Press Releases: September 21-26, 1953 

Releases may be obtained from the News Division, 
Department of State, Washington 25, D. C. 

Press releases issued prior to September 21 
which appear In this issue of the Bulletin are Nos. 
487 of September 9, 495 of September 14, 498 of 
September 12, 499 and 501 of September 15, 503 of 
September 16, and 509 of September 18. 

No. Date Subject 

510 9/21 U.S.-Chile talks on copper 

511 9/22 Trials of Polish clergy 
t512 9/24 Wmo meeting at Geneva 
t513 9/24 Waugh : Japan and Gatt 

514 9/24 Dulles : U.S. security 

t515 9/27 Dulles : Colombo Plan 

t516 9/27 Consultative Committee meeting 

'*517 9/25 Korean scholars visit U.S. 

t518 9/25 Panamanian President's visit 

519 9/26 U.S., Spain sign aid pacts 

520 9/26 Deressa : Letter of credence 
t521 9/26 Al-Shabander : Letter of credence 
t522 9/26 Szarka : Letter of credence 
t523 9/26 Amjad All : Letter of credence 

•Not printed. 

tHeld for a later issue of the Bulletin. 



Finance 

International Bank announces $14,350,000 loan to 
Colombia 

International Investment and economic progress 
(Black) 

Loans to Iceland 

$9,000,000 loan to Turkish Bank 

Foreign Service 

Letters of credence (Ethiopia) 

Iceland 

Loans to Iceland 



Industry 

Organization of Commission on Foreign Economic 
Policy 

International Meetings 

Arthur H. Dean named deputy for Korean Political 
Conference 

Assistant Secretary Waugh leaves for GATT meeting . 

Calendar of meetings 

Talks on Chile's request for U.S purchase of surplus 
copper 

Labor 

Organized labor's fight against world communism 
(Dulles) 

Presidential Documents 

U.S. support for objectives of International Bank 

and Fund 

State, Department of 

Appointment (Hoover) 

Taxation 

Tax conventions with Belgium enter into force . . . 

Trade 

Assistant Secretary Waugh leaves for GATT meeting . 

Reappraising international trade practices (Waugh) — 

(Eisenhower message to GATT) 



Transportation 

International Bank announces $14,350,000 loan to 
Colombia 

Treaty Information 

Agreements concluded with Spain 

Assistant Secretary Waugh leaves for GATT meeting . 
Reappraising international trade practices (Waugh) . 

United Nations 

Building a cooperative peace (Smith) 

GENERAL ASSEMBLY: U.S. opposes Assembly dis- 
cussion of Korean Political Conference 

Significance of the U.N 



455 

451 
456 
456 



460 
456 



450 



470 
449 
461 

442 



443 

452 
470 

460 

449 
447 

455 



435 

449 
447 



463 



469 
457 



Name Index 



Adenauer, Konrad 457, 459 

Bidault, Georges 460 

Black, Eugene R 451 

Conant, James B 459 

Dean. Arthur H 470 

Deressa, Ato Yilma 460 

Dulles, Secretary 443. 468 

Eisenhower, President 447, 450, 452, 457, 460, 467 

Hoover. Herbert, Jr 470 

Kaczmarek. Bishop Czeslaw 456 

Lanlel, Joseph 460 

Lodge, Henry Cabot, Jr 469 

McCardle, Carl W 467 

Reuter, Ernst 457 

Smith, Walter Bedell 463 

Waugh, Samuel C 447, 449 




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prosnun.. ^'•' "''b.Sy 1 S in e«p.ndinj pr|- 
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duclion .nd '™f.'; ""'a nunibcr ot recom- 
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loveitment overseas, i™ ^y „jrn Europe, 

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altern.le "Pff "f r"'^tto! '»■.« "" <^ 
Assembly. Pol'li"' Vrnepresented in the 

?i'„ii'd Ni««"th:.uTh fi." f'-«"> ^*">- 

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THE NATION 

NepitLtioM with Cf;;^%*^,„,p^„„d^ 
U,«Je|Iu.rd»eCre.t ua« ^^^^^ ^^ ^, 

Destruction o( 1.1" "'"";"„ eeilike m^ 
the se. lamprey-. Pf'datery, e^ ^^ 

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Vol. XXIX, No. 746 
October 12, 1953 




INfEGOTIATING SOLUTIONS TO TODAY'S PROB- 
LEMS • by Under Secretary Smith 475 

AMERICA'S EXPANDING ECONOMY • by Ambassador 

Winthrop W. Aldrich 482 

THE GERMAN DEBT SETTLEMENT • Article by Martha 

M. Black 479 



For index see inside back cover 



Boston Public Library 
Superintendent of Documents 

NOV 4 1953 



j<^ 




%JAe z/^efut/yi^ent ^^ Cnizle V3 W 1 1 1/ L 1 ll 



Voi„ XXIX, No. 746 • Publication 5210 
Ocid)eT 12, 1953 



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The Department of State BULLETIN, 
a weekly publication issued by the 
Office of Public Affairs, provides the 
public and interested agencies of the 
Government tcith information on 
developments in the field of foreign 
relations and on the tcork of the 
Department of State and the Foreign 
Service. The BULLETIN includes 
selected press releases on foreign 
policy issued by the Tf'hite House 
and the Department, and statements 
and addresses made by the President 
and by the Secretary of State and other 
officers of the Department, as well aa 
special articles on iHirioiis phases of 
international affairs and the func- 
tions of the Department. Informa- 
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which the United States is or may 
become a party and treaties of gen- 
eral international interest. 

Publications of the Department, aa 
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Negotiating Solutions to Today's Problems 



hy Under Secretary Smith ^ 



No people can survive and no free nation can 
endure unless its roots are imbedded in moral prin- 
ciple. Our Christian faith is basic to the spirit 
which motivates our society. It pointed the road 
to our way of life long before our forefathers gave 
it political meaning. 

Our Christian concepts have played a vital role 
in the molding of western civilization. They are 
the strongest bond linking us to other free peoples. 
We live by them. They would mean little if each 
of us were to leave them behind as he stepped out 
of his place of worship. They would give us little 
comfort and strength if we were to pay them mere 
lip service. 

Basically, these Christian concepts are wliat set 
us apart from the followers of communism. The 
Communists boast of their godlessness. They are 
aggressively antireligious and have relentlessly 
persecuted the religious leaders of the peoples un- 
der their control. 

The most recent move in this campaign is the 
so-called trial staged by the Polish Communists. 
Bishop Czeslaw Kaczmarek and several of his di- 
ocesan assistants were the victims. This evil pro- 
! ceeding, like its predecessors in Czechoslovakia, in 
Hungary, and in other of the satellites, followed 
closely what we have come to recognize as the 
I standard Communist operating practice. 
I The defendants were carefully "prepared" so 
that when placed on the witness stand they would 
plead guilty to crimes which, obviously, they never 
committed. We know all too well the methods 
employed to "prepare" a defendant. We have 
heard directly from those subjected to it of the 
inhuman mental torture inflicted on the unfor- 
tunates whom the Communists elect to make de- 
fendants. 

As in previous cases, the Communists used the 
trial for corollary purposes. The prosecutor in- 



' Address made before the First Friday Club of Detroit, 
Mich., on Oct. 2 (press release 536). 



troduced false charges against several former mem- 
bers of the American Embassy in Warsaw. These 
were mixed in with the evidence offered against 
the accused, evidence as manufactured as it has 
been manufactured in previous cases. 

Finally, this crude travesty on justice was 
capped with the imposition of heavy jail sentences 
on the Bishop and on all but one of his assistants. 

Obviously, the Communists no more proved the 
Bishop's guilt than they proved the guilt of 
Cardinal Mindszenty or any of the other members 
of the priesthood who have been put on trial. 
What was proved was that the Communist cam- 
paign against religion and against church leaders 
continues unabated. 

Now, the Communist attack on religion springs, 
at least in part, from their recognition of the 
fiindamental conflict between the tenets of reli- 
gious faith and the tenets of communism. They 
well know that an individual cannot serve God 
and serve communism. They therefore feel com- 
pelled to do everything in their power to stamp 
out religion and to discredit religious leaders. 

The Communists are also aware that the belief 
in God and common religious affiliations form 
strong bonds between the satellite peoples and the 
free world. Thus their effort to wipe out re- 
ligion serves a dual purpose. Not only are they 
trying to eliminate a competitor of their Com- 
munist dogma but they are also attempting to com- 
plete the isolation of their subject peoples by 
severing an important tie between the satellites 
and the West. 

This persistence in a traditional Communist 
tactic is one of the factors which leads us to be 
skeptical about any basic change in Soviet policy. 
Since the death of Stalin, his successors have made 
much of their peaceful intentions. There have 
been suggestions that peaceful coexistence is pos- 
sible and that negotiation can ease the tensions 
which prevail between the free world and the 
Soviet sphere. 



Ocfober ?2, 7953 



475 



Gestures Which Cost Nothing 

There liiive even been a few gestures aimed at 
convincing us of these alleged Soviet good inten- 
tions. Newsman Oatis was released. Russian 
wives of Americans stationed in Moscow were per- 
mitted to leave Russia with their husbands. There 
have been other moves of a similar character. 

But, if we inspect these gestures closely, we dis- 
cover that they have one thing in common. In 
making each of them, the Soviet leaders made no 
sacrifice, paid no price, however small. Further- 
more, many of these Soviet gestures, like the lift- 
ing of travel restrictions in Moscow, can be un- 
made just as quickly as they were made. 

There is nothing about them in which an intelli- 
gent and even moderately cautious individual 
could put his trust. And there is nothing on 
which a responsible government could base its 
policies. 

But we do not and should not make our judg- 
ments on only a segment of the facts. All the 
facts should be taken into account. 

For example, it is true that the Soviet Union 
shared the responsibility for the armistice in 
Korea, but they are doing everything they can to 
obstruct the convening of a political conference by 
which we hope to transform the armistice into a 
peace for the peninsula. Their immediate ob- 
jections center on the composition of the confer 
ence, a composition which was initially proposed 
by the Communists. 

Let me cite another instance. For 61/2 years the 
treaty which would restore Austrian sovereignty 
has been virtually complete. Austria is held to be 
a liberated and not an enemy power. Yet the So- 
viet Union has stubbornly blocked the conclusion 
of the treaty which would make Austria independ- 
ent and bring to an end the occupation of the 
country. 

The latest sample of Soviet tactics is to be found 
in their note responding to our proposal of a four- 
power conference to settle the question of (Jer- 
many. As you know, we have been trying for a 
consid(M-al)lc period to assure free elections for the 
(lerinan people and to bring to an end the division 
of that nation. As usual, the Soviet Union has 
refused to cooperate. The Russian techni(iue is 
not to opi)ose openly (Jerman unification, because 
they know all too well how nuich unification means 
to the German people and they have been shown 
the weakness of the puppet Communist regime in 
the East Zone. 

Instead, their responses to the proposals of the 
three Western Powers offer counter suggestions 
which have the api)earance of favoring (Jerman 
unification and a treaty of peace. However, they 
are always careful to include conditions cci'tain to 
l)e unaccei)table to the West or whicli would be 
sure to stalemate the conference should we find 
ourselves able to accept them. 

476 



For example, the Soviet note of August 4 -' urged 
that Communist China should be included in the 
consultations of the foreign ministers on the matter 
of Germany. Clearly this proposition is beyond 
serious consideration! We see no reason why the 
solution of the German problem should be sub- 
ordinated to the question of China. Noi- do we 
have any intention of leaving the fate of Gorn\any 
to the Chinese Communists. 

The Soviet Union also stated that a peace treaty 
must precede unification and that the Communist 
puppet regime of East Germany must participate 
in the making of the treaty. Inasmuch as we 
know, and the Soviet Union knows, that the puppet 
government of the East is in no way representative 
of East Germans, this proposal could only result 
in a treaty which failed to express the wishes of the 
German i>eople and would therefore eventually 
be rejected by them. 

Another note, of Augiist 15,^ followed similar 
lines. Then early in September the three Western 
Powers proposed that the foreign ministers meet 
at Lugano on October 15 to settle the German and 
Austrian questions, with initial emphasis on free 
German elections and on the status of the future 
German government. 

A few days ago we received the Soviet reply. 
I have seen my share of diplomatic correspond- 
ence, but I don't recall anything to equal this Rus- 
sian rejoinder. It was a masterpiece of confusion 
and camouflage. For the most part it was a rehash 
of the two earlier notes. 

A striking feature of the Soviet reply is that it 
was in no way responsive to the earlier Western 
notes. Instead, it is merely a continuance of the 
dilatory tactics which they "have lx>en pursuing for 
a long lime. 

AVe thus cannot escape the conclusion that the 
Kremlin seeks to avoid a conference confined to 
German and Austrian questions and is attempting 
to mask its negative attitude in this fashion. The 
inclusion of a proposal for a five-power meeting, 
including the Chinese Communists, is another di- 
versionary device. Obviously, the five-power pro- 
posal raises the controversial (piestion of the 
status of Communist China and would thus im- 
mensely complicate proceedings of the proposed 
conference. 



Possible Reasons for Soviet Reluctance 

This raises a number of interesting questions 
relative to why the Soviets are reluctant to enter 
a four-i)()wer conference. 

Are they fearful of their position in East 
(jerniany? 

Do they see the A<lenauer victory as retlecting 
the true sentiments of the German peopled 



■ I'.ii.i.KiiN of Sept. 14, 1953, p. 352. 
■' Ibid., p. 354. 



Department of Stale Bulletin | 



Are tliey hoping to block Edc [European De- 
fense Community] and other western defense 
moves by prolon<i-inp; the present situation? 

Do the}' liope to exploit Austria further by a 
postponement of the treaty ? 

Demonstrations of obstructionism such as these 
are far from being the only reasons why we find 
it hai'd to take seriously the so-called peaceful 
turn in Soviet intentions. 

The Soviet leaders trumpeted abroad the news 
of a cut in their military appropriations. But 
our own studies disclose that, instead of being 
reduced, the sums set aside for the Soviet armed 
forces have actually been increased. And. in addi- 
tion, there are strong indications that the secret 
funds allocated to the development of atomic 
weapons are twice what they were last year. 

"We know, further, that the Soviet Union is 
continuing its armed forces at present levels, and 
these levels are well above their maximum pos- 
sible security requirements. They have also con- 
tinued to build up the striking power of these 
forces by equipping them with the most modern 
weapons. 

Bluntly, there is little here to indicate a shift 
in Soviet policy in the direction of peace and 
moderation. There is sharp contrast between the 
negative, obstructionist Soviet policy and the posi- 
tive, dynamic approach to international problems 
which has been developed by this country and its 
allies. 

The free nations sincerely wish peace. We have 
repeatedly demonstrated our i-eadiness to arrive at 
a just settlement of differences by negotiation to 
realize that objective. We are fully aware that 
the future of mankind hangs on the ability of 
nations to work out a world climate in which all 
men can live in decency and peace. We are con- 
ducting ourselves accordingly. 

We will continue to support the United Nations 
as strongly in the future as we have in the past. 
To my way of thinking, the United Nations, what- 
ever its shortcomings, has more than proved itself. 
It certainly has i^roved itself in Korea. 

Sometimes there is a tendency to forget why it 
was that we backed the United Nations in going 
into Korea. Sometimes the difficulties and fric- 
tions of the present tend to blind us to what has 
been accomplished there. 

The fact is that we Americans had no reasonable 
ilternative but to join in the fight against the Com- 
munist aggression in Korea. Consider what might 
lave happened had we not done so. 

A free republic would have been sacrificed to the 
iggressor. The other free peoples of Asia would 
lave had good reason to believe that an aggressor, 
successful in one area, was all too likely to try it 
igain elsewhere. They would have lost confidence 
n us as a leader of the free world. And they would 
lave lost confidence in the United Nations, today 
iiankind's best hope for peace. 

The action in Korea has immense significance. 



For the first time in modern history collective secu- 
rity through an international organization has 
worked on the battlefield. The aggressor has been 
repelled and was brought to seek a truce. 

Today we have an armistice in Korea. The 
fighting and the bloodshed have stopped. The 
enemy has been forced to come to terms. 

We have stood firm on the prisoner-of-war issue. 
The armistice provides that no prisoner of war 
shall be forcibly repatriated. We intend to make 
every effort to see that this proviso is kept. We 
have recently protested strongly through the U.N. 
Command what we consider to be an unfair ruling 
of the Neutral Nations Eepatriation Commission. 
We will jirotest every time we believe there is a 
possibility that the prisoners' rights as the armi- 
stice defines them are being infringed. 

Our stand on repatriation is soundly based on 
humanitarian grounds. As a civilized nation, we 
had no intention of forcing enemy soldiers to go 
back to torture, death, or imprisonment if they 
felt that such was indeed to be their fate. 

Our repatriation stand is also based on sound 
political reasoning. We have made it clear to any 
who may fight in Communist armies in the future 
that they will not be compelled to return if they 
surrender to the forces of freedom. 

This, I might say, is no mean advantage should 
we be faced with the necessity of halting Commu- 
nist aggression again. 

Today the Republic of Korea holds more terri- 
tory north of the 38th parallel than the Commu- 
nists hold south of it. 

There are reasonable safeguards against viola- 
tion in the armistice terms. And in case the Com- 
munists do violate the agreement, the 16 U.N. 
member nations which fought in Korea have joined 
in a declaration which makes it clear that we can 
and will act."" The declaration states in part : 

We affirm, in the interests of world ijeaee, tbat if there 
is a renewal of the armed attack, challenging again the 
principles of the United Nations, we should again be 
united and prompt to resist. The consequences of such 
a breach of the armistice would be so grave that, in all 
probability, it would not be possible to confine hostilitiea 
within the frontiers of Korea. 

This is in line with our policy of making our 
position clear in advance to prevent any miscal- 
culation by the adversary. 



Soviet Attitude on Political Conference 

As you know, the armistice agreement provided 
for the convening of a political conference within 
a specified period after it was signed. 

The United Nations, in open debate, has ac- 
cepted the armistice terms as sound. By an over- 
whelming majority, it has also accepted the frame- 
work for the conference as it was set forth in 
article 60 of the armistice. 



' Hid, Aug. 24, 1953, p. 247. 



)cfober 72, 7953 



477 



When this article was drawn up both sides were 
in agreement on the desirability of a political con- 
ference to follow the armistice. However, the 
phrasing of article 60 was included at the specific 
insistence of the Communist negotiator General 
Nam II. That language reads as follows : 

. . . within three (3) months after the Armistice Agree- 
ment is signed and becomes effective, a political conference 
of a higher level of both sides be held by representatives 
appointed respectively to settle through negotiation the 
questions of the withdrawal of all foreign forces from 
Korea, the peaceful settlement of the Korean question, etc. 

You will note that the language specifically calls 
for the conference to be made up of representatives 
from "both sides." Now the Communists have 
evidently decided that this provision for repre- 
sentatives of "both sides" no longer suits their 
purposes. They are brazenly attempting to change 
this provision which tliey once strongly favored, 
while at the same time accusing us of inflexibility. 
We do not propose to allow them to succeed in tliis 
attempt and will hold them to the agreement as 
both sides approved it. 

The Soviet Union has persistently sought to 
change that framework. They have their own 
ideas as to the makeup of the conference and the 
terms of its discussions. 

We do not question the Soviets' right to liave 
their own ideas. We do take issue with their re- 
fusal to abide by an agreement which the Com- 
munists signed in Korea. It is not the United 
States alone which is standing firm. In this, we 
are supported by an overwhelming majority of 
U. N. members. 

Our position is constructive. We seek a unified 
and independent Korea. We know that the only 
course leading to that objective is one of negotia- 
tion. We are willing to be reasonable. And it 
shoidd be clear that peace and stability on the 
peninsula depend upon the Soviets' willingness to 
be equally reasonable. 

Tlie positive nature of our policy in Western 
Eiiro])e is equally evident. We have made strenu- 
ous efforts to bring the Soviet Union to the con- 
ference table to clear up the Austrian and ( Jernuui 
questions. We liave exerted a maximum of influ- 
ence to bring about unified action on the part of 
the West. 

Because of the threat of Soviet imperialism, the 
immediate need is an effective European defense, 
not only for tlie security of the peoples of tlie 
Continent but for American security as well. 
TJirough the North Atlantic Treaty Oigunization 
we are working togctlier to strengtlien the Western 
defen.ses and have made lieartening jjrogress in 
doing so. In numbers, equipment and overall 
effectiveness, tlie armed forces on (he Continent 
are materially stronger tlian tiiey were a year ago. 
And there are now in force agrceineiits lu'tween 
tills <'oiintry and Spain ^ which make a substantial 



contribution to the defense capabilities of the area. 

However, we are well aware that the full de- 
fease potential of the North Atlantic nations will 
not be realized except through a closely knit, uni- 
fied community. We have therefore tlirown our 
full support behind a formalized European De- 
fense Community, or Edo as it is popularly 
known. At the moment, prospects for the estab- 
lishment of such a coinmuiiity are briglit, indeed. 
While the parliamentary ratifications necessary to 
make Enc a reality have yet to come, the pro- 
spective member nations are moving in that direc- 
tion. We have seen early action by the German 
Federal Republic and have reason to believe that 
there is a good chance of others following suit. 

There is no question but that popular sentiment 
among the people in Western Europe increasingly 
favors Edc. It is to be expected that such senti- 
ment will find political exjjression. 

If Edc is established, a long stride will have 
been taken in tlie direction of a political counter- 
part, either a European federation or a union of 
the nations there. A start in this direction has 
already been made. The Benelux customs imion 
has been in operation for some time now, and the 
Schuman plan pooled the steel and coal resources 
of six nations of Western Europe. 

If there are some among us who lose patiencei 
witli the slowness of the movement toward Euro- 
pean unity, it would be well to remember that it 
took the American States 13 years to unite in cir- 
cumstances far more favorable. Even then, that 
unity was not finally confirmed until 75 years 
later, after a bitter civil war. 

It would also be well to remind ourselves that 
unity which is reached under compulsion does not 
long endure. The United States can encourage 
and assist, but if we try to drive we defeat our 
own purpose. If European unification is to have 
meaning and stamina it must result from the free 
and voluntary action of the peoples of Europe. 



U. S. Interest in Arms Reduction 

I liave, so far, talked a good deal about arma- 
ments and defense. Tliey are patently ie<iuisites 
in tlie ])resent world situation. But this dues not; 
mean tliat we are not actively interested in the re- 
duction of armaments and easing tiie enormous 
burden that the maintenance of armed forces haa 
imposed on tiie peoples of tlie world. 

Last April President Eisenhower s|)oke most 
elociuentiy of the terrible danger to luimanity in- 
herent in man's current access to weapons of maasi 
destruction." Today that danger, if anything, is 
magnified by further ilevelopments in the fiekl of 
hyilrogcn explosives. 

The I 'resilient called foi- conciete deetls by the t 



' /bill., o<>t. n, i!tr>,3, p. 4:ir,. 
478 



' Ihi<I.. Apr. ■21, VJXi, p. .">'J!t. 



Department of Sfafe BvfleHni 



Communist workl which would demonstrate its 
willingness to sit down and agree on a realistic and 
workable disarmament plan. The United States 
position on this has not changed. 

As progress is made in eliminating those areas 
of suspicion, distrust, and friction which currently 
make for instability, America is concurrently pre- 
pared to work toward arms reduction. 

We believe that the time can and will come in 
which political leaders will be prepared to put 
into effect international agreements limiting arm- 
aments. We dare not let that time escape us. 

We have already made several disarmament 
proposals. They have attracted considerable sup- 
port from other nations. 

We believe it essential that any program for 
disarmament provide adequate safeguards to in- 
sure the compliance of all nations and an ade- 



quate means of warning in the event of evasion 
or violation. 

The time and effort we have given to tne dis- 
armament issue has not, from our point of view, 
been wasted. In fact, we believe that we have 
laid the foundation for quick action once the world 
atmosphere makes that possible. 

The United States is prepared to continue by 
every practicable means to seek a sound solution 
to this problem. We await a definite indication 
that the Soviets are equally willing to negotiate 
in good faith. 

In matters of disarmament, of Far Eastern 
tension, of controversy in Europe : in all matters 
pertaining to peace we will negotiate. We will 
not refuse to consider any reasonable compromise. 
Peace we must have — and can have as soon as the 
Soviet Union suits its actions to its words. 



The German Debt Settlement 



hy Martha M. Black 



The Intergovernmental Agi-eement on German 
External Debts, an agreement signed by 19 coun- 
tries, came into force on September 16, 1953. 
Simultaneously, four bilateral agreements be- 
tween the Governments of the United States and 
of the Federal Republic of Germany settling 
claims of the United States against the German 
Government became effective. Tliis complex of 
agreements is the result of a process which can 
best be described as a gigantic financial reorgan- 
ization, an overall negotiation that dealt at one 
time with practically all the externally held obli- 
gations of Germany. The negotiations covered 
governmental claims of almost $4 billion and pri- 
vate claims of over $2 billion. 

The Governments of the United States, the 
United Kingdom, and France initiated the negoti- 
ations wliich resulted in the overall settlement. 
The debt settlement is a major part of the effort 
made by these Governments to reestablish the 
Government of the Federal Rei)ublic of Germany 
as a full and equal member of the community of 
Western nations. Specific plans for the negotia- 
tions were developed by the Intergovernmental 
Study Group on Germany in 1951. Shortly 
thereafter the United States, France, and the 
United Kingdom created the Tripartite Commis- 
sion on German External Debts to put these plans 
into effect. 



To normalize Germany's economic relations it 
was necessary to settle her debts both to govern- 
ments and to private individuals. During the 
occupation of Germany the established policy of 
the three Governments occupying the Federal 
Republic had been that economic assistance given 
to Germany would be a final charge on the pro- 
ceeds of German exports. At the time of the re- 
vision of the Occupation Statute in March 1951, 
the Government of the Federal Republic of Ger- 
many agreed that the claims of the three Occupy- 
ing Powers for postwar economic assistance had 
a priority over all other claims against Germany. 
At the same time, the Government of the Federal 
Republic assumed responsibility for the external 
debts of the German Reich. These commitments 
were embodied in an exchange of letters dated 
March 6, 1951, between the German Federal 
Chancellor and the Allied High Commission.^ 

The same exchange of letters confirmed the 
agreement of the four Governments to work out 
a general settlement of "public and private claims 
against Germany and German nationals." It was 
further agreed that 

the settlement plan shall in particular deal with those 
claims, the settlement of which would achieve the objec- 
tive of normalising the economic and financial relations 
of the Federal Republic with other countries. It will 
take into account the general economic position of the 

' Bulletin of Mar. 19, 1951, p. 446. 



Ocfofaer 72, 7953 



479 



Federal Republic, notably the increase of its burdens and 
the reduction in its economic wealth. The general effect 
of tliis plan shall neither dislocate the Gerniau economy 
throujrh undesirable effects on the internal financial situ- 
ation nor unduly drain existing or potential German for- 
eign-exchange resources. It shall also not add appreci- 
ably to tlie financial burden of any occupation Power. 

In negotiations durinfr November and December 
1951 between tlie Tripartite Commission on Ger- 
man Debts and representatives of the Federal Re- 
public, tentative agreement was reached tliat, if the 
German ( Jovermnent and private German debtors 
worked out an acceptable settlement of Germany's 
private debts, the Governments of the United 
states, the United Kingdom, and France would 
settle their claims of approximately $3.8 billion 
for postwar economic assistance for $1.8 billion.- 
Two of the bilateral agreements which became 
effective on September 16 — one for postwar eco- 
nomic assistance exclusive of surplus property, 
providing for payment to the United States of $1 
l)illion at 21^ percent interest to be paid over 35 
years, and one for surplus property providing for 
$203 million at 2% percent interest to be paid over 
30 years— formalized the settlement of the United 
States claims. 

In February 1952 the Tripartite Commission on 
German External Debts and the German Federal 
Republic convened an international conference in 
London. The conference was attended by repre- 
sentatives of private and governmental creditors 
from about 30 countries. 

At the conference, settlement plans were worked 
out for the major categories of Germany's ex- 
ternal debts: (a) governmental debts, (b) medium 
and long term private debts, (c) standstill debts, 
and (d) miscellaneous and commercial debts by 
representatives of the individuals holding these 
types of debt. The terms proposed for settlement 
of these various categories were included in the 
final report of the conference which was sub- 
mitted to governments when the conference ad- 
journed in August 1952.^ 



Provisions of the Intergovernmental Agreement 

The Intergovernmental Agreement on German 
External Debts, wliich was signed at London last 
February* and lias since been ratified by the (lov- 
ermnents of the United Kingdom, Fi'ance, the 
United States, and tiie Fedei'al Republic, includes 
the settlement terms, worked out during the Lon- 
don confei-ence, as Annexes. Tlu; agreement it- 
self is designed to give legal effect in Germany 
to the settlement terms and procedvn-es. In addi- 
tion it defines the debts covered bv the agreement 



'For u table shiiwing U. S. i)osl\var aiil In (icinuiny 
through .lunc .'JO, I'.l.'.l, see ibid., Sept. 2t), l!(r>2, p. 4;n. 

" Iliid.. AiiK. IS, 11I.-.2, p. 2.12. 

* For aiinouiiceiiient of the signing, .see ihid., .Mar. !), 
lf).'').'{, p. :{1.'!; for aiiiionnccnK'nt of llie ciilry into force of 
the agrcciiiciil, sec ihiil.. Sept. 2S. M\'>:i, ]). 41!!. 



and provides for the deferral of reparation and 
analogous claims arising out of World Wars I and 
II. The external debts which may be settled pur- 
siuuit to the agreement are generally described as 
those which originated prior to May 8, 19-15, are 
owed by persons residing in the currency area of 
the Deutschemark west, and are held by residents 
of countries which become parties to the agree- 
ment. These debts may be broadly defined as pre- 
war external debts except for claims arising out 
of World Wars I and IL 

Other provisions of the agreement prohibit dis- 
crimination in the settlement of debts and sup- 
plement the settlement procedures contained in the 
Annexes with respect to certain categories of debt 
not adequately covered in the Annexes, such as 
social insurance claims, insurance debts, and debts 
owing under multilateral agreements. A number 
of technical provisions are included dealing with 
such problems as currency of payment, currency 
options, gold clauses, and ])eriods of prescription 
(statutes of limitation). The rights of creditors 
to take action in German courts and to have resort 
to arbitration procedures are set forth in detail. 



Settlement of Private Debts 

Since the settlement of private debts woidd un- 
der normal circumstances be left to the private in- 
terests involved, it is important to note that tliis 
Government sponsored a settlement which would 
not interfere with private rights. The settlement 
of prewar debts, which are due almost entirely to 
private persons, is based on voluntary arrange- 
ments between debtors and creditors. These ar- 
rangements must be worked out by procedures 
prescribed in the agreement. These procedures 
include direct negotiation between the debtors and 
the creditors or creditors' representatives, arbi- 
tration in case of disagreement, or proceedings be- 
fore a court of law in circiunstances favorable to 
the creditor. The actual terms of settlement for 
the principal debts of the German Government 
are set forth in the agreement, but settlement takes 
place only when the individual creditor accepts 
the terms. For other debts, the terms of settle- 
ment are not set forth specifically and are to be 
established within the limitations on interest, pe- 
riod of re])aynH'nt, and other conditions fixed by 
the agreement. 

In the case of bonded debts the individual bond- 
holder does not ordinarily participate in the ne- 
gotiations. As is usual in such circumstances, the 
negotiations are between recognized representa- 
tives of bondliolders and the debtor. Once the 
terms are fixed, the bondholders" re]>resentativos 
recommend tiiat I ho bondholders accept the terms. 
However, seltlcnu-iil takes jilace only when the 
boiulliolder does in fact accept. 

In general the settlement jirovisions ])rovide 
I hat there will he no write-down of the principal 



480 



Department of State Bulletin 



of the debt owed. In most cases, agreement was 
reached either to waive jiast interest or to post- 
pone payment of some of the past interest until 
unification of Germany. Past interest is to be 
funded in most cases, and repayment of principal 
and interest is to be made over a period of up to 20 
years. In addition, interest returns have been re- 
duced on most bonds. 

It is anticipated that as a result of this agree- 
ment payments will begin again on something over 
a half million dollars of private debts held in the 
United States. 

Dollar Bond Validation 

The third bilateral agreement provides for pro- 
cedures for validating dollar bonds.'' This ar- 
rangement is necessary, not only from tlie German 
point of view, but also to protect the interest of 
the holders of valid bonds. During the 1930's 
tlie Germans purchased many bonds at deflated 
prices for the purpose of retirement. Most of 
these uncanceled bonds were in Berlin at the cessa- 
tion of hostilities, and many of them fell into So- 
viet hands. Some of these looted bonds have re- 
appeared on the security markets. The valida- 
tion procedures were established to prevent pay- 
ment on these bonds. 

The fourth bilateral agreement provides a final 
settlement for awards made to United States cit- 
izens by the United States-German Mixed Claims 
Commission established after World War I. 
These awards have been in default for many years. 
A settlement of the awards providing for payment 
to the United States creditors of approximately 
$97 million over the next 26 years was reached 
during the London conference. The Mixed Claims 
Commission Agreement was drafted to implement 
this settlement. 

On September 24 the Government of the Fed- 
eral Republic made the first payment to the United 
States Government under the bilateral agreement 
settling the postwar economic assistance and sur- 
plus proi^erty claims. The German Government 
is also ready to meet the first payment on its obli- 
gations to private individuals such as the Dawes 
and Young bonds. 

Owners of dollar bonds issued or guaranteed 
by the German Goverimient, or agencies or po- 
litical subdivisions thereof, are urged to com- 
municate with the Foreign Bondholders Protec- 



^ For text of the agreement, see ibid.. Mar. 9, 1953, p. 
376 : for backKround information and a schedule of bonds, 
see ibid.. Oct. 20, 1952, p. 608. 



tive Council, 90 Broad Street, New York, N. Y., 
for information concerning the steps they should 
take to have their bonds validated and to obtain 
the benefit of the settlement terms provided in the 
Agreement on German External Debts. 

Similarly, owners of prewar German corporate 
dollar bonds which are not guaranteed by gov- 
ernmental entities should communicate with the 
United States Committee for German Corporate 
Dollar Bonds, Barr Building, 910 Seventeenth 
Street, NW., Washington 6, D. C, for information 
concerning the validation and settlement of this 
type of bonds. 

Individuals holding debts of or claims against 
West German debtors such as trade and commer- 
cial debts, wages, salaries, pensions, private in- 
surance, and social insurance claims should im- 
mediately get in touch with their debtor to arrange 
for settlement in accordance with the agreement. 

• Mrs. Black, author of the above article, is a 
financial economist in the Office of Gennan Eco- 
nomic Affairs. She was a member of the U. S. 
delegation to the Intergovernmental Study Group 
on Gennany in 1951 and since that time has been 
concerned with matters relating to the German 
debt settlement. 



Letters of Credence 

Iraq 

The newly appointed Ambassador of Iraq, 
Moussa Al-Shabander, presented his credentials 
to the President on Sei^tember 26. For the text 
of the Ambassador's remarks and the text of the 
President's reply, see Department of State press 
release 521 of September 26. 

Hungary 

The newly appointed Minister of the Hungarian 
People's Republic, Karoly Szarka, presented his 
credentials to the President on September 26. For 
the text of the Minister's remarks and the text of 
the President's reply, see Department of State 
press release 522 of September 26. 

Pakistan 

The newly appointed Ambassador of Pakistan, 
Syed Amjad Ali, presented his credentials to the 
President on September 26. For the text of the 
Ambassador's remarks and the text of the Presi- 
dent's reply, see Department of State press release 
523 of September 26. 



Ocfober J 2, 1953 



481 



America's Expanding Economy 



hy Winthrop W. Aldtich 
Ajiibassador to Great Britain'^ 



America's foreign trade has received an unusual 
amount of attention in recent months. It has re- 
ceived increasing attention not only on this side 
but in America as well. This has led to some mis- 
conceptions. 

There seems to be a general assumption that the 
reason so many people, both at home and abroad, 
are saying America ought to be importing more 
must be that America is now backsliding and im- 
porting less. As you know, the facts are quite the 
contrary. American imports from the rest of the 
world have been increasing constantly since the 
war. They are now greater than they have ever 
been before. And from this country alone they 
have almost doubled since 1949. 

Nor do I see any foundation for the view that 
America has become increasingly protectionist. 
America's tariff rates have fallen steadily since 
the war. To be sure, those who believe in tariff 
protection are asserting that the reductions have 
gone far enough. On the other hand, never before 
have so many leaders and organizations of Ameri- 
can business, labor, and agriculture publicly advo- 
cated programs for the promotion ot greater inter- 
national trade, including more liberal American 
import policies. 

When T was here in 1945 as chairman of the 
Council of the International Chamber of Com- 
merce to preside over the first postwar meeting of 
the Council, I noted in my opening address that 
the principal objective of the Ice was "the expan- 
sion of world trade." I said then that an expand- 
ing volume of world trade was "the essential 
prerequisite of the type of economic advancement 
and security envisaged by the Atlantic Charter." 
This has certainly been the view of the TT.S. 
Council of the Ice. In the last few years one after 
another of the major organizations of American 
business have declared themselves in support of 
this principle. 



' Address made on Sept. 29 before the American Cbam- 
bor of Commerce at London. 



Only last week announcement was made of the 
formation by prominent businessmen of a com- 
mittee of distinguished citizens to expound the 
needs of world trade to the American people. 

Ever since he came into office President Eisen- 
hower has expressed his strong belief in the need 
for higher levels of international trade. He felt 
that the time was ripe for a major national re- 
appraisal of America's economic position in the 
world. He wanted a policy developed which would 
bring mutual benefits to the United States and to 
other countries. He desired particularly to make 
sure that any program recommended would be 
acceptable to Congress and result in legislative 
action. 

Accordingly, he proposed the establishment of 
a new commission to study all aspects of American 
foreign economic policy and to come forth with 
appropriate recommendations for action. Con- 
gress adopted this proposal and a commission of 
17 members was appointed. It is headed by 
Clarence Randall of Chicago, president of the 
Inland Steel Company and a highly thoughtful 
and articulate spokesman for American business. 
It includes 6 other representatives of the public, 
but most important of all it includes 10 leading 
members of the Senate and the House of Rejire- 
sentatives from both parties. Because of its com- 
position, the Commission is bound to carry great 
weight with Congress. 

The crux of the problem before the Connnission 
was noted by President Eisenhower in his letter 
to Congress asking for the establishment of the 
Connnission.^ It is the develoi)ment of a policy 
which is in line with America's new creilitor status 
and which at the same time does not "place un- 
equal burdens" on any [)articular segments of the 
American economy. This is essentially the basic 
problem of democracy — to reconcile the interests 
of the Nation as a whole with (hose of ])articular 
indi\'iduals and groups. 



' BuLLKTiN of May 25, 1953, p. 747. 



482 



Department of State Bulletin 



It is hoped that the Commission, which met for 
the first time last week,^ will have something to 
report in the early months of 1954. But that does 
not mean that all action is at a standstill until 
then. One useful step was taken during the last 
session of Congress, which passed a customs sim- 
plification bill. 

Another customs simplification bill, containing 
even more important provisions including one sim- 
plifying the valuation system, was approved by 
the House of Representatives and stands a good 
chance of passing the Senate when it meets again 
in January. 



Imports at Record Levels 

In tlie meantime also, America is continuing to 
import at record levels. And I am convinced that, 
at the present time, even without any further 
changes in legislation or tariff rates, there is room 
for still greater exports to the United States. The 
success of many British firms in the U.S. market in 
the past few years proves this beyond a doubt. As 
of now, the United States is one of the gi'eatest and 
freest markets in the world. 

In the last few weeks, apparently, attention has 
shifted in Europe from the prospects of change in 
America's economic policies to the prospect of 
change in America's economic conditions. The 
reasons for this seem to vary. One notion is that 
American pi'osperity is tied up solely with the 
Korean war and, now that the truce has come, there 
must be a collapse. Another idea is that American 
economic activity has reached such a high point 
that it must obey some unexplained law of eco- 
nomic gravity and begin tumbling down, and there 
is a feeling of real concern that certain economic 
indices have changed course. 

I have never owned a crystal ball and I am 
unable to make predictions. But there are some 
comments I should like to make. 

The idea that the level of the American economy 
was dependent on the continuance of actual fight- 
ing in Korea is quite unfounded. That idea is 
based on the assumption that our whole defense 
effort is geared to Korean requirements alone. It 
is true that the aggression in Korea alerted us, as 
well as the whole free world, to the dangers of the 
Soviet threat and caused us all to inci'ease our 
defense activities. But the threat still remains 
very much with us, in several parts of the world. 
And the Korean truce will not greatly affect our 
defense expenditures. We will unfortunately 
have to keep our spending for defense at a high 
level for some time to come. 

As for the concept that what goes up must come 
down, I do not believe that the complex and grow- 
ing economies of the world are subject to the same 
laws of physics which apply to jDaper kites and 

'IMd., Oct. 5, 1953, p. 450. 

October 72, J 953 



rubber balls. In the past century and a half, the 
levels of economic activity have been moving 
steadily upward. The population of the world 
has been increasing; so have the needs and wants 
of this population as consumers, and so have pro- 
duction and productivity, the ability to fulfill 
these wants. In recent decades, particularly in 
the United States, the continuing rise has been 
spectacular. There have been some dips and tem- 
porary setbacks, but the general upward climb, in 
production, in trade, and in living standards, has 
not been halted. I believe we have the wit, the 
will, and the wherewithal to keep it moving in 
the same direction. 

The question that remains is : What is the pres- 
ent position in the United States ? A careful anal- 
ysis should make it clear that the American econ- 
omy is fundamentally well balanced. Production, 
investment, incomes, and employment are all at 
very high levels. The picture is by no means uni- 
form, but it hardly ever is. Steel production has 
eased up somewhat, as has output in some other 
heavy industries. But in numerous so-called 
"light" industries, production is gi'eater. Farm 
income has been lower than its earlier peak for 
some time, which is a matter of concern, but total 
national income remains high. 

Actual expenditures on defense are just about 
at their peak and, in the absence of any unex- 
pected developments, will continue very close to 
that level for a good many months to come. At 
the moment overall Government expenditures are 
bein^ reduced, but the effects of this are likely to 
be onset by tax reductions, which will leave more 
spending money in the hands of private citizens. 
Those who make economic predictions are partic- 
ularly likely to go astray when they try to prefig- 
ure what millions of consumers are going to do 
with their money. 

Tlie United States has always had a dynamic 
and expanding economy. The general direction 
of the line on the U.S. economic chart is upward, 
but as in all such charts it is not a straight line. 
Nothing in the present American economic scene 
would lead any informed observer to see a deep 
depression in the offing. I?ecause of recent 
changes in several of the economic indices, various 
observers are considering the possibility of a mild 
recession. From the evidence thus far available, 
I do not think that it is certain. On the other 
hand, it cannot be ruled out. 

One of the most important things to remember, 
however, is that the present U.S. administration 
recognizes this possibility and is preparing to deal 
with it, if it occurs. It may be worth recalling the 
declared policy of President Eisenhower on this 
matter. In June, the President sent a message to 
Congress, describing his plan to reorganize the 
Council of Economic Advisers and to establish an 
interdepartmental advisory board on economic 
growth and stability. 

483 



Ill the course of this message, he said : 

It is well that the Congress has (IcfliiitKl in the Employ- 
ment Act of 1!)4(> the continuing policy and responsihility of 
the Federal Government to coonliiiate and utilize all its 
plans, functions, and resources for the i)ur)H)se of creatint' 
and maintaining, consistently with free competitive enter- 
prise and the general welfare, employment opportunities 
for all. 

I think it should be clear from this that, if the 
Ainerican economv shows real signs of serious 
decline, the U.S. (jovernment will not sit idly by. 
In any action that might be taken I am ^ure the 
U.S. Government will be concerned with the ex- 
ternal as well as the domestic effects of ti drop in 
economic activity in the United States. President 
Eisenhower has repeatedly emphasized his aware- 
ness of the interdependence of the economies of the 
free nations and the impact which economic devel- 
opments at home have on conditions abroad. 

The American people are convinced of the benefi- 
cent possibilities of an expanding economy, not 
only in the United States but in the world as a 
whole. 



Purpose of Aid Programs 

That is why we have devoted so much effort in 
our aid programs to the creation of conditions 
which would permit expansion of production and 
trade in Europe. 

That is why we created the technical assistance 
program to help increase output per man in indus- 
try and agriculture in each country. And that is 
why we have supported all the measures to create 
an enlarged common market in Eurojie which 
would give more room and leeway for expansionist 
policies and adequate outlets for the fruits of 
higher productivity. 

These programs are not supported by the Amer- 
ican taxpayer out of sheer altruism. They are 
rather the natural expression of the belief held 
by Americans that economic expansion every- 
where leads to international stability, security, 
and prosperity and is therefore to America's own 
self-interest. 

In the concern that is being expressed about 
business prospects for the immediate future, it 
may be useful to keej) one idea in mind, particu- 
larly for those wiio do business in a great ex]>()rting 
coiiiitry such as tliis. It is always important to 
press for higher efiicieiicy and productivity in a 
growing economy. It brings benelits for all in the 
best of times. But if things begin to look a bit 
tigiiter, iiigiier efliciency becomes more vital than 
ever in the face of increasing competition. And 
ultimately it is the most certain way to get the 
curve back on its upward climb again. 

liritain and America are tdready engaged with 
tiie other iiiitioiis in the North Atlantic coiniiniTiily 
in a gi-eaf <'()mm(iii effort to guard tlie seciii'ity id 
the free world and iissure a lasting i)eace. But this 
effort can succeed only if it is based on a founda- 
tion of political and economic strength. This 



484 



strength can be achieved in today's world only if 
we commit ourselves jointly to bold and imagina- 
tive programs of expansion in production, in 
trade, and in standards of living throughout the 
free world. 

On the basis of the past experience of our two 
countries, I am certain we are bound to siicceed. 
From the time of the industrial revolution in this 
country and the development of our vast continent 
across the ocean, we have both been operating on 
expansionist lines. This policy of economic ex- 
pansion has served us both well. But today it is 
more than the boon of the fortunate few. It is 
the hope — and need — of the entire world. 



Mutual Defense Treaty 
With Korea Signed 

Press release 531 dated October 1 

Secretary Dulles and Foreign Minister Y. T. 
Pyun of the Republic of Korea signed the mutual 
defense treaty between the United States and the 
Republic of Korea at a ceremony in Washington 
on October 1. 

Dr. Pyun and Secretary Dulles initialed the 
treaty in draft fomi at Seoul, Korea, on August 
7, 1953.^ The joint statement issued by President 
Syngman Rhee and Secretary Dulles at the conclu- 
sion of their talks in Seotd - explained that the 
treaty is designed to unite the Ignited States and 
the Republic of Korea in common action to meet 
common danger and to cement the ties which 
have brought the two nations together to combat 
in Korea the menace of Communist aggression. 
The joint statement also announced that the two 
governments would actively proceed with the con- 
stitutional processes necessary to bring the treaty 
into full force and effect. In the case of the 
United States, these constitutional processes re- 
quire that the United States Senate consent to 
the ratification of the treaty. 

Folloioing are texts of statements made at the 
signing ceremony: 

Secretary Dulles 

Press release 5H5 dated Oclolier 1 

I am very glad today to have the honor of sign- 
ing this treaty which last August President Rhee 
and I worked out together during my visit in 
Seoul. 

For more than 3 years the armed forces of the 
Republic of Korea and the United States have 



'For text of the driift treaty, see Itti.i.KTiN of A«S. 
17, !!».->.•{, p. 204. The linal text diflVrs fn>m llie draft only 
iii'thal article V of the iDiiucr concUides with the words 
■'at \\:ishin:;toir'. and the last parairraph reads "Done In 
duplicate at Washington, in tlie Eii,i;lish and Korean 
languages, this tlrst day of October, VJ53." 

' Ibid., p. 20:5. 



Department of State Bulletin 



been joined together with the forces of our allies 
under the United Nations Command in repelling 
the Communist aggression. Thus the signing of 
this mutual defense treaty between the Republic of 
Korea and the United States of America formal- 
izes a relationship that has already been estab- 
lished between our countries. 

This treaty is a defense treaty firmly dedicated 
to peace. Its purpose is to deter aggression. We 
have no aggressive intentions toward any nation, 
but we must recognize that in a world where the 
forces of aggression still constitute a threat, con- 
stant preparedness and constant vigilance are the 
price of our freedom. Bitter experience has 
taught us that weakness invites aggression; that 
the requirement of peace and security is the main- 
tenance of our sti'ength. Like those treaties the 
United States has already concluded with the 
Pliilippines, Australia and New Zealand, and 
Japan, the treaty we have signed today is in full 
conformity with the aims and principles of the 
Charter of the United Nations. It affirms our 
belief that the security of an individual nation in 
the free world depends upon the security of its 
partners and constitutes another link in the collec- 
tive security of the free nations of the Pacific. 

It is our intent to proceed actively to bring the 
treaty into full force and effect. In the United 
States, the constitutional processes require the con- 
sent of the United States Senate to the ratification. 
It is our sincere hope that the full exchange of 
views with its leaders which has taken place during 
the development of this treaty will lead to prompt 
and favorable action by the United States Senate 
when its next regular session convenes in January. 

As set forth in the joint statement of August 8 
by President Rhee and myself, between now and 
the date when the mutual defense treaty can be 
exi^ected to come into force and effect, the armed 
forces of our two nations in Korea will be subject 
to the United Nations Command, which will com- 
ply with the armistice terms. During this period, 
■ if there should be an unprovoked attack by Com- 
munist forces in violation of the armistice terms, 
the United Nations Command would immediately 
and automatically react. 

In no way can this treaty be construed as preju- 
dicing or prejudging a settlement of the Korean 
problem. It is an undertaking to settle by peaceful 
means any international dispute in which the par- 
ties may he involved and to refrain in their inter- 
national relations from the threat or use of force. 

Finally, I want to express our hopes that a polit- 
ical conference will be held and that a peaceful 
settlement of the problem of the long-suffering 
Korean people will be found. And again I wish 
to emphasize that the treaty we have signed today 
is evidence of our common desire for peace and of 
our conviction that a strong resolve to resist ag- 
gression is a firm step toward this goal. 

October 72, 1953 



Dr. Pyun 

Korean EmbasBy press release 

We Koreans wish nothing more than to remain 
in the free part of the world. Freedom-loving 
Americans wish nothing more than to help 
Koreans remain in the free world, so far as their 
interest in Korea is concerned. 

Today we have seen these wishes of our two 
peoples meet and culminate in an endurable cove- 
nant binding them together in a holy and dedicated 
vigilance for freedom. Freedom is indeed their 
joint birthright, inheritance, and venture, for no 
part of freedom dies but threatens the rest of it. 
I am sure this written bond of solidarity will bring 
joy and encouragement to all the true friends of 
freedom and frustration and discomfiture to none 
except the enemies of freedom. 

Tens of thousands of American citizens have 
been killed and mutilated and billions of dollars 
out of the pockets of the American taxpayers have 
been spent in Korea in order to help Koreans keep 
their freedom alive. The instrument we have just 
seen signed is indeed a fitting surety that these 
dead shall not have died in vain and that all these 
fabulous sums of American money shall not have 
been spent for nothing. This will conserve the 
fruits of our joint efforts so far made to check 
aggression and contribute toward putting a final 
stop to encroachments upon freedom. This will 
keep the Korean people from growing fainthearted 
in tlieir hazardous and arduous march to the 
consununation of tlieir national freedom and inde- 
pendence. The thought that the United States of 
America stands behind them will be an unfailing 
source of inspiration that will harden their will to 
fight for freedom and that will support them in 
their recurring difficulties. 

The Korean people, having endured killings, 
mutilations, and devastations and yet ever pre- 
pared to endure more on the side of freedom, are 
now provided with an assurance that they will not 
die deserted and forsaken in a lone fight against 
aggression. 

This important act has won the hearts of the 
entire Korean people. Though they are presently 
absorbed in struggling for their own freedom, they 
hereby stand solemnly pledged to defend the 
American freedom, too, if and when it is directly 
threatened, though we hope not. The United 
States will then find us Koreans willing to die for 
its freedom just as its sons have died for our own. 

We thank President Eisenhower for initiating 
the plan out of the goodness of his own generous 
heart which has already been amply shown in 
many munificent acts for providing for the suffer- 
ing Korean people. We thank Secretary Dulles 
and others in the State Department for tlieii- tire- 
less toil in giving substance and form to the memo- 
rable instrument as well as in making the American 
public see the need of such an instrument. AVe 
thank the Senators and Congressmen, without 



485 



whose collaboration and understanding tlie negoti- 
ation for the treaty could not liave started at all. 
Above all, we thank the American people whose 
collective will to serve has manifested itself in this 
as in all other great and noble deeds of the Ameri- 
can nation. 



C. Tyler Wood Appointed 
Korean Economic Coordinator 

The Wliite House announced on September 30 
that the President on that date, by recess appoint- 
ment, had named C. Tyler Wood to be Economic 
Coordinator (special representative for Korea). 



Communists Again Asked for Reply 
on Political Conference Plans 

U.S. delegation press release dated September 23 

Following is the text of a Tnessage which the 
U.S. Government has requested the Govermnent 
of Sweden to tiunsmit to the Chinese and North 
Korean Communists. The U. S. Government 
has handed copies of the message to the Sec- 
retary-General with a request that he circulate 
it to members of the United Nations} 

The United States, acting in conformity with 
the General Assembly resolution of August 28, 
1953, is prepared, in consultation with the desig- 
nated group, to deal with the arrangements neces- 
sary to insure the convening of the conference, as 
recommended by the Armistice Agreement; the 
conference itself, when it convenes, can deal with 
any matters not otherwise disposed of to the satis- 
faction of both sides. 

We observe that the note of the Korean Com- 
munist regime-' states that "the question of the 
composition of the political conference can not 
be resolved unilaterally but only by agreement be- 
tween both sides." The United Nations side has 
been selected and is functioning; the other side 
is defined in tiie Arnii.stice Agreement, together 
witli the USSR if the other side desires. The 
question whether any neutrals should be invited is, 
as the North Korean note declares, a matter for 
agreement between both sides. Therefore, if de- 
vclo])nients during the conference warrant it, and 
tiie other side desires to raise the question of ad- 
ditional participants, it will, of cour.se, be open to 
them to do so, since at the conference both sides 
will be present and will be able to consider this 
inald'r. 

Through the good offices of the Swedish Govcin- 



' Circulnted as TI. N. doc. A/2488 dated Sept. 23. 
' U. N. doc. A/247(i dated Sept. 15. 



ment we again propose to have the substance of 
this statement communicated to the Chinese and 
Nortli Korean Communists and to urge that they 
reply promptly. 

AVe are most anxious to facilitate the work of 
the conference. Indeed, in view of the urgency of 
the situation, if it would facilitate the negotiations 
for the arrangements of the proposed political con- 
ference, we are prepared at once to dispatch a rep- 
resentative to meet with the Chinese and North 
Korean Communists at any of the places which we 
have already suggested for the conference, namely, 
San Francisco, Honolulu, or Geneva. 



Assistance to Indochina 

Text of Joint V. S.-Frewh Communique 

Press release 529 dated September 30 

The forces of France and the Associated States 
in Indochina have for 8 years been engaged in a 
bitter struggle to prevent the engulfment of South- 
east Asia by the forces of international commu- 
nism. The heroic eft'orts and sacrifices of these 
French union allies in assuring the liberty of the 
new and independent states of Cambodia, Laos 
and Vietnam has earned the admiration and sup- 
port of the free world. In recognition of the 
French union effort the United States Government 
has in the past furnished aid of various kinds to 
the Governments of France and the Associated 
States to assist in bringing the long struggle to an 
early and victorious conclusion. 

The French Government is firmly resolved to 
carry out in full its declaration of July 3, 1953 
by which is announced its intention of jjerfecting 
the independence of the three Associated States 
in Indochina, through negotiations with the 
Associated States. 

The Governments of France and the United 
States have now agreed that, in support of plans 
of the Frencli (iovernment for the intensified 
prosecution of the war against the Viet Minli, the 
United States will make available to the French 
Government prior to December 31, 1954 addi- 
tional financial resources not to exceed $385 mil- 
lion. Tiiis aid is in addition to fuiuls already ear- 
marked by the United States for aid to France 
and the Associated States. 

The French Ciovernment is determined to make 
every effort to break u]) and destroy the regular 
enemy forces in Imlocliina. Toward tliis end the 
government intends to carry througli, in close co- 
operation with the Cumbotlian, Laotian, and Viet- 
namese Ctovernments, the plans for increasing the 
Associated States forces while increasing tempo- 
rarily French forces to levels considered necessary i 
to assure tlie success of existing military ]ilans. ! 
The additional United States aid is designed to 



486 



Department of Stale Bulletin I 



help make it possible to achieve these objectives 
with maximum speed and effectiveness. 
— The increased French effort in Indochina will 
not entail any basic or permanent alteration of 
the French Government's plans and programs for 
its Nato forces. 



Viet-Nam Thanks U. S. for Aid 
To Flood Sufferers 

Following is the text of a note dated Septeviber 
30 from Prime Minister Nguyen Van Tarn of 
Viet-Nam to U. S. Ambassador Donald R. Heath, 
together tvith Ainbassador Heath's reply of 
October 1: 

Mr. Ambassador: As in the case of last year's 
typhoon, the population of central Vietnam, which 
has once more Ibeen sorely tried by recent flood, 
has seen its ruins and its miseries relieved and 
eased, thanks to the rapid bringing of aid which 
has been provided by its friends. 

His Majesty Bao Dai, Chief of State of Viet- 
nam, has kindly asked me to express on this occa- 
sion his deep gratitude for the extensive material 
assistance which you have kindly accorded to the 
victims and for the valuable aid afforded by the 
American services in organizing most urgent first 
aid. 

I desire to join my own personal thanks with 
those of the Chief of State and to ask you kindly 
to transmit to the American Special Technical 
and Economic Mission, which participated with 
such speed and efficacy in this work of human 
solidarity and of social mutual help, the expres- 
sion of the profound gratitude of His Majesty's 
Government. 



Dear Mr. Prime Minister : I am most happy to 
acknowledge receipt of your kind letter of Sep- 
i tember 30 in which you set forth the official 
thanks of His Majesty Bao Dai, Chief of State of 
Vietnam, as well as your own personal expression 
of gratitude, for the aid supplied to the sufferers 
in the recent typhoon flood in central Vietnam by 
various American agencies. I shall at once in- 
form General Wilbur R. McEeynolds, Chief of 
the STEM Mission, of the special expression of 
appreciation for the work of his Mission in sup- 
plying immediate disaster relief. 

On behalf of the Government of the United 
States, I desire to express the feelings of sym- 

Eathy and concern which have been experienced 
y the American people on reading news of this 
disaster ; and to add on behalf of my Government 
its hope that the damage will be speedily repaired 
and that the population of central Vietnam will 
not experience similar affliction in the future. 



Visit of President of Panama 

On September 25 the Department of State an- 
nounced (press release 518) that the President of 
Panama, Jose Antonio Remon C, and Sefiora de 
Remon would arrive at Washington on Septem- 
ber 28. 

The President's party was met at Washington 
National Airport by Vice President Nixon and 
other officials of the Government, including Ad- 
miral Arthur Radford, Chairman of the Joint 
Chiefs of Staff, and John M. Cabot, Assistant Sec- 
retary for Inter- American Affairs. 

On the evening of September 28 the President 
and Mrs. Eisenhower gave a dinner in honor of 
the President and Seiiora de Remon. 

On September 29 President Remon addressed a 
meeting of the Organization of American States 
at the Pan American Union, which was followed 
by a luncheon in his honor. On that evening. Un- 
der Secretary of the Army Earl D. Johnson gave 
a reception for the President and Sefiora de Re- 
mon, and Secretary Dulles gave a dinner in their 
honor. 

On October 1 the President and Sefiora de Re- 
mon departed for New York. They will leave for 
Panama on October 7. 

In announcing the impending visit on August 
25, the White House referred to it as "a further 
demonstration of the cordial relations and historic 
friendship between the United States and the Re- 
Ijublic of Panama, which will this year celebrate 
the 50th anniversary of its independence." 



Joint Statement on President Remon's Visit 

White House press release dated October 1 

In the spirit of the close friendship that unites 
the peoples and Governments of Panama and the 
United States, we have considered the main aspects 
of the unique relations existing between the two 
countries prompted by an earnest desire to make 
such relations as satisfactory as possible. 

In our conversations we have dealt mainly with 
that part of our relations which springs directly 
from the fact that the canal which connects the 
waters of the two oceans and the zone adjacent 
thereto run through the heart of the territory of 
Panama and, therefore, certain questions have 
arisen, the solution of which is of great importance. 

In considering these relationships, we have 
deemed it opportune in the first place to reiterate 
the basic principles set forth by our governments 
in 1933 and 1936. 

We have agi'eed that these basic principles ap- 
plicable to the relations between the two countries 
should have as a consequence the adoption of 
measures tending to make them more effective to 
the end that there should be an equitable benefiting 



Ocfober 72, J 953 



487 



of the two nations which made possible the con- 
struction of a canal as well as an enablinji of the 
connnerce and industry of Panama to take advan- 
tage of the market ottered by the Canal Zone and 
by the shij^s transiting the Canal. 

We have equally agreed that inasmuch as the 
two countries have a mutual and vital interest in 
the work of the Panama Canal, the principle of 
equality of opportunity and treatment must have 
full effect in regard to the citizens of Panama and 
the United States emi:)loyed in the Canal Zone as 
set forth in the exchange of notes of March 2, 
1936, on this subject and that wherever circum- 
stances sliould be found which in any manner in- 
terfere with the observance of that principle, ap- 
propriate measures will be taken by the United 
States. 

In conformity with the first of the two princi- 
l)les, above stated, we have recognized the advis- 
ability of giving due consideration, in the cases of 
lands granted in the past for Canal purposes 
which are no longer needed for such purposes in 
order that arrangements may be agreed u])on for 
the transfer of those lands to the Republic of 
Panama. 

It is extremely gratifying that the commissions 
set up by the two governments to review our rela- 
tions and the operation of our treaties are already 
at work with a view to entering into any arrange- 
ments that may be found necessary to "insure for 
the future a nuitually advantageous and satisfac- 
tory relationship. 

The President of the Republic of Panama has 
expressed during the course of these conversations 
his deep appreciation for the cordial and friendly 
attitude of the President of the United States and 
has reiterated the expressions of sincere friend- 
ship which animate the people and Government of 
Panama in respect of the peojile and Government 
of the United States of America, and also has 
expressed his full solidarity with the United States 
in the defense of democracy and Panama's un- 
flinching will to cooperate with it, as the Republic 
lias already done in the two world wars, in the 
maintenance of peace and security within a free 
world. 

The President of the United States on his part 
has exi)ressed the interest of the people and Gov- 
ernment of the United States in the welfare of the 
people and Government of Panama. He lias as- 
sured the President of the Republic of Panama 
that all of the points which the representatives of 
Panama desire to raise would receive the most 
.synipallictic consideration in tlie light of the espe- 
cially close relations existing between the two 
countries. In view of the nature of the special 
bonds between the two countries he has expressed 
the desire of the United States to continue to coop- 
erate in the develoi)nient of Panama's national 
economy. 

It is felt that this meeting has achieved a high 



measure of mutual understanding and contidence 
which in the connnon interest of the two nations 
and of the free world nmst characterize the ties 
between them. 



International Bank 
Loan to Panama 

The International Bank for Reconstruction and 
Development on September 25 announced two 
loans totaling $1,490,000 for agricultural develop- 
ment in Panama : $1,200,000 for the purchase of 
agricultural machinery and $290,000 for a grain- 
storage plant. The borrower is the Instituto de 
Fomento Economico (Ife), an autonomous gov- 
ernment agency, and the loan is guaranteed by 
the Government of Panama. 

Panama has enough good soil to produce all of 
its agricultural requirements, but because of out- 
moded farm practices it does not produce even all 
of its food. In 1951 Panama had to import $16 
million worth of food. The Government is mak- 
ing intensive efforts to encourage agricultural de- 
velopment and is carrying out a program to im- 
prove agricultural techniques through extension 
services and technical advice to farmers. 

Nearly half the bank's loan of $1,200,000 will be 
used to purchase equipment for agricultural 
machinery pools. Ife will operate the pools and 
will perform services for farmers on a contract 
basis. The equipment, which will consist nuiinly 
of tractors, plows, harvesters, and combines, will 
be used in land clearance as well as in farming. 

The loan also provides for funds which will be 
used to import agricultural machinery and equip- 
ment to be sold to qualified farmers who will ob- 
tain credits for its purchase from Ife. 

A third portion of the loan will be used by Ife 
to purchase hand tools for small farms. A high 
percentage of farmers in Panama own only a few 
acres of land, which they till with crude, home- 
made tools on a bare subsistence basis. Ife will 
employ a small staff of agricultural advisers to 
assist these farmers, and will set up its own store 
.system to sell at cost simple basic eciuipiiu'iit such 
as machetes, axes, and barbed wire. 

Tlie loan of $1,200,000 is for a term of 7 years 
and carries interest of 45{< percent including the 
1 i)ercent commission which is allocated to a special 
reserve. Amortization ))aynients will begin 
November 15, 1955. 

The $290,000 loan will be used to pay for tlie 
import of materials and services needed by Ife 
to build a 4,000-ton grain-storage plant at Panama 
City. Pananui has no modern facilities for dry- 
ing and storing corn and beans, its pi-iiicipal crops. 
In most years 20 to 'M) percent of the grain spoils 
hcfore it can be used. There is a glut of "wet" 
grain from August to December and a scarcity 



488 



Department of Stale Bulletin 



during the remainder of the year. Consequently, 
producers receive very low prices at liarvest time 
and consumers have to pay very high prices later. 

Tlie new processing aJid storage plant should re- 
duce fluctuations in price by providing a year- 
round supj)ly of locally grown corn and beans of 
good quality. It should also raise the income of 
many corn and bean producere by providing a 
ready market, at reasonable prices, for their pro- 
duction. And finally, it should improve Panama's 
balance-of-trade position by diminishing imports 
of wheat and beans, which now amount to about $2 
million a year. 

The grain storage loan is for a term of 8 years 
and carries interest of 4% percent including the 
statutory 1 percent commission. Amortization 
payments will begin November 15, 1955. 



Panama Joins Inter- American 
Tropical Tuna Commission 

Press release 540 dated October 2 

The Inter- American Tropical Tuna Commission 
gained a third member on September 21 through 
the adherence of Panama to the convention, 
signed originally by the United States and Costa 
Rica in 1049, which established the Commission.^ 

By the terms of the convention, the Commission 
is charged with the duty of gathering and inter- 
preting factual information on the tuna and tuna- 
bait fishes of the tropical Eastern Pacific Ocean. 
The purpose is to maintain the populations of these 
fishes at levels which will permit maximum utili- 
zation year after year without depletion. 

Starting on a small scale, the Tuna Commission 
has made noteworthy progress with particular em- 
phasis on two lines of research. With the co- 
operation of the U.S. tuna fleet, it has collected 
both current and historical records of fishing ac- 
tivities. This information, basic to any fishery 
research, is valuable material which, when analysis 
is completed, will provide some indication of the 
condition of the stocks. Further studies made 
from research vessels at sea will be necessary be- 
fore the Commission can know whether regulatory 
measures are necessary. 

The Commission has at the same time carried 
forward studies of the tuna-bait fishes in the Gulf 
of Nicoya oS Costa Eica, formerly a principal 
source of bait-fish supply for the tuna fleet. This 
research, conducted from Commission branch 
headquarters at Puntarenas, Costa Rica, definitely 
established the disappearance from the Gulf, for 
reasons not yet known, of the most important bait 
species, the anchoveta. 

The Republic of Panama has made a gift of two 
boat loads of anchoveta which are now being taken 
from the Gulf of Panama to be transplanted in the 

' Bulletin of June 12, 1949, p. 766. 



Gulf of Nicoya in an effort to re-establish the 
species there- 

The preliminary arrangements with the Pana- 
manian Government were made by Jose Luis 
Cardona-Cooper of Costa Rica who is Secretary 
of the Commission. 



Death of Mayor Ernst Reuter 

statement by the President 

White House press release dated September 29 

The sudden death of Mayor Ernst Reuter of 
West Berlin is a great loss not only to the citizens 
of his city and country but also to the peoples of 
the free world. Mayor Reuter was a born leader. 
His was a rare combination of talents, including 
courage, intelligence, energy, and dedication to 
the cause of freedom. Liberty-loving people 
everywhere will mourn his passing and salute his 
memory. 



Secretary Dulles Expresses Sympathy 

Press release 527 dated September 29 

Secretary Dulles on September 29 sent the fol- 
lomng message to Mrs. Ernst Reuter: 

My Dear Mrs. Reuter: It is with deep shock 
that I heard of the death of your husband. Mayor 
Reuter has been a symbol of courage and sii'ength 
to the free world. His name will be forever 
associated with the inspiring record of the city 
of Berlin in the face oi overwhelming odds and 
threats to its inhabitants. His loss will be felt 
not only by the people of Germany but also by 
millions in other countries who have drawn 
strength and confidence from his valiant stand 
for freedom. 

The sympathy of the American people is with 
you and your fellow citizens. 
Sincerely yours, 

John Foster Dulles 



FOREIGN SERVICE 



Recess Appointments 

On October 1, the President appointed Selden Chapin 
to be Ambassador to Panama and H. Freeman Matthews 
to be Ambassador to the Netherlands, subject to confirma- 
tion by the Senate. Mr. Chapin succeeds John C. Wiley, 
resigned. Mr. Matthews, formerly Deputy Under 'Secre- 
tary of State, succeeds Mr. Chapin. 

The President on September 26 appointed Dempster 
Mcintosh to be Ambassador to Uruguay. 



October 72, 7953 



489 



U.S. Again Asks Soviets To End 
German Travel Restrictions 

On September 17 U.S. High Commissioner 
James B. Conant sent a letter to the Soviet High 
Co77imis.sioner for Germany, VUuIimir Semencv, 
repeating the U.S. proposal of August 26^ that 
the Soviet authorities lift restrictions on inter- 
zonal travel hy German nationals. Following is 
the text of the letter, together with that of the 
Soviet reply to his earlier communication. 



Ambassador Conant to Mr. Semenov, September 17 

I have your letter of September 1, in which you 
reply to my proposal of August 26, 1953, that there 
be waived simultaneously the inter-zonal pass 
which is required by occupation powers and the 
Aufenthaltserlauhnis [residence permit] which is 
required by German authorities. I regret that 
instead of accepting my proposal, you have de- 
voted the greater part of your letter to unfounded 
allegations that German authorities in the Federal 
Republic are hindering the inter-zonal travel of 
German Nationals. These allegations are so man- 
ifestly false that I do not propose to answer them. 
I would liowever point out that your claim that 
these obstructions exist should have led you to 
agree the more readily to my proposal to waive 
the inter-zonal pass and the Aufeiithaltserlaubnis 
requirements. 

You liave proposed that the whole matter be 
referred to the government of the Federal Repub- 
lic of Germany and to the German authorities in 
the Soviet Zone. You appear to have overlooked 
the fact that the inter-zonal pass system was estab- 
lished by quadripartite agreement and that there- 
fore the waiver of this requirement is a matter 
falling solely within the authority of the occupa- 
tion powers. 

As regards the views of the Federal Republic of 
Germany on this subject, I should like to call your 
attention to tlie unequivocal statements contained 
in the resolution of the Bundestag on July 1, 1953, 
calling for free circulation of all Germans 
throughout Germany, and in the subsequent deci- 
sion of the Federal Cabinet of August 25, 1953, 
asking for removal of all restrictions imposed on 
inter-zonal travel by reason of the inter-zonal pass 
ief|uirenient. 

By tliese actions the Federal Republic of Ger- 
many solemnly declared its desire and willingness 
lo do everything possible to bring about conditions 
permitting unrestricted travel throughout Ger- 
many of (iernuvn Nationals irresi)cctive of their 
place of residence. For this reason the German 
authorities in the US Zone will, as I have already 
iiiforined you in my letter of August 20, waive the 



' Rui.i-ETIN of Sept. 21, 1953, p. 391. Dr. Conant's ear- 
lier Idler, (liileil Aug. 20, was delivered on Auk. 27. 

490 



Aufenthaltserlauhnis simultaneously with our 
waiver of the inter-zonal pass requirement, on 
condition that German authorities in the Soviet 
Zone do the same. 

I wish therefore to reiterate to you mj' proposal 
contained in my letter to you of August 20, 1953, 
that "we now jointly waive the Allied inter-zonal 
pass requirement for travel of German Nationals 
between and through the US and USSR Zones." 

On condition that you will have informed me in 
advance of your agreement to institute similar 
measures simultaneously, I am prepared to waive, 
effective 24 : 00 hours September 30, the inter-zonal 
pass requirement for German Nationals proceed- 
ing through established crossing points to the US 
Zone from the Soviet Zone of Germany or from 
Berlin. At tlie same time, I request that you re- 
ojDen those inter-zonal crossing points which were 
closed on Soviet instructions at various dates prior 
to the middle of 1952. 

Since my British and French colleagues are 
making the same proposal, German Nationals 
would then be able to travel throughout Germany 
on the simple presentation of their identity cards. 



Mr. Semenov to Ambassador Conant, September 1 

The Govermnent of the German Democratic Re- 
public, to whom the Soviet authorities had turned 
over the administrative functions as far back as 
1949, adopted in June 1953, as is known, a deci- 
sion for further considerable easement of the 
movement of German nationals between the GDR 
and Western Germany. Each community has 
been given the unrestricted right to issue to its 
residents travel passes to Western Germany, as 
well as the right to issue residence pennits for 
that community to persons in West Germany. 

In the interest of facilitating unrestricted inter- 
zonal travel for German nationals, tlie GDR Gov- 
ernment has set aside additional trains, which are 
circulating between East and West German}'. 
Still other measures have been added in further- 
ance of the unrestricted movement of German 
citizens between East and West Germany. Thus, 
every resident of East Germany may visit Western 
Germany at any time he wishes. Nor are any 
obstacles placed by the (JDR Government in the 
way of West German residents entering Eastern 
Germany. 

From 25 June to 25 August, the GDR authori- 
ties had issued 430,000 inter-zonal passes to resi- 
ilents in Eastern Germany. During the same pe- 
riod, 120,000 residence permits for the GDR have 
been issued to residents in Western Germany. 

The above-mentioned measures by the GDR 
Government are in comidete accord with their pol- 
icy, aimed at the restoration of German unity, 
which is receiving wide.'^pread sup]>ort from the 
l)opulati()n of both East and West Germany. 



Deparfmenf of S/afe Bu//efin 



On the other hand, Adenauer's Government in 
Western Germany is erecting obstacles to the free 
movement of German citizens in Western and 
Eastern Germany. Numerous facts bear witness 
that West German Government agencies are not 
only using delaying tactics in the handling of 
visiting applications, but are also refusing to issue 
passes to West (lerman residents wishing to visit 
Eastern Germany. Thus, for example, out of 2800 
West German residents who applied for permits 
to visit the automobile races in ISachsenring, only 
180 received permission from the West German 
authorities to travel to the GDR. There is in oper- 
ation in Western Germany a secret directive by 
the Adenauer Government which forbids the issu- 
ance of inter-zonal passes to members and friends 
of democratic progressive organizations, as well 
as to business representatives seeking to establish 
trade relations with the GDR. In Baden-Wuert- 
temberg alone, 10,000 applications for inter-zonal 
passes have been turned down pursuant to this 
directive. 

At the same time. West German Govermuent 
agencies are hindering GDR residents from en- 
tering Western Germany, are refusing them resi- 
dence permits for Western Germany, and, in a 
number of cases, go so far as to place under arrest 
GDR residents coming to visit relatives or ac- 
quaintances in Western Germany. 

I deemed it necessary to draw your attention to 
the above-mentioned facts restricting the free 
movement of German nationals between East and 
West Germany. 

As for the proposal to dispense with inter-zonal 
passes for German citizens, I should think it ad- 
visable to refer this question to the governments 
of the GDR and the Western Federal Republic 
for their decision. I expect that such a step will 
contribute to the establishment of contact between 
the two governments for the purpose of resolving 
still other questions in connection with the resto- 
ration of a unified Germany as a democratic and 
peace-loving state. 



the territoi-y of each of the members. The agi-ee- 
ment will come into force as soon as six signatory 
States have deposited their instruments of ratifi- 
cation with the Government of the United States. 
Up to the present time, ratifications have been 
deposited by the United States, Denmark, Iceland, 
the Netherlands, and Norway. 



Release of William N. Oatis 
From Czechoslovak Prison 

Press release 539 dated October 2 

Following is the text of an exchange of letters 
hetu^een WUliam N. Oatis and Becretary Dulles^ 
concerning Mr. Oatis^ release after 2 years of im- 
prisonment in Czechoslovakia:'^ 

Mr. Oatis to Secretary Dulles 

September 12, 1953 

Mr. John Foster Dulles 

Secretary of State 

Washington, D. G. 

Dear Mr. Dulles : I want to tell you how 
deeply I appreciate the efforts made on my behalf 
by you and your department and those in Prague 
in your foreign service. 

I believe that it was largely because of such ef- 
forts that I was able to regain my freedom last 
May after two years in prison in Czechoslovakia. 

I am grateful also to your department and its 
representatives abroad for supplying me with a 
new passport, for transporting me from Pragiie 
to Nurnberg and for facilitating my entry into 
Western Germany and the United States. 

Thank you for everything. 
Yours sincerely 

William N. Oatis 



Secretary Dulles' Reply 



Turkey Signs NATO Agreement 

Press release 538 dated October 2 

On October 2, Feridun C. Erkin, the Turkish 
Ambassador to the United States, signed on behalf 
of his Government the Agreement on the Status of 
the North Atlantic Ti-eaty Organization, National 
Representatives, and International Staff. The 
agreement, which was signed for the United States 
and other parties to the North Atlantic Treaty at 
Ottawa on September 20, 1951, is designed to de- 
fine the rights, privileges, and immunities of the 
North Atlantic Treaty Organization, its person- 
nel, and the representatives of member states in 



September 26, 1953 



Dear Mr. Oatis : I wish to thank you for your 
letter of September 12, 1953. Your release from 
a Czechoslovak Communist prison and your re- 
turn to your family and friends in the United 
States was a source of deep j^ersonal satisfaction 
to the President, to myself, and to all of the offi- 
cers concerned in the Department and Foreign 
Service. 

Sincerely yours, 

John Foster Dulles 



' For a stntement on Mr. Oatis' release, see Bulletin 
of June 1, 1953, p. 785. 



Oc/ober 72, 1953 



491 



Filing of Compensation Claims 
by Former Nationals of Austria 

Press release 502 dated Sept. 16 

The Government of Austria has acted to extend 
to jiersons who were formerly nationals of Austria 
and who are now citizens of the United States 
certain benefits previously fji'anted only to Aus- 
trian nationals. Tlie benefits involved are those 
under the Victims Welfare Law and those under 
the Civil Servants Indemnity Law. The time 
limit for filino^ claims for these benefits expires on 
August 20, 1954. 

Under the Victims Welfare Law, as amended, 
persons who (a) possessed Austrian nationality on 
March 13, 1938, (b) suffered imprisonment in 
Austria at any time between March (J, 19.33, and 
May 9, 1945, because of persecution and (c) have 
a present income of less than 100,000 schillin<is 
per year (approximately $3,845) are entitled to 
receive compensation. This comiiensation gener- 
ally consists of a one-time payment, presently 
amounting to 431.2 schillings, for each month 
spent in confinement. Claimants are also entitled 
to receive compensation for certain court costs and 
administrative fees which were imposed in con- 
nection with such imprisonment but compensation 
for attorney's fees, fines, or confiscated property 
is not within the scope of this law. Claims for re- 
duced benefits may be made by certain specified 
heirs. 

Claims under the Victims Welfare Law may be 
filed, with accompanying proof, with the Wiener 
Landesregierung, Magistratsabteilung 12, Gon- 
zagagasse 23, Vienna I, Austria, or with the Aus- 
trian Embassy, 2144 Wyoming Avenue, NW., 
Washington, t). C. 

Under the Civil Servants Indemnity Law, for- 
mer public employees of the Austrian Federal 
State, of tlie Laender, nuinicipalities, etc., who, 
for political or racial reasons, were dismissed or 
suffered a reduction of their income at any time 
between March (i, 1933, or April 30, 1945, are en- 
titled to certain benefits. Where the former civil 
servant is deceased, reduced benefits may be 
claimed by his surviving sjiouse or child. 

Claimants under the Civil Servants Indemnity 
Law should use the official form ])r<)vided for the 
purpose. The form will be available shortly from 
the Austrian Embassy, 2144 Wyoming Avenue, 
NW., Washington, D. C. The claims under this 
law .should be filexl with the Austrian Embassy. 



Handling of Foreign Exchange 
by Government Agencies 

White IIuiiKP prens release dated ScptemluT -4 

Tiie President on Si'plember 23 issued an Ex- 
ecutive order autliorizing the Secretary of the 



Treasury to promulgate regulations governing the 
purchase, custody, transfer, and sale of foreign 
exchange (including credits and currencies) by 
other agencies of the Government. 

In recent years various Government agencies 
have received foreign currencies in connection 
with their operations abroad, have kept custody of 
such currencies, and have used them to supplement 
their appropriations. This arrangement accorded 
with then existing law. In the Supplemental Ap- 
propriation Act, 1953, enacted July 15, 1952, the 
Congress discontinued the authority for such use 
of foreign currencies by Federal agencies after 
July 1, 1953, and required that thereafter such 
currencies should be used only as authorized in 
annual appropriation acts. In the Supplemental 
Appropriation Act, 1954, the Congress supple- 
mented its earlier action by requiring that foreign 
currencies owned by the United States maj' oe 
used by Federal agencies only when reimburse- 
ment therefor is made to the Treasury from appli- 
cable appropriations of the agency concerned. 
This action of the Congress was in conformance 
with a report furnished to the appropriations com- 
mittees of the two Houses of Congress in January 
1953 by the Bureau of the Budget. That report 
contemplated that the Treasury Department 
would issue regulations providing for custody of 
foreign currencies ; for the i)rompt "sale" of such 
currencies to disbursing officers, including those 
in the field ; and for other steps which will stop 
any hoarding of currencies by Federal agencies 
and which will tend to permit Federal agencies to 
have promptly available foreign currencies for 
those financial requirements abroad that can be ad- 
vantageously met by using such foreign 
currencies. 

The Hxecutive order promulgated by the Presi- 
dent will make it possible for the Secretary of the 
Treasury to issue such regulations. 



Text of Executive Order ■ 

Hy virtue of the atithnrity vested in me by the Constittl- 
tioii ami statutes, ami as President of the United States, 
it is hereby ordered tliat the ))ureliase, custody, triinsfer, 
or sale of foreign exchange ( including credits and cur- 
renries) by any executive department or asency of the 
United Stales shall be administered under such refiula- 
tions, not inconsistent with the [irovisioiis of section 141.") 
of the Supplemental .\i)i)roi)riation Act, VXM (GO Stat. 
(!(i2 ; :\\ U. S. V. 7-4), section VM'.K of the Supplemental 
Appropriation .\ct, 1!K'>4 (07 Stat. 4;i.S), or of any other 
law, as may be issued l)y the Secretary of the Treasury, 
and the Secretary of the Treasury is authorized to issue 
such resulations. 

TiiK WiiiTi'; llonsK, 

September 2S, 195S. 



IS /.'((/. Refl. 5099. 



492 



Department of Sfafe Bulletin 



Export- Import Bank Report 

Tlie Export -Import Bank of Washington on 
September 15 transmitted to the Congress and the 
President its semiannual report for the half year 
which ended June 30, 1953.^ The report sum- 
marizes the bank's activities for the entire fiscal 
year which ended on that date. 

The bank is one of the profitable financial 
activities of the U.S. Government. It paid a 
dividend of $22,500,000, $2.5 million greater than 
previous annual dividends, to the Treasury on 
July 1 out of profits made during the fiscal year 
ended June 30. The remainder of the net operat- 
ing profit, amounting to $29,300,000, was added to 
the bank's accumulated earned reserves, which 
now total $295,600,000. The profits applied to the 
dividend and accrual to reserves arose out of in- 
terest earnings of $75,800,000, less administrative 
expenses of approximately $1 million and interest 
payments of $23,000,000 to the U. S. Treasury. 

The bank pays interest to the Treasury at a rate 
determined by the Secretary of the Treasury and 
based upon average cost to the Treasury of the 
funds borrowed in the market. The current rate 
of new borrowings of the bank from the Treasury 
is 2% percent, representing an increase over tlie 
rates paid in previous years. 

During the 6 months which ended June 30 the 
bank authorized new credits in the amount of 
$387,000,000 and allocated $28,000,000 to specific 
projects financed under credits previously author- 
ized. In the same period the bank disbursed 
$222,700,000 under loan authorizations and re- 
ceived repayments of principal amounting to 
$171,900,000 plus interest payments of $37,500,000. 

As of June 30, 1953, outstanding loans of the 
bank were $2.5 billion with loan commitments 
not yet paid out amounting to $791,300,000, which 
brought the total of active credits to $3.3 billion, 
leaving an uncommitted lending authority of 
$1.2 billion. 

The bank's activities during the fiscal year in- 
cluded loans to countries in Europe, North and 
South America, Africa, and the Far East. Loans 
were outstanding in 48 countries on all continents. 
Loans were made during the year for economic 
development purposes in distant countries and 
for the development and expansion of foreign 
resources and strategic materials and materials 
essential to U.S. industries. 

A loan of $19,600,000 was extended to the Elec- 
tricity Supply Commission, an agency of the Gov- 
ernment of the Union of South Africa, to finance 
the expansion of steam electric-power facilities. 
A credit previously authorized to a private com- 
pany for the production of sulfur in Mexico was 
increased by $1.5 million. Loans were made to the 



'■ Copies of the report may be obtained from the Super- 
intendent of Documents, U.S. Government Printing Office, 
Washington 25, D.C. (30 cent.s). 

Ocfofaer 12, 1953 



Bank of Japan and to Spanish commercial banks 
for the purchase of U.S. cotton needed for the 
textile mills of both countries. A loan of $300 
million was made to Banco do Brasil to enable 
that country to liquidate its dollar indebtedness 
to American suppliers. 

During the 6 months under review the President 
transmitted to the Congress a reorganization 
plan - providing for the elimination of the Board 
of Directors and the transfer of its functions to 
a managing director to be appointed by the Presi- 
dent with the advice and consent of the Senate. 
Maj. Gen. Glen E. Edgerton was appointed to 
this position, and Lynn U. Stambaugh was ap- 
pointed deputy director and Hawthorne Arey 
assistant director. 



Credit to Ecuador Increased To Aid 
Completion of Highway 

The Export-Import Bank announced on Sep- 
tember 18 that it has authorized an increase of 
$2,280,000 in an earlier credit, extended in 1947, 
to the Republic of Ecuador to assist in the com- 
pletion of the Quevedo-Manta Highway. This 
authorization, which will bear interest at 5 per- 
cent and be repaid over a period of approximately 
15 years, will increase the existing line of credit 
for the highway from $2,720,000 to $5 million. 

Completion of this highway will open up for 
development a potentially rich agricultural area 
in the interior of the country in the vicinity of 
Quevedo. It will also alleviate a serious trans- 
portation bottleneck by providing the Capital 
City of Quito with a modern highway connection 
to the seacoast at Manta. 

The Government of Ecuador has awarded a con- 
tract to a U.S. construction company for the re- 
maining work to be done on the highway, which 
includes the building of a difficult portion of road 
through rugged tropical terrain, and the con- 
struction of several bridges in accordance with 
revised plans and specifications worked out by 
the Government of Ecuador, the U.S. Bureau 
of Public Roads, and the Export-Import Bank. 
It is anticipated that the remaining work will 
extend over a period of approximately 30 months. 



International Development 
Advisory Board Reconstituted 

White House press release dated September 26 

The President on September 26 reconstituted the 
International Development Advisory Board which 
advises the President and the Director of the For- 
eign Operations Administration on policy relating 



' Buu.ETiN of July 13. 1953, p. 49. 



493 



to the program of American technical assistance 
to underdeveloped countries. 

The President reappointed Eric Johnston, pres- 
ident of tlie Motion Picture Association of Amer- 
ica, as chairman. Mr. Johnston served as chairman 
of the Board since January 1952 under a previous 
aj^pointment. 

New members of the Board appointed by the 
President on September 26 are 

Gardner Cowles, President, Cowles Magazines, Inc., 
New York 

Joseph P. Grace, Jr., President, W. R. Grace Company, 
New York 

Dr. W. I. Myer.s, Dean, College of Agriculture, CorneU 
University, Ithaca, N. Y. 

Herschel D. Newsom, Master, National Grange, Wash- 
ington, D. C. 

Mrs. Jessie Vann, Publisher, Pittsburgh Courier, Pitts- 
burgh, Pa. 

Laurence F. Whittemore, President, Brown Company, 
Berlin, N. H. 

Maurice A. Hutcheson, United Brotherhood of Car- 
penters and Joiners of America 

Three former members of the Board whose pre- 
vious 2-year terms expired last November were re- 
appointed by President Eisenhower. They were 

Dr. Robert P. Daniel, President, Virginia State College, 
Petersburg, Va. 

Dr. Harvey S. Firestone, Jr., Chairman, Firestone Tire 
and Rubber Comiiany, Akron, Ohio 

Dr. TlKimas I'arran, Dean, Graduate School of Public 
Health, University of Pittsburgh, Pittsburgh, Pa. 

Dr. William R. White, president of Baylor Uni- 
versity, Waco, Tex., will continue to serve as a 
member of the Board under a previous appoint- 
ment. 

There is one member of the Board yet to be 
appointed. 



Colombo Plan Meeting 

statement by Secretary Dulles 

Press release 515 dated September 27 

Secretary Dulles on. Seftoriber 27 made the 
following statement on U.S. participation in the 
Consultative Conwnittee on Economic Develop- 
ment in South and Southeast Asia, convening 
September 28 at New Delhi, India: 

United States member.ship and participation in 
the work of the ConsuUative Committee is anotlier 
taiifjible indication of tiie impoi-tance tliis Gov- 
eriuiH'ut attaches to economic progress in South 
and Southeast Asia. 

Tlie United States extends financial and tecii- 
nical assistance directly to many of tiie countries 



of this region in order to assist them in their own 
efforts to increase tlieir economic strengtli and 
improve tlie well-being of their people. 

The United States believes that tlie Consulta- 
tive Committee can make an important contribu- 
tion to the achievement of this objective. The 
Committee's work is a realistic approach to eco- 
nomic progress by encouraging the preparation 
of sound, rational development programs by 
countries of the area. The Conunittee also en- 
courages close relationships and teamwork among 
the countries undertaking development and those 
extending assistance in tlie area. Such activities 
are essential if progress is to be achieved quickly. 

The work of the Committee and the total 
endeavor known as the "Colombo Plan" ^ serve 
usefully, in our opinion, in the task of building 
the economic strength of this important area of 
the free world. 



U. S. Delegation 

The Department of State announced on Sep- 
tember 27 (press release 516) that Assistant Sec- 
retary Waugh will be the U.S. representative to 
the Consultative Committee's annual meeting and 
that John A. Loftus, Economic Counselor at the 
U. S. Embassy at New Delhi, will be alternate 
representative. 

Other members on the delegation are Clifford 
H. Willson, Director of Technical Cooperation, 
American Embassy, New Delhi ; Rufus B. Smith, 
Attache, American Embassy, Karachi ; and AV al- 
ter S. Anderson, Jr., First Secretary, American 
Embassy, Rangoon. 

The Committee provides a forum in which coun- 
tries undertaking or contributing to economic de- 
velopment of the region of South and Southeast 
Asia meet on an annual basis to consult and ad- 
vise on development problems of the area. The 
individual development programs of countries of 
the area, generally covering a 6-year period and 
setting forth goals for acliievement in specific 
fields of endeavor, are known collectively as the 
"Colombo Plan for Cooperative Economic De- 
velopment in South and Southeast Asia." 

Countries participating in this pi'ogram are 
Australia, Burma, Cambodia, Ceylon, India, Indo- 
nesia, Laos, New Zealand, Nepal, Pakistan, the 
United Kingdom and its territories in Malaya and 
British Borneo, the ITnited States, and Viet-Nam. 
The Philipi)ines and Thailand generally attend as 
observers. 



' For an article on the Colombo Plan, see Bulletin of 
Sept. 22, 1952, p. 441. 



494 



Department of State Bulletin 



Application of Japan for 
Association with GATT 

Statement by Samuel G. Waugh 
Assistant Secretary for Econom,ic Affairs ^ 

The Government of the United States strongly 
supports the application of Japan for provisional 
association with the General Agreement. 

In our view a point has been reached where it 
is no longer fair, practical, or wise to continue to 
deny to one of the largest trading nations of the 
free world the right to participate in our councils 
and share with us the administration of our com- 
mon rules of equitable trade. 

It is now 8 years since the close of World War 
II and more than 2 years since the conclusion of 
a treaty of peace with Japan. Throughout the 
postwar period Japan has sought to frame its 
commercial policies in accordance with the spirit 
and objectives of the General Agreement and to 
avoid reversion to those commercial practices 
which gave rise to so much difficulty in the years 
before the war. 

The contracting parties have consistently shown 
themselves sympathetic to the political difficulties 
and urgencies confronting individual member gov- 
ernments. This has been the course of wisdom. 
As one of the delegates stated the other day, in 
connection with a matter to which he attaches 
some importance, governments must not be sub- 
jected to too great a strain if we are to avoid the 
risk that important trading countries may throw 
up their hands and try to go it alone. 

This good advice applies with equal force to our 
treatment of Japan in the situation in which she 
finds herself today. Japan has repeatedly sought 
to participate in the multilateral trading relation- 
ships which apply to the rest of us. Repeatedly 
the Japanese application has been postponed for 
reasons beyond its control. 

In our judgment the time has now come when 
further delay may prejudice the achievement of 
stable and fruitful economic relationships between 
Japan and other free nations which all of us 
recognize is essential to our common political and 
security interests. 

It has been stated earlier in our debates that 
countries who live by trade must choose their 
commercial policies with great care. Japan lives 
by trade almost as much, perhaps, as any country 
here represented. And it should be remembered 
that, while the admission of Japan would affect 
only a segment of the commercial relations of any 
one of our countries, the continued exclusion of 
Japan will affect almost the whole of Japan's 
trade. In our judgment, the difficulties, both 



political and economic, which would result from 
another postponement of the Japanese applica- 
tion, far outweigh the special problems which 
may be created for some countries by Japanese 
admission. 

The present trade position of Japan is precari- 
ous. In physical volume the foreign trade of 
Japan is still less than half of what it was in the 
years 1934 to 1936. If it had not been for the 
abnormal dollar expenditures of the United States 
in Japan in connection with the Korean hostilities, 
Japan would have had a balance-of-payments 
deficit in 1952 of $750,000,000.^ 

Clearly, the extraordinary dollar expenditures 
of the United States in Japan will not continue 
indefinitely. On this ground alone, a further 
delay in bringing Japan into the trading 
community of the free world may prove most 
damaging. 

Before closing, Mr. Chairman, perhaps a word 
or two would be in order on the details of the 
Japanese proposal. 

Japan, this morning, has clearly stated its 
awaz'eness of the problems which some govern- 
ments have felt would be created by its admission 
to the General Agreement. It has endeavored to 
meet these problems in various ways, and has, in 
particular, indicated its willingness to confine its 
admission to the General Agreement at this time 
to a provisional and temporary association. It 
seems to us that this should go far toward dis- 
pelling the fears expressed by some countries with 
respect to undertaking permanent commitments 
before the expiration of the present period of 
transition and review. 

Moreover, the General Agreement already con- 
tains a number of safeguards against injuries aris- 
ing from trade developments, including the provi- 
sions of article 23. We do not wish to express an 
opinion just yet as to whether it would be right 
or wrong to accept the interpretation of article 23 
suggested by the Working Party which met here 
earlier this year. However, we should like to 
point out that, even in the absence of such an in- 
terpx'etation, the provisions of article 23 are broad 
enough to cover cases involving competition on the 
basis of unfair labor conditions which a number 
of countries complained about. 

Turning to the obligations which would be 
placed upon Japan luider the proposed arrange- 
ment, it is fair to say that the suggested Japanese 
tariff commitments are substantial. Although 
they consist only of bindings of duty, nevertheless 
they represent an undertaking affecting almost the 
whole of the Japanese tariff. In addition, of 
course, Japan would be obligated to carry out the 
general provisions of the agreement [i. e., Gatt], 
and this should be in the interest of all those who 



' Made before the Eighth Session of contracting parties 
to the General Agreement on Tariffs and Trade (Gatt) 
at Geneva, Switzerland, on Sept. 23 (press release 513 
dated Sept. 24). 



^ For text of a statement by Assistant Secretary Allison 
on the Japanese economy, see Bulletin of July 13, 1953, 
p. 35. 



Ocfober 72, J 953 



495 



have expressed fears as to the possible revival of 
the Japanese commercial practices and policies of 
the prewar era. 

Mr. Chairman, my Government firmly believes 
that the admission of Japan on a provisional basis 
is urgent, that the arrangement proposed is botli 
equitable and wise, and that Japan is deserving 
of this recognition by the Contracting Parties. It 
is our earnest liope that the governments here rep- 
resented will find it possible to join with the 
United States in giving this proposal their 
support. 

U. S. Delegations 

to International Conferences 

Meteorological Meeting 

Tlie Department of State announced on September 23 
(pres.s release .512) that the U. S. Government will be 
represented at the fourth session of the Executive Com- 
mittee of the World Meteorological Organization (Wmo), 
which is to be held at Geneva from October 6 to 27, 19.5.3, 
to discuss questions relative to the program and adminis- 
tration of Wmo, by the following: 

U. S. Representative 

Francis W. Reichelderfer, D. Sc, Chief, Weather Bureau, 
Department of Commerce 

Adviser 

Norman A. Matson, Meteorologist, International Section, 
Weather Bureau, Department of Commerce 

Dr. Reichelderfer, who was elected president of the 
Wmo at its First Congress, held at Paris in March and 
April 1951. will preside over the forthcoming Committee 
meeting. The third session of the Executive Committee 
was held at Geneva from September 9 to 30, 1952. 



North Atlantic Shipping Board 

The DepartnuMit of State announced on October 1 (press 
release 533) that the U. S. Government will be repre- 
sented at the fifth session of the North Atlantic Planning 
Board for Ocean Shippint;, which is to convene at London 
on October (i, by the following delegation : 

Cfiainnan 

I^)Uis S. Rothschild, Maritime Administrator and Chair- 
man, Federal Maritime Board, Department of 
(Jonjmorce 

Advisers 

Andrew C. Fleming, Shipping Attache, American Embassy, 
Ivondon 

Addison G. Foster. Director of Transportation, U. S. Rep- 
resentative to Regional Or^anization.s in Europe, 
Paris 

Janie.s .1. Mooney, Maritime Administration, Department 
of ('ommerce 

James W. Swihart, Ollice of European Regional Affairs, 
Bureau of 10>irop(>an Affairs, Department of State 

Kenneth L. Vore, Director of Transportation, Department 
of Defense 

Serge KonslmarelT, Chairman of the Washington Tech- 
nical Committee of the North Atlantic Planning Board 
for Ocean Shipping 

The fourth session of the Xoith Atlantic Planning Board 
for Ocean Shipping was held at Washington, D. C, from 
April i:', to 15, 19.52. 



Order of Items on Agenda 
of Political Committee 

Statement by Henry Cabot Lodge, Jr. 

U. S. Representative to the General Assembly ' 

U.S. delegation press release dated September 30 

The order of items proposed by the representa- 
tive of Colombia and seconded by the representa- 
tive of Greece is logical and constructive and 
■would be satisfactory to the United States.- 

As regards Korea, we have been doing every- 
thing in our power to induce the Communists to 
do their indispensable part in getting a political 
conference going. 

On August 28 the United Nations set up its side 
of the political conference and the United States 
proposed to the Communists a specific time and 
three specific places for the meeting of the politi- 
cal conference. The Communist response has 
been, first, to change their position as regards the 
composition of the conference from that estab- 
lished in the armistice agreement, without giving 
any reason for the change, and second, to engage 
in dilatory tactics in seeking vainly to have the 
United Nations redebate and reconsider decisions 
whicli it made just a montli ago. 

This is a mere maneuver and is not the tittitude 
of those who sincerely wish a peaceful settlement. 

We have tried to leave no stone unturned to 
show our complete good faith in our desire to get 
ahead with the conference. We actually offered 
to send a representative to meet face to face im- 
mediately with Connnunist rejjresentatives. This 
offer was rejected by the representative of the So- 
viet Union, and not rejected after consideration 
and consultation with the Chinese Communists 
but rejected instantly out of hand. Really, Mr. 
Chairman, one would iiave thought tiuit the 
Chinese Communists could be assumed to be capa- 
ble of speaking for themselves on tliis point with- 
out, shall I say, the so-called "good offices" of the 
representative of the Soviet Union. 

In view of the fact tliat a very complete dis- 
cussion of the problem of Korea took place so 
recently, we believe that it would be imippropriate, 
to say the least, to discuss Korea in the United 
Nations while the negotiations are ])ending. We 
therefore fully agree tlntt the Koretin item .should 
be taken up at a later thite. If, becau.se of new 
developments, an immediate discussion of the 
Korean problem becomes desirable, tlie item could 
of course be advanced. 



'Made on Sept. .30 in Committee I i Political and 
Security). 

'The Colombian propo.sal. adopted by tlie CommittiH' on 
Sept. .30, listed the items in the following order: .Morocco, 
Tunisia, bacterial warfare, llurmese complaint against 
the Kepnhlic of China, disarinnment. measures to avert 
the liireiil of ;\ new win-ld war, Korean iiuestion. 



496 



Department of State Bulletin 



Another item the consideration of which should 
in our view be deferred is the complaint by the 
Union of Burma concerning the presence of for- 
eign forces in its territories. Our information 
leads us to believe that developments of the next 
several weeks may considerably alter this situa- 
tion, and the United States therefore feels that 
consideration of the matter should be defended in 
the hope and expectation that these developments 
will materialize and will reckice the tension in that 
area. 

The new item proposed by the Soviet Union in 
the main is closely related to the problem of dis- 
armament, and the proposal before us very prop- 
erly takes this into consideration and places it on 
the agenda immediately after the disarmament 
item. 

The proposal of the delegate of Colombia takes 
these factors into consideration, and it is therefore 
our view that it would furnish a satisfactory and 
constructive plan of work. 

The distinguished representative of Egypt has 
said that those who have placed the Moroccan and 
Tunisian items on our agenda see no objection 
to placing them at the head of our agenda but 
would like a delay of several days before the Com- 
mittee proceeds to consider them. We see no ob- 
jection to this course of action and feel that we 
should extend this courtesy to the proponents of 
these items. 



Communist Retention of 
World War 11 Prisoners 

Statement by Henry Cabot Lodge, Jr. 

U.S. Representative to the General Assembly ^ 

tJ.S./U.N. press release dated Septemlier 17 

We have once again heard the contention, first, 
that the U.S.S.R. has repatriated all war prisoners 
except for a number of claimed war criminals and, 
second, that the Assembly is not entitled to con- 
sider the matter anyhow becavise of article 107 of 
the charter.^ 

The plain fact emerging from the mass of evi- 
dence presented by the German, Italian, and 



' Made on Sept. 17 in a plenary .ses.sion of the General 
Assembly on the inclusion in the agenda of item no. 71, 
concernins; the rejxirt of the Ad Hoc Commission on 
Prisoners of World War II. On the same date the Assem- 
bly approved its inclusion by a vote of 51-5 (Soviet 
bloc)-l. 

' Article 107 states that "Nothing in the present Charter 
shall invalidate or preclude action, in relation to any state 
which during the Second World War has been an enemy 
of any signatory to the present Charter, taken or author- 
ized as a result of that war by the Governments having 
responsibility for such action." 



Japanese Governments to the Ad Hoc Commis- 
sion on Prisoners of War is that the Soviet Union 
either continues to hold very large nmnbers of 
prisoners from World War 11 or else conceals the 
death in prison of an unprecedentedly large 
number. 

It is now more than 8 years since the fighting of 
World War II came to an end. Yet the Soviet 
Union has refused to give an adequate accounting 
as required by the rules of international law. 
This tragic situation led the General Assembly to 
set up the Ad Hoc Commission 3 years ago in the 
hope of bringing some aid to the prisoners them- 
selves and of providing at least news to their 
families whose wait has been so cruelly long. 

The Commission is now submitting a report 
to the Assembly after meeting again recently in 
Geneva.' We should of course consider the report 
of this subsidiary body as the Assembly has always 
done in such instances. 

Official statements to the Ad Hoc Commission 
tell a story of mass human tragedy. The Japanese 
Government officially estimates that over 246,000 
of its captured nationals have already died in 
Soviet and Chinese Communist hands since World 
War II. Those still living as prisoners or whose 
fate is uncertain are estimated at over 85,000. The 
Federal Republic of Germany estimates that scores 
of thousands of its nationals still survive as prison- 
ers in Soviet hands far in excess of the number 
which the Soviet Union claims to be holding as 
war criminals. The Italian Government, I under- 
stand, estimates that some 60,000 of its nationals 
are still held as prisoners in the Soviet Union. 
Other nationalities are represented in smaller 
numbers. 

The allegation that the Assembly lacks compe- 
tence here has really become thi-eadbare from 
repetition and consistent rejection by the Assem- 
bly. A full debate on the issue in 1950 led to a 
resolution establishing the commission. That reso- 
lution in its preamble proclaimed the Assembly's 
competence under article 14 of the charter.* It 
should by now be a perfectly clear tenet of our 
jurispruclence that article 107 does not preclude 
Assembly consideration of any difference among 
the victorious powers of World War II. 

The United States believes that the plenary 
session should follow the line of the General Com- 
mittee's recommending inclusion in our agenda 
of the item on the Ad Hoc Commission's report. 



^ U.N. doc. A/2482. For a statement made at the meet- 
ing by Ambassador James C. Dunn, see Bulletin of Sept. 
28, 1953, p. 428. 

* Article 14 states that: "Subject to the provisions of 
Article 12, the General Assembly may recommend meas- 
ures for the peaceful adjustment of any situation, regard- 
less of origin, which it deems likely to impair the general 
welfare or friendly relations among nations, including 
situations resulting from a violation of the provisions 
o( the present Charter setting forth the Purposes and 
Principles of the United Nations." 



October J 2, 7953 



497 



Participation of Nonmembers in 
Discussion of Council's Agenda 

Statement by James J. Wadsioorth ^ 

U.S./D.N. press release dated September 3 

I should like to make a brief explanation of vote. 
This explanation is not on the question of the 
agenda since the explanation of that was made 
by the chief of my delegation some meetings ago ; ^ 
but it is on the two motions of the distinguished 
delegates from Pakistan and Lebanon relating 
to the request of the 13 delegations, or two repre- 
senting those thirteen, to appear before the Coun- 
cil under what we conceive to be a question of 
rule 37 of tlie Provisional Rules of Procedure.^ 

In the opinion of my delegation, rule 37 never 
contemplated the participation of nonmembers in 
the Security Council's consideration of its own 
procedure. We believe that tlie effective and 
orderly discharge of the Council's responsibilities 
requires such an interpretation, which is quite 
apart from the question of substantive matter. 
We regret therefore that we have not found it 
possible to support the motion to invite the repre- 
sentatives of governments who are not members of 
the Council to discuss the adoption of its agenda. 

I may say, Mr. President, and I believe that I 
will be in full harmony with the feeling of all the 
delegates present, that the group of 13 has been 
most ably represented here by tlie distinguished 
representatives of Lebanon and Pakistan and 
their interventions, we feel sure, have fully re- 
flected the views of their colleagues. 

Requests for Oral Hearings 
Concerning Trust Territories 

Statements by Mrs. Frances P. Bolton 

V. S. Representative to the General Assembly * 

Principles To Guide the Committee 

U.S. delegation press release dated September 28 

I would like to explain the general position of 
my delegation regarding oral hearings of inhabit- 
ants of trust territories in the Fourtli Committee. 



' .Miule ill the Security Council <in Sept. 3. Mr. Wads- 
wnrlli is deputy U. S. reprpsentative in tlie Council. 

• lUn.i.iCTiN of Sept. 7, V.)'<'^, p. :VJ.'>. The Council voted 
on Sept. :i not to place the Moroccan (|Uestion on its !i;;enda ; 

the vote was ."-."■ (C.S.)-!. 

'I'akistfin luul pr<ipose(l that 13 of the Asian-African 
states siKJiisorini,' inscription of the Moroccan question 
he invite<l to participate in the discussion on tlie adoiition 
of the a;;en(la ; Lehanon liad moved lli.it two representa- 
tives, to he deslKuated hy the sponsors, make statements 
on their h<'h!ilf. Koth niollims were rejected, 4-.') (U.S.)-2 
and r, r, (I'.S.l 1. 

* Made on Sept. 2>< and Sept. HO, respectively, in Com- 
mittee IV (Trusteeshii)). 



It is our view that this Committee should hear 
inhabitants of trust territories when they request 
an opportunity to present their views on specific 
jjroblems which are of sufficient importance to 
merit tlie direct attention of the full membei-ship 
of the United Nations. 

At the same time we are somewhat concerned 
over the practical problems involved in gi-anting 
numerous oral hearings in a large Committee of 
60 states. We have a long agenda of important 
problems which cannot be effectively dealt with 
unless the GO Committee members have sufficient 
time to express their own views on these problems. 
In looking over the records of last year's Fourth 
Committee, my delegation has found that requests 
for oral hearings or the hearings themselves took 
all the Committee's time at 12 meetings and a 
large part of 13 other meetings. This was a very 
large proportion of the Committee's 66 meetings, 
and the Committee was unable to deal with every 
item on its agenda even though it held more meet- 
ings than in any previous year. 

To my delegation, therefore, it seems both log- 
ical and necessary for the Committee to avoid the 
indiscriminate granting of all requests for oral 
hearings. We believe that any procedural com- 
mittee such as the one proposed bj' the distin- 
guislied representative of the United Kingdom in 
Document A/C.4/L.271 might give careful atten- 
tion to this problem. 

Mr. Chairman, may I now describe briefly some 
of the general principles which my delegation be- 
lieves should guide the Fourtli Committee in de- 
ciding whether or not to grant an oral hearing. 
The nrst of these I have already mentioned, ^\e 
believe that the problem raised by the petitioners 
should be specifically stated and should be of suffi- 
cient importance to merit a hearing. Secondly, we 
believe that the Committee sliould take into ac- 
count the character of the petitioner and the or- 
ganization he represents; the petitioner should be 
a pei-son who can provide useful and relevant in- 
formation and normally should be an inhabitant 
of the territory concerned. 

In the third place, we do not believe that the 
Committee should grtint hearings to lawyers who 
are not residents of the territory concerned: this 
type of representation is too suscei)tib!e of abuse 
which would be harmful both to the United Na- 
tions and to the petitioners themselves. Petition- 
ers are of course free to obtain all the legal advice 
they want, but they should present their own prob- 
lems to this Committee where, in any case, they 
will find niiiiu'ions lawyers to help insure that they 
iecei\ i" a full and fair hearing. The fourth princi- 
ple guiding my delegation is this. We believe that 
petitioners from trust territories should normally 
be heard in the Trusteeship Council before thej- 
are granted hearings in this Coininittee. The peti- 
tions system of the Trusteeship Council has been 
carefully elaborated by a smaller body of V2 mem- 
bers who have been given (he specific task of devot- 



498 



Department of State Bulletin 



ing more time than other members to the study of 
trust-territory problems. We believe that the Gen- 
ei'al Assembly would not wish to undermine the 
petitions work of the Trusteeship Council. Fi- 
nally, my delegation believes that in deciding 
whether or not to grant a hearing, the Committee 
should take into account the extent and character 
of past actions by the Trusteeship Council and the 
General Assembly on the problem raised by the 
I^etitioner. 

These five principles, Mr. Chairman, are not 
applicable in every case, but they have been taken 
into consideration by my delegation in deciding 
how to vote on each of the requests before us. 



U.S. Opposition to Request of Puerto Rican 
Independence Party ' 

U.S. delegation press release dated September 29 

On behalf of the Governments of both the United 
States and Puerto Rico, my delegation wishes to 
express its strong opposition to the granting of an 
oral hearing to the Puerto Rican Independence 
Party, which cannot win an election in Puerto 
Rico and is therefore asking you to come to its res- 
cue. Members of the Committee will recall that in 
the full documentation which my Government 
transmitted to the United Nations in compliance 
with General Assembly resolution 222 (III), we 
have set forth in careful detail the series of elec- 
tions, referenda, and other democratic steps by 
which the people of Puerto Rico have achieved a 
full measure of self-government through a com- 
pact entered into by mutual consent between 
Puerto Rico and the United States. 

In the numerous democratic elections by which 
the people of Puerto Rico have determined their 
destiny, they have repeatedly and decisively re- 
jected the views of the Puerto Rican Independence 
Party. The Independence Party is certainly not 
unique among defeated parties throughout the 
world in being dissatisfied because it lost an elec- 
tion. We cannot believe, however, that the United 
Nations is going to take a step which would help 
this party's efforts to undo the results of Puerto 
Rico's elections. One of the great principles and 
strengths of the United Nations is its constant 
efforts to promote the self-determination of all 
peoples, and we are conlident that the Fourth Com- 
mittee does not wish to undermine this principle, 
even if only by implication, by challenging in any 
way the action of the people of Puerto Rico in de- 
termining for themselves their own political fu- 
ture. They would strongly resent, and quite prop- 
erly so, the gi'anting of an oral hearing to the 
Independence Party. 

Let me emphasize that this communication dif- 
fers from the ordinary petition in one fundamental 

° The Committee on Sept. 30 rejected the Indei)endence 
Party's request b.v a vote of 2.5-19-11. 



respect. Petitions ordinarily are aimed at correct- 
ing an alleged injustice by a governing authority. 
This request, on the contrary, challenges not the 
action of a governing authority but the action of 
the people themselves in a free and democratic 
election. The Independence Party may contend 
that it is protesting against the U.S. decision to 
cease transmission of information on Puerto Rico 
under article 73 (e). What it really wants, how- 
ever, is a chance to exploit the United Nations by 
returning to Puerto Rico to make political capital 
out of the new importance it would acquire if it 
were given a hearing in the world's greatest inter- 
national forum. 

Mr. Chairman, the full details of the democratic 
process by which the United States has fulfilled its 
charter obligation to i^romote the political ad- 
vancement of the people of Puerto Rico are set 
forth in document A/AC.35/L.121,*^ which in- 
cludes Governor Muiioz Marin's letter to the Presi- 
dent requesting the United States to cease trans- 
mission of information on Puerto Rico under ar- 
ticle 73 (e). Moreover, when the Committee con- 
siders this item on our agenda, my place at this 
table will be taken by a distinguished Puerto 
Rican member of our delegation who will give 
further explanations and will answer the questions 
of Committee members. 

Mr. Chairman, my experience in the Fourth 
Committee is short, but my personal contact with 
its members has already convinced me of their 
common sense. I cannot believe, therefore, that 
the Committee would grant this request for an 
oral hearing. 



I IMC Announces Termination of 
Manganese-Nickel-Cobait Committee 

The Manganese-Nickel-Cobalt Committee of 
the International Materials Conference announced 
on September 29 that it would terminate its ac- 
tivities on September 30, 1953. This announce- 
ment follows a recent decision of the Committee 
not to recommend a plan of distribution for nickel 
for the fourth quarter of 1953. This Committee, 
which met for the first time on March 12, 1951, is 
the last of the Imc Commodity Committees to 
terminate its activities. 

During its existence the Committee recom- 
mended to governments eight quarterly alloca- 
tion plans for nickel, covering the period October 
1, 1951, to September 30, 1953.' Free-world dis- 
tribution of cobalt was governed by similar ar- 
rangements during the period October 1, 1951, to 
December 31, 1952. No allocation was ever recom- 



" Bulletin of Apr. 20, 19.53, p. .585. 

^ For an announcement concerning distribution of pri- 
mary nickel in the third quarter of 1953, see Bulletin of 
.lul.v 13, 1953, p. 56. 



Ocfofaer 72, 7953 



499 



mended for manganese, since supplies of tliis ma- 
terial were found to be adequate. 

The following countries were represented on the 
Committee: Belgium (for Benelux), Brazil, Can- 
ada, Cuba, France, the Federal Kepublic of Ger- 
many, India, Italy, Japan, Norway, Sweden, the 
Union of South Africa, the United Kingdom, and 
the United States. 



Current Legislation on Foreign Policy: 
83d Congress, 1st Session 

Tensions within the Soviet Union (Revised). S. Doc. 69, 
V, 92 pp. 

The United States and the Korean Problem, Documents 
1943-19.').3. S. Doc. 74, vii, 168 pp. 

Communist Underground Printing Facilities and Illegal 
Propaganda. Hearings before the Subcommittee To 
Inve.stigate the Administration of the Internal Secu- 
rit.v Act and Other Internal Security Laws of the 
Senate Committee on the Judiciary. March 6, 13, 
31, April 10, May 28, June 11, and July 11, 1953, 
xviii, 348 pp. 

Emergency Migration of Escapees, Expellees, and Refu- 
gees. Hearings before the Subcommittee of the Sen- 
ate Judiciary Committee on S. 1917, a bill to authorize 
the issuance of 240,fMlO special-quota Immigrant visas. 
May 26, 27, 28, and July 1, 1953, iv, 325 pp. 

North American Regional Broadcasting Agreement. 
Hearings before the Subcommittee of the Senate 
Foreign Relations Committee on Executive A (82d 
Cong., 1st sess.), the North American Regional Broad- 
casting Agreement. July 8, 9, and 10, 19.53, vii, 340 
pp. 

Emergency Famine Assistance Authority. Hearing be- 
fore the Senate Committee on Agriculture and For- 
estry on S. 2249, a bill to authorize the Commodity 
Credit Corporation to make agricultural commodities 
owned by it available to the President for the pur- 
pose of enaliling the President to assist in meeting 
famine or other urgent relief requirements in coun- 
tries friendly to tlie United States. July 16, 19.53, iii, 
59 pp. 

Report on Audit of the Institute of Inter-American 
Affairs for the Fiscal Year Ended June 30, 19.53. 
I>etter from the U. S. Comptroller fieneral transmit- 
ting tlie reiK)rt. H. Doc. 172, v, 30 pp. 

Report on Audit of Panama ("anal (\impaii.v and the Canal 
Zone Government for the Fi.scal Year Ended June 30, 
19.5.'!. Letter from the Acting U. S. Comptroller Gen- 
eral transmitting the rejxirt. H. Doc. 207, vii, 115 pp. 

Report of .\ctivities of the .National Advisory Cduncil on 
International Monetary and Financial Pnililems. 
Message from the President transmitting a report cov- 
ering the C'Onncil's operations fi-om October 1, 1952, 
to March 31, 1953. H. Doc. 214, ix, 66 pp. 

U. S. Participation in the U. N. Report by the President 
to the Congress for the Year 1952. H. Doc. 222, ix, 
2.S5 pp. 

Activity of the Comndttee on Interstate and Foreign Com- 
merce, S.'Ul Congress. H. Rept. 1095, 19 pp. 

International Organizations and Movements. Hearings 
before llw SnbcdMnnillee on International Orgainza- 
tions and Movements of the House Foreign Affairs 
Conuniltee. Marcli 27. May 20, June 23, Julv s, and 
July 29, 1!>53, vi, 299 pp. 

State Department Information Program Infurnialion 
Centers. Hearings before the Permanent Siiltconunit- 
tee on Investigations of the Senate Government 
Operations Coniniillce. April 24. lO.'i.'i, Part 4, pp. 
2.5:t-2X8. May 5, ]!».5;i, Part 5, pp. 2S'.)-:;.5(i. 



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Agreement between the United States and Jordan, amend- 
ing agreement of February 12, 1952 — Signed at Amman 
August 28 and September 10, 1952. 

United States Air Force Mission to Cuba. Treaties and 
Other International Acts Series 2698. Pub. 5031. 3 pp. 
50. 

Agreement between the United States and Cuba, extend- 
ing agreement of December 22, 1950 — Signed at Wash- 
ington August 11 and September 26, 1952. 

Technical Cooperation. Treaties and Other International 
Acts Series 2700. Pub. 5033. 9 pp. 100. 

Agreement between the United States and Venezuela — 
Signed at Caracas September 29, 1952. 

Reciprocal Customs Privileges for Foreign Service Per- 
sonnel. Treaties and Other International Acts Series 
2708. Pub. 5049. 2 pp. 50. 

Agreement between the United States and Nicaragua — • 
Signed at Washington December 3, 1951, and October 9, 
1952. 

Economic Cooperation. Treaties and Other International 
Acts Series 2713. Pub. 5065. 2 pp. 50. 

Agreement between the United States and Denmark, 
amending agreement of June 29, 1948 — Signed at Copen- 
hagen November 24, 1952. 

Charter for Lease of United States Vessels to Japan. 
Treaties and Other International Acts Series 2714. Pub. 
5066. 15 pp. 100. 

Agreement between the United States and Japan — Signed 
at Tol<yo November 12, 1952. 

Air Transport Services. Treaties and Other International 
Acts Series 2722. Pub. 5082. 3 pp. 50. 

Agreement between the United States and Portugal, 
amending agreement of December 6, 1945, as amended — 
Signed at Lisbon November 11, 1952. 

Easing International Tensions: the Role of the United 
Nations. Address by Secretary of State John Foster 
Dulles, September 17, 1953. Pub. 5024. International 
Organization and Conference Series III, 97. 12 pp. 
Limited distribution. 



Ocfober 12, 1953 



501 



Current U. N. Documents: 
A Selected Bibliography ' 

General Assembly 

Treiitmt'iit of People of Indian Origin in the Union of 
South Africa. Report of the United Nations Good 
Offices Commission. A/2-173, Sept. 14, 1953. 16 pp. 
Miraeo. 

Economic and Social Council 

Relief and Rehabilitation of Korea. Report of the United 
Nations Agent General for Korean Reconstruction. 
E/2334/Add. 3, July 27, 19.53. 38 pp. mimeo. 

Statelessness. Comments received from Governments on 
the subject of the draft protocol relating to the status 
of stateless persons: Iran. E/2373/Add. 8, July 14, 
1953. 2 pp. United Kingdom, Add. 11, Aug. 3, 1953. 
2 pp. Switzerland, Add. 12, Aug. 10, 1953. 3 pp. 
mimeo. 

Full Employment. Implementation of full employment 
and balance-of-payments policies: Ecuador (reply to 
part A), E/2408/Add. 10, Aug. 6, 15 pp. Iceland, 
Add. 12, Sept. 11, 19.'j3. 18 pp. mimeo. 

Report of the World Health Organization. Summary of 
Programme and Budget Estimates for the Financial 
Year 1 January-31 December 1954 with the Estimated 
Expenditures of Technical Assistance and Other 
Extra-Budgetary Funds. E/2416/Add. 5, July 14, 
1953. 3 pp. mimeo. 

Rules of Procedure of the Functional Commissions of the 
Economic and Social Council. E/2425, May 12, 
ig.^S. 20 pp. printed. 

Freedom of Information. Comments and suggestions of 
governments transmitted for the information and 
assistance of the Rapporteur on Freedom of Infor- 
mation : Japan. E/2427/Add. 2, Aug. 24, 1953. 9 pp. 
mimeo. 

Report of the Ad Hoc Committee on Forced Labour. De- 
cisions of the Governing Body of the International 
Labour Office. E/2431/Add. 2, Aug. 24, 1953. 2 
pp. mimeo. 

Calendar of Conferences for 1954. Memorandum by the 
Secretary-General. E/2436/Add. 1, July 30, 19.53. 2 
pp. mimeo. 

Full Emi)loyment and Inflation. Replies of Governments 
to a Memorandum from the Secretariat dated 26 May 
]!).-.;!. E/2488. July 23, 19.53. 6 pp. mimeo. 

Question of Acce.ss to Headquarters of Representatives of 
Non-Governmental Organizations in Consultative 
Status. Progress report by the Secretary-General on 
negotiations witli tlie United States of America con- 
cerning the interpretation of the Headquarters Agree- 
ment. E/2492, July 27, T9.5:i. 3 pp. mimeo. 

Expanded Programme of Technical Assistance. Report of 
the Teclinical Assistance Committee. E/2497, Aug. 5 
19.53. 15 PI), mimeo. 



' Printed materials may be secured in the United States 
from the Internnlinnal Documents Service, Coliunbia 
University I'ress, 296l> Broadway. New York 27, N. Y. 
fitber materials f mimengr.iplied or processed documents) 
may lie consulled 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 So(i;il Cfiuncil, tlie Trusteeship 
Council, an<l the Atomic Energy Commission, which in- 
cludes summaries of proceedings, resolutions, and reports 
of the various <'omiiiisslons and commiltees. Information 
on securing subscrii)tions to the series nu\y he obtained 
from till' Iiitcrnatioii.'il Doniini'iits Service. 



Prevention of Discrimination and Protection of Minori- 
ties : Report of the Commission on Human Rights 
(Ninth Session). Report of the Social Committee. 
E/2499, Aug. 1, 19.53. 8 pp. mimeo. 

Question of Access to Headquarters of Representatives of 
Non-Governmental Organizations in Consultative 
Status. Oral statement by the Secretary-General. 
E/2501, Aug. 1, 1953. 4 pp. 

Inter-Agency Agreements and Agreements between Agen- 
cies and Other Inter-Governmental Organizations. 
Letter dated 28 July 1953 from the Director-General 
of ILO to the Secretary-General. E/2510, Aug. 26, 
19.53. 5 pp. mimeo. 

International Children's Emergency Fund. General Prog- 
ress Report of the Executive Director. E/ICEF/236, 
Sept. 3, 1953. 72 pp. mimeo. 

Technical Assistance Committee. Responsibilities of the 
Resident Representatives of TAB and the Correspond- 
ing Responsibilities of the Field Representatives of 
the Participating Agencies. Statement by the Execu- 
tive Chairman of TAB. E/TAC/13, June 27, 1953. 
11 pp. mimeo. 

Trusteeship Council 

Report of the United Nations Visiting Mission to Trust 
Territories in West Africa (1952) on the Cameroons 
under British Administration. Observations of the 
Administering Authority. T/1074, July 29, 1953. 
14 pp. mimeo. 



THE DEPARTMENT 



Appointment of Officers 

Henry Suydam as Chief of the News Division, effective 
October 1. 



Checif List of Department of State Press 
Releases: September 28 October 2, 1953 

Releases may be obtained from the News Division, 
Department of State, Washington 25, D. C. 

Press releases issued prior to September 28 which 
appear in this issue of the Bulletin are Nos. 502 
of September 10, 512 of September 23, 513 of Sep- 
tember 24, 515 and 51t> of September 27, 518 of 
September 25, 521, 522, and 523 of September 26. 

Subject 

Mallory: Appointment 
.Iuiis(li(liori;il pact with Japan 
Mcintosh: Swearing in 
Dulles: Renter condolences 
lYiendship treaty with Japan 
Connmmique on Indochina 
Wyszynski arrest 
Korean defense treaty 
Matthews : Appointment 
North Atlantic shipping 
Suydam : A|ipointmeiit 
Dulles: Mutual defense pact 
Smith: Negotiations with I'.S.S.R. 
Davis. Ilill : Visit to Germaity 
Turkey signs N.\TO agreement 
Dulles. Oatis corresiwndence 
Pnnanui joins Tuna Commission 

ted. 

a later issue of the Bulletin. 



No. 


Date 


*524 


9/28 


1525 


9/28 


*526 


9/29 


.527 


9/29 


t528 


9/30 


529 


9/30 


t530 


9/30 


.531 


10/1 


•,532 


10/1 


533 


10/1 


.534 


10/1 


,535 


10/1 


.536 


10/2 


*537 


10/2 


538 


10/2 


5."f9 


10/2 


540 


10/2 


•X 


)t prin 


tHeld for 



502 



Department of State Bulletin 



October 12, 1953 



Ind 



ex 



Vol. XXIX, No. 746 



Aid to Foreign Countries 

Colombo Plan Meeting (Dulles) 

Assistance to Indochina (Joint communique) .... 

International Development Advisory Board recon- 
stituted 

Vietnam thanks U.S. tor aid to flood sufferers (text of 
note) 

American Principles 

Negotiating solutions to today's problems (Smith) . . 

American Republics 

ECUADOR: Credit to Ecuador Increased to aid comple- 
tion ot highway 

PANAMA: 

International Bank loan to Panama 

Joint statement on President Remon's visit .... 
Panama Joins Inter-American Tropical Tima Com- 
mission 

Visit of President of Panama and Sefiora de Rem6n . 

Asia 

Colombo Plan Meeting (Dulles) 

INDOCHINA: Assistance to Indochina (Joint com- 
munique) 

JAPAN: Application of Japan for association with 

GATT 

KOREA: 

C. Tyler Wood appointed Korean economic coordi- 
nator 

Mutual defense treaty with Korea signed 

Order of items on political committee's agenda 
(Lodge) 

Communism 

Communists again asked for reply on political con- 
ference plans (text of message) 

Communist retention of world war II prisoners 
(Lodge) 

Mutual defense treaty with Korea signed 

Congress 

Current legislation on foreign policy 



Europe 

AUSTRIA: Filing of compensation claims by former 

nationals of Austria 

CZECHOSLOVAKIA: Release of William N. Oatls from 

Czechoslovak prison 

GERMANY: 

Death of Mayor Ernst Renter (Eisenhower) .... 

The German debt settlement (Black) 

U.S.S.R. : U.S. again asks Soviets to end German travel 
restrictions 

Finance 

Credit to Ecuador increased to aid completion of high- 
way 

Export-Import Bank report 

The German debt settlement (Black) 

Handling of foreign exchange by government agencies . 
International Bank loan to Panama 



Fisheries 

Panama Joins Inter-American Tropical Tuna Commis- 
sion 

Foreign Service 

Letters of credence (Iraq, Hungary, Pakistan) . . . 
Recess appointments (Chapin, Matthews, Mcintosh) . 

Industry 

Termination of Managanese-Nlckel Cobalt Committee . 

International Meetings 

U.S. DELEGATIONS: 

Colombo plan meeting 

International Development Advisory Board recon- 
stituted 

Meteorological meeting 

North Atlantic Shipping Board 

Termination of Manganese-Nickel-Cobalt Commit- 
tee 



494 
486 

493 

487 

475 

493 

488 
487 

489 
487 

494 
486 
495 



486 

484 



496 



486 



497 
484 



500 



492 
491 



489 
479 



490 



493 
493 
479 
492 
488 



489 



481 
489 



499 



494 

493 
496 
496 

499 



Near and Middle East 

Turkey signs NATO agreement 491 

North Atlantic Treaty Organization (NATO) 

Turkey signs Nato agreement 491 

Presidential Documents 

EXECUTIVE ORDERS: Handling of foreign exchange 

by government agencies 492 

Prisoners of War 

Communist retention of world war II prisoners 

(Lodge) 497 

Publications 

Recent releases 500 

Puerto Rico 

Requests for oral hearings concerning trust territories 

(Bolton) 498 

State, Department of 

Appointments (Suydam) 502 

Trade 

America's expanding economy (Aldrich) 482 

Application of Japan for association with Gatt . . . 495 

Transportation 

Credit to Ecuador Increased to aid completion of high- 
way 493 

Treaty Information 

Assistance to Indochina (Joint communique) .... 486 

German debt settlement (Black) 479 

Mutual defense treaty with Korea signed 484 

Turkey signs Nato agreement 491 

Trust Territories 

Requests for oral hearings concerning trust territories . 498 

United Nations 

Communists again asked for reply on political con- 
ference plans (text of message) 486 

Communist retention of world war II prisoners 

(Lodge) 497 

GENERAL ASSEMBLY: 

Current U.N. documents: a selected bibliography . . 502 

Order of items on political committee's agenda 

(Lodge) 496 

Requests for oral hearings concerning trust territories 

(Bolton) 498 

SECURITY COUNCIL: Participation of nonmembers 

in discussion of council's agenda 498 

Name Index 

Aldrich, Winthrop W 482 

Black, Martha 479 

Bolton, Frances P 498 

Chapin, Selden 489 

Conant, James B 490 

Dulles, Secretary 484,491,494 

Eisenhower, President 489, 492, 493 

Erkin, Feridun 491 

Heath, Donald R 487 

Johnston, Eric 494, 497 

Lodge, Henry Cabot, Jr 496, 497 

Loftus, John A 494 

Matthews, H. Freeman 489 

Mcintosh, Dempster 489 

Oatls, William N 491 

Pyun, Y. T 484 

Remon C, Jos6 Antonio 487 

Remon, Seiiora de 487 

Reuter, Ernst 489 

Rothschild, Louis S 496 

Semenov, Vladimir 490 

Smith, Walter Bedell 475 

Suydam, Henry 502 

Van Tarn, Nguyen 487 

Wadsworth, James J 498 

Waugh, Samuel C 494, 495 

Wood, C. Tyler 486 




the 
Department 



^^Publications of the 
department of State^^ 

... A GUIDE to the official documents available on 
foreign policy and on international programs and devel- 
opments. Published semiannually, it may be pur- 
chased from the Superintendent of Documents, 
Government Printing Office,] Washington 25, D.C. 
Use the blank below to order the current listing. 

O listed by country, subject, and series 

O cross-referenced 

O comprehensive 

O published every 6 months 

O cumulative over an 18-month period 

O tells how and where to get publications 



a guide to . . . 

• reports on world-wide activities • readable pamphlets 
# treaties and other international acts • informative periodicals 
• documents on diplomatic history • important speeches 

Publications of the Department of State 

To: Supt. of Documents 20 cents a copy Jan. 1, 1953 

Govt. Printing Office 
Washington 25, D.C. 

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(cash, check, or 
money order). 




tJAe^ u)efia/}t{;^ze^i/ a)£ ^ate^ 




Vol. XXIX, No. 747 
October 19, 1953 




A STANDARD FOR AMERICANS • Address by the 

President •••......,., CnT 

THE POWER OF MORAL FORCES • Address by Secretary 

'*"''** 510 

STRENGTHENING INTER-AMERICAN TIES • by 

Assistant Secretary Cabot "ill 

POLICY PROBLEMS IN THE FAR EAST • by Assistant 

Secretary Robertson eig 

OBJECTIVES OF U.S. POLICY IN THE PHILIP- 

PINES • by James D. Bell 523 

U.S. SUPPORT FOR U.N.'s TECHNICAL ASSIST- 
ANCE PROGRAM • Statement by Henry Ford 11 . . 531 



For index see inside back cover 



Boston Public Library 
Superintendent of Documents 

NOV 4 1953 




*^«^^^ bulletin 



Vol. XXIX, No. 747 • Publication 5223 
October 19, 1953 



For sale b/ the Superintendent ol Documents 

U.S. Government Printing ODlce 

Washington 26, D.C. 

Pbick: 

C2 Issues, domestic $7. SO, rorclgn $10. 2S 

Single copy, 20 cents 

The printing of this publication has 
been ai)proved 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 
or State Bulletin aa'the source will bo 
appreciated. 



The Department of State BULLETIN, 
a weekly publication issued by the 
Public Affairs area, provides the 
public and interested agencies of the 
Government icith information on 
developments in the field of foreign 
relations and on the tcork of the 
Department of State and the Foreign 
Service. The BULLETIN includes 
selected press releases on foreign 
policy, issued by the White House 
and the Department, and statements 
and addresses made by the President 
and by the Secretary of State and 
other officers of the Department, as 
tcell as special articles on various 
phases of international affairs and the 
functions of the Department. Infor- 
mation is included concerning treaties 
and international agreements to 
which the United States is or may 
become a party and treaties of general 
international interest. 

Publications of the Department, as 
well as legislatiie ntateriiil in the field 
of international relations, are listed 
currently. 



A Standard for Americans 



Address hy the President^ 



At the outset of my talk, I should like to express, 
first, my appreciation of the honor I feel in speak- 
ing before this assemblage. An invitation to oc- 
cupy this platform would confer distinction upon 
any man — perhaps I should say any mere man ; for 
you are gathered here in high purpose, inspired by 
an unshakeable faith in yourselves, in your coun- 
try, and in your God. 

I can hardly hope that my words can further 
your purpose or deepen your threefold faith. 

That faith, immeasurable and imponderable, 
daily exemplified in millions of American fami- 
lies, is the prime strength of our gi-eat Nation. 
It is the very basis of our society. And it is 
the most heartening support for those whose obli- 
gation is to represent you in the conduct of na- 
tional affairs and community affairs. 

Though I cannot enhance the spiritual wealth 
that is yours, perhaps I can, by identifying some 
of the circumstances of today that emphasize the 
value of this faith, encourage you to spread its 
influence into every human activity in every com- 
munity across our land. 

Now, of course, the cynic — the Marxist, or the 
worshipper of machines and numbers — will scoff 
that faith is no armor against artillery, that the 
spirit weakens fast before the blast of the bomb. 
But your husbands and brothers and fathers can 
testify that in the terrifying nakedness of rhe bat- 
tlefield the faith and the spirit of men are the 
keys to survival and victory. 

Now, faith is evidently too simple a thing for 
some to recognize its paramount worth. Yet the 
present and the future demand men and women 
who are firm in their faith in our counfry and 
unswerving in their service to her. This is true 
in every basic unit of our political and social 

' Made before the United Church Women, National 
Council of Churches of Christ, at Atlantic City, on Oct. 
6 and released to the press by the White House on the 
same date. 



life — in the family, the community, the State, and 
the Nation. 

This audience peculiarly symbolizes the small- 
est and the most important of these units — the 
American family. We of America have always 
recognized that the soundness of our Nation de- 
pends primarily upon the quality of our home and 
family life. 

Now, while our homes have witnessed scarcely 
any of the horrors of the battlefield that are so 
familiar to citizens of Western Europe, we know 
that our former unique physical security has al- 
most totally disapijeared before the long-range 
bomber and the destructive power of a single 
bomb. 

Today we are face to face with the most ex- 
traordinary physical development of all time — 
the application of nuclear fission and nuclear 
fusion to the world's armaments. 

These discoveries in the field of science present 
in themselves no threat to man. Like other scien- 
tific developments, they are susceptible to good or 
evil use, depending upon the intent of the individ- 
ual or group possessing them. 

The mysteries of the atom are known to Russia. 
Russia's hostility to free government — and to the 
religious faith on which free government is built — 
is too well known to require recital here. It is 
enough for us to know that, even before Russia 
had this awesome knowledge, she by force gained 
domination over 600 million peoples of the earth. 
She surrounded them with an Iron Curtain that 
is an effective obstacle to all intellectual, economic, 
and spiritual intercourse between the free world 
and the enslaved world. Now, of these two 
worlds, the one is compelled by its purpose of 
world domination — the other by its unbreakable 
will to preserve its freedom and security — to de- 
vote these latest discoveries of science to increas- 
ing its stockpiles of destructive armaments. 

Man's greatest scientific achievement, therefore, 
cannot yet be made exclusively to serve the ad- 



October J 9, 1953 



507 



vancement of man's welfare and happiness. 
Instead we are forced to concentrate on building 
such stoi'es of armaments as can deter any attack 
against those who want to be free. 

Men of faith everywhere must gain a broader 
understanding of these potentials, both destruc- 
tive and constructive. 



Soviet Progress in Development 
of Atomic Weapons 

statement ty the President 

White House press release dated October 8 

There have recently been a number of statements 
concerning the threat posed by Soviet progress in 
the development of atomic weapons. The facts as 
we know tliem are these : 

You will recall that our Government announced 
that the Soviet produced an atomic explosion in 
1949 and two subsequent explosions in 1951. In 
August of this year we learned through intelligence 
channels of a Soviet test of an atomic device, in 
which some part of the explosive force was derived 
from a thermonuclear reaction, that is to say, what 
is popularly known as the H-bomb. The Atomic 
Energy Commission announced this August 12 det- 
onation as soon as sufficient evidence was in hand ' 
and later announced that it appeared to be part of 
a test series. 

The development did not come as a surprise. We 
had always estimated that it was within the scien- 
tific and technical capabilities of the Soviets to 
reach this point, and we have been on notice for 
some yciirs that their own ingenuity has had the 
material assistance of what they learned of our pro- 
gram through espionage. 

The Soviets now possess a stockpile of atomic 
weapons of conventional types, and we must further- 
more conclude that the powerful explosion of August 
12 last was produced by a weapon, or the fore- 
runner of a weapon, of power far in excess of the 
conventional types. 

We therefore conclude that the Soviets now have 
the capability of atomic attack on us, and such 
capability will increase with the passage of time. 

And now a word as to our own situation. We do 
not intend to disclose the details of our strength in 
atomic vveap(ms of any sort, but It is large and in- 
creasing steadily. We have in our atomic arsenal 
a number of kinds of weapons, suited to the special 
needs of the Array, Navy, and Air Force for the 
si)ecifie tasks assigned to each service. 

It is my hope, my earnest prayer, that this country 
will never again be engaged in war. As I said in 
Atlantic City this week, with reference to atomic 
cncigy, "This titanic force must be reduced to the 
frultiul .service of mankind." Keal advances made 
by our (Jovernnient in developing peacetime atomic 
power and the other benign uses of atomic energy 
is evidence of the constructive goals that we have 
set for ourselves. 

1 have asked all members of this administration 
to refrain from conmient on Soviet nuclear capaliil- 
Itics unless Ihey first check their statements with 
the Chairman of the Atomic Energy Commission. 



' BUIJ.KTIN of Aug. 24, 1953, p. 2T!. 



The Paramount Alternatives of Our Day 

We must certainly make sure that all the 
world comprehends, in simplest terms, the para- 
mount alternatives of our day. The first of these 
alternatives is a wasteful and devastating contest 
ill the production of weapons of inconceivable 
power. The other alternative is a world ever 
advancing in peace and prosperity through the 
cooperative effort of its nations and peoples. 

The choice that spells terror and death is sym- 
bolized by a mushroom cloud floating upward 
from the release of the mightiest natural power 
yet uncovered by those who search the pliysical 
universe. The energy that it typifies is, at this 
stage of human knowledge, the unharnessed blast. 
In its wake we see only sudden and mass destruc- 
tion, erasure of cities, the possible doom of every 
nation and society. 

This horror must not be. This titanic force 
must be reduced to the fruitful service of mankind. 
This can come to pass only as one of the results 
of shaping a firm and just and durable peace. 

Such a peace cannot be achieved suddenly by 
force, by edict, or by treaty. It can come only 
slowly and tortuously. It will not be won by 
dark threats or glittering slogans. It will be 
born only of courage, knowledge, patience, leader- 
ship. 

To strive faithfully for this peace — even as our 
science constantly develops new methods of mass 
destruction — imposes upon us a host of intricnte 
labors. We and our friends in the free world 
must build, maintain, and pay for a military might 
assuring us reasonable safety from attack. From 
this position of secure confidence, we must seek to 
know and respond to the legitimate aspirations 
and hopes of all peoples. We must arrange trade 
systems that will provide each with the neces- 
saries of life and opportunity for self-advance- 
ment. We must seek to understand and resolve 
age-old prejudices, ambitions, and hatreds that 
still scar great parts of the whole world. And 
they must be removed, or at least ameliorated. 
We must provide machinery and techniques to 
encourage that peaceful communication and mu- 
tual confidence which alone can iinally lift the 
burden of arms from the backs of men. 

Now, these are some of the "rand labors before 
us — the tasks and tests and problems that span the 
world. 

For the spirit that will resolve them, however, 
we need not sock the source in distant places. I 
deeply believe that one of the supreme hopes for 
the world's destiny lies in the American com- 
munity : in its moral values, in its sense of order 
and decency, in its cooperative spirit. 

We know — and all the worhl constantly re- 
minds us — that the future well-being of humanity 
depends directly ui>on America's lendorship. 

I say emphatically that this leadership depends: 
no less directly upon the faith, the courage, the ' 



508 



Deparfment of State Bulletin 



love of freedom, and the capacity for sacrifice of 
every American citizen, every American home, 
every American community. 

Importance of America's Example 

I wish there were words of mine that could 
bring tliis trutli home more certainly to each of us. 
I do not mean merely or only that our Govern- 
ment and our leadership is the product of the 
qualities of each of us multiplied by 160 million. 
I mean more this : the example we give the world 
when we talk about noble virtues that are neces- 
sary if civilization is to attain that future for 
wliicli it was designed, and which obviously the 
Al'^iightly intended. 

We speak of sacrifice. If each of us would 
search our own memories, how often have we, as 
we urged economy upon government, local, city or 
state, urged that something not be given to us? 
"Don't build us a new post office ; we don't need it; 
ours is good enough. Build it for the other city. 
Don't give me free postage ; make me pay for what 
it costs to carry the letter." 

What I am trying to get at is that America's 
policies abroad, to have any force, must be the re- 
flection of the attitudes and qualities displayed by 
our people. No individual — no group of individ- 
uals, however brilliant, however eloquent — can 
possibly do any effective work in leading the world 
toward peace unless back of them is the mightiest 
force yet developed on God's footstool, and that is 
the force of a united America — an America de- 
termined to do a real and constructive job. 

This means, then, that there is a clear and com- 
pelling answer to the question in the hearts of all 
of us : How can we better fit ourselves to be worthy 
of freedom, to guard its virtues, to enjoy its 
bounty? 

That answer is : By making each life, each home, 
each community more worthy of the trust it bears 
for all mankind. 

This worthiness will come in the measure that 
we show ourselves truly convinced that the central 
facts of human life are human freedom, human 
rights, human obligations — all expressing that hu- 
man dignity which is a reflection of man's divine 
origin and destiny. 

Our purpose is to grow even beyond the golden 
dreams of our forebears — in material wealth, in 
intellectual stature, in spiritual strength. But to 
do so, each citizen and every community must 
match the founders of this Nation in fiery inde- 
pendence, confident optimism, sturdy self-reliance, 
and we must sustain that capacity for conquering 
difficulties that has always been a quality of 
America. 

With this spirit, each of you — each of us — like, 
indeed, every American citizen — can arouse your 
own community to renewed awareness of the prom- 
ise of freedom. With your neighbors, you can 

Ocfober 19, 1953 



join in work that, even as it remakes your own 
town or hamlet, helps remake the world. 

For it is within your power to reach for and to 
attain that day when you and all your neighbors 
can proudly say these things : 

"Here in this community, we are faithful to 
freedom. 

"Here in this town, our public schools are 
staffed and equipped to train our children splen- 
didly, to be free and responsible citizens." 

Facing our Responsibilities 

Ladies, not so long ago, I met with a small 
group of people, and their purpr.se was to com- 
plain to me about certain thing > in our public- 
school system. And they directed some criticism 
at schoolteachers and what these teachers 
thought — their policies, the philosophy they were 
teaching. 

And I asked this group one question only. I 
said : "You recognize a teacher's great oppor- 
tunity for influencing your children s future, for 
the planting of good thoughts or bad thoughts, 
for the teaching of a sound philosophy, or one 
that is based on falsity. Have you had that 
teacher in your home? Have you had her, or 
him, to dinner? Have you taken the trouble to 
find out for yourself what is the philosophy of 
these people to whom you are entrusting the most 
priceless possession you have, your children? 

"Now," I said, "many people have not been 
hesitant to join the ranks of the critics and say 
these teachers are not doing a good job. Then 
why haven't you done your part of the job — 
brought them in, talked to them, to see whether 
you could straighten them out, or get ones of 
which you approved?" 

What I am trying to bring home, my friends, 
is that as we see difficulties and defects in the 
body politic, in the social order, we must never 
attempt, before our own consciences, to dodge our 
own responsibilities. 

And so we can say that, "Our teachers, loyal 
citizens to their free country, enjoy true freedom 
of thought, untrammelled by political fashion or 
expediency." 

And we should go on and be able to say, "Here 
in this city our libraries contain everything that 
can add to man's enlightenment and understand- 
ing — respecting common decency but disdaining 
any other censorship. 

"Here our ministers and Sunday school teach- 
ers command the respect that they so justly earn 
in teaching our sons and our daughters the love 
of the Almighty. 

"Here our hospitals and our clinics give faith- 
ful care to all who are sick and cannot help them- 
selves. 

"Here in this community, our people — all our 
I^eople — have the chance to enjoy the arts, to 

509 



learn, to become intimate friends with the heri- 
tage of freedom. 

"Here we rely — not primarily upon govern- 
ment grant or political i)anacea — but upon our 
own wisdom and industry to bring us tlie good 
and comforting tilings of life. 

"Here we know not the sight or smell of slums 
that clioke the spirit of men. 

"Here all of us work to make our processes of 
government the best, the most honest, and the 
most just known to any men. 

"Here we have welcomed with our hearts new 
citizens from distant lands, and here we thank 
them for the strength they have added to our 
own. 

"Here there is true equality of opportunity for 
work, for education, for enjoyment of all free- 



dom's blessings — for we know that whatever we 
have and liold is the work and the treasure of 
men of all races and colors and creeds. 

"Here in this community, in short, any free 
man can be proud to live." 

My friends, all that I have tried to express to 
you rests upon one truth in which I firmly believe. 
I tried to speak it on the day last January when 
I took the oath of office as President of the United 
States. Tliat truth is : 

"AVliatever America hopes to bring to pass in 
the world must first come to pass in the heart of 
America." 

I know no more plain or pure ideal to which we 
can pledge our lives. 

I know of no other M'ay we can prove worthy of 
freedom. 



The Power of Moral Forces 



Address hy Secretary Dulles ' 



It was nearly 2 years ago that your Minister 
asked me to come here to speak at this 150th an- 
niversary of the founding of our church. I ac- 
cepted that invitation. Since then I have had to 
make and unmake many plans. But this date has 
been a fixed point around which other things 
revolved. 

I have looked forward eagerly to being here on 
this historic occasion. It rightfully means much 
to all of you here and to this entire area. To rue 
this church is richer in memories than any other 
earthly spot. My father preached here for IC 
years and radiated a spii'itual influence that is 
still felt here, and elsewhere, as I have learned 
in my travels about the world. Our family life 
revolved around this church. Before me is the 
pew in which we sat three times on Sunday and 
fretpiently during weekday evenings. 

At times the church services seemed overlong 
and overfrequent. But through them I was 
taught of the two great comniaiidments, love of 
God and love of fellow man. Ordained ministers 
are uniquely qualified to deal with the relations of 
man (o God. But laymen, who liave to deal with 
national and international problems, are perhaps 

' M;i(lo at the First Presbyterian Church, Watertown, 
N. Y.. on Oct. 11 (press release 550 dated Oct. 9). 

510 



qualified to make some observations on the rela- 
tions of man to fellow man. 



U. S. Political institutions 
Based on Religion 

Let me first recall that our American political 
institutions are what they are because our founders 
were deeply religious i)eople. As soon as a com- 
munity was founded, a church was built. This 
church is an example. Also, wherever a com- 
munity was founded, its members developed prac- 
tices and ways of life which reflected their belief 
that there is a (Jod ; that He is the Author of a 
moral law which all can know and should obey: 
that He iininuts to each human being a spiritual 
dignity ami worth which all should respect. Our 
founders sought to reflect these truths in their 
political institutions, seeking thus that Gotl's will 
should be (lone on earth. 

The Bill of Bights puts into our supreme law 
the concept "that all men are endowed by their 
(^reator with certain unalienable rights.'" Our 
Constitution says, in uiuuistakable terms, that 
men, e\en in the guise of government, cannot law- 
fully deny other men their fundamental rights 
aiul fi'ceiiouis. 

]""rom the iK^ginning of our Nation, those who 

Department of Stale Bulletin 






made its laws and system of justice looked upon 
them as means to assure what seemed just and 
right. Thus we became heirs to a noble heritage. 

Only Religion Will Maintain Them 

We must, however, remember that that heritage 
is not inexhaustible. Our institutions of freedom 
■will not survive unless they are constantly re- 
plenished by the faith that gave them birth. 

General Washington, in his Farewell Address, 
pointed out that morality and religion are the 
two pillai*s of our society. He went on to say that 
morality cannot be maintained without religion. 
"AVhatever may be conceded to the influence of 
refined education on minds of peculiar structure, 
reason and experience both forbid us to expecti 
that national morality can prevail in exclusion of 
religious princi])le." 

Arnold Toynbee, the great student of civiliza- 
tions, has recently pointed out that the political 
and social practices of our civilization derive from 
their Christian content, and, he says, they will not 
long survive unless they are replenished by that 
faitli. His profound study convinces him that 
"practice unsupported by belief is a wasting asset." 

Many other nations have modeled their consti- 
I tutions after ours. But they have not obtained 
' the same results unless thei-e was a faith to vitalize 
the words. 

The terrible things that are happening in some 
parts of the world are due to the fact that political 
and social practices have been separated from 
sjjiritual content. 

That separation is almost total in the Soviet 
Communist world. There the rulers hold a mate- 
rialistic creed which denies the existence of moral 
law. It denies tliat men are spiritual beings. It 
denies that there are any such things as eternal 
verities. As a result the Soviet institutions treat 
human beings as primarily important from the 
standpoint of how much they can be made to pro- 
duce for the glorification of the state. Labor is 
, essentially slave labor, working to build up the 
'' military and material might of the state, so that 
those who rule can assert ever greater and more 
frightening power. 

Such conditions repel us. But it is important to 
understand what causes those conditions. It is 
irreligion. If ever the political forces in this 
country became irreligious, our institutions would 
change. The change might come about slowly, 
but it would come surely. Institutions born of 
faith will inevitably change unless they are con- 
stantly nurtured by faith. 

We Can Meet Materialist Threats 
Without Becoming Materialistic 

But, it may be asked, may not aggressive ma- 
terial forces prevail imless met by materialism? 



It sometimes seems that material power is so 
potent that it should be sought at any price, even 
at the sacrifice of spiritual values. Always, how- 
ever, in the past those who took that path have 
met disaster. Material aggression often is for- 
midable. It is dynamic, and we must admit that 
the dynamic usually prevails over the static. But 
it is gross error to assume that material forces 
have a monopoly of dynamism. Moral forces 
too are mighty. Christians, to be sure, do not 
believe in invoking brute power to secure their 
ends. But that does not mean that they have no 
ends or that they have no means of getting there. 
Christians are not negative, supine people. 

Jesus told the disciples to go out into all the 
world and to preach the gospel to all the nations. 
Any nation which bases its institutions on Chris- 
tian principles cannot but be a dynamic nation. 

Our forebears felt keenly that this Nation had 
a mission to perform. In the opening paragi-aph 
of the Federalist Fapers it is said that "it seems 
to have been reserved to the people of this country, 
by their conduct and example," to show the way to 
political freedom. Our Declaration of Independ- 
ence meant, as Lincoln said, "liberty, not alone to 
the people of this country but hope for the world 
for all future time. It was that which gave prom- 
ise that in due time the weight should be lifted 
from the shoulders of all men and that all should 
have an equal chance." 

What our forebears did became known as "the 
Great American Experiment." They created 
here a society of material, intellectual, and spirit- 
ual richness the like of which the world had never 
known. It was not selfishly designed, but for 
ourselves and others. We sought through con- 
duct, example, and influence to promote every- 
where the cause of human freedom. Through 
missionaries, physicians, educators, and mer- 
chants, the American people carried their ideas 
and ideals to others. They availed of every op- 
portunity to spread their gospel of freedom, their 
good news, throughout the world. 

That performance so caught the imagination 
of the peoples of the world that everywhere men 
wanted for themselves a political freedom which 
could bear such fruits. 



We Still Are People of Faith 

The despotisms of the last century faded away 
largely under the influence of that conduct and 
example. There is no despotism in the world 
which can stand up against the impact of such a 
gospel. That needs to be i-emembered today. Our 
best reliance is not more and bigger bombs but a 
way of life which reflects religious faith. 

Do our people still have that faith which in the 
past made our Nation truly great and which we 
need today? That is the ultimate testing of our 



Ocfober 19, 7 953 



511 



time. Admittedly some have come to think pri- 
mai'ily in material terms. They calculate the 
atomic stockpiles, the bombers, the tanks, the 
standing armies of the various nations and seem to 
assume that the victory will go to whichever is 
shown by these scales to have the greater weight 
of armament. 

Unfortunately under present conditions we do 
need to have a strong military establishment. 
We are opposed by those who respect only visible 
strength and who are tempted to encroach where 
there seems to be material weakness. Therefore, 
without military strength, we could not expect to 
deter aggression which, even though it would ulti- 
mately fail, would in the process cause immense 
misery and loss. But I can assure you that your 
Government does not put its faith primarily in 
material things. 

The greatest weakness of our opponents is that 
they are professed materialists. They have for- 
cibly extended their rule over some 800 million 
people, a third of the people of the world. Tliey 
are seeking to make these people into a pliant, 
physical mass which completely conforms to the 
will of the rulers. But these people are religious 
people and they are patriotic people. They have 
shown that over the centuries. We believe that 
the Soviet rulers are attempting the impossible 
when they attempt to subject such people to their 
materialistic and repressive rule. We believe that 
the subject peoples have faith and hopes which 
cannot indefinitely be suppressed. 

I can assure you that your President, your Cabi- 
net, your Congress recognize the priority of 
spiritual forces. We do not intend to turn this 
Nation into a purely material fortress and to 
suppress the freedom of thought and expression 
of the inmates, so that our people would more and 
more assume the likeness of that which thi'eatens 
and which we hate. 

There are a few within this Nation who do not 
share their viewpoint. They honestly feel that 
the danger is so great and of such a kind that we 
must give an absolute priority to material efforts. 
There are others who honestly feel that the danger 
is so imminent that we should impose uniformity 
of thought, or at least of expression, abolisluTig 
diversity and tolerance within our Nation and 
within our alliances. 

Such points of view, while often heard, repre- 
sent a small minority^. Certainly there is some 
confusion of thinking, which needs to be dispelled. 
But I believe that the great majority of the Amer- 
ican people and of their representatives in govern- 
ment still accept the words of the prophet : "Not 
liy might nor by power, but by My Spirit, saith 
the Lord of Hosts." 

But Only Religion Will Preserve Faith 

How shall we surely become infu.sed witli that 
spirit? That is my concluding concern. 



There is no mystery about that. The way to get 
faith is to expose oneself to the faith of others. 
It is not only diseases that are contagious. Faith 
is contagious. A strong faith, rooted in fact and 
in reason, inevitably spreads if contacts are pro- 
vided. If, therefore, we want spiritual strength, 
we must maintain contact with those who have it 
and with those who have had it. 

That is above all the task of our churches. The- 
Bible is the greatest book because, as Paul pointed 
out to the Hebrews, it is a story of faith. It re- 
counts lapses from faith and their consequences 
and revival and restoration of faith. Most of all 
it is a story of men who lived by faith and died in 
faith, bequeathing it to successors who molded it 
into something finer, truer, and more worthy. 

Our American history, like Hebrew history, is 
also rich in the story of men who through faitbi 
wrought mightily. 

In earlier days our homes, schools, and college? 
were largely consecrated to the development oi 
faith. They were places of prayer and of Biblei 
reading. Parents and teachers told daily thfr 
story of those who had gone before and who hac 
lived by faith. 

Today our schools and colleges and, I am afraid 
our homes largely omit this study in faith. Tha' 
throws a heavier burden on our churches. TiuM 
today provide the principal means of drawing to 
gether the men, women, and children of our huK 
and of bringing to them knowledge of the faitl 
of those who have gone before, so that today' 
faith is a contagious and vital force. 

As our churches, synagogues, and other plact- 
of worship thus carry an ever greater share o 
vital responsibility, they should be strongly sup 
ported by all our citizens, for they all profit froii 
the institutions which faith inspires. 

As we meet here today on this anniversary, w 
feel that we are indeed compassed about by : 
great crowd of witnesses. Each of us hci'e know 
that, in terms of loved ones who have gone befon 
We know it as we have heard read here the grei 
Book of Faith and as we are taught here tl) 
lessons drawn from the story of the great prophet 
and disciples of the past. 

Let us maintain spiritual connnunion with then 
Let us draw faith and inspiration from their livi.- 
Let us act as we know they would want us to act 
Then we, in our turn, will run w'ith steadfastnes 
the course that is set before us. Then wo, in ou 
turn, will play worthily our part in keeping aligh 
the flame of freedom. 

I spoke earlier of the spiritual legacy that h:i. 
been left us by our fathers. Surely it is our dut. 
not to squander it but to leave it replenisheil si 
that we, in our generation, may bequeath to thos 
who come after us a tradition as noble as was Icf 
to us. 

We meet here beneath a spire which is symbolii 
It points upwards to the Power above us, fron 



512 



Department of State Bullelii 



■which we derive our spiritual sti'ength. It marks 
this building as the place where we can gather for 
a communion that renews our faith. 

Let us be ever thankful for this church, remem- 
bering those who a century and a half ago founded 



it. Let us remember also those who during the 
succeeding decades maintained it, enlarged it, 
beautified it, and enriched it with their Christian 
labors. Let us dedicate ourselves to follow in 
their way. 



Strengthening Inter- American Ties 



hy John M. Cabot 

Assistant Secretary for Inter- American Affairs ^ 



If we are to have truly friendly relations with 
our sister American Republics, I think it is axio- 
matic that those relations must be mutually bene- 
ficial. More, the peoples of the 21 Republics will 
not continue to want the peculiarly intimate and 
friendly relations we have in this hemisphere un- 
less they are convinced that such relations are to 
tlieir benefit as nations and individuals, that the 
benefits of cooperation are fairly distributed. 

I profoundly believe in what we call hemi- 
spheric solidarity. I believe it is to our mutual 
benefit to work together for our common good; 
tliat through cooperation we have all achieved 
great advantages in the past and that we shall all 
achieve even greater advantages in the future. We 
can proudly point in this hemisphere to the great 
contributions we have made to international rela- 
tions — and we sliall make even greater contribu- 
tions in the future. For the entire history of 
civilization is the story of greater and greater 
' groups of individuals who have learned to work 
1 together for the common good. 

Never in history has there been a group of 
peoples spread over so great an area with such 
diverse backgrounds, beliefs, and interests as we 
have in the Americas who have worked so success- 
fully together. If we in the United States and 
our gallant Brazilian and Mexican allies had to 
make a terrible blood sacrifice in World War II; if 
in Korea noble Colombian soldiers fell with our 
own in the first military defense in history of 
the principle of collective security, let us remem- 
ber that they did not die in vain — that those they 
loved, the nations whose flags they bore, this en- 
,tire hemisphere came unscathed through those 
I wars. Tlieir blood was not uselessly poured out 

' Address made before the Pan American Society of 
New England, Inc., at Boston on Oct. 9 (press release 544 
dated Uct. 6). 



to impose their ruler's will on each other; it was 
generously given for us, that in this hemisphere 
we might have peace and that our fundamental 
beliefs, our western civilization, our Christian 
religion might not be crushed beneath the wheels 
of a conqueror's chariot. 

It is then clear that our hemispheric solidarity, 
our cooperation between 21 sovereign American 
Republics, has benefited us all. Unless I am 
greatly mistaken, there are few in this hemisphere 
who question that. If our relations with our sis- 
ter Republics are not as completely friendly and 
unquestioned as we should like them to be, I feel 
that it is not because our Latin American friends 
think we wish them ill. It is because they are 
wondering whether they are getting a fair share 
of the benefits that our cooperation has produced. 

There is, I believe, considerable misunderstand- 
ing in the United States of the viewpoint of our 
sister Republics regarding the economic coopera- 
tion they are receiving, and would like to receive, 
from us. There is, I believe, considerable mis- 
understanding in Latin America of our viewpoint 
regarding economic cooperation and regarding the 
limitations which inexorably exist on the coopera- 
tion we can extend. We cannot understand each 
other unless we are prepared dispassionately to 
examine each other's viewpoints, and we cannot 
have true friendship and cooperation without 
understanding. 

What is the fundamental aspiration of our sister 
Republics today? Wherein do they feel we have 
failed them? 

I have visited all of the Republics in this hemi- 
sphere within the last 6 months. There are as 
many diversities among them as there are prob- 
lems created by diverse national geniuses; but 
two allied aspirations shine like two great beacon 
lights in all of them : a desire to develop their 
economies and a desire to raise their standards of 



lOcfober J 9, J 953 



513 



living. Let us remember that the total national 
income of the 20 other Eepublics is perhaps one- 
eighth of ours and that the per capita income 
bears about tlie same proportion to ours. 

I tliink our sister Eepublics little realize the 
incredible speed of the development which is going 
on in most of them. I myself, in the many years 
I have been associated with Latin American af- 
fairs, am constantly astounded at the miracles of 
progress which I see on every hand in each new 
visit. New buildings, new industries, new facili- 
ties are mushrooming on every hand from the Kio 
Grande to Cape Horn. It is precisely because of 
the speed of progress that some maladjustments 
have arisen, notably in providing light, water, 
roads, etc. Nevertheless, if we can suggest to our 
Latin American friends that Rome wasn't built in 
a day, I think we can also understand their anxiety 
to push forward as fast as possible to the greater 
and richer destiny which must surely be theirs. 

Increased Trade Vital 

How can our sister Republics achieve their two 
objectives ? Clearly the most desirable way would 
be by building up native capital. In this there 
are two essential difficulties. The 20 Republics 
are already putting into new capital investment 
a heavy pro])ortion of their national income, and 
this in itself is producing many of the economic 
strains so evident today in Latin America. The 
industries of the other Republics are all in greater 
or lesser measure lacking in facilities to produce 
the capital goods which the countries need for 
their development. In short, they must import 
capital goods and obtain the foreign exchange to 
pay for them. As new countries they don't even 
have fat to work into muscle or invisible balances 
to help them. 

There are essentially two ways in which they 
can obtain the foreign exchange they need. They 
can get it through favorable trade balances, or they 
can get it through capital transfer — public loan, 
private investment, or grant. They cannot get it 
through mellifluous expressions of good will ; and, 
much as they appreciate such expressions in the 
abstract, they know that abiding friendship de- 
pends on deeds, not words. 

To cooperate in solving this problem, we might 
give grant aid; but quite apart from the question 
whether a major policy of grant aid would really 
help our sister Republics in the long run, it is for 
us today neither politically feasible nor economi- 
cally possible. Latin America )nust then depend 
upon trade and upon foreign capital, obtained 
from public or attracted from private sources, for 
its development. Foreign capital, whether se- 
cured ivimi ]nil)lic or private sources, nuist receive 
a fair return and be amortized in due course, and 
profit and amortization nmst ultimately be paid in 
trade balances. It is then inescapable that our 



primary contribution to the development of our 
sister Republics must come through trade. 

Mark that well. If we are to continue to have 
friendly relations with our sister Republics, we 
must buy what they can produce. There is no 
other way. 

Let us remember that when domestic producers 
seek to slam the door in the face of products from 
other nations of this hemisphere — and indeed of 
the other hemisphere as well. No one wishes to 
see men thrown out of work in this country or 
private enterprises losing money. The fact is, 
however, that the rest of the world, Latin Amer- 
ica included, can buy from us only as much as it 
sells to us. If we do not buy from them, they can- 
not buy from us. If trade restrictions save an 
American workman's job or a dividend, how many 
may they cost in export industries i AVhat sort of 
a tailspin may they produce in our total economy? 

For our Latin American friends, export trade 
is not only their bread and butter: it is their 
hope for the future. A protectionist measure 
may be insignificant to our total economy — and 
utter ruin alike to their livelihood and their as- 
pirations. Even a restrictionist bill introduced 
in Congress which has no real chance of congres- 
sional approval may not only put our friends in 
a psychological sweat ; it may do jialpable damage 
to their economies by undermining confidence. 
Stability in our customs tarift's is vital to their 
economic well-being; the rules of the game should 
not be capriciously changed to their disadvantage. 

I fully appreciate that we must consider trade 
restrictions in the light of our total national in- 
terests. There will probably be cases in which 
protectionist measures will be justified. Each 
individual case must be dispassionately considered 
on its merits. Let us nevertheless not fool our- 
selves as to the effects protectionist measures, al- 
most regardless of their justification, will have on 
our hemispheric relations. 

Principle No. 1 in our economic relations with 
our sister Republics must, then, be the eiiuitable 
entry of Latin American products into American 
markets under stable rules. "We cannot exclude 
their products and have their friendship. 

We are reverting in this country to the idea 
that private enterprise can solve many of our 
own economic ])rol)lcms. Certainly our history 
lends great weight to this idea. In less than 2 
centuries we have developed from a country that 
few in this hemispheiv today woiild envy to one 
which is producing and enjoying vastly more ma- 
terial wealth than any other nation on earth. To 
those who have been duped by talk of exjjloitation 
by foreign capital, I woulil jioint to the enormous 
flow of foi-eign ca]>ital into the United States ilur- 
ing the period of our tlevelo|iment. Certainly on 
the one hand that capital was in general fairly 
treated; certainly on the other it did contribute 
mightily to our national development. 



514 



Department of State Bulletin 



Private enterprise can play a very important 
role in developing the resources of our sister Re- 
publics, and, directed with breadth and wisdom, it 
can accomplish much in raising living standards. 
On the whole, American capital is showing 
breadth and wisdom in Latin America today. Let 
us remember, however, that, although every one 
of the other American Republics asserts that it 
encourages new American investment, some of 
them have more or less open misgivings about such 
investment. 



Problems of Nationalism 

In the United States foreign capital was will- 
ing more or less anonymously to accept the pro- 
tection of our general laws and not to make itself 
conspicuous in any way. In Latin America for- 
eign capital has felt it necessary in its own pro- 
tection to seek special safeguards against political 
instability, the capriciousness of courts, the man- 
ifold risks and uncertainties of doing business in 
Latin America. Today the awakening nation- 
alism in our sister Republics demands: Why this 
special protection? Why special contract laws 
rather than adherence to general law? How, 
given the instability, weakness, ajid occasional 
venality of our governments, can we protect our 
national economies from the overwiielming in- 
fluence of these great foreign aggregations of 
wealtli? 

To impecunious governments desperately seek- 
ing new sources of revenue, the great wealth of 
some big foreign companies suggests tempting 
possibilities; to ultranationalists who would be 
masters in their own house, these investments are 
an intolerable obstacle; to some local employees 
and local bureaucrats, some foreign managers 
seem arrogant and overpaid. To a strident na- 
tionalism, it is not important that the country's 
development depends on foreign capital ; that it 
must be attracted despite the uncertainties; that 
it will come only under the management of its 
own nationals; that it makes the jungle and the 
j desert bloom with economic wealth; that this 
' foreign investment plays a vital role in the coun- 
try's economy; and that, through better wages, 
working conditions, benefits, schools, hospitals, 
etc., it brings a richer existence to many people. 
The ultranationalist talks of exploitation and 
colonialism and gutted national resources and 
unfair terms of trade and a dozen other specious 
slogans. But if in the main he talks nonsense, 
do not let us forget that there are times when he 
is right, when his country has been unfairly 
treated. Do not let us reject his arguments with 
a contemptuous snort, but rather let us seek his 
understanding. 

From the viewpoint of this hemisphere's wel- 
fare, there should be a heavy flow of investment 
capital from North to South America in an at- 



mosphere of mutual confidence. If, for example, 
American companies ought to be willing to rene- 
gotiate contracts which have come to be inappro- 
priate under existing circumstances, other gov- 
ernments should emphatically not breach these 
contracts unilaterally. Such acts produce or ag- 
gravate the very economic ills of which they com- 
plain. 

Sporadic cases of arbitrary or unjust treatment 
of foreign capital can seriously injure not only 
the countries in which they occur but also other 
countries, and it is, therefore, in the interest of all 
countries which desire foreign capital to oppose 
such acts openly and effectively. Sporadic cases 
of greed or exploitation on the part of foreign 
capital not only discredit the capitalists responsi- 
ble for it but also tend to discredit all foreign 
capital, and therefore should be opposed by for- 
eign capital openly and effectively. It is unfor- 
tunate that we hear much of these sporadic cases 
but all too little of such examples of economic 
statesmanship as the resolution sponsored and 
voted by our sister Republics at an inter- American 
economic conference in February emphasizing the 
vital importance of mutual confidence in connec- 
tion with foreign investments. 

If our investors must take into due account the 
increasing nationalistic sensibilities in Latin 
America and must realize that friends in the re- 
ceiving country are far more valuable than diplo- 
matic representations or precepts of international 
law, our Latin friends must forego the temptation 
to kill the goose that lays the golden eggs. They 
should realize that any arbitrary or unfair act 
may bring immediate advantages and yet may 
prejudice the national interests for decades. Only 
years of good faith and fair dealing can restore 
shattered confidence, and, in the meantime, the 
nation must pay a heavy premium to counteract 
the apprehensions it has awakened among 
investors. 



The Role of Private Enterprise 

In our understandable desire to allot to private 
capital a major portion of the immense task of 
helping our sister Republics develop themselves, 
we should not, however, imagine that they will 
consider that generous on our part. Precisely be- 
cause they have a distorted view of these foreign 
investments and do not understand their generally 
beneficent effect on the national economy, quite a 
few Latin Americans will think we have simply 
given private interests a hunting license to exploit 
them, that our fair words are simply a cover for 
throwing them to the wolves. We should em- 
phatically not make the mistake of assuming that 
the entire burden of the development of our sister 
Republics can be assigned to private enterprise. 

Principle No. 2 of our relations with our sister 
Republics must then be that private enterprise 
should be encouraged in every feasible way but 



October 79, 1953 



515 



that it cannot do the entire job of helping develop 
our sister Republics. It must operate not only 
to its own advantage but also to tlieir advantage, 
and in such a manner that their people are con- 
vinced it is operating to tlieir advantage. Both 
the United States and its sister Republics should 
seek appropriate means to encourage the flow of 
capital from the one to the other. 

With the best will in the world in the other 
American Republics and the greatest venturesome- 
ness on the part of American private capital, there 
will still be essential sectors of Latin American 
economy into which that capital will not enter. It 
will not ordinarily go into roads and public hous- 
ing; and it is increasingly disinclined, even wlien 
it is still permitted, to go into railways, public 
utilities, and similar basic services. Even though 
we may be convinced that American private capi- 
tal could do these jobs better and more cheaply 
than the local governments, we must surely recog- 
nize that foreign companies operating in these 
fields with their direct contacts with so many peo- 
ple are particularly vulnerable to nationalistic 
criticism. 

Yet if these facilities are not somehow provided, 
other investments of private foreign capital will 
scarcely be attracted. Industry and trade cannot 
flourish where basic facilities are lacking. Our 
sister Republics insistently want our cooperation 
in securing the capital to provide these facilities. 
Surely it is the path of statesmanship on our part 
to extend that cooperation. Let us be under- 
standing if our Latin American friends insist that 
this be done by government rather than by private 
enterprise. President Eisenhower has made it 
abundantly clear that, much as we cherish our 
own economic system, we should not try to force 
it on others. 

The fact is that, by cooperating with other gov- 
ernments to provide basic facilities, we shall 
strengthen the system of private enterprise in our 
sister Republics, we shall promote their develop- 
ment, and we shall go far to convince them that 
our economic relations are mutually beneficial. 

Intergovernmental Cooperation 

Principle No. >3 in our economic relations with 
our sister Republics must therefore be that we 
shall cooperate with them at a governmental level 
in providing a portion of the means to build the 
basic facilities required for their development. 
If we are to have a Latin American economic pol- 
icy, it is essential that we have a public financial 
institution which will act as an effective instru- 
ment of it. 

The precise nature of that institution is im- 
material; what is essential is that it shall accom- 
plish its puri)ose. Like the RFC in the darkest 
days of the depression, it iiuist show courage and 
imagination. And, like the RFC and tiie Export- 



Import Bank, I am confident that such an insti- 
tution will not lose money. The Export-Import 
Bank and, more recently, the International Bank 
have made vital contributions to Latin American 
development. Should their operations be cur- 
tailed, or should it become clear that they are for 
any reason unable to meet the legitimate public 
loan requirements of Latin America, then we 
should consider what measures, with due regard 
for fiscal policy, we might appropriately take to 
accomplish our foreign policy objectives. 

Tools are useless to one who does not know how 
to use them. Men, and not material resources, 
make great nations. As sturdy young nations 
our sister Republics are not only eager to acquire 
tools; they are even more eager to acquire know- 
how. Through our Point Four work we are seek- 
ing to provide it. Let us remember that years 
before this phrase was even invented, this work 
had been successfully started in Latin America 
by Nelson Rockefeller as Coordinator of Inter- 
American Affairs. Here, as in so many cases, our 
experience in the inter-American field was a bea- 
con light which later illuminated our way in other 
I^arts of the world. 

I wish that you might see, as I have seen, what 
our technical Qooperation Point Four work is ac- 
complishing in Latin America. Let us not think 
of what it means in terms of our governmental 
relations, important though that may be. Let us 
not be unduly concerned at the cost — only some 
$20 million last year and some $22 million this. 
Let us think of it in terms of the child cured of 
yaws, the village freed of malaria, the farmer 
whose increased crops can better feed his family. 
Let us think of it in terms of the little man who 
never attends an official banquet and yet who 
knows tjiat through American cooperation he has 
been directly aided to have better food, water, 
health, education. That to my mind is Pan 
Americanism in action. 

I could weary you with specific examples of 
what Point Four work is actually accomplishing. 
Some of you could doubtless point out specific 
cases when it has not been successful — though I 
should roundly deny that such cases were typical. 
Few things are perfect in this human world. 
Some of this work was done by private founda- 
tions in the past, and we should seek their maxi- 
mum cooperation in the future. I think, however, 
a little incident I witnessed recently in Lima was 
more eloquent than anything I could say in point- 
ing out how Point Four work is regarded by men 
actually observing it. With Dr. Milton Eisen- 
hower I was at a large meeting of American bus- 
inessmen. One of them anxiously inquired re- 
garding repoits that Point Four work was to be 
drastically reduced in this fiscal year. Dr. Eisen- 
hower replietl that, on the contrary, it would be 
slightly increased. Throughout the room there 
was a spontaneous burst of applause. 



516 



Department of State Bulletin 



Discount if you will the words of presidents and 
cabinet ministers. Doubt if you will the gratitude 
of the millions whose lives are today better and 
richer for Point Four. Question the statistics 
which show what Point Four has done to national 
economies and national health. But explain to 
me, if you can, that applause of American busi- 
nessmen, unless they believed that Point Four 
work was doing a good job for Uncle Sam as well 
as our friends in Latin America. 

We must remember that know-how can be 
taught through other means than Point Four. 
Among the leaders of the future generation some 
17 American schools in Latin America are incul- 
cating some of the knowledge that made this coun- 
try great, as well as the national traditions. For 
this vital work in Pan American understanding, 
we contribute $128,250 a year — and have to fight 
to keep that. 

Thousands of students from Latin America at- 
tend our educational institutions. In the past 
year we granted 135 official scholarships; but it is 
to be remembered that the great majority of Latin 
American students come to the United States on 
their own resources. We also brought some 565 
Latin Americans to the United States on training 
grants. Practically all of these, in whatever 
frame of mind they may have come to the United 
States, returned to their respective countries our 
enthusiastic friends and admirers. 

Lest we become complacent with our own efforts, 
let us not forget that the Soviets have not been 
idle. I well remember the plea of Chilean demo- 
cratic labor leaders that we do something to match 
the many leaders who were being invited to Russia 
for indoctrination. 

Principle No. 4 in our relations with our sister 
Republics must then be that we must continue and 
expand our efforts to extend our know-how to 
them. No other form of cooperation directly and 
palpably affects so many of them. In no other 
way can our dollar be better spent to foster their 
development and friendly relations with us. 

If our friends to the south may reasonably ask 
us to act in accordance with these four principles, 
I think it is just that we ask them similarly to bear 
certain factors in mind. 

There is undeniably a feeling among many Latin 
Americans that we have neglected them since the 
war. It would be useless to catalog how scrupu- 
lously we have sought to live up to our engage- 
ments to them; how greatly our inter-American 
relationships have advanced, as through the Rio 
Treaty ancl the Bogota Charter; how much more 
economic cooperation we are extending througli 
loans for their development and through Point 
Four work. They point out that, despite our his- 
toric friendship and the cooperation they extended 
in World War II, we have since the war paid far 
more attention to the Old World and its problems 
than to them or theirs. 



The Communist Challenge 

I think that this attitude is very understandable 
and yet that it is mistaken. We are confronted by 
a world crisis. There are those who are now in- 
clined to brush aside the immediate menace of the 
Soviets — to believe that whatever their ultimate 
intentions, their purposes for the moment are 
peaceful. Surely, nevertheless, there are few 
thinking people in the free world — or in the Com- 
munist world, for that matter — who doubt the 
basic purpose of Communist imperialism to dom- 
inate us all. Certainly that is the overwhelming 
belief in the United States. 

Confronted by this implacable challenge, there 
are three points we must always bear in mind. 
Fii'st, we must do the things we must do before 
the things we should like to do. Recognizing our 
peculiarly close ties with the other American Re- 
publics and anxious to cooperate with them in 
their development, we nevertheless cannot afford, 
in their interest as well as ours, to let the rest of 
the world fall by default to the Communists. Per- 
haps this hemisphere could defend itself mili- 
tarily against a wholly Communist Old World, 
but at best it would be terribly difficult and dan- 
gerous. Perhaps our economies would survive, if 
our trade relations with the Old World — our 
markets and sources of supply — were cut off, but 
our standards of life would receive a staggering 
blow. By bolstering the European marKets of 
our sister Republics, we did their export trade a 
vital service. If we have poured into the Old 
World economic aid which would have made Latin 
America blossom like the rose, let us remember 
how quickly that rose would have wilted if com- 
munism had ever come to dominate the Old World. 
We gave economic aid to the Old World not be- 
cause we felt more friendly to the nations in it 
than to our sister Republics; we gave it because 
it was essential that we do so if the free world — 
our sister Republics as well as we — were to be 
secure. 

Second, we must think of what we can do. We 
have had to shoulder a backbreaking load since 
the Second World War. Today three and a half 
million of our young men are in our armed serv- 
ices ; we have had to bear the brunt of the war in 
Korea ; the entire world-wide system of defense of 
the free world against Communist imperialism de- 
pends upon our economic and military coopera- 
tion. Great though our resources may be, they 
are undeniably strained by our efforts. Our taxes 
were never higlier, and they are probably so high 
today as to be economically unsound. Our huge 
debt is pressing against the ceiling established by 
law. Our economic machine is being raced, we are 
depleting our natural resources at an alarming 
rate, and our middle classes are being forced to 
spend more than their incomes. Only by heroic 
measures can we balance our budget. 

Now upon the fundamental soundness of the 



October 19, 1953 



517 



U.S. economy depends the defense of the free 
world. Destroy our economic strength and the 
Kremlin can devour us all at its leisure. We have 
reason to suppose that the Kremlin hopes for a 
breakdown in our economy, and we know that, if 
such a breakdown should occur, it would be dis- 
asti'ous for the entire free world. 

Given the enormous burdens we are necessarily 
shouldering, it is by no means certain that, over 
an indefinitely prolonged period, we could do 
more. We cannot count on our burdens diminish- 
ing in the foreseeable future. At the moment the 
question appears to be whether we can continue to 
do as much as we have been doing rather than 
whether we can do more. Conscious as we are of 
our friends' needs and of the cooperation they have 
generously extended to us, we must nevertheless 
realize that it would not be a service to either of 
us to extend our economic system beyond the break- 
ing point. Let us be understanding if some of our 
friends misunderstand us, and let us earnestly 
bespeak our friends' understanding of the diffi- 
culties we face. 



Mutuality of Benefits 

Third, we must think of what we should do. 
Important as the development of Latin America 
is, both in terms of the cooperation we seek to 
extend to our sister Republics and in those of our 
own national interests, we must think also of other 
projects which may be important to our national 
survival. 

If there are people in Latin America who feel 
that we should do more, that the United States 
benefits more than Latin America from hemi- 
spheric cooperation, it seems fair to point out that 
in the United States there are people who feel that 
we are doing more than our share. Most of the 
burdens we have shouldered are as vital to Latin 
America as they are to the United States. We 
have shielded our sister Republics as well as our- 
selves against two aggressive totalitarianisms. 
Today in no other republic is the burden on the 
individual taxpayer as high as it is on a taxpayer 
in the United States with an identical income. 
The latter understandably asks: "Why should I 
pay more even than a good friend for something 
which is to benefit him primarily?" 

In considering what wo should do to cooperate 
with our sister Republics, we must also l)oar in 
miiul the fact that in some cases their difliculties 
arise from mismanagement of the national re- 
sources they have available for their development. 
Our Latin American friends are striving to forge 
ahead, to acliieve ra])id progress in their living 
standards. In our own selfish interest we should 
help them, but our help should be constructive; 
it should truly aid them to develop into sturdy 
self-reliant nations with sound economies. It is 
difficult to turn down a friend's plea for aid, and 



yet surely it is not the course of true friendship 
to accede to a request for aid when it is evident 
that such aid will only worsen an already unsound 
situation. I think we can fairly ask our friends 
not to request our economic aid unless they are 
prepared to put their economic houses in order. 

In studying history I have often been im- 
pressed by the story of the Christian reconquest of 
Spain. Pushed into the Asturian mountains, 
the Christians eventually drove the Moslems from 
the peninsula by unity of purpose and single- 
minded, fanatical devotion; but they probably 
would never have succeeded if it had not been for 
the disunity, the bickering, the quarrels between 
the Moslem principalities. Today the Christian 
world faces an infidel who, unlike the Moslem, 
recognizes no God or moral law. Faced by mor- 
tal peril, let us learn from history; let us close 
ranks in this hemisphere and in the free world; 
let us find means of composing our ditferences 
without selfishness, rancor, or misunderstanding; 
and let us preserve inviolate our civilization and 
our religion for the greater glory of God and the 
further advancement of man. 



Surplus Commodities for 
Relief of Bolivia 

White House press release dated October 6 

The President on October 6 sent the following 
communication to the Secretary/ of State, the 
Secretary of Agriculture, and the Director of the 
Foreign Operations Administration: 

In accordance with the recommendation con- 
tained in the memorandum of October 5, 1953,' 
submitted by the Director of the Foreign Opera- 
tions Administration, and ])ursuant to tiie author- 
ity vested in me by Public Law 210, 83d Congress, 
1st Session, I hereby tletermine that up to $5,- 
000,UO0 worth of agricultural commodities shall 
be made available out of the stocks of the Com- 
modity Credit Corporation and transferred to 
meet the urgent relief requirements of Bolivia.' 
This amount shall cover tiie Corj^oration's invest- 
ment in the commodities and costs of delivery on 
board vessels in United States jiorts. 

Arrungenients for the operations of this relief 
program, incliuling the specification of the com- 
motlities, shall be the responsibility of the Direc- 
tor of the Foreign Operations Administration, 
and the transfer of the commodities shall be upon 

' .\()t iiriiitiHi. 

'This (leteriiiitKitii>n is tlu' socoiul tn lie mniio vuider 
V. \.. 21ti. tlie Fninine Ki>lief Act. The net was lirst 
applied on Se])t. -. when the I'resich'iit nuiile avnilnlile 
lO.(H)i) tons of surplus iiKricultuinl eouimodities to meet 
the relief iieeiis of Jordan. 



518 



Department of Stale Bulletin 



such terms and conditions as the Director deter- 
mines to be appropriate, after consultation with 
the Secretary of State. In connection with the 
furnishing of such assistance, the Secretary of 



State, after consultation with the Director, shall 
conclude a bilateral agreement with the Govern- 
ment of Bolivia. 

DwiGHT D. Eisenhower 



Policy Problems In the Far East 



hy 'Walter S. Robertson 

Assistant Secretary for Far Eastern Affairs ^ 



In what we were wont to call the good old days 
many a speaker began his discussion of the Far 
East by quoting Kipling's "East is East, and AVest 
is West, and never the twain shall meet." He thus 
at one fell swoop relieved both himself and his 
audience of a multitude of problems which he 
thought would never be posed. 

These lines of Kipling so accurately expressed 
the realities of his day that they became a famous 
epigram. But it is the next succeeding line that 
is of burning concern to us today. In reading it 
you get very much the same sensation that you do 
in looking at a photograph of an atomic explosion. 

Let us iDut Kipling back together: 

Oh, East is East, and West is West, 
And never tlie twain sliall meet, 

Till Earth and Sky stand presently 
At God's great Judgment Seat. 

Yes, at long last the poet's prophecy has been 
fulfilled. East and West have met and the meet- 
ing has mushroomed a great cloud of problems 
which challenge the utmost in faith, wisdom, and 
understanding of which both East and West are 
capable. 

You are well aware of these problems as such. 
I should like to discuss this afternoon in very 
general terms what seems to me to be the funda- 
mental dilemma of United States policy in ful- 
filling our responsibilities to Asia and to ourselves. 

It is fairly clear to all of us, I think, what we 
should like to see in the Far East. We should 
like to see the Asians prosper. We should like to 
see the Asians realize those goals for which we our- 
selves have worked and fought — opportunity for 
the individual to achieve the best that is in him, at 
peace and in cooperation with his neighbors, and 

' Address made before the Far East-America Council 
of Commerce and Industry at New York, N. Y., on Oct. 9 
(press release .549 dated Oct. 8). 



opportunity for all nations to develop the best that 
is in them, in peace and in cooperation with their 
neighbors. We believe all men are entitled to these 
opportunities, and as long as any men are denied 
them, other men will not be secure in their posses- 
sion. It was not long after we had achieved our 
hard-won independence, the chance to work out 
our own salvation, that we realized that our own 
independence alone was not enough. We an- 
nounced that we would not tolerate the establish- 
ment anywhere in the new world of the imperial- 
isms of the old. This was a brave doctrine. Its 
significance was not diminished by the fact that we 
were too weak by some 50 years to have been able 
to carry it out by ourselves. Eventually we were 
drawn into two world wars because we recognized 
that the forward march of aggressive imperialism 
had to be stopped though the breadth of the ocean 
separated its forces from our own borders. 

Our tradition of opposition to absolutism and 
imperialism has created strong bonds of sympathy 
between the Asians and ourselves. For surely no 
peoples in history have suffered more from auto- 
cratic rule both by native overlords and foreign 
conquerors than the indomitable peoples of Asia. 
When we threw in our lot against the carving up 
of China by the European monarchies; when we 
convinced the Filipinos that the sole objective of 
the American administration was their independ- 
ence; when we raised our voice against the abuses 
of the prewar regimes in Asia ; when we refused 
to countenance the extension of Japan's imperial 
rule over China in the 1930's ; when we freely re- 
nounced our extraterritorial privileges in China; 
when we made the liberation of Korea an aim of 
World War II — with all these actions we won a 
store of good will among the Asians. On the other 
side of the Pacific by 1945, the name America was 
like a wind blowing from a promise of the future. 

And today? Today, despite the catastrophe 



October 19, 1953 



519 



that has befallen China, despite the hatred of our 
world that has been instilled into the very air the 
Chinese breathe, despite the hostile propaganda 
and persistent misrepresentation of our motives, 
I believe the hopes the Asians place in us today 
are stronger and more far-reaching than ever. 
They look to us for help of a kind it did not occur 
to them to expect of us in the past. At the same 
time there are greater uncertainties in the Asians' 
attitude toward us. Our relations with Asia have 
become vastly more complicated. Partly this is 
because our relations have become so much more 
extensive and intimate. In place of the 4 Asian 
nations with whom we had official relations before 
World War 11 there are now 12. Our economic 
and technical aid programs, our military aid pro- 
grams, the basing of American forces in the Far 
East, our joint membei-ship in international bodies 
like the U. N. and its subsidiaries, our commercial 
interests, have all brought us into much closer 
contact. For every American who had spoken to 
an Indonesian or a Vietnamese before 1940, there 
are now hundreds. For every American who had 
spoken to a Japanese, an Indian, or a Korean, 
there are now thousands. 

Another factor in our altered relationship has 
been the change in the character of the Asian peo- 
ples' struggle for a better life. In the past, this 
took the form of a pursuit of a simple, concrete 
goal : national independence — independence from 
the Western colonial powers or independence from 
Japan. For Japan too the goal was simple and 
concrete: hegemony over all Asia. But now all 
that is changed. The Asians have won their in- 
dependence from the Western powers and Japan. 
Their problems are now the problems of self-gov- 
ernment, of dealing successfully with the infinitely 
complex and myriad elements that make up na- 
tional life, of making a go of their independence 
on the strength of their own aptitudes and re- 
sources — above all of preserving their independ- 
ence. All the free peoples of Asia are struggling 
with baffling problems and to a large extent with 
the same problems: Under-investment, exceed- 
ingly low per capita power, deficiencies in most of 
the technical fields, inexperience in self-govern- 
ment, internal instability, the absence of a back- 
ground of firm national unity, all the shortcomings 
of relatively unproductive economies, and in many 
cases increasing population pressures. Japan, 
thougli highly industrialized, is in the same boat 
as the other Asian countries in that, having lost 
its overseas posse.ssions, it nmst now stand on its 
own feet and make its way in a world peopled 
with nations primarily looking out for thoinsel ves. 

Changes in Aid Requirements 

As Asia's problems have grown more compli- 
cated, so, it would appear, have Asia's require- 
ments of us. The Asians, I believe, expect a great 



deal more from the American people than ex- 
pressions of sympathy and of support for their 
struggles for independence. They expect more 
help and help of a different kind from that which 
small groups of missionaries, educators, and plii- 
lantliropists were able to give in the past. The 
Japanese expect something quite different of us 
than they did in the 1930"s, when all they asked 
was that we should simply get out of the way. 



Importance of Far East's Trade 

Following is a message from President Eisen- 
hower which was read at the Far East Conference 
on October 9 follounng Assistant Secretary Robert- 
son's address: 

The United States, in cooperation witii otiier 
countries of tlie free world, knows the need for es- 
tablishment of strong and stable economies in the 
countries of our friends in the Tar East. We be- 
lieve that expanding trade on a mutually beneficial 
basis, continued technical cooperation, and great 
private investment are necessary elements in the 
building of such economies. Tliis tasli demands 
cooperative action by all nations of the free world. 
For its part, the United States is seriously studying 
what it can do to bring about more trade and more 
widespread investment. The joint effort of all of 
us can immeasurably strengthen the freedom to 
whose defense we all are pledged. 



These new expectations result not only from the 
change that has taken place in Asia but also from 
the change that has taken place in the United 
States. Two world wars have visited destruction 
upon the capital investments of the other great 
powers and, in the heavy demands they have made 
on our agriculture and industry, have forced us 
greatly to enlarge our productive facilities. We 
have acquired the responsibility that inevitably 
accompanies power. Since about the time we had 
to step in to help preserve the independence of 
Greece and of Turkey, we have become discon- 
certingly aware that on occasions of need every- 
one seems to look to us. We are now "it." Every 
age, I sui)pose, has an "it." Surely we are the 
"it" today. We are the source to which other peo- 
ples tend to look for those things they do not ex- 
l)ect to achieve either through their own efforts or 
the favor of the Almighty. It is we who must 
bear the blame when things go wrong in ways for 
wliii'h other peoples are not disposed to hold either 
the Almighty or themselves accountable. 

There has been one other highly complicating 
element in our new relationship with Asia. This 13 
the lengthening and deepening shadow of the 
Comiininist empire. At the very time when other 
foreign controls were in process of being with- 
drawn from Asia, this new and far more deadly 
menace has loomed in the north and has engulfed 
the great and ancient nation of China. It is a 
menace not only to the national independence of 



520 



Department of State Bulletin 



the new Asian nations but to all the values Asia 
has kept alive in her darkest times and for which 
she has been struggling in our generation with 
increasing success. The threat has been particu- 
larly formidable. For it has approached Asia on 
Asia's most vulnerable side. It has appeared as an 
ally of Asia's in those causes that have aroused 
Asia's passionate devotion. It has promised to 
make a clean sweep of all those instruments that 
have kept the Asians in a subordinate and resent- 
ful status — the instruments of foreign control, of 
feudalism, of vested interest and privilege. The 
Communists mean to substitute for all the yokes 
to which the Asians' necks have long been bent, a 
single great big new yoke which will far more ef- 
ficiently harness Asia's energies to the advance- 
ment of an alien imperialism. 

Only one thing has not changed in our relations 
with Asia : our desire to do what we can to advance 
and preserve the freedom and welfare of the Asian 
peoples. AVe are determined to help them as vve 
may in their efforts to develop their own sources of 
strength — the strength they will need if their inde- 
pendence is in fact to be preserved and enhanced 
and the existence of their masses of people to be 
made more bearable and fruitful. 

The question now is — and here I come to our 
basic dilemma — what kind of help that we are able 
to give do the Asians really want of us? How far 
should we play a positive role in the Far East, 
devoting physical, technical, and political re- 
sources to the strengthening of the free Asian 
countries, and how far should we play a negative 
role, withdrawing as completely as we can from 
Asia to the end that the Asian nations will reach 
their own equilibrium internally and externally 
with I'espect to one another, so that they come to 
their own appreciation of their needs and develop 
their self-reliance in meeting those needs? 

This is a very real problem. We have met it so 
far with varying degrees of success by playing dif- 
ferent sorts of roles in different parts of Asia and 
in different contexts. Perhaps our role has been 
most positive in Japan, Korea, Formosa, and the 
Philippines. In Japan after 1945, as in the Philip- 
pines after 1900, we sought to replace an arbitrary 
rule from the top with genuine self-government. 
Since the end of the war we have made a heavy 
investment in economic aid to both countries. In 
the last few years, moreover, we have been working 
closely with the Filipinos on problems in produc- 
tion and administration that were dangerously 
handicapping their economy and threatening their 
national solvency. In Korea we have made an in- 
vestment beyond all valuation — 150,000 American 
casualties, 25,000 American lives in addition to 15 
billion American dollars in defense of the inde- 
pendence of the Republic of Korea, and, I should 
add, of the independence of the rest of free Asia. 
In the next 2 or 3 years we expect to aid in the 
reconstruction of Korea to the extent of about 1 

October 19, 1953 



billion dollars. In Formosa our aid to the Na- 
tional Government of China has been no less 
decisive in preserving the independence of an in- 
dependent Asia government. Behind the shield of 
the Seventh Fleet we have enabled the National 
Government of China to develop modern armed 
forces with important capabilities. It is providing 
for free Chinese everywhere a point to which they 
can rally to express through action and attitude 
their dedication to national independence and the 
great traditions of their country. 

Those are the areas where the greatest exertion 
on our part has been called for. More recently 
Indochina, where we are greatly increasing our 
assistance to the French and the Associated States, 
has been in this category. 

Limitations on U. S. Aid 

There are, however, very real limitations on 
how active a part we can take beneficially in the 
Far East — quite apart, that is, from the limita- 
tions of our own resources. No nation in the Far 
East wishes to give up one iota of its sovereignty 
or independence at any price. We not only re- 
spect the dedication of the Asians to their inde- 
pendence, we regard it as essential to the strength 
of the free world. At the same time we must 
recognize that an American attitude of interest in 
the Far East can at times look like an overbearing 
American attitude. How to help without seeming 
to interfere is a problem that must sometimes tax 
the wisdom of a Solomon, let alone of a harassed 
Uncle Sam, who, it must be confessed, is sometimes 
a little confused by the novelty of his position in 
the world and the variety of demands and ex- 
pectations entertained of him. If the building of 
American military bases in the Western Pacific, 
the staunch American support of Asian govern- 
ments threatened with being engulfed by the Com- 
munist tide, American material support of the 
French Union forces in Indochina, and even the 
arrival in an Asian village of an American poul- 
try expert seem to some of the more apprehensive 
Asians proof of a desire on our part to extend 
some kind of sway over the region, we should not 
be surprised. We should remember our own ex- 
treme sensitivity in our early years to anything 
that resembled European interference in our na- 
tional life. Throughout much of our history it 
was axiomatic with many or most of us that the 
purpose of foreign policy was to prevent the Euro- 
peans from interfering in our affairs or involving 
us in theirs. 

I believe, and I imagine you believe too, that a 
large part of the burden of the economic develop- 
ment of the Far East must be borne by private 
capital — and private foreign capital — if it is to 
be accomplished humanely. The only alternative 
is economic development under the whiplash of 
totalitarianism, the Communist method. We also 
have to recognize, however, that in some quarters 

521 



in Asia foreign capital is regarded with deep 
misgivings. You and I know that American capi- 
tal looks upon Asia witli quite as much nervous- 
ness as Asia looks upon American capital. Tlie 
fact still remains, however, that the tendency to 
regard the capitalist with suspicion is widespread 
in Asia and that there are real reasons for this 
suspicion in some of the experiences the xVsians 
have had with capitalists in the past, their own 
capitalists and those from abroad. We may also 
expect that the Asians will react very negatively 
to anything that looks like a cultural invasion. 
They cherish their national identities as we cherish 
ours and have no wish to be swept off their founda- 
tions by a foreign culture powered by a gross 
national product of more than $300 billion a year. 

At the same time we must recognize the dangers 
of a negative American attitude toward Asia. 
The last thing we would wish is to give the im- 
pression that we regard Asia as secondaiy in im- 
portance to any other part of the world, that we 
have lost interest in Asia, that we are forsaking 
the Asians to whatever the future may hold for 
them. None of this is true, and we do not wish it 
to seem true. If we were indifferent to Asia, if we 
did not recognize that aggression against an Asian 
country is a threat to us and the rest of the free 
world, we could have stood by while Korea dis- 
appeared into the dungeons of the Communist em- 
pire. We could desert the Republic of Korea 
and allow the free world to lose that outstanding 
moral and material asset. We could scrap our 
military bases in the Far East. We could stand 
aloof from the struggle in Indochina as most of 
the Asian governments themselves have done. We 
could bring back our specialists in agriculture, 
forestry, and taxation. We could stop trying to 
prevent Communist China from obtaining the 
goods that will feed its aggressive potentialities. 
By these retreats we could certainly demonstrate 
that we have no desire to force our will on Asia. 
But tlie satisfactions this demonstration would 
afford the Asians would be as notliing, I believe, 
to the sense of abandonment and betrayal that 
would sweep over them. 

As it is, we are sometimes represented as being 
too backward in contributing to the strength of 
Asia. Tliis is particularly so in the matter of a 
Pacific pact. Tiiose both here and in the Far 
East who have recognized the desirability of a 
common defensive effort in the Asian-Pacific area 
have looked to the U.S. Government to exert 
its influence in favor of sucli a pact. We con- 
tinue to believe, however, that any effective Asian- 
Pacific organization must come about as the result 
of the Asians' own initiative, that it must wait 
upon a general appreciation among tlie Asians of 
the desii'ability of collective action in attacking 
their conunon problems. This is clearly not a field 
in wliicli outsiders can usefully assert themselves. 
We do not wish to give the impression that we are 



trying to hustle or joggle our friends across the 
Pacific, because we are not. Any moves to be 
made in the direction of regional organization are 
clearly up to them. 

We are also sometimes represented as being 
over-hesitant in our approach to Asia in respect 
to the granting of economic aid. It is suggested 
that we vastly expand our economic assistance to 
the Far Eastern countries. Aside from our own 
budgetary limitations this suggestion overlooks 
the difiiculties in the way of such an expansion, 
if not the limitations on the extent to which our 
aid can usefully be exjjanded, including such fac- 
tors as the rate of sound absorption-capacity of 
outside aid existing at a particular time in a par- 
ticular country. If aid is poured in too fast it 
may be interpreted as merely an attempt to buy 
favor — a form of intervention di.screditable alike 
to the donor and the recipient. We do not regard 
economic aid as a selfish political instrument. 
Our aid is intended to strengthen, not weaken, the 
independence of the Far Eastern nations. In de- 
termining the amount of our aid programs, we 
must also recognize that the United States Gov- 
ernment cannot extend aid unless it is able to 
satisfy the representatives of the American people 
that such aid is being constructively employed. 
A million-dollar foreign aid program sounds to- 
day like very little, comparatively speaking. But 
a million dollars will provide several liundred 
Americans with a college education or buy tractors 
for 500 American farmers. Those who put up this 
million dollars in the form of taxes — and our ap- 
propriations for foreign aid do not arise by 
magic — have a right to demand that their govern- 
ment assure itself that the million dollars serves 
the purpose for which it was intended. If our 
government can obtain such assurances only at the 
cost of seeming to intrude offensively upon the 
internal affairs of a friendly nation, it is better 
for the aid not to be granted in the first place. A 
foreign aid program that buys resentment is a 
mistake, whatever else it may buy. There are, as 
I say, limits to how positive a role we can usefully 
undertake. 

It is obvious that there are pitfalls in both a 
positive policy toward the Far East and a self- 
effacing policy. We nuist be fully conscious of 
those pitfalls. At the same time we must be aware 
that too great a concentration on the pitfalls could 
lead to our freezing in our tracks, to a paralysis 
of policy. If we are to avoid that, we nuist learn 
to discount the inevitable misrepresentation of our 
motives in Asia. Whatever we do, and if wo do 
nothing at all, those motives will be misrepre- 
sented. They will be misrepresented by sincere 
))atriots, by cynics, and by our enemies. A multi- 
billion-ilollar Communist apparatus of projia- 
ganda antl conspiracy is working unceasingly to 
that end. 



522 



Department of Sfofe Bulletin 



Need for Mutual Understanding 

I am convinced, however, that if we try genu- 
inely to understand the manifold needs and incen- 
tives of Asia today and if we do what we believe is 
right in the circumstances — not merely what looks 
smart or expedient or what promises an easy popu- 
larity at home or abroad — if we do what is right, 
the Asians will believe in us; they will respond 
and give us their confidence and support. In say- 
ing this I am counting on the Asian leaders to do 
their honest best to interpret us as we are and not 
to be misled by facile propaganda. Anyone who 
wishes to comprehend our purposes and objectives 
■will find it not difficult to do so. And I believe a 
■widespread comprehension of those purposes and 
objectives in the Far East, such as the Asian lead- 
ers can alone promote, will contribute most im- 
portantly to the realization of the Asians' own 
purposes and objectives. 

The kind of understanding between Asia and 
the West that I am talking about embraces most 
particularly the realization on our part that we 
can do nothing in, for, or about any country in the 
Far East unless what we are trying to do is what 
the people of that country wish to be done. It is 
the Asians themselves who must decide what kind 
of help they want from us, if any. We must get 
over the idea that Asia is the patient and we are 
the doctor. The Asians not only know where they 
hurt ; they have a very good idea of what is indi- 
cated. Asia is both the patient and the doctor. 
We are merely the druggist, albeit a druggist with 
an acute interest in seeing that the prescription 
is the right one. 

While our role in the Far East cannot be over- 
forward, neither must it be over-reluctant. Wlien 
there is a requirement for American aid — food, 
tools, technical training, weapons, books, when 
American aid within the limits of our available 
resources could make the difference between suc- 
cess and failure in any of the great enterprises 
upon which the new Asia is embarked, we should 
never in the future forgive ourselves were we to 
■withhold that aid. Issues of enormous moment 
are in the balance in Asia today. To a degree 
inconceivable a generation ago, the future of the 
J "world is in the hands of the engineer in the Jap- 
lanese shipyards, the infantryman on the line in 
Korea and in the paddy fields of the Red River 
delta, of the magistrate in a district on the Ir- 
rawaddy, of the parliamentarian in Djakarta. 
There are innumerable cases when, with a rela- 
tively small increment of American aid or Ameri- 
can cooperation, the scales can probably be tipped 
in favor of the free world. 

This brings me to my concluding point, the most 
important point I have to make. You here today 
who represent the broadest I'ange of contact be- 
tween the United States and the Far East have an 
invaluable function to perform in interpreting our 
Nation to the Asians and the xlsian countries to 



your government. Official relationships tend to 
be limited, if only because of the relatively limited 
number of officials. The future relations between 
the United States and the Far East lie above all m 
the field of human relationships. If the human 
relationships between our peoples ai'e outgoing, 
warm, and friendly, the rest will follow automati- 
cally. The Asians and we recognize pretty much 
the same standards of right and wrong and are 
striving for pretty much the same goals. What 
we mostly need is a little help from one another 
to insure that we remember it. 



Objectives of U.S. Policy 
in the Philippines 



hy James D. Bell ^ 

The long-term objectives of U.S. policy toward 
the Philippines have not changed since they were 
set forth by an officer of the Department of 
State at the Conference of the Far East-America 
Council a year ago. These objectives are aimed 
at encouraging the development of a democratic 
nation, stable in government and economy, 
friendly to the United States, and cooperative with 
the United Nations. Such a nation is our world's 
best answer to the lures of communism in the Far 
East as elsewhere. 

These objectives are not the sole property of the 
U.S. Government. They cannot be achieved 
through the unilateral effort of the United States ; 
they are also goals earnestly sought by 20 million 
Filipinos. Progress toward these objectives dur- 
ing the past 8 years has been achieved through the 
common efforts of both the United States and the 
Philippines, independent countries with a strong 
mutuality of interest. 

Starting from the devastation and chaos of war, 
harassed by an armed Communist movement that 
has numbered as many as 10,000, and faced with the 
danger of moral degeneration which is an inevi- 
table product of prolonged armed conflict, the Fili- 
pino people have made remarkable progress to- 
ward economic stability. The budget was in bal- 
ance in 1952, and the current deficit will not be of 
alarming proportions; tax collections have in- 
creased ; an adequate reserve of foreign exchange 
is being maintained; a beginning has been made 
toward resettlement of the landless; self- 
sufficiency has been achieved in rice production; 
the effective strength of the Hukbalahap has been 
reduced by about 65 percent. Basically these 
achievements have been possible because of the 
long history of close cooperation and mutual un- 

' Address made before the Philippine Session of the 
Conference of the Far East-America Council of Com- 
merce and Industry at New Yorlj on Oct. S. Mr. Bell is 
Officer in Charge, Philippine Affairs. 



« Oc/ober 79, J 953 



523 



derstanding between our countries and a common 
desire to achieve the same goals. 

These conditions tend to mai<e our task easier; 
they provide a solid foundation on which to build 
a prosperous, democratic state. One factor in this 
process, which is often overlooked and which owes 
its existence in part to the close relations between 
the United States and the Philippines, is the role 
played in the development of a democratic way 
of life by civic organizations. The Rotary and 
Lions Clubs, the Junior Chamber of Commerce, 
the Federation of Women's Clubs, the Parent 
Teachers Association, veterans' organizations^nd 
more recently the National Movement for Free 
Elections all seek objectives which transcend their 
own interests and are today making a notable 
contribution to the stability of their country. 
They offer one of the most effective means for the 
realization of the objectives we hold in common. 

In seeking the achievement of its objectives, the 
United States is faced with a delicate and difficult 
task. Any interference in Philippine domestic 
politics would be a denial of the very goal we seek. 
Outside influence of this kind would detract from 
Philippine sovereignty and its status as a member 
of the community of nations. Absolute imparti- 
ality with respect to internal partisan politics has 
been our policy, is our policy, and will continue 
to be our policy. Yet as one of our major objec- 
tives is political stability, we cannot deny that 
we are concerned that the democratic processes 
function so that the people may freely express 
their will. The eyes of the world will follow the 
elections in the Philippines next month. 

We are confident, on the basis of statements 
from Philippine leaders, that the elections will be 
conducted in such a way as to prove a blow to the 
aspirations of international communism and will 
advance the cause of the free world in the Far 
East. 

The considerable progress already made toward 
economic stability must be continued through co- 
operative efforts. Although the effectiveness of 
the Hukbalahap has been greatly diminished, it is 
generally agreed that this problem cannot be set- 
tled through military action alone. The landless 
of central Luzon must be shown that their best 
opportunity to better the conditions under which 
they live lies not under the tyranny of Communist 
domination but with a free democratic way of life. 

One possible avenue of attack on this problem 
is respttlemcnt in Mindanao. Already the Foreign 
Oppiatir)ns Administration and the Philippine 
Government are building roads in Mindanao, and 
a private American company sjiccializing in man- 
agement problems will soon begin to advise the 
Philippine Bureau of Lands so that issuance of 
Torreiis titles can be accelerated. The Pliilijipine 
Government through the Armed Forces Economic 
Development Corps, popularly known as EncoK, 
has demonstrated that the empty promises of land 



made by Communist leaders can be fulfilled peace- 
fully and effectively by strongly anti-Communist 
leaders. Yet another step toward strengthening 
the bases of democracy in the Philippines was 
taken when the newly created agricultural exten- 
sion service began the formation of 4-H clubs 
throughout the country. 

The pattern of economic and trade relations be- 
tween our countries is an essential element in the 
complex which determines the method of reaching 
our common goals. On May 5, 1953, the Govern- 
ment of the Philippines submitted to the United 
States proposals for modification of the 1946 trade 
agreement.- These proposals provide: 

1. That the present agreement be modified to 
provide for limited and reciprocal free trade be- 
tween the two countries in such a manner that full 
duties would be imposed on all imports of each 
country except for those commodities which by 
agreement of the two Governments would be 
included in duty-free lists ; 

2. that the provision of the present agreement 
with respect to currency matters be eliminated, 
leaving the Philippine Government in complete 
control of its currency subject only to control and 
regulations pursuant to its commitments to the 
International Monetary Fund; and 

3. that provisions of the present executive agree- 
ment covering immigration and the rights and 
privileges extended to citizens in the fields of pub- 
lic utilities, land ownership, and exploitation of 
natural resources be made reciprocal. 

In view of the importance of this matter and 
the careful study given it by the committees desig- 
nated by the President of the Philippines, the 
United States as a necessary first step is making a 
careful examination of these proposals and other 
aspects of current economic relations between the 
two countries. 

For this purpose the U.S. Government has es- 
tablished an executive committee consisting of 
representatives of the Departments of Agricul- 
ture, Commerce, Interior, Labor, State, and Treas- 
ury, the Foreign Operations Administration, and 
the Tariff Commission. This committee, which 
will coordinate its activities with the President's 
Commission on Foreign Economic Policy, is ac- 
tively studying the Pliilippine proposals, includ- 
ing the additional information made available in 
the Philippine note of August 24 ^ with respect to 
the various commodities which the Philippine 
Government suggests for inclusion in the selective 
free trade list. 

The first task of the committee will be to de- 
termine whether, in its opinion, a basis exists for 
renegotiation of the 194C agreement. The posi- 
tion of the United States with respect to the 
Philippine proposals must await the conclusions 
of this committee. In the meantime the U.S. Gov- 



' Buj.i.ETiN of Sept. 7, 1953, p. 316. 
' Not printed liere. 



524 



Department of State Bulletin 



ernment welcomes the views of the business com- 
munity and others to aid in the formulation of 
our position. 

As in our common efforts to achieve a stable 
democratic government in the Philippines, we 
have also worked most closely in the field of for- 
eign ati'airs. The Philippines have played a lead- 
ing role in the United Nations, have maintained a 
battalion combat team in Korea, and have con- 
sistently stood as a bulwark of the free world in 
the Far East. 

You all are aware of the heroism and valor of 
the Filipino people during the war; of the major 
contribution they made to our joint effort. In 
the 8 j'ears since the end of the war the American 
Government, under authorizations from the Con- 
gress, has made significant contributions to Phil- 
ippine recovery from the devastation of the war. 
Our help has taken the form of war damage pay- 
ments, veterans' benefits of many varieties which 
continue at an increasing rate, and more recently 
through the programs of the Economic Coopera- 
tion Administration, the Mutual Security Agency, 
and the Foreign Operations Administration. 

Such aid, contrary to chai'ges made by the Com- 
munist world, is not an attempt to buy friendship, 
for in the Philippines if this were in fact our 
purpose, we would be squandering our aid ; there 
is no need to buy friendship where we already 
have it in abundance. We are not buying any- 
thing; we are working together with good friends 
to achieve common goals. This is not a one-way 
street; both our countries must, and will, con- 
tribute fully to defense from external aggression 
and to the orderly economic development which 
constitutes the most important component of de- 
fense from aggression from within. 

Filipino leaders have described their country 
as a bridge between the culture and civilization 
of the East and the democratic philosophy of gov- 
ernment which has reached its highest develop- 
ment in America and Europe. Our mutual task is 
to strengthen and widen this bridge until it be- 
comes the strongest link between the free countries 
pf America and Europe and the peoples striving 
ifor freedom in the Far East. 



force. By its own terms the treaty will become 
effective on October 30, 1 month after the exchange 
of ratifications. 

The treaty was signed at Tokyo on April 2, 1953.^ 
It was approved by the U.S. Senate on July 21 ^ 
and by the Japanese Diet on August 7. It was 
ratified by the Japanese Government on September 
2 and by the President of the United States on 
September 15. 

Entry into force of the new treaty marks the re- 
sumption after a lapse of 13 years of formal treaty 
relations of this general character between the two 
countries. An earlier treaty of this kind, signed 
in 1911, was terminated in 1940. The new treaty 
was concluded pursuant to article 12 of the Treaty 
of Peace with Japan, signed at San Francisco on 
September 8, 1951, in which Japan declared its 
readiness to enter into negotiations with each of 
the Allied Powers for treaties "to place their 
trading, maritime and other commercial relations 
on a stable and friendly basis." It is designed to 
regulate basic economic relations between the two 
countries in accordance with advanced and en- 
lightened standards of treatment and to direct the 
future development of those relations along mu- 
tually beneficial lines. It contains provisions on 
basic personal freedoms, property rights, invest- 
ment and business activities generally, taxation, 
exchange regulations, the treatment of imports 
and exports, shipping, and other matters affecting 
the status and activities of the citizens and enter- 
prises of either country when within the territories 
of the other. 

Approval of the treaty by the U.S. Senate was 
given subject to a reservation regarding the prac- 
tice of professions, and the Japanese Government 
ratified the treaty with a comparable reservation 
on this subject. Acceptance of the reservations 
by the respective Governments was confirmed by 
diplomatic notes which were exchanged at Tokyo 
on August 29. The texts of the principal notes, 
and of a letter of the Japanese Minister of Foreign 
Affairs explaining certain terms used in the Japa- 
nese reservation, are printed below. 



Notes Relating to Reservations 



Friendship Treaty With Japan 
To Enter Into Force 

'ress release 52S dated September 30 

The instruments of ratification of the treaty of 
'riendship, commerce, and navigation between the 
Jnited States and Japan were exchanged on Sep- 
ember 30 at Washington. The exchange was 
nade by Secretary Dulles and the Japanese Am- 
oassador, Eikichi Araki, at a brief formal cere- 
nony. This action completes the formal pro- 
cedures connected with bringing the treaty into 



United States Note of August 29 communicating Senate 
reservation 



No. 291 



Amebican Embassy, 
Tokyo, August 29, 1953 



Excellency : 

With reference to the Treaty of Friendship, Commerce 
and Navigation between the United States of America 



' For the Department's announcement of the signing, 
see Bulletin of Apr. 13, 1953, p. 531. 

" For text of the President's transmittal message and 
for testimony by Deputy Assistant Secretary Johnson be- 
fore a Senate Foreign Relations Committee subcommittee, 
see ibid., Aug. 3, 1953, p. 160. 



^cfober 19, 7953 



525 



and Japan, sisnied at Tokyo on April 2, 1953, I have the 
honor to inform Your Excellency that the Senate of the 
Unittd States on July 21, 1953, gave its advice and consent 
to tlie ratification of the said Treaty in a resolution as 
follows : 

"Resolved (two-thirds of the Senators present concur- 
rins therein), that the Senate advise and consent to the 
ratification of Executive D, 83rd Consress, first session, a 
Treaty of Friendship, Commerce and Navigation between 
the United States of America and Japan, together with a 
I'rotocol relatini.' thereto, signed at Tokyo on April 2, 
19ri3, subject to the following reservation, which shall be 
agreed to by tlie other High Contracting Party before 
ratifications are exchanged: 

'Article VIII, Paragraph 2, shall not extend to pro- 
fessions, which because they involve the performance 
of functions in a public capacity or in the interest of 
public health and safety, are state-licensed and reserved 
by statute or constitution exclusively to citizens of the 
country, and no most-favored-nation clause in the said 
Treaty shall apply to such professions.' " 

It will be observed that by this resolution the advice 
and consent of the Senate to tlie ratification of the Treaty 
are given subject to a reservation to the provision that 
concerns the practice of professions. 

It is the hope of my Government that Your Excellency's 
Government will find acceptable the reservation which the 
Senate lias made a condition of its advice and consent to 
the ratification of the Treaty. An acknowledgement of 
this Note by Your Excellency prior to the exchange of 
ratifications accepting, on belialf of the Government of 
Japan, the said reservation will be considered as com- 
pleting tlie acceptance by the two Governments of the 
reservation.' 

Accel It, Excellency, the renewed assurances of my most 
distinguished consideration. 

John M. Allison 
His Excellency 

Kat.suo Okazaki, Minister of Foreign Affairs of Japan. 



It is the hope of my Government that Your Excellency's 
Government will find acceptable the above reservation of 
the Government of Japan. An acknowledgement of this 
Note by Your Excellency prior to the exchange of ratifi- 
cations accepting, on behalf of the Government of the 
United States of America, the said reservation will be 
considered as completing the acceptance thereof by the 
Government of the United States of America.* 

I avail myself of this opportunity to renew to Your Ex- 
cellency, Monsieur I'Ambassadeur, the assurances of my 
highest consideration. 

Katsuo Okazaki 



Letter from Foreign Minister Okazaki to Ambasaad.or 
Allison, August 29 

MONSIEUB L'AMRASSADEIXm, 

I have the honour to refer to my Note of today's date 
informing Your Excellency of the reservation made liy 
my Government with respect to the Treaty of Friendship, 
Commerce and Navigation between Japan and the United 
States of America signed at Tokyo on April 2, 1953. 

I wish to inform Your Excellency that the phrase 
"States, Territories or possessions of the United States of 
America, including the District of Columbia, to which such 
nationals belong" used in the said Note shall mean States, 
Territories or possessions of the United States of America, 
including the District of Columliia, where such nationals 
are admitted or licenced to practice such professions, or, 
if such nationals are not admitted or licenced to practice 
such professions in any such areas, where such nationals 
are domiciled. 

I avail myself of this opportunity to renew to Your Ex- 
cellency, Monsieur I'Ambassadeur, the assurance of my 
highest consideration. 

Katsdo Okazaki 



Japanese Note of August 29 communicating Japanese 
reservatio7i 

Monsieur l'Ambassadeur, 

With reference to the Treaty of Friendship, Commerce 
and Navigation between Japan and the United States of 
America signed at Tokyo on April 2, 1953, I have the 
lionoiir to inform Your Excellency that the conclusion of 
tlie Treaty was approved liy the Diet of Japan on August 
7, 1953. In the cour.se of Diet deliberations on the ap- 
proval for the conclusion of the Treaty, the desire was 
expressed that, should any reservation lie made, on l)ehalf 
of the United States of .\merica, with respect to the pro- 
visions of the Treaty concerning the practice of profes- 
sions, the Government of Japan shoidd make similar res- 
ervation with respect to the same provisions. 

Now tliat Your Excellency lias informed nie in the Note 
of today's date of the reservation made on behalf of the 
United States of America, I wish to Inform Yimr Excel- 
lency that my Government has decided to make the fol- 
lowing reservation : 

Japan reserves the right to impose prohibitions or re- 
strictions on nationals of the United Slates of America 
with respoit to [iracticing the professions referred to in 
Article Vlll, paragraph 2, to the same extent as Slates, 
Tenit<iries or pos.sessioiis of the United States of .\merica, 
Including the District of Columhia, to which such nationals 
belong imjiose prohibitions or restrictions on nationals of 
Japan with respect to practicing such professions. 



'The Japanese Foreign Minister, In a note of the same 
date, accepted the U.S. reservation. 

526 



Further Request for Communist Views < 
on Political Conference 



Press release 548 dated October 8 

Following is the text of a message which the 
U.S. Gox^ernm-ent has requested the GovernmeTit 
of Svjeden to tran-imit to the Chinese and North < 
Korean Communists. The U.S. Government has * 
handed copies of the message to the Secretary- 
General, xoith a request that he circulate it to rnemr- 
hers of the United Nations ' 

The governments wliicli ;iie to participate in the 
Conference for our side have been designated and 
are ready to proceed with tlie Conference as soon 
as the necessary preliminary arrangements are ' 
agreed to by your side. For this purpose the U.S. 
Government lias been requested, after consulta- 
tion with the other participants for our side, to 



'Ambas.sador Allison, in n note of the same dale, ae- : 
ceptcd the Japanese reservation on behalf of the U.S. ' 
Government. 

° Circulated as U.N. doc. A/2498 dated Oct. 8, 1953. 



Deparlment of Sfofe Bulletin 



communicate with you and to agree on the neces- 
sary arrangements. As stated in the message 
coiinnunicated to you on September 5," tlie U.S. 
Government is of the opinion that Honolulu, San 
Francisco, or Geneva would provide facilities con- 
ducive to the success of the Political Conference. 
In that message the United States also proposed 
October 15 as an appropriate date for the Con- 
ference to begin. Our side wishes to complete the 
preliminary arrangements as soon as possible so 
that the Conference can begin on that date or as 
soon thereafter as practicable. 

The U.S. Government again inquires whether 
these suggestions for the time and place of the 
Conference ai'e acceptable to the authorities of 
the other side. As you have been infonned,' the 
United States is also prepared to dispatch a repre- 
sentative to meet with your representatives in any 
of the places named above in order to seek agree- 
ment on the necessary arrangements so as to make 
possible earliest convocation of the Conference. 
Tlie U.S. representative would be prepared to 
agree on a time and place for a conference and to 
exchange views looking toward early agreement 
on procedural, administrative, and related ques- 
tions as to arrangements which it might be appro- 
priate to discuss before the Conference begins. 

It will also be open to your side to raise other 
matters at the Conference itself at an appropriate 
time. 

The arrangements for our side were approved 
by the General Assembly on August 28,* after 
careful consideration of alternative proposals. 
Efforts to have the Assembly reconsider these mat- 
ters have been rejected. The arrangements ap- 
proved on August 28 therefore stand. These 
arrangements are entirely reasonable and will per- 
mit the effective implementation of the recom- 
mendation contained in article 60 of the Armistice 
Agreement, which your side proposed and pressed 
for and to whicli both sides agreed. Our side is 
prepared to negotiate in all reasonableness and 
good faith. If your side has any intention of 
carrying out the recommendation contained in the 
Armistice Agreement and of participating in a 
Korean Political Conference looking toward a 
peaceful settlement of the Korean question and 
the withdrawal of foreign forces from Korea, etc., 
there can be no reason for your side to refuse to 
get on with the Conference. 

An early expression of your views on the mat- 
ters raised in these messages is imperative if the 
Korean Political Conference recommended in the 
Armistice Agreement and approved by the Gen- 
eral Assembly is to take place within the time set 
forth in the Armistice Agreement. 



" Xot printed. 

' For text of message transmitted on Sept. 24, see Bulle- 
tin of Oct. 12, 19.J.3. p. 486 
' Bulletin of Sept. 14, 1953, p. 366. 



Mutual Assurances on Points 
of International Tension 

Press release 545 dated October G 

Ai his news conference on October 6, Secretary 
Dulles loas asked a series of questions relating to 
reports that the United States has under considera- 
tion some fonn of nonaggression fact with the 
Soviet Union. He was asked whether such a fact 
was being considered, a.? hetioeen the German Gov- 
ermnent and the U.S.S.R., between the United 
States, United Kingdom, France, and the 
U.S.S.R., or between, some combination of these. 
lie was also asked whether the areas to be covered 
by any mutual assivrances would extend beyond 
Germany. Secretary Dulles made the following 
response to these question's: 

Talk about a nonaggression pact between the 
United States and the U.S.S.R. is a little bit vague 
and somewhat meaningless, because of the fact 
that it can be said that we already have a non- 
aggression pact with the Soviet Union in that we 
are both parties to the Charter of the United Na- 
tions, which prescribes that all of the members 
shall refrain in their international relations from 
the threat or use of force against the territorial 
integrity or political independence of any other 
state. That, broadly speaking, is a nonaggression 
pact, and it would be difficult to add much to it. 

Now, there are special situations where it may 
be appropriate to devise special procedures. In 
my address to the United Nations Assembly at the 
opening of the general debate,^ I referred, for 
example, to the situation in Germany. I said that 
both the Russian people and the Fi-ench people 
have not forgotten what they suffered from Ger- 
man aggression. I said that they are entitled to 
expect assui'ances against anj^ repetition of that. 
I went on to say the German people themselves 
want that also. 

Now that is one of the areas where special action 
might possibly be considered which would be basi- 
cally an application of the principles of the United 
Nations Charter. Germany, of course, is not at 
the present time a member of the United Nations 
and is not itself bound by the nonaggression pro- 
vision of that Charter, which does, however, bind 
both the United States and the Soviet Union. 

There are many possible combinations and per- 
mutations which we are considering. We are dis- 
cussing these with the representatives of the West 
German Government, with Chancellor Adenauer 
and his associates, and with the British and the 
French, who, with us, are in occupation of West 
Germany. I couldn't at this time go into any 
detailed proposals. They are nowhere near con- 
clusion. 

I can only say that the general problem of giv- 

' Bulletin of Sept. 28, 1953, p. 403. 



OcJober 19, 1953 



527 



ing reassurance against a possible resurgence of 
German aggression is a matter which is being 
studied in concert, and I can't make a unilateral 
statement about a matter which, obviously, con- 
cerns closely other governments with whom we are 
working on this subject. Of course, the European 
Defense Community of itself, in my opinion, pro- 
vides the best guaranties that can be given. 

We are giving an intensive study to a possible 
solution of the cause of friction not only in Ger- 
many but wherever such friction exists. Of course, 
Austria involves that situation; Korea involves 
that situation. 

Three areas of great concern are Germany, 
Austria, and Korea, because they are countries 
which are either divided by occupation or subject 
to occupation, so that they are not wholly free and 
independent countries. 

I don't think that the Soviet Union is fearful 
of the aggressive intentions either of Austria or 
of Korea. On the other hand, both of those 
countries occupy positions which could have stra- 
tegic importance, and if it will lielp to solve those 
problems to make clear that we have no desire 
to use those areas as a base for any hostile inten- 
tions of our own, we are glad to do that. You 
may recall, reverting again to my United Na- 
tions speech, that I said that as far as Korea 
was concerned we had no aggi-essive intentions; 
we had no desire to use Korea as a buildup for 
American power on the mainland of Asia ; that our 
desire was to get our men home out of Korea 
as rapidly as possible. That was an indication 
of our policy and intentions as regards tluit area. 

We are constantly attempting to appraise both 
the capabilities and intentions of the Soviet Union. 
Both subjects are elusive, and it is not easy to 
get dependable data upon which to form an opin- 
ion, but obviously, as the danger becomes greater, 
the importance of trying to ascertain both* capa- 
bilities and intentions increases. 

Tlie President and I have repeatedly said that 
we were eagerly looking for some deeds on the 
part of the Soviet Union which would be some 
guide to wliat has been referred to here us their 
probable intentions. So far we have been disap- 
pointed tluit everything that they have said has 
been wholly negative in that respect. Certainly 
the situation has not improved any over the past 
few weeks in view of the refusal on the part of the 
Chinese Communists to make any response to our 
proposals as to the time and j)lace for the Korean 
Political Conference. The Soviet note ^ suggests 



' I. e., tlie Soviet note of Sept. 28 in reply to U.S.-U.K.- 
Freiic-h proposals for a four-power conference to discuss 
Geriiiiiny ami .\ustria. The Secretary's reference Is to 
the following passage: 

"The Soviet Ucivcrnraont liaa noted the fact that the 
achieveiiiciit of an aniii.slic-e in Korea has created a favor- 
ahli- siliiatioii in which to achieve the lessening of tension 
in the international situation. However, recently there 
have been created new difficulties In the solution of the 

528 



that they may want to attempt to propose some 
totally diti'erent kind of conference — a five-power 
conference in place of that. Furthermore the 
negative reaction of the Soviet Union to a confer- 
ence as proposed about Germany; the statement 
that they don't M-ant to have any conference at all 
about Austria — all of those developments of the 
last few weeks have not been encouraging. But 
we are not going to allow ourselves to be dis- 
couraged as long as there is any possibility of 
finding a way of easing tensions, as I say particu- 
larly having regard to the growing, mounting peril 
that there is in the new weapons. 

Other Nato countries are being kept informed 
on the course of those conversations, both through 
meetings in Paris of the members of the Nato 
Council and through talks here, in connection with 
the United Nations meetings. For instance, Mr. 
van Zeeland was here and he had a long talk with 
the President and with myself about the general 
situation. One of the Foreign Ministers, Mr. 
Luns of the Netherlands, is here. I am having the 
pleasure of meeting him at dinner today. No 
doubt we will talk informally then about these 
matters. There is no etlort to keep this whole 
problem a secret. We want to get ideas. Many 
]ieople are interested and can put forward con- 
structive suggestions. 

I have tried on various occasions — perhaps most 
notably in connection with my recent address to 
the United Nations — to emphasize the urgency of 
the situation, having in mind the constantly 
mounting destructive power of weapons, which 
]iuts humanity in greater danger than it has ever 
been in before. In all these matters we are work- 
ing with a very great sense of urgency. We are 
trj'ing to be imaginative, to find new solutions, 
realizing that the stakes are greater now than per- 
haps they have ever been before in history. 



Arrest of Cardinal Wyszynski 

Tress release 530 dated September 30 

In denouncing the arrest and forced retirement 
of tlie Primate of Poland, Cardinal Wyszynski, 
the I'resident expressed the condemnation by the 



Korean problem. The very callinR of a political con- 
ference on the Korean problem is meeting' with serious 
diflaciilties inasmuch as in deliniiig the composition of 
the political conferenc(> at the Seventh Session of the 
General -Assembly as a result of all kinds of measures 
on the part of the United States of .\merica there was 
demimstrated an impermissible one-sidediiess and frross 
underestimation of the importance of actions in agreement 
with such directly interested countries as the Chinese 
Peoples Republic and the Korean Peoples Democratic 
Repulilic. Moreover the success of a ixilitical conference 
in many ways dejiends on the joint elToits of both inter- 
ested sides and the participation of other governments 
which cooperate*! in the acliievement of an armistice 
and which are striving for a definitive regulation of tlie 
Korean problem." 

Departmeni of Slate Bulletin 



American people of this new act of Communist 
terrorism against religion.^ 

It is clear to everyone that the outright war on 
religion conducted by the Polish regime is also 
an attack on the national traditions of which re- 
ligion has always been a vital part. The Polish 
Communists have committed a crime against a 
true leader of the Polish nation, and the memory 
of it will never be erased. 

The American people ai'e profoundly convinced 
that the religious persecution now being carried 
on in Poland will not achieve the purpose intended. 
We are confident that the religious spirit of man 
will not be subdued or extinguished and will re- 
main a sustaining force in Poland during the 
present tragic suffering of the Polish nation. 



U.S., U.K. To Cease Administering 
Zone A of Trieste ^ 

Tress release 547 dated October 8 

The Governments of the U.S. and U.K. have 
viewed with gi-eat concern the recent deterioration 
in the relations between Italy and Yugoslavia 
which has resulted from the dispute over the fu- 
ture of the Free Territoi'y of Trieste. 

Since the conclusion of the Second World War, 
the two Governments have jointly exercised the 
administration of Zone A of the Territory under 
the terms of the Italian Peace Treaty. Similarly, 
the Yugoslav Government has continued to be re- 
sponsible for the administration of Zone B. These 
responsibilities were to be purely temporary and it 
was never envisaged that they should become per- 
manent. For reasons that are well known, it 
proved impossible to reach agreement with the 
other signatories of the Peace Treaty for setting 
up the permanent regime for the Free Territory 
provided for in the Treaty. 

The Governments of the U.S. and U.K., who 
were thus faced with a situation not contemplated 
in the Treaty, subsequently employed their good 
offices on frequent occasions in the hope of pro- 
moting a settlement by conciliation between Italy 
and Yugoslavia. Unfortunately it was noc pos- 
sible to find a solution acceptable to both sides. 
Moreover the recent proposals put forward by 
Italy and Yugoslavia have been reciprocally re- 
jected. 



' At his press conference on Sept. 30, tbe President, in 
commenting on Stefan Cardinal Wysz.vnski's arrest, said 
that he thought the heart of America resented this kind 
of thing very deeply. He expressed his belief that with- 
out freedom of religion and freedom of thought, and with- 
out some evidence that the Communists were willing to 
honor these things and to observe them in some measurable 
degree, it was discouraging to try to reach real under- 
standings in the world. 

" An identical announcement was made simultaneously 
at London by the Foreign Office. 

October 19, J 953 



In these circumstances, the two Governments 
see no alternative but to bring the present un- 
satisfactory situation to an end. They are no 
longer prepared to maintain responsibility for the 
administration of Zone A. They have therefore 
decided to terminate the Allied Military Govern- 
ment, to withdraw their troops, and having in 
mind the predominantly Italian character of Zone 
A to relinquish the administration of that Zone 
to the Italian Government. The two Govern- 
ments expect that the measures being taken will 
lead to a final peaceful solution. 

It is the firm belief of the two Governments that 
this step will contribute to stabilization of a situ- 
ation which has disturbed Italo-Yugoslav rela- 
tions during recent years. They trust that it will 
provide the basis for friendly and fruitful co- 
operation between Italy and Yugoslavia, which is 
as important to the security of Western Europe as 
it is to the interests of the two countries concerned. 

The withdrawal of troops and the simultaneous 
transfer of administrative authority will take 
place at the earliest practicable date, which will be 
announced in due course. 



Secretary Expresses U.S. Concern 
for Plight of Albanian People 

Following are texts of letters exchanged hy Sec- 
retary Dulles and Hasan Dosti, chairman of the 
Executive Committee of the National Committee 
for a Free Albania: 



Mr. Dosti to the Secretary 



August 25, 1953 



Dear Mr. Dulles : On the eve of the fourth an- 
niversary of the formation of the National Com- 
mittee for a Free Albania, which took place 26 
August 1949, we the members of the Executive 
Committee present our compliments to your Ex- 
cellency and take this occasion to repeat our 
grateful thanks for the many occasions in the 
course of our brief history when the government 
and people of the United States have shown by 
word and deed their support of the ideals of free- 
dom and justice, which are the objectives for 
which we work. In the four years of its existence 
the NcFA has devoted its energies to keeping 
alive the spirit of opposition among the people of 
Albania and rallying Albanians abroad in sup- 
port of this purpose. We feel that on this fourth 
anniversary we can say that by our efforts and 
with the help of our American and British friends 
we have made significant progress towards our 
goals. 

Today, as a result of Communist misrepresen- 
tations and liesj a new problem confronts our com- 
mittee in its efforts to keep alive the spirit of re- 

529 



sistance among our brothers in Albania. In its 
propaganda, the Communist regime has attempted 
to convince the Albanian people that its neigh- 
bors on the Balkan Peninsula and, indeed, the 
United States and the United Kingdom have 
agreed to a partition of Albania between the neigh- 
boring states. To us living in the free world, such 
a claim is obviously false, but the Albanian public, 
victimized by incessant propaganda and unable to 
learn the truth except with great difficulty, has 
no reliable means of exposing this lie. 

We have, therefore, been gratified by the state- 
ments recently made by Albania's neighbors mak- 
ing public their views on this question, statements 
which we have the means to publicize inside Al- 
bania itself. We have particular reference to the 
recent communique of the Balkan Pact powers in 
which the governments of Yugoslavia, (itreece and 
Turkey stated, "the independence of Albania 
would constitute an element of importance to the 
peace and stability of the Balkans;" the announce- 
ment of 8 May 1953 by a spokesman of the Italian 
Foreign Office that "Italy's viewpoint on Albania 
is well-known: liberty, independence and terri- 
torial integrity;" and statements by prominent 
Yugoslav officials such as the announcement of 
21 May 1953 by Dr. Mosa Pijade that "a guaran- 
tee of Albania's territorial integrity and sover- 
eignty . . . would fit in with our basic prin- 
ciple : the Balkans for the people of the Balkans." 

We take this occasion to express the hope that 
the United States, to which so many suffering 
people look for material and moral support in the 
common struggle against Communist oppression, 
will find it consistent with its aims to associate it- 
self with the other countries who have given the 
lie to Communist falsehoods concerning the parti- 
tion of Albania. 

The members of the Ncfa wish to take this 
opportunity to express to the United States Gov- 
ernment appreciation for its hospitality to them 
and to all refugees and to convey the hope that 
the United States will continue to fight for the 
freedom of all from Communist oppression. 
Sincerely yours, 



Hasan Dosti 



The Secretary's Reply 



August 27, 1953 

Deau Mr. Dos-n : I thank you for your letter of 
August 25, 1953 written on the occasion of the 
fourlli anniversary of tiie formation of the Na- 
tional Committee for a Free Albania. 

The suffering of the Albanian people under the 
cruel oppression of Soviet tyranny has awakened 
the sympathy of free men everywhere. Isolated 



as they are and unable to speak for themselves, the 
people of Albania desperately need the support 
and assistance of those of their compatriots who 
are now outside Albania and free to speak in be- 
half of their people. As the National Committee 
for a Free Albania has recognized, Albanians in 
the free world, through unity of purpose and ef- 
fort, can perform an invaluable service in support- 
ing the morale of their countrymen and in keep- 
ing alive their faith in ultimate independence. 

To the United States, which has traditionally 
supported the right of all oppressed peoples to 
freedom and liberty, the tragic plight of the Al- 
banian people is a matter of deep concern. This 
Government shall continue its efforts to support 
the Albanian people in their endeavors for the 
establishment of a free and representative govern- 
ment. 

The United States recognizes that the problem 
of future relationships between a free and inde- 
pendent Albania and its neighbors is a matter pri- 
marily for bilateral discussion and solution. 
Under these circumstances recent declarations by 
Albania's neighbors of their peaceful purpose to- 
ward Albania and their intent to support the right 
of the Albanian people to freedom and independ- 
ence, are particularly welcome. These declara- 
tions constitute significant refutation of Com- 
munist charges that Albania's neighbors are intent 
upon partition of Albania. 

I wish to take this opportunity to congratulate 
the National Committee for a Free Albania on the 
work which it has done, in the four years of its 
existence, toward developing a rallying point for 
all Albanians in their struggle for the freedom 
and independence of their country. 
Sincerely yours, 

John Foster Dulles 



President to Visit Ottawa 

White House press release dated October 8 

The President has accepted an invitation from 
the Government of Canada to visit Ottawa. He 
will leave Wasliington for Ottawa on November 
13 and return November 15. On the invitation 
of the Governor General of Canada, Vincent Mas- 
sey, the President will spend one night at Gov- 
ernment House. He will also spend one night at 
the resideiu'e of the American Ambassador. R. 
Douglas Stuart. It is expected that he will bo 
invited to address a joint session of the Canadian 
Parliament on November 14. 

liouis St. Laurent, Prime Minister of Canada, 
was the guest of the President at Blair House May 
7 and 8. 



530 



Department of State Bulletin 



U.S. Support for U.N.'s Technical Assistance Program 



Statement hy Henry Ford II 

U.S. Representative to the General Assembly ^ 



IT. S. delegation press release dated October 2 

I am lionored to represent my country at the 
United Nations at this important time in our lives. 
I personally believe, as do most Americans, that it 
is essential for the nations here to find a way of 
working together on terms that will give people 
everywhere a real chance to live and prosper in 
dignity and mutual respect. 

I am especially pleased to deal with technical 
assistance, because this is one of the most effective 
means of helping peoples to overcome conditions 
which breed unrest, tyranny, and war. 

The United States believes in the United Na- 
tions technical-assistance program. We believe in 
it because of a deep-seated humanitarian tradi- 
tion. We believe in it because we know that the 
relief of poverty and ignorance and miserj is es- 
sential for lasting peace. This program is a sound 
investment in world stability for the future. 

The American people recognize that the con- 
tinued existence of very low living standards in 
large areas of the woi"ld is unhealthy. AVe know 
that the existence of vast depressed areas is a 
heavy drag upon the whole world economy. The 
American people, who have experienced the bene- 
fits of a vigorous and prosperous economy, have 
a real stake in the development of similar situa- 
tions abroad. We are not interested in ex])loiting 
anybody. We are interested in the mutual ad- 
vantages which flow from an unfettered exchange 
of skills, goods, and ideas with other peoples. 
This is neither altruism nor imperialism — it is 
simply enlightened self-interest. 

In the modern world, no nation can go it alone — 
in economics any more than in politics. 

The United States is proud of its contribution 
to the United Nations technical-assistance pro- 
gram; proud of having helped establish it; and 
proud of having carried a major share of the bur- 
den, about eight times more than the next largest 
contributor. This has been an important part of 

' Made on Oct. 2 In Committee II (Economic and Finan- 
cial). 



our unparalleled efforts since World War II to 
help others build a better life. 

In this connection, let me dispel any doubts 
about the United States fulfilling its commitment 
under this year's program. The United States is 
going to put up every cent of its share of this 
year's contributions. 

The rate at which our contribution will actually 
be made available depends, of course, on the rate 
of payments by other countries. As the members 
of the Committee are aware, the United States is 
pledged to make available, within the total amount 
pledged, 60 cents for evei-y 40 cents contributed 
by the other participating countries. 

Most Americans clearly undei'stand the need for 
multilateral action in tlie technical-assistance field, 
as distinct from the bilateral activities being car- 
ried on by various nations. The broad problems of 
the development of the world economy are world 
problems which call for action on a worldwide 
scale. There are limits to wliat any one country 
or small group of countries can do — in terms of 
money and, more important, in terms of quali- 
fied technical personnel. The world needs the best 
skills it can get. 

There is perhaps less understanding of the im- 
portance of technical assistance as a means of 
strengthening the United Nations itself. Too 
often, people not familiar with the United Na- 
tions think of it as an inconclusive debating so- 
ciety, where nothing really gets done. The real 
work that does get done, the human progress made 
from day to day in a thousand villages around 
the world, is often overlooked or ignored. 

The technical-assistance program, and the ac- 
tivities of the specialized agencies, account for the 
ei^ht-tenths of the iceberg which, although often 
siibmerged from public view, provide tlie broad 
base of international cooperation. To millions of 
people who never hear of political debates, these 
activities are the United Nations, and upon these 
grassroots functions the United Nations may well 
stand or fall. 

Aside from the soundness of the basic concept, 
the actual achievements of the technical-assistance 



October 19, ?953 



531 



profjram to date warrant the continued support 
of all United Nations members. 

At the same time, my delegation believes there 
is room for improvement so that the program 
can be made more effective. 

I think all of us are agreed that every eflFort 
must l)e exerted to make the most effective use of 
the resources available. Only in this way will one 
year's operations justify the next year's contribu- 
tioii.s. Tliere is a danger that what there is to 
spend at the present time may be spread too thin. 
We believe that the program's funds should be so 
concentrated that whatever jobs are undertaken 
will be well done, and provide a basis of solid ac- 
complisliment. The participating agencies must 
establish realistic priorities in dealing with the 
requests submitted by underdeveloped areas. 
Each agency should concentrate on the things it 
can do best. We know it is difficult to establish 
sound prioi'ities and to be firm in refusing requests 
for projects which do not meet those priorities. 
So long as the demand greatly exceeds the supply, 
our resources must be strictly rationed. As prac- 
tical people, all of us must recognize that only by 
showing results can we earn the widespread con- 
fidence which the progi'am deserves. 

It is also important that we find out exactly 
what we are accomplishing. We cannot hope to 
plan intelligently for the future unless we evalu- 
ate the results of our experiences to date. More- 
over, we need a balance sheet of accomplishments 
to help the man in the street understand what 
we're doing. In its 5th annual report,- presented 
to the Economic and Social Council this summer, 
the Technical Assistance Board has started to 
assess the operational results of a number of its 
projects. This kind of analysis is useful and we 
need more of it. 

We also need a larger picture, a look at the 
broad goals toward which this program is moving. 
We should know what it is achieving in specific 
countries. We should know how much progress 
we are making toward our goals. 

The countries receiving assistance can help the 
major contributors and themselves a great deal by 
reporting regularly on exactly how the program 
is helping them, or how it is failing to help them. 
They can tell about the things which they them- 
selves are doing to carry forward the work begun 
by technical-assistance experts. They can tell 
what use is being nuule of the training ac- 
quired by their nationals through the fellowship 
program. 

AVe all know that information of this kind is 
particularly helpful in the yearly effort to get new 
appropi'iations for this work from national 
legislatures. 

In another few weeks, the Fourth Technical As- 
sistance Conference will receive pledges for the 
1U54 program. The method of financing through 



' U. N. doe. E/2433. 
532 



voluntary annual contributions has, by and large, 
been successful. Yet, as we all know, this method 
may cause uncertainties in the development of 
long-range programs which are often needed if we 
are to achieve effective economic development. 

We certainly hope that the forthcoming confer- 
ence will be successful, and that the program will 
have adequate funds to carry forward its work. 

My delegation is particularly encouraged to 
note that in 1953 a number of countries decided to 
contribute to the program for the first time, and 
that others have increased their contributions over 
last year — some of them quite substantially. As 
the chairman of the Technical Assistance Board 
has pointed out, the number pledged to support 
this program has increased steadily — 55 in 1951, 
G5 in 1952, and 70 this year. The Soviet Union 
and Poland are included among this year's new 
contributors. We note this indication of their in- 
terest in the program, and trust that it will prove 
to be a really constructive and positive aid to our 
efforts. Let us hope there is no thorn in this rose. 

This growth in participation is heartening 
progress toward a genuinely international pro- 
gram. In a truly cooperative effort, every gov- 
ernment must contribute its appropriate share, 
and by the same token expand its interest. The 
difference between the largest contribution and 
other contributions should not be such as to en- 
danger the international character of this work. 

While we are proud of the major part which the 
United States has been able to play in the pro- 
gram, we hope that other governments will con- 
tinue to increase their participation. We hope 
that all governments will join in giving all the 
financial resources they can afford. 

With regard to the specific business before us, 
my delegation would be pleased to support a reso- 
lution designed to give effect to the various rec- 
ommendations which were considered at length 
and agreed upon in the Economic and Social 
Council. On the one hand, such a resolution 
should pave the way for the continuation of the 
l)rogram during 1954. On the other, it should 
further the campaign to make the most effective 
use of the resources available to the program. 

Let me add, on a more personal note, that all of 
us who believe in this concept of technical assist- 
ance look forward to the day when the world can 
have a program more adequate to its needs. Wei 
need to close the inunense gap between what men 
could do in theory, and what they actually do in 
practice. Technical assistance is a solid bridge 
between the miseries of the past and the hopes for 
the future. 

Some months ago, President Eisenhower re- 
affirmed a fundamental objective of United States 
foreign policy. He said : 

Tbe p<?nce we seek, foiimleil upon dpcent trust and 
coopetntivc cITi)rt among nations, can be fortitled, not by 
weapons of war luU by wbeat and by (otton, by milk and 
by wool, by mi>at and by timber and by rice. . . • 
These are needs that challcni;e this world in arms. 

Department of State Bulletin 






This is our challenge. Has mankind the imagi- 
nation and courage to use its material and spirit- 
ual resources for peace and human well-being, 
instead of self-destruction? The start all of us 
have made through technical assistance is a small 
token of what we can do if the threat of aggression 
can be lifted. Riglit now, we and other free peo- 
ples have no recourse but to strengthen our de- 
fenses, for our freedom is our most precious her- 
itage. Let us hope and work for that time when 
those who are responsible for the terrible tensions 
which make armaments necessary, will turn aside 
from their old course and join with us whole- 
heartedly to bring the peace the world so desper- 
ately wants. The hour is late, and free peoples 
everywhere await the answer 



Continuation of UNICEF 
on a Permanent Basis 

S^hitement hy Mrs. Oswald B. Lord 

U .■^. Representative to the General Assembly^ 

L'.S, delegation press release dated October 5 

It is fitting that today, proclaimed as World's 
Children Day, we should gather here in the Gen- 
eral Assembly and, all nations together, dedicate 
Durselves to the purpose of strengthening collec- 
tive responsibility for the welfare of children. 

When the United Nations International Chil- 
:lren"s Emergency Fund came into being, there 
«ere untold millions of children all over the vvoi'ld 
in desperate and immediate need. There were 30 
nillion children in Europe alone. This was a 
challenge to all nations. Out of this crisis came 
he beginning of a large-scale demonstration that 
rovernments and peoples working together 
hrough an organization like the United Nations 
ould collectively meet a problem beyond solution 
f countries worked toward solving it alone. 

I, personally, was a witness to those early days — 
'or this tragic situation resulted as far back as 
.946 in the forming of a United States committee 
ledicated to helping Unicef meet not only the 
iluropean emergency but similar ones throughout 
he world. 

As chairman of the United States Committee 
or the Unicef, I have seen the program in oper- 
tion, first in the early days in Europe and later 
n Latin America. I have been in close touch 
pith personal friends who have returned lately 
fter seeing the program in operation in Asia and 
i-frica. 



' Made on Oct. 5 in plenary session. For an article 
y Martha M. Eliot, U. S. representative on Unicef, see 
;ui.LETiN of Aug. 31, 1953, p. 288. 



As far back as 1948 I visited a little schoolhouse 
in the Tyrol and saw a part of the 350,000 Aus- 
trian schoolchildren digesting their geography in 
the form of school lunch rations, making a memory 
game out of naming Unicef's food and the coun- 
tries the foods came from. I can hear them re- 
citing now — 

Meat from Australia 
Sugar from Culia 
Cod-liver oil from Iceland 
Milk from the U. S.— 

etc. etc. 

They called it "learning geography through 
good will." 

In another country I saw a group of orphans, 
70 of them, with 70 smiles that had cost one dollar ; 
for with a one-dollar bill all of these 70 children 
had received a glass of milk — orphans needing 
Unicef to help make up for deficiencies caused 
by insufficiently cultivated lands and drought- 
depleted herds. 

In the small town of Trebihoth in the Bohemian 
hills, I saw the beginning of the vast BCG cam- 
paign carried on with the World Health Organi- 
zation. Children streamed toward the small 
schoolhouse where a Scandinavian team of a doc- 
tor and nurses waited to test and vaccinate the first 
of over .50 million children who have since been 
tested and over 22 million who have been vacci- 
nated against TB. Cost? One dollar to test and 
vaccinate 8 children. I saw children in Italy 
where having no shoes was still the common rea- 
son for missing school. 

I have talked to friends recently returned from 
Indonesia who reported to me that 10 million in 
that country have suffered from yaws— that '"trop- 
ical child-crippler"— and that today Unicef and 
Who, working together under a program of the 
Indonesian Government, are demonstrating to the 
world that for 15 cents' worth of penicillin per 
child a child can be cured. In the campaign 
against yaws, bejel, and syphilis in Asia, Eastern 
Mediterranean, and Latin America, Unicef has 
already examined over 11 million and treated over 
3 million, and an additional 9 million need treat- 
ment in Asia alone. 

On my last trip to South America I could cheer 
with others that the campaign against malaria, 
typhus, and insect-borne diseases in 1953 would 
protect over 9 million. 

Hand in hand with these campaigns and these 
pilot technical assistance programs goes the un- 
spectacular work of building a network of per- 
manent services for children — infant health and 
welfare centers where mothers can go to get help 
in taking care of their children. 

I have seen some of these moderate makeshift 
centers, situated in the back of a schoolroom or in 
a church or temple, serving their purpose until a 
better place is possible. 



)cfober 19, 1953 



533 



Unicef, I found out, provides the scales, the 
thermometers, the midwifery kits, and other equip- 
ment not available, and of course, as in all Unicef 
programs, the government or the local community 
shares the responsibility and provides the rest. 
I was told that these programs are causing minor 
public health and welfare revolutions in some 
countries, raising standards and practices; and 
that, because this work is not a give-away pro- 
gram, governments are spending more than they 
ever anticipated. Some health and welfare 
budgets are being increased as much as 300 percent 
in 3 years. 

During war years children take chaos for 
granted ; they become used to violence ; they wit- 
ness tyranny; they do not play war — they are 
part of it. I saw many of these children immedi- 
ately following World War II : young bodies so 
weakened, their legs and arms resembling sticks ; 
eyes were deep sockets; lives that had been held in 
storage, but, fortunately not all became dead 
storage. 

Unicef, after dealing with these acute emer- 
gencies, is now dedicated to long-term work of 
overcoming chronic problems in the underdevel- 
oped areas. We in the United States welcome the 
recognition Unicef has given to the urgent need 
of underdeveloped countries. We know that an 
unhealthy child can become economic dead weight, 
imposing a burden on family and community. 
Many, many millions go througli unproductive 
adult lives for ills acquired in childhood — diseases 
that a little money and a little know-how can 
wipe out. None of our hopes for our children or 
none of the high ideals for which we are struggling 
can be realized unless the citizens of tomorrow 
grow up strong in body and in spirit. 

Our efforts on behalf of the children of today 
will help insure a solid basis for the fruition of 
the other great undertakings of the United 
Nations. 

For tliese reasons, Madam President, the United 
States delegation takes great pleasure in inform- 
ing the General Assembly that the United States 
favors, as it did at the recent session of the Eco- 
nomic and Social Council, the continuation of 
Unicef as reconuaendcd in the resolution adopted 
unanimously by the Council,^ with tlie understand- 
ing that it does not imply a connnitment of any 
kind as to future contrilmtions to Unicef by the 
United States. The United States delegation will 
vote in favor of the draft resolution which is bo- 
fore the Assembly.^ 



'495 (XVI). 

' U.N. (Inc. A/L.lO.'i. Tlie resolution, which continues 
tlie Fund in existence under llie name "United Nations 
Children's Fund" (retaining the .synihol Unicef), was 
adopted unanimously on Uct. C. 

534 



The United States has always contributed its 
proportionate share to this humanitarian program, 
and at this time it gives us great pleasure to an- 
nounce that within the next few days Unicef will 
receive from the United States a check for $9,- 
814,333, representing our contribution for the cal- 
endar year 1953. 



U.S. Delegations to 
International Conferences 

Committee for European Migration 

The Department of State announced on October 9 (press 
release 553) that the U.S. Government will be repre- 
sented at the sixth session of the Intergovernmental 
Committee for European Migration, opening at Venice on 
October 12, by the following delegation : 

U.S. Representative 

W. Hallam Tuck, Director, Board of Allied Chemicals 

Alternate U.S. Representatives 

Dorothy D. Houghton, Assistant Director for Refugees 

and Migration, Foreign Operations Administration 
Chauncey W. Reed, U.S. House of Representatives 
Francis W. Walter, U.S. House of Representatives 
Arthur V. Watkins, U.S. Senate 

Advisers 

George L. Warren, Adviser on Refugees and Displaced 
Persons, Department of State 

Walter M. Besterman, Staff Member, Committee on Ju- , 
diciary, U.S. House of Representatives 

Richard R. Brown, Director, Office of Field Coordination, 
Escapee Program, Office of the U.S. High Commis- 
sioner for Germany 

David E. Christian, Chief, Manpower and Labor Econom- 
ics Section, European Labor Division, U.S. Mission 
to the North Atlantic Treaty Organization and Euro- 
pean Regional Organizations 

Dayton H. Frost, Refugees and Migration Staif, Foreign 
Operations Administration 

William C. Affeld, Jr., First Secretary and Consul, Chief 
of Consular Division, American Embassy, Vienna 

Guy J. Swope, Chief, Displaced Populations Division, 
Office of the U. S. High Commissioner for Germany 

Harold R. Thain, Chief, Escapee Program Unit, Office of 
the U.S. Political Adviser, Trieste 

The fifth session of the Intergovernmental Committee 
for European Migration was held at Geneva April 16-24» 
1953. 




Recess Appointment 

The President on October 5 appointed John E. Peurifoy! 
to be .Vmbassador to Guatemala. 

Department of State Bulletin' 



I 



October 19, 1953 



Ind 



ex 



Vol. XXIX, No. 747 



Agriculture 

Surplus commodities for relief of Bolivia 518 

Aid to Foreign Countries 

U.S. support for U.N.'s technical assistance program 

(Ford) 531 

American Principles 

Policy problems in the Far East (Robertson) .... 519 

The power of moral forces (Dulles) 510 

A standard for Americans . 507 

American Republics 

Strengthening Inter-Amerlcan ties (Cabot) .... 513 
BOLIVXA: Surplus commodities for relief of Bolivia . 518 

Asia 

JAPAN: Friendship treaty with Japan to enter Into 

force (texts of notes concerning reservations) . . 525 

KOREA: Further request for Communist views on 

political conference 526 

PHIUPPINES: Objectives of U.S. policy In the PhU- 

ippines (Bell) 523 

Policy problems in the Far Kast (Robertson) . . . 519 



Check List of Department of State 
Press Releases: October 5-9, 1953 

Releases may be obtained from the News Division, 
Department of State, Washington 25, D.C. 

Press releases issued prior to October 5 which 
appear in this issue of the Bulletin are Nos. 528 
and 530 of September 30. 



No. 



Date 



Subject 

Community Chest 

Perilman, Weigel : Trip to Germany 
Exchange grants announced 
Cabot : Latin America 
Dulles : Nonaggression iiacts 
Note from Viet-Nam 
Administration of Trieste 
Korean political conference 
Robertson : Policy on Far East 
Dulles : Power of moral forces 
Kalijarvi : German debts 
German debt settlements 
European Migration Committee 
U.S. prisoners in China 

* Not printed. 

t Held for a later issue of the Bulletin. 



*541 


10/5 


*542 


10/5 


*543 


10/5 


544 


10/(3 


545 


10/6 


t546 


10/7 


547 


10/8 


548 


10/8 


549 


10/8 


550 


10/9 


t551 


10/9 


*552 


10/9 


553 


10/9 


t554 


10/9 



Atomic Energy 

Soviet progress In development of atomic weapons . . 508 

Canada 

President to visit Ottawa 530 

Communism 

Arrest of Cardinal Wyszynski 628 

Europe 

ALBANIA: Secretary Dulles expresses U.S. concern for 

plight of Albanian people 529 

POLAND: Arrest of Cardinal Wyszynski 628 

TRIESTE: U.S., U.K. to cease administering zone A 

of Trieste 629 

U.S.S.R.: 

Mutual assurances on points of international ten- 
sion (Dulles) 527 

Soviet progress in development of atomic weapons . 508 

Foreign Service 

Recess appointment (Peurlfoy) 634 

International Meetings 

U.S. DELEGATIONS: Committee for European 

Migration 534 

Trade 

Importance of Far East's trade 620 

Treaty Information 

Friendship treaty with Japan to enter Into force 

(texts of notes concerning reservations) .... 525 

United Nations 

Continuation of Unicef on a permanent basis . . . 633 
Further request for Communist views on political 

conference 626 

U.S. support for U.N.'s technical assistance program 

(Ford) 631 

Name Index 
Bell, James D 523 

Cabot, John M 513 

Dosti, Hasan 529 

Dulles. Secretary 510, 527, 529 

Elsenhower, President 507, 508, 518, 520, 528, 530 

Ford, Hem-y n 631 

Lord, Mrs. Oswald B 533 

Peurlfoy, John E 634 

Robertson, Walter S 619 

Wyszynski Cardinal 528 




the 
Department 

of 
State 




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Vol. XXIX, No. 748 
October 26, 1953 




U.S. DEPENDENCE ON FOREIGN TRADE • Address by 

the President ••••••••••••••• 539 

THE NEW INTERNATIONAL SUGAR AGREEMENT • 

Article by Paul E. Callanan ,.,.,,..,,, 542 

ENFORCING STRATEGIC TRADE CONTROLS • Report 

to Congress on the Battle Act •>•• 569 

FOREIGN MINISTERS MEET AT LONDON .... 546 
INTER-AMERICAN COOPERATION AND 

HEMISPHERE SOLIDARITY • by Assistant Secretary 
Cabot •.... 554 

THE UNITED NATIONS IN FOCUS • by James J. 

Wadsworth 559 



For index see inside back cover 



^9MT o» 



Toston Public 1^! ran' 
Superintendent of Documents 

NOV 16 1953 




%yAe 



z/Je^ia/yi^e/nl^ ^^ t/late V^ W X JL \D L J. A X 



Vol.. XXIX. No. 748 • Publication 5229 
Ocifher 26, 1953 



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Note: Contents of this publication are not 
copyrighted and Items contained herein may 
be reprinted. Citation of the Okpabtuknt 
or State Bulletin as. the source will bo 
■ppreclated. 



The Department of State BULLETIN, 
a weekly publication itsued by the 
Public Affairs area, provides the 
public and interested agencies of the 
Government with information on 
developments in the field of foreign 
relations and on the tcork of the 
Department of State and the Foreign 
Service. The BULLETIN includes 
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policy issued by the White House 
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and addresses made by the President 
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officers of the Department, as well aa 
special articles on various phases of 
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U. S. Dependence on Foreign Trade 



Address by the Preside id 



We are today observing the anniversary of an 
event which ranks with the most important in 
our history. 

The Louisiana Purchase eifectively doubled the 
area of our young nation, brought this country 
unimagined wealth, and gave us strength and in- 
ternational influence beyond the dreams of our 
nation's founders just twenty-five years earlier. 

We are observing the anniversary of an act 
which— though born of other nations' conflicts — 
involved the death of not a single American sol- 
dier. It was, for the United States, an act of peace. 
It was also an act of vision and of daring. 

It was daring for a new-born nation — lacking 
ill modern communications making for unity— 
:o venture into a huge, unexplored area of un- 
inown natural hazards and little-known inhabi- 
ants. It was daring for such a nation to accept 
50 heavy a debt as this unique purchase imposed 
ipon it. 

It was daring for our two negotiators in Paris — 
-.ivingston and Monroe— to decide to accept Na- 
)oleon's surprising offer without fear of repudia- 
lon by their national leaders separated from them 
y the breadth of an ocean. It was daring for our 
'resident- Thomas Jefferson— to support their 
lecision instantly and to face squarely the opposi- 
lon not only of foreign powei-s but of political 
ritics of gi-eat passion and small vision. 

ouisiana Purchase Justified Beyond Measure 

That daring— typically American— has been 
istified in rare measure. It has been justified to 
n extent which staggers the mind ; to an extent 
hich, mathematically, is almost incalculable. 

What once was the Louisiana Territory today 
nbraces 6 of our 48 states and large parts of 

others. It was 900,000 square miles. It is 
:)rdered by a river almost unmatched in length 
id unsurpassed in majesty. 

The bounty of this area has been even more 

'Made at New Orleans on Oct. 37 and released to the 
less by the White House on the same date. 

cfober 26, 7953 



phenomenal than its size. Its total cost, after all 
other increments were added to the $15,000,000, 
was $23,000,000— the cost today of a single Navy 
cargo ship. For this outlay, what did America 
get? 

Let me give you one interesting example : 

One single state — of the 13 originally involved 
in the purchase— recently reported the value of one 
single crop in one single year. 

The State was Iowa. The crop was corn. The 
value was over $700,000,000. This sum is 30 times 
as much as was paid for the entire Louisiana 
Territory. 

Only one other example shall I give you. It 
concerns this city of New Orleans, and specifically, 
one part of this city— the port of New Orleans. 
During the first 4 months of this year, there passed 
from the fields and cities of America, through the 
port of this city, exports valued at more than $250,- 
000,000. And this is a sum eleven times greater 
than the cost of the whole Territory. 

Foreign Trade Vital to Our National Life 

Now I find this last example singularly mean- 
ingful—not to New Orleans alone but to all 
America. For here we see dramatically high- 
lighted one of the critical facts of our national 
life — our dependence on foreign trade. 

We all know that New Orleans has always been 
a vital American port. As you well remember, it 
was closure of this port that sharpened our Na- 
tion's anxiety to buy from France the area around 
this city — to insure our frontiersmen this essential 
gateway to the open sea. 

The passage of a century and a half has deci- 
sively underscored the need of that day. For to- 
day our whole economy tunis and depends upon 
the commerce of the world through such ports as 
this. 

Through such ports as this on the Gulf, on two 
oceans, on the Great Lakes, come almost all the 
tungsten used in our tool steel— almost all the 



539 



nickel, practically all the chromite used in stain- 
less steel. 

The tin used in canning our food, the columbite 
and the cobalt that are needed in the manufacture 
of high alloys, the manganese that goes into our 
American steel, the hemp for our ropes and haw- 
sers—all these come, almost exclusively, from 
foreign markets. 

This dependence of our industry is certain to in- 
crease as the tempo of our industry increases. It 
highlights the most compelling practical reason 
why we must have friends in the world. We know 
that nations of hostile intent would not trade 
with us except as it suited their own convenience. 
And this means that hostile rule of areas supply- 
ing us essential imports would place the American 
production line at the mercy of those who hope for 
its destruction. 

But foreign trade means much more than the 
obtainiiig of vital raw materials from other na- 
tions. It means effectively strengthening our 
friends in the world at large — strengthening them 
not only to fortify their own economies — not only 
to be mdependent of direct financial aid from 
wealthier nations — but also to buy from us what 
we must sell to the world. 

By making it possible for our friends to sell 
their products to us, we thus at once help them to 
be strong and enable them to earn the dollars by 
which they can, in turn, help our economy to be 
healthy and progressive. 

Clearly, we need these friends abroad, just as 
they need us. 



The Export Picture 

Consider some of our agricultural products 
which demand foreign markets, many of those 
products coming from the land originally involved 
in the Louisiana Purchase and much of them flow- 
ing through this port. 

In the crop year 1951-52 : 

^Of all the barley produced in this year, 
more than 12 percent was paid for outside our 
borders. 

^Almost 50 percent of all our wheat was paid 
for in foreign markets. 

IfAlmost 60 ])ercent of our entire rice crop was 
bought by other nations. 

Witli nonagricultural ])roducts, the facts are 
much the same. Half a million of our refrigera- 
tors and home-type freezers, more than $30,000,- 
000 worth of our sulphur, more than $250,000,000 
worth of our machine tools and our agricultural 
nuichinery, more than a quarter of all the lubri- 
cating oil, and almost half of all our copper sul- 
l^liatt — all those were paid for in foreign 
countries. 

Now these facts and figures affect every Ameri- 
can no nuitter who he is — all who work on our 
farms, all who labor in our industries. They can 

540 



signify — for our whole economy — the difference 
between productive profit and paralj'zing loss. 

This is a partial measure of the material mean- 
ing of foreign trade to America. 

And this dramatizes, with sharp clarity, the 
lole that New Orleans has played in helping this 
country form and sustain the international 
friendships which we need and cherish. 

Through such gateways as New Orleans, we 
have been able to trade with these friends on a 
fair and mutually profitable basis. We have been 
able to cooperate with them in projects developing 
their physical resources. 

There has been for a century and a half a stream 
of visitors flowing in both directions — from other 
countries to this, and from this to other countries. 
Through the knowledge and mutual understand- 
ing gained and spread by these people, there have 
been built friendships based upon mutual respect, 
mutual liking, and mutual need. Such friendships 
are many. 

But there must be more. They must be 
stronger. They must be deeper. I think that al- 
most any American traveling abroad these days 
experiences occasionally a sense of shock when 
he recalls an opinion about Americans in general 
held abroad that seems to that American visitor 
to be so far from the truth. 

He finds Americans considered immature diplo- 
matically • impulsive, too proud of their strength, 
ready to fight, wanting war. He is shocked. 

He is considered rude; even his deportment isi 
not admired because of unfortunate incidents on 
the part of individuals. 

These friendships of which I speak, my friends^ 
are so vital to us that no American, no matter he? 
exalted or how lowly may be his station, can afford 
to ignore them. 



Every American Speai(S for America 

Each of us, whether bearing a commission from 
his Government or traveling by himself for pleas- 
ure or for business, is a representative of the 
United States of America and he must try to por- 
tray America as he believes it in his heart to be: 
a peace-loving nation living in the fear of God 
but in the fear of God only, and trying to be part- 
ners with our friends. And we accept for a 
frieiul anyone wlio genuinely holds out the hand 
of friendship to us as we do to them. 

And now this great jiort must meet the challenge* 
of coming decades. It offers foreign shijipers 40 
miles of riverfront. It is enhanced by a foreign 
trade zone. Its modern facilities are daily being 
enlarged and improved. It is manned by workers 
celebrated for their skill, their enthusiasm, and 
their vigor. ; 

It is an inspiring symbol not only of the vastly 
prosperous area whose anniversary we are tliisyear 



Department of State Bulletin 



I 



celebrating but of the luitioii it has served for the 
past 150 years. 

And with every item of commerce that comes in, 
with every one that goes out, let us strive to see 
that it is packaged in understanding and liandled 
in friendship. 

Here, in the port of New Orleans, we see re- 
flected America's strength, her vitality, her confi- 
dence, her irrepressible desire for improvement, 
her magnificent ability to meet resourcefully the 
demands of changing times. 

It has been thus in New Orleans, in the Louisi- 
ana Territory, throughout the United States, dur- 
ing the past century and a half. 

With God's help, with our friends in the world, 
and with unity among ourselves, it will continue 
to be so throughout all the years that lie ahead. 



Representative Government: 
An Expression of Faith 

Remarks hy the President ^ 

On behalf of the administration it is my very 
great pleasure, and my most pleasant duty, to wel- 
come here the delegations from the member nations 
of the Interparliamentary Union, as well as all of 
their guests from other countries and representa- 
tives from the United Nations. 

Believing as we do that there is no future for 
progress and civilization unless the conference 
table supplants the battleground as the arbiter of 
disputes, you can well luiderstand the satisfaction 
of my associates, and of myself, that this meeting 
takes place in this Capitol of the United States of 
America. 

Moreover, as we see it, there is a particular sig- 
nificance attaching to this particular kind of meet- 
ing. Most conferences are made up of appointed 
delegations representing the governments by 
wjiicli appointed, but only hopefully and often 
;only occasionally representing the peoples of the 
nation that that government controls. 

Representative government is an expression of 
faith that free people can govern themselves. 
Consequently, since public opinion in a free coun- 
try is the power and the force that gives validity 
to every proposal, the nearer we can come to bring- 
ing together the public opinions of nations, rather 

' Made before the 42d conference of the Interparliamen- 
tary Union at Washington on Oct. 9 and released to the 
press by the White House on the same date. 



than merely their governmental representatives, 
the greater significance and the greater importance 
should apply to such a meeting. 

Parliaments, first instituted among men long, 
long ago, are the symbol of public opinion. They 
are not only the symbol of that public opinion; 
they are the nearest approach we may make to 
bringing public opinion into one spot, crystalliz- 
ing it and giving it expression — expression that we 
ourselves may understand and that others may un- 
derstand. Consequently, when the actual mem- 
bers of such parliaments meet together, it is not 
only a renewed expression of faith that free men 
can govern themselves, but that they understand 
that this system of government must necessarily be 
one whole throughout the world where people 
practice it. It cannot be separate, distinct, in any 
one nation. 

To put it another way, it seems quite clear that 
free government could not possibly exist in any one 
nation alone. If any country, no matter how pow- 
erful, were an island of representative or free or 
democratic government, surrounded by dictators, 
it would soon wither away and die. It would, 
itself, have to become a dictatorship. 

Consequently, I repeat, the stronger we can make 
this union among nations that choose to govern 
themselves the more certainly will it exist in each 
of our nations, now and forevermore. 

For one who has had the task of helping to 
promote understanding among allies as they ap- 
proached a military campaign and the battlefield, 
I have often wondered why it is so difficult for 
nations to reach the kind of accord in peace that 
they are forced to reach in war. 

Now, the cynic says it is because you use the 
word "forced," forced by a great fear to get to- 
gether — in the words of an old sage of ours, "hang 
together or hang separately." I refuse to admit 
that men cannot operate — free men — cannot oper- 
ate as effectively on a constructive basis as they 
can when their sole purpose is the negative one of 
saving themselves from destruction. 

And so, to each individual gathered here, I ex- 
press, first, my satisfaction that you are here. Sec- 
ondly, my great faith that you can contribute 
something to this concept and this ideal of free 
government that is so dear to all of us. And 
thirdly, that in doing so you will have the satis- 
faction of knowing you are moving along the con- 
structive road of progress, and not merely banding 
yourselves together to achieve only the defensive 
or negative concept of mere physical security. It 
is a great faith that must march forward. It 
cannot stand still. 



Ocfober 26, 7953 



541 



The New International Sugar Agreement 



hy Paul E. Callanan 



A new International Sugar Agreement was con- 
cluded at London on August 24, 1953. The suc- 
cessful Conference, called under the auspices of 
the United Nations, marked the end of a long 
series of discussions and negotiations which began 
exactly 5 years earlier. It was on August 24, 1948, 
that the International Sugar Council, administra- 
tive body of the sugar agreement of 1937, ap- 
pointed a special committee to conduct a continu- 
ous review of the world sugar situation and to 
examine the need for a new agreement. The 
quota and stock provisions of the 1937 sugar agree- 
ment have been inoperative since the beginning of 
World War II. 

Delegates from 38 countries and observers from 
12 others gave representation at the London Con- 
ference to the principal sugar producing and con- 
suming areas of the world, including the Soviet 
bloc. The U.S. delegation was headed by True 
D. Morse, Under Secretary of Agriculture. Al- 
ternate delegates were Lawrence Myers, Director 
of the Sugar Branch, Production and Marketing 
Administration, U.S. Department of Agriculture, 
and Winthrop G. Brown, Deputy to the Minister 
for Economic Affairs, American Embassy, 
London.' 

Sir Wilfred Eady of the United Kingdom was 
elected Chainnan of the Conference, and his lead- 
ership contributed materially to its success. He 
was assisted by Baron Paul Kronacker of Bel- 
gium and J. M. Tronco.so of the Dominican Re- 
public, who were elected first and second vice chair- 
men, respectively. The agreement negotiated is 
for a 5-year period and will become effective Jan- 
uary 1, 1954, if a sufficient number of Governments 
have ratified by that time. 

Background 

Sugar is an important item in world trade, and 
many countries are singularly dependent for their 
liveliliood on the condition of the world's sugar 
market. Tlie history of sugar is one of extreme 
economic nationalism, bm-densome surpluses and 

' For a coiiiDloto list of meinbors of the U.S. delegation, 
see RuLi.ETi.N of .July 20, 1!)5.'J, p. 87. 



542 



acute shortages, sharp price fluctuations, and 
marked shifts in the pattern of production and 
trade. These disruptive elements in the world's 
sugar commerce have j)ersisted over a long period 
of years. In the main they have resulted from dis- 
locations in supply caused by the impact of war 
and resultant efforts by many countries to produce 
a large part or all of their requirements with little 
regard to comparative advantages. 

Efforts to regulate international marketings of 
sugar also have a long history, beginning with a 
four-power agreement in Western Europe as early 
as 1864. It is noteworthy that the sugar agree- 
ment of 1937 differed from other commodity con- 
trol agreements of that period in that it gave full 
participation to importing countries and thus an- 
ticipated a principle which has since found gen- 
eral acceptance. 

World War II radically altered the pattern of 
world sugar production and trade. To meet press- 
ing needs of the United States and our Allies, 
Cuba's production was rapidly expanded each year 
from the prewar average of 3.2 million tons; de- 
mand continued large in the postwar period, and 
by 1952 a crop of 8 million tons was produced. In 
the Far East, however, the important sugar in- 
dustries of Indonesia, Taiwan, and the Philippines 
suffered such extensive war damage that they have 
not yet returned to prewar levels. The European 
beet-sugar industries were also seriously damaged 
but recovered quickly; their output now exceeds 
prewar production. Increased production in 
other areas also Iiclj)ed overcome the deficit in the 
Far East, and by 1951 total world production of 
sugar was one-third higher than prewar. 

Although consunijition was increasing, it did 
not keep pace with increasing supplies, and a sur- 
plus situation threatened as early as 1949. In the 
summer of 1950 member countries of the Interna- 
tional Sugar Council were engaged in drafting a 
new sugar agreement to meet the situation wlien 
the Korean outbreak temporarily removed all 
fears of a sugar depression. Characteristically,! 
sugar prices doubled in the following year, but by] 
the spring of 1953 prices had receded to their low- ( 
est levels since 1945. 

Department of State Bulletin I 



Principal Features of the New Agreement 

The new sugar agreement has three objectives : 
(1) to assure supplies of sugar to importing coun- 
tries and markets for sugar to exporting countries 
at equitable and stable prices, (2) to increase the 
consumption of sugar throughout the world and 
(3) to maintain the purchasing power in world 
markets of countries largely dependent upon the 
production or export of sugar. 

A basic export quota is assigned to each export- 
ing country. This quota represents the country's 
proportionate share of the world's "free" market 
for sugar. At the beginning of each year, basic 
export quotas are adjusted pro rata so that in total 
they equal the estimated requirements of the world 
market during the year. The agreement declares 
that the price of sugar shall be considered equita- 
ble to both producers and consumers if the world 
price is maintained within a range of 3.25^ to 4.35^ 
per pound. To accomplish this the Sugar Council 
set up to administer the new agi-eement is given the 
authority to make further adjustments in export 
quotas on a pro rata basis whenever the world 
price of sugar moves outside the price range which 
the agreement seeks to maintain. To facilitate 
the stabilization of prices by removing the pres- 
sure of excess supplies, exporting countries are 
obligated to restrict production to the quantity 
needed to provide for local consumption, to fill 
their export quotas, and to maintain the maximum 
stocks permitted under the terms of the agreement. 

Importing countries liave but one principal 
obligation under the agreement. In return for 
the assurance of adequate supplies at fair and 
stable prices, they are obligated to restrict their 
purchases of sugar from nonparticipating export- 
ing countries to the quantity which they purchased 
in a certain base period. This provision prevents 
nonparticipating exporting countries from gain- 
ing unlimited benefits from the agreement with- 
out bearing any of the obligations imposed on 
participating countries. 

In its operative mechanism the new Interna- 
tional Sugar Agreement is basically different from 
the recently extended International Wheat Agree- 
ment. The wheat agreement is a multilateral 
contract to buy or sell specified quantities of wheat 
at certain minimum and maximum prices. The 
sugar agreement contains no obligation on the 
part of importers to buy or exporters to sell at any 
price. It is noteworthy, however, that the new 
sugar agreement is much more flexible in its pro- 
visions than its predecessor, the sugar agreement 
of 1937. Rigidities in the quota structure have 
been eliminated, and the inclusion of a definite 
price goal is a marked improvement. 



The Free Market 

The world "free" market for sugar, which the 
[agreement seeks to apportion among the export- 
ing countries, represents all the export market 



for sugar not filled through special trading ar- 
rangements recognized by the agreement. This 
market was estimated by the Statistical Committee 
at 4.5 million metric tons for the year ending 
August 31, 1953. As lifting of rationing in the 
United Kingdom was imminent, it was decided 
for the purpose of negotiation to consider the size 
of the free market in 1954 as somewhere around 
5 million metric tons. The exporting countries 
present at the Conference originally requested 
quotas of about 7 million tons. Several weeks of 
discussions resulted in the original requests being 
scaled down considerably, and the basic quotas 
as finally adopted total under 5.4 million tons. 
The quotas for the individual countries are shown 
in the following table : 

Metric ton» 
(in thousands) 

Belgium 50 

Brazil 175 

Cliina (Taiwan) 600 

Colombia 5 

Cuba 2,250 

Czeclioslovakla 275 

Denmark 70 

Dominican Republic 600 

France 20 

Germany, Eastern 150 

Haiti 45 

Hungary 40 

Indonesia 250 

Mexico 75 

Netherlands 40* 

Peru 280 

Philippines 25 

Poland 220 

U.S.S.R 200 

Yugoslavia 20 

5,390 

*The Netherlands has undertaken not to export over 
the years 1954, 1955, and 1956, taken as a whole, a greater 
amount of sugar than they import during the same 
period. 

It is generally agreed that the needs of the free 
market will be substantially less than 5.4 million 
tons in 1954. The basic quotas will therefore need 
to be reduced sharply in the first year of the agree- 
ment. In the first place, it remains to be seen 
whether the United Kingdom will need the 500,000 
tons allowed to meet the unrationed demand of its 
consumers. Secondly, much of the sugar needed to 
meet the increased demand has already been pro- 
vided under a special purchase arrangement nego- 
tiated last summer with Cuba and involving over 
a million tons of sugar at concessional prices. 

Imports Excluded From Free Market 

As indicated earlier, the free market by defini- 
tion does not include sugar moving under special 
trading arrangements recognized in the agree- 
ment. All sugar destined for consumption in the 
United States is therefore excluded. The United 
States imports about 3.5 million tons of sugar 
from foreign countries each year, principally from 
Cuba and the Philippines. These imports are sub- 



Ocfober 26, J 953 



543 



ject to quota restrictions under our domestic legis- 
lation, which also regulates marketings of sugar 
from our mainland and insular areas, with the 
result tliat sugar prices in the United States are 
usually higher than sugar prices in the world 
market. 

The bulk of the sugar requirements of the 
United Kingdom and the British Common\yealth 
are also excluded from the free mai-ket. Sugar 
produced in the British Commonwealth is afforded 
preferential tariff treatment and in large part 
assured an outlet at higher than market prices. 
The trade in sugar among the territories and na- 
tions of the British Commonwealth is governed 
by the provisions of the British Commonwealth 
Sugar Agreement of 1951. By assuring a market 
outlet, this arrangement represents an effort to 
reduce dollar expenditures for sugar by increasing 
the available supply in sterling areas. 

The agreement, which runs through 1960, as- 
signs quotas to each producing area of the Com- 
monwealth and in total provides for an increase 
in exports to a level of 2,375,000 long tons. To 
accomplish this the United Kingdom agrees to buy 
1,640,000 long tons at a price negotiated annually 
and relat<>d to the costs of production. For 1953 
this negotiated price was 5.3 cents per pound. 
The residual amount, 735,000 tons, would be sold 
to the preferential markets of the Commonwealth 
at the world market price plus the prevailing tariff 
differential. The Commonwealth agreement has 
been successful in stimulating production, and it 
is anticipated that its overall goals will be reached 
in another year. 

Sugar moving into the Soviet Union from 
Poland and Czechoslovakia is excluded from the 
free market, as are shipments of sugar within the 
French Union. Movements of sugar between 
Belgium, the Nethei-lands, France, and the Fed- 
eral Republic of Germany are also excepted, at 
least up to a net amount of 175,000 tons of sugar a 
year. Thus somewhat less than half the sugar 
moving annually in international trade falls with- 
in the concept of the free market. It is the 
marketing of this nonpreferential sugar which the 
new International Sugar Agreement seeks to 
stabilize. 



Safeguards To Protect Importers 

The purpose of international connnodity con- 
trol agreements is to influence sui)plies and prices. 
The presence and adeciuacy of devices employed 
to protect consumers' interests are therefore of 
immediate concern to importing countries. 

Several provisions in the International Sugar 
Agreement are designed for the protection of im- 
porters from the free market. The principal one 
is an obligation on the part of exporters to main- 
tain certain inventories of sugar. Each export- 



ing country agrees to hold stocks at least equal to 
10 percent of its basic export quota, at a fixed 
date each year immediately preceding the begin- 
ning of its new harvest. Since stocks are nor- | 
mally at their low point at that time of year, this | 
provision assures that they will be in excess of 
10 percent during the remainder of the year. 

These minimum stocks are earmarked to fill 
increased requirements of the free market and 
may be used for this purpose only when the export 
quotas in effect are larger than the basic export 
quotas. The Sugar Council may increase the 
minimum stocks required to 15 percent should it 
determine that conditions warrant the higher 
level. Exporting countries are allowed to carry 
stocks up to 20 percent of their annual production. 
This permissive feature would seem to allow an 
additional factor of protection for importers. 
Exporters can be expected to carry more than a 
minimum level of stocks in order to have sugar 
available for sale should the needs of the market 
increase. 

Because the world's sugar market is sometimes 
faced with abnormal demands arising from 
emergency situations, another provision of the 
agreement undertakes to assure a priority to par- 
ticipating importing countries when such situa- 
tions arise. If the Sugar Council determines that, 
notwithstanding other provisions of the agree- 
ment, the state of demand is such that importers 
are threatened with difficulties in meeting their 
requirements, the Council must design and recom- 
mend measures to give effective priority to those 
requirements. Exporting countries are then ob- 
ligated to give priority, on equal terms of sale, to 
participating importing countries. 

Two other provisions of the agreement operate 
jointly as an additional assurance that world sup- 
plies of sugar will not be reduced below reasonably 
safe margins in order to increase the market price. 
Actual export quotas may not be reduced more 
than 20 percent below basic export quotas. To 
prevent undue hardship, the quotas of small ex- 
porting countries may be reduced bj' only 10 per- 
cent. Even if reductions of this magnitude are 
insufficient to maintain prices within the desired 
range, it is unlikely that many exporting countries 
would be willing to accept more drastic cuts in 
view of the adverse effects on their economies. 
This would be particularly true if the prices of 
other commodities were falling. To permit con- 
tinued operation of the agreement, resort may be 
had to another provision, which empowers the 
Sugar (\)uncil to modify the ]irice range at any 
time. This ilexibility assures that if market con- 
ditions render the maint^'nancc of the chosen price 
range unworkable without intolerable restrictions 
on production, then the price range can be lowered 
ami suspension of the agreement avoided. 

In a situation where commodity prices in gen- 
eral were rising rapidly, the ability of the Sugar 



544 



Department of State Bulletin' 



Council to increase the price range could also be 
important to consumers. Keeping the world price 
of sugar in some reasonable relationship with other 
commodity prices would mean that productive 
forces would not be diverted away from sugar 
toward other commodities with resultant lower 
production and decreasing supplies. 

The voting provisions also assure that import- 
ing countries will have an important voice in the 
Sugar Council. Half of the votes are distributed 
among the importing members and half among 
the exporting members, and, although voting pro- 
visions differ on some matters, importing countries 
have an equal voting power on all decisions taken 
by the Council in the interpretation and operation 
of the agreement. 



The Sugar Council 

An International Sugar Council consisting of 
one member from each of the participating 
countries is established to administer the new 
agreement. A chairman and a vice chairman will 
be selected each year, and these offices will be held 
in alternate years by representatives from import- 
ing and exporting countries. The Council will, 
however, have an executive director as its senior 
officer, to give full-time administrative direction 
to the work of the Council, its executive coirunit- 
tee, and the secretariat. The agi'eement provides 
that the Council shall establish an executive com- 
mittee of 10 members divided equally between the 
importing and the exporting countries and that 
this committee shall exercise such functions as are 
delegated to it by the Council. It is anticipated 
that the executive director, working with the exec- 
utive committee, will thus conduct the day-to-day 
affairs of the Council in the administration of the 
agreement. 

The total of 2,000 votes assigned to the partici- 
pants is divided equally between the importing 
and the exporting countries. In general the votes 
assigned to the individual importing countries 
are related to their average imports. In the case 
i)f the United Kingdom and the United States, 
by far the largest importers, an allocation of votes 
in strict proportion to their imports of sugar from 
foreign countries would have resulted in their 
liaving an overwhelming majority. Accordingly 
their votes were scaled down to 245 each, which, 
taken together, are less than a majority of the im- 
porter votes. On the exporting side votes were 
allocated in relation to average production over 
the past 2 years and to the basic export quotas 
negotiated under the agreement. As Cuba is by 
far the woi'ld's largest producer and exporter of 
sugar and would thus have a preponderance of 
the exjjorter votes on a strict formula basis, Cuba's 
votes were also reduced to 245. 



Decisions of the Coimcil in most matters will be 
by a majority of the votes cast by the importing 
countries and a majority of the votes cast by the 
exporting countries. In a few instances a special 
vote is required, and in such cases a decision must 
be approved by at least two-thirds of the total 
votes cast, which shall include a concurrent ma- 
jority of both sides. A special provision requires 
that, in both regular and special voting, a decision 
taken by a majority of the importing countries 
must include votes cast by not less than one-third 
in number of the importing countries present and 
voting. This increases the voting power of the 
smaller importing countries, whose votes, taken 
together, are only slightly larger than the total 
votes of the United Kingdom and the United 
States. 

The sugar agreement is open for signature until 
October 31, 1953. The quota provisions of the 
agreement will come into force on January 1, 1954, 
if by December 15, 1953, ratifications have been 
obtained from governments holding 60 percent of 
the votes of importing countries and 75 percent 
of the votes of exporting countries. Provision is 
made that, if the required number of governments 
have not ratified the agreement by a certain time, 
the remaining governments may decide to jjut the 
agreement into effect among themselves. 



The Outlook 

On the assumption that the required number of 
countries would sign and ratify the agreement, an 
interim committee of 10 countries has been ap- 
pointed to draft rules of procedure and undertake 
preparatory work. 

The International Sugar Council set up to 
operate the new agreement will hold its organiza- 
tion meeting on December 16, 1953. The most im- 
portant agenda item will be the consideration and 
approval of an estimate of the quantity of sugar 
needed in 1954 to meet the needs of the free mar- 
ket. This estimate will be the base for a pro rata 
adjustment of the basic export quotas negotiated 
under the agreement. 

World market prices have been declining stead- 
ily during the past year. From a high of 3.750 in 
mid-May of 1953 they declined to 3.15^ in early 
October, which is lower than the minimum price 
the agreement seeks to maintain. Excellent sugar 
beet crops are in prospect in both Eastern and 
Western Europe this fall, and the new Interna- 
tional Sugar Agreement will be put to a severe test 
to stabilize prices during its first year of operation. 
It is likely that export quotas will have to be con- 
siderably reduced at the outset to accomplish this. 

Whatever the outcome, the fact that it was pos- 
sible to secure agreement on measures to regulate 
trade in a commodity whose marketing has long 
presented troublesome problems is another bench 



Ocfober 26, J 953 



545 



mark in the history of international cooperation 
in economic affairs. 

*Mr. Callunan, author of the above article, is an 
international economist on the Agricultural Prod- 
ucts Staff, Office of International Materials Policy. 
He was the Defartment of State adviser on the 
U. S. delegation to the World Sugar Conference. 



Foreign Ministers Examine 
Common Problems 



convening of a political conference, as provided 
in the agreement, in order to achieve a peaceful 
settlement of the Korean question. Mr. Dulles 
informed his colleagues of the efforts which the 
United States (iovernment is making to arrange 
a meeting of emissaries of each side. 

The French Foreign Minister gave an account 
of the military results obtained thus far in Indo- 
China, us well as tlie progress made in negotia- 
tions with the Associated States in order to carry 
out the French declaration of July 3. The three 
Ministers agreed that the successful conclusion of 
this war will be an essential step toward the re- 
establishment of peace in Asia begun by the ar- 
mistice in Korea. 



Text of Communique 

The Foreign Ministers of the United Kingdom, 
France, and the United States have completed 
another of their periodic meetings to examine the 
current situation and common problems. The 
present discussions, arranged to follow Mr. Eden's 
return, were held at the Foreign Office October 16, 
17 and 18. 

The three Ministers approved the reply to the 
Soviet Union concerning discussions on Germany 
and Austria. In their notes the three Govern- 
ments have renewed their invitation to the Soviet 
Union to attend an early meeting of the Foreign 
Ministers. 

They hope that the Soviet Union will decide to 
accept. They believe that such a meeting would 
be an invaluable step toward a reduction of inter- 
national tension and a solution of major European 
problems. 

The Ministers examined the problem of Trieste. 
Tliey agreed to persevere in their joint efforts to 
bring about a lasting settlement in that area. 

The Foreign Ministers noted with grave con- 
cern the recent incidents culminating in Israeli 
armed action of October 14 in Qibya, which, ac- 
cording to their information, resulted in serious 
loss of life and property insicle Jordan. 

They recalled the tripartite declaration of ^lay 
25, 19.50,' affirming the determination of their Gov- 
ernments immediately to take action, within and 
outside the United Nations, to prevent any viola- 
tion of frontiers or armistice lines. 

They have therefore jointly requested an ur- 
gent meeting of tlie Security Council to consider 
the tension between Israel and the neighboring 
Arab States, with particular reference to recent 
acts of violence and to compliance with and en- 
forcement of the general armistice agi-eements. 

Tliey reviewed the situation in the Far East. 
In their strong determination to uphold and con- 
.solidate the truce in Korea, the three Governments 
will continue to cooperate in carrying out the 
armistice agreement and to work for the early 



Mr. Eden Extends Invitation 



Press release 562 dated October 13 



Following his resumption of duties as Foreign 
Secretary, Anthony Eden extended to Secretary 
Dulles and to Georges Bidault, Foreign Minister 
of France, an invitation to meet with him at Lon- 
don about October 15 to discuss problems of com- 
mon interest. This invitation has been accepted 
and it has now been agreed among the three Minis- 
ters that the talks will commence on October 16 
and last about 2 days. 

This meeting is in keeping with the practice 
of the three Ministers to consult together at fre- 
quent intervals in one of the three capitals. The 
last such meeting was in Washington in July when 
Lord Salisbury participated on behalf of the 
Government of the United Kingdom.- 



Conference Objectives 

Statement by the Secretary ^ 

Press release 569 dated October 14 

I am leaving tonight for London to consult 
with the Foreign Ministers of Great Britain and 
France. 

Our discussions will be directed to no one single 
problem, but to a series of problems that affect ex- 
isting international tensions. 

The British ami French Governments and peo- 
ples are our allies. We are fortunate to have such 
staunch, proven friends. Our conversations at 
London will have an undeviating objective. That 
objective is to seek out, with all our allies, the 
basis for a lasting jieace. 

I shall bear with me the best wishes of Presi- 
dent Eisenhower for his friend and mine. Prime 
Minister Churchill, on tiio resumption in renewed 



' BuujmN of June 5, 1950, p. 886. 
546 



'For text of tlio llnul coiniiiuiiinue on this meeting, 
see HuLLETiN of .luly 27, 15)53, p. 104. 
* Made at the Washington National Airport on Oct. 14. 

Department of State Bulletin 



health and vigor of his grave official responsibili- 
ties. It will be a further pleasure to find Mr. 
Eden again at his desk in the Foreign Office after 
his severe illness. 

We cannot, of course, expect in a single meeting 
at London to devise solutions for all existing prob- 



lems. We can hope to make some progress in 
finding the way whereby we and others can move 
in unison toward the easing of existing tensions. 
The path toward peace is a broad path, open 
to all who wish to join in efforts to protect man- 
kind from the dark consequences of another war. 



U. S. Reiterates Willingness To Discuss 
International Questions at Four Power Meeting 



U.S. NOTE OF OCTOBER 18 

Press release 571 dated October 18 

Following is the text of a note approved hy the 
Foreign Ministers of the United States, the United 
Kingdom, and France, meeting at London, which 
Arnhassador Charles E. Bohlen, on behalf of the 
United States, delivered to the Soviet Foreign 
Ministry on October 18. His British and French 
colleagues delivered identic notes on behalf of 
their respective governments. 

1. The United States Government in its cus- 
tomai-y close consultation with the Governments 
of the United Kingdom and France, has carefully 
studied the Soviet Government's reply of Sep- 
tember 28 to the proposals of the three Western 
powers for a four-power meeting at Lugano on 
October 15. The Government of the German 
Federal Republic and the German authorities in 
Berlin have also been consulted. 

2. A satisfactory settlement of the problems re- 
lating to Gei-many and Austria is clearly essential 
for any real and lasting relaxation of interna- 
tional tension and is vital to the future of the 
people of those countries. The United States 
Government, recalling its earlier notes of July 15 ^ 
and September 2,^ is firmly of the opinion that 
real progress towards a solution of major inter- 
national questions, including the problem of Euro- 
pean security, can be made by frank discussions on 
Germany and Austria at a meeting of the Foreign 
Ministers of the U.S., U.S.S.R., U.K. and France 
and not by embarking upon a further exchange of 
notes. The U.S. Government trusts that the So- 
viet note reflects a willingness promptly to discuss 
these subjects. 

3. Such a meeting will enable the Soviet Gov- 
ernment to state its views on any aspect of the 
German and Austrian questions which it may wish 



' Bulletin of July 27, 1953, p. 107. 
' Ibid., Sept. 14, 1953, p. 351. 



to present. For its part, the U.S. Government 
welcomes the opportunity to put forward its views 
concerning questions dealt with in its previous 
notes. 

4. As regards the Soviet proposal that the Aus- 
trian question be discussed in the ordinary diplo- 
matic way, it is the view of the U.S. Government 
that diplomatic channels are always available and 
this government will continue to give its most care- 
ful consideration to any Soviet proposal regard- 
ing the treaty which may be thus submitted. 
However, as no progress has been made through 
such channels during the past few years, the 
United States Government is of the opinion that 
discussion by the four Foreign Ministers them- 
selves represents the most practicable way to end 
the present stalemate and reach agreement on a 
treaty. 

6. A solution of the German and Austrian 
questions is long overdue. The Foreign Ministers 
of the United States, United Kingdom and France, 
conscious of the special responsibilities which 
their governments together with the Soviet Gov- 
ernment shai-e in regard to Germany and Austria, 
therefore, desire to consider these questions to- 
gether with the Soviet Foreign Minister as soon 
as possible. Since the date of October 15 orig- 
inally suggested has now passed, the United States 
Government proposes that the Foreign Ministers 
should meet at Lugano on November 9. They 
sincerely hope that the Soviet Government will 
agree to participate. 

6. The Soviet note also proposes an additional 
five power conference to consider measures to 
lessen tension in international relations. The 
United States Government is always ready and 
willing to discuss the underlying causes of such 
tension with a view to their removal. But it 
wishes to do so under conditions which offer rea- 
sonable prospects for positive results and assure 
that the views of the directly interested govern- 
ments are properly represented. Accordingly, 



October 26, 1953 



547 



the United States Government lias already agreed 
to the political conference on Korea in the form 
proposed by the Communist side in the Korean 
armistice negotiations and recommended in the 
armistice agreement and by the United Nations 
General Assembly. It has been proposed that dis- 
cussions shall take place at Panmunjom on ar- 
rangements for the conference. All the five 
governments mentioned in the Soviet note could 
be represented at this conference which it is hoped 
will meet at an early date. Its object is precisely 
to remove one of the major sources of tension in 
the Far East, thus opening the way for an early 
peaceful settlement of other international prob- 
lems now existing in this part of the world. ( )ther 
matters mentioned in the Soviet note, such as the 
disarmament question, are under either current or 
projected discussion in the United Nations General 
Assembly. Indeed, several of the subjects men- 
tioned in the Soviet note were recently inscribed 
on the agenda of the current General Assembly at 
the request of the Soviet Union. In addition, the 
United States Government remains ready to dis- 
cuss through ordinary diplomatic channels any 
points which any government may wish to raise. 
7. Thus, on these various questions, the way 
is open for progress. If in addition a fruitful 
discussion can now take place at Lugano, the way 
would be paved for discussion of other major ques- 
tions and for restoring the necessary conditions for 
peaceful and friendly relations among nations. 



SOVIET NOTE OF SEPTEMBER 28 

[Unofficial translation] 

The Soviet Government confirms receipt of the note of 
the Government of the Uniteil States of America of Sep- 
tember 2 aiisv?ering the notes of tlie Soviet Government of 
August 4 and August 15." Familiarity with the note of 
September 2 shows that in the note of the United States 
Government the questions raised by the Soviet Govern- 
ment, consideration of which would assist in the regula- 
tion of international problems which have come to a head 
and in strengthening of peace and international security, 
have been passed over. 

In its note of August 4, the Soviet Government proposed 
consideration of the question of measures assisting the 
general lessening of tension In the international situation 
and also the German question, including the i)roblcm of 
re-establishment of unity of Germany and the conclusion 
of a iK'ace treaty. In addition to tliis, in the note of 
August 15 the Soviet Government outlined the basic prob- 
lems connected witli the essential tasks of solving the 
German problem. 

Advancing the.se proposals, the Soviet Government had 
and has as its aim the achievement of agreements which 
would answer the asjiirations of jieoples toward the sta- 
bilization of peace and w(mld assist in tiie solution of the 
German problem in accordance with the interests of 
peace-loving ijcoples of Kui-ope as well as of the German 
people itself. The questions raised in the notes of the 
Soviet Govcrnnicnt uniUir relerence luive liy the present 
time acquired still greater signilicance. 



• For testa of the Soviet notes, see ibid., pp. 3.52, 354. 
548 



First of all, concerning the lessening of international 
tension, the importance of which is not disputed in the 
note of the United States Government of September 2. 

The Soviet Government has noted the fact that the 
achievement of an armistice in Korea has created a fa- 
vorable situation in which to achieve the lessening of ten- 
sion in the international situation. However, recently 
there have been created new difficulties in the solution of 
the Korean problem. The very calling of a political con- 
ference on the Korean problem is meeting with serious dif- 
ficulties inasmuch as in defining the composition of the 
political conference at the Seventh Session of the General 
Assembly as a result of all kinds of measures on the part 
of the United States of America there was demonstrated 
an impermissible one-sidedness and gross underestimation 
of the importance of actions in agreement with such di- 
rectly interested countries as the Chinese Peoples Republic 
and the Korean Peoples Democratic Republic. Moreover 
the success of a political conference in many ways de- 
Iiends on the joint efforts of both interested sides and the 
participation of other governments which cooperated in 
the achievement of an armistice and which are striving 
for a definitive regulation of the Korean problem. Also, 
the aggressiveness of the South Korean Syngman Rhee 
clique, which ceaselessly repeats threats to break the 
armistice, draws attention to itself. 

In relation to the Asian countries one must not over- 
look other political problems having particular signifi- 
cance for the national interests of these states and for 
the stabilization of peace which have come to a head. In 
this connection first of all one must point to the necessity 
of reestablishing the legal rights of the Chinese Peoples 
Republic, according to which the reestablishment of its 
inalienable rights in the United Nations Organization 
must be secured, the achievement of which at the present 
time the opposition of only certain states is hindering. 
The unpostponed regulation of such a problem is neces- 
sary in the interests of lessening international tension. 
The same is true of a number of other important prob- 
lems relating to the situation in the countries of South- 
east Asia and the Pacific Ocean. In the regulation of 
such problems as well as to achieve a general lessening 
of tension in the international relations continual par- 
ticipation of the Chinese Peoples Republic Is necessary. 
As Is well known, In laying the very foundations of the 
United Nations Organization the place of China in the 
solution of Pacific problems of peace and security and 
peoples was defined in this very fashion. 

As regards Europe, recent political events in West Ger- 
many have increased the alarm in peace-loving states. 
In West (Jermany, especially in view of pressure on the 
part of foreign circles which base themselves on the big 
German monopolies, the influence of revanchist elements 
is becoming stronger and these elements have again started 
to talk in the language of the aggressive Drang nach Osten 
policy which has already brought not only other peoples 
but also the German people Itself Innumerable misfor- 
tunes. Although the failure of this policy is inevitable, 
the peace-loving states of Europe and in particular the 
neighbors of West tiermany cannot overlook these nega- 
tive facts of political development In Western Germany, 
since in the center of Kurope more and more former Hit- 
lerites are raising their heads and the threat of creating 
a new dangerous nidus of aggression is growing. In its 
note on August 4, the Soviet Government, taking into ac- 
count the danger of the agj-'ressive policy carried on by 
the North Atlantic bloc, emphasized the importance of 
the question of limiting armaments and not pcrnuttlng 
military bases on the territory of other states. 

To pass over considerati(Ui of this (luestion would mean 
to ignore a matter which has the most important signifi- 
cance for lessening inlernatidnal tension. Specifically 
the continuing arms race, especially in connection with 
the accumulation of atomic, hydiogen, and other weapons 
of mass deslnictiun of people, demands that there should 
be no postponement in considering the question of lindtlng 
armaments and outlawing atiuuic. hydrogen, and other 

Department of State Bulletin 



weapons of mass destruction with the establishment of 
effective international control over the execution of the 
appropriate agreements concerned. Nor may one deny 
that the creation by certain powers in the countries of 
Europe, Africa, and Asia of air and sea bases, especially 
numerous near the borders of the USSR and countries of 
the peoples democracies, has aggressive aims. Refusal 
to consider the question of military bases on the territory 
of other states naturally may be considered as evidencing 
unwillingness to cooperate in the lessening of international 
tension and is capable of undermining the faith in all 
statements regarding the aspirations of regulating ripe 
international problems. 

Inasmuch as both the Soviet Government and the Gov- 
ernment of the United States have repeatedly spoken of 
their aspirations to lessen international tension, one can- 
not overlook the fact that propaganda for a new war and 
calls for new acts of aggression have not ceased and that 
governments of certain states have openly undertaken acts 
of diversion, threat and sabotage in the countries of the 
democratic camp. Not only is the well known resolution 
of the General Assembly condemning war propaganda fre- 
quently unobserved, but also the official circles of certain 
states praising a "policy of force" are encouraging 
strengthening of the "cold war", etc. It is entirely evi- 
dent that to achieve a lessening tension in international 
relations it is necessary to undertake measures which 
would efEectively rebuff the continuing propaganda of a 
new war and all attempts on the part of aggressive circles 
to undermine the faith of peoples in safeguarding and 
strengthening peace and international security. 

From what has been said, it follows that important 
problems of international significance have come to a 
head which demand unpostponed Joint consideration of 
the USA, France, Great Britain, Chinese Peoples Repub- 
lic, and the Soviet Union, inasmuch as in accordance 
with the Charter of the UN responsibility for safeguard- 
ing peace and International security lies above all with 
these countries. 

Accordingly, the Soviet Government in its note of 
August 4 proposed to consider at a conference of Foreign 
Ministers questions concerning measures for lessening 
tension in international relations. The significance of 
consideration of such important international questions 
Is completely self-evident. Nonetheless, in the U.S. 
note of September 2, the necessity of relaxation of tension 
in the international situation is grossly underestimated, 
since in tlie answer of the U.S. Government, the above- 
mentioned important international problems which have 
come to a head were passed over. 

In the notes of August 4 and 15, the Soviet Government 

I ! also proposed full consideration of the German problem 
i at a conference of Foreign Ministers. At the same time, 

il the Soviet Government proposed consideration of the 

1 1 following questions : 

(1) Calling a peace conference to consider the question 
! of a peace treaty with Germany; 

I (2) Creation of a provisional all-German Government 
I'l and holding free and all-German elections; 
I (3) Relieving the financial and economic obligations 
of Germany connected with the consequences of war. 

I Out of all of these questions in the United States Gov- 
I ernment's note of September 2 only the question of all- 
I German elections is touched on and all other questions 
I having outstanding significance for a solution of the Ger- 
' I man problem are ignored. Such a position is all the 
I more untenable since all-German elections are exclusively 
I the internal affair of the Germans and must be decided 
I by the German people itself without allowing interfer- 
ence on the part of foreign powers. 

On the other hand the note of September 2 overlooks 
vital problems relating to Germany, solution of which 
under present conditions is impossible without active par- 
ticipation and cooperation of the four occupying powers : 
USA, France, England and the USSR. 



The Soviet Government has twice sent to the United 
States Government, as well as to the Governments of Eng- 
land and France, its draft peace treaty with Germany 
and proposed this draft be considered and that it (the 
United States Government) present its draft peace treaty 
for consideration. One year and one-half has gone by 
without the United States Government having expressed 
its opinion regarding the Soviet draft peace treaty and 
without having presented its own draft. 

In the note of August 15 this year, the Soviet Govern- 
ment proposed calling a peace conference within 6 months 
in whicli all interested states would participate and in 
which the necessary German representation at all stages 
of preparing a peace treaty and peace conference would 
be assured. The United States note in reply overlooked 
the question of calling a peace conference, although one 
cannot argue with the significance of such a conference. 

According to the Soviet Government's proposal, the 
formation of a provisional all-German democratic gov- 
ernment was to have assisted in the unification of Ger- 
many on peaceful and democratic principles. This 
government could either have replaced the existing gov- 
ernments in East and West Germany in advance of hold- 
ing all-German free elections or it could have temporarily 
taken on itself certain all-German functions and, above 
all, the preparation and holding of all-German free elec- 
tions, while the presently existing governments in East 
and West Germany were maintained. The Government 
of the USA did not agree with this proposal of the Soviet 
Government. This attitude toward the above-mentioned 
proposal of the Soviet Government excludes practical 
and possible measures directed toward re-establishing 
the unity of Germany, inasmuch as no all-German organ 
is being formed which could carry out the will of the 
German people in the preparation of all-German elec- 
tions. From this, moreover, it follows that there is an 
intent actually to transmit the holding of all-German 
elections to the occupation powers, and this makes pos- 
sible impermissible pressure on the part of foreign au- 
thorities on the whole course of preparing and holding 
the elections. 

In its note of September 2, the Government of the 
United States gave up, finally, the creation of the so- 
called "neutral commission" composed of representatives 
of foreign powers "to investigate with the aim of creating 
conditions" for carrying out all-German elections and 
which, as is well known, it had not given up in its note 
of July 15, of this year, and on which it had previously 
insisted over the course of many months. But in this ease, 
objections to the Soviet proposition that the holding of 
elections be given over to the Germans of East and West 
Germany themselves, without any kind of interference 
and pressure on the part of foreign powers, should have 
disappeared. 

In its note of August 15 of this year, the Soviet Govern- 
ment in addition proposed to the Governments of the 
USA, France and England to decide to lessen the financial 
and economic obligations of Germany connected with the 
consequences of the war, namely : 

From January 1, 1954 to free Germany from payment 
of reparations and post-war state debts to the four powers ; 

To limit the extent of occupation costs to sums not ex- 
ceeding 5 per cent of the incomes of the state budgets of 
East and West Germany ; 

To free Germany fully from the repayment of indebted- 
ness connected with the external occupation costs of the 
four powers which had come about since 1945. 

All these questions relating to relieving the financial 
and economic obligations of Germany connected with the 
consequence of the war were passed over in the United 
States Government note of September 2. Moreover, ac- 
ceptance of the proposals of the Soviet Government would 
have now resulted in significant economical relief to the 
German people and would have assisted in raising the 
level of the Germany economy, which naturally is what 
the population of Germany expects, inasmuch as more 
than 8 years have passed since the end of the war. The 



October 26, 1953 



549 



Soviet (iovernment continues to consider it necessary for 
the Government of the United States and equally for the 
Governments of England and France to state definitely 
their attitude toward the Soviet Government's proposals 
under reference. The necessity for an unpostponed solu- 
tion to the vital questions under reference relating to 
Germany is dictated by the fact that recently there have 
been undertaken more and more new measures of anti- 
democratic external influencing intended to achieve the 
ratification l)y the parliaments of the governments con- 
cerned of both the IJonn and Paris Agreements, as a result 
of which it is intended to accomplish the militarization 
of Western Germany and to make it into an obedient 
weapon of the aggressive North Atlantic bloc. All this 
has been going on despite the fact that the ratification 
and execution of these agreements would turn Western 
Germany into a nidus of new aggression with all the 
dangerous consequences ensniing therefrom for the Ger- 
man people and for the cause of maintaining peace In 
Europe and would make impossible the uniting of Western 
and Eastern Germany into a single state. 

In view of this situation, the Soviet Government, while 
agreeing to the proposal of the Government of the United 
States of America to consider the question of all-German 
elections, considers that in addition it is neces'sary that 
at the conference of the Foreign Ministers the considera- 
tion of the German iiroblem not be limited only to this 
question. It is necessary to agree that consideration of 
the German problem at the coming conference should 
include all basic questions mentioned above and, in addi- 
tion, that representatives of both Western and Eastern 
Germany should take part in this discussion. 

In accordance with the above, the Soviet Government 
proposes that a conference of the Foreign Ministers be 
called proceeding from the following: 

(1) To consider at a conference compo.sed of Ministers 
of Foreign Affairs of the United States, United Kingdom, 
France, Chine.se Peoples Republic and the Soviet Union 
measures to lessen tension in international relations. 

(2) To discu.ss at a conference composed of the Foreign 
Ministers of the United States, France, the United King- 
dom, and the Soviet Union the German problem, including 
all proposals introduced in the cour.se of preparing the 
conference. 

The Soviet Government has not yet received from the 
United States Government an answer to its note of August 
28 concerning the Austrian treaty and expresses its readi- 
nes's to continue discussions of this question in normal 
diplomatic channels. 

The Soviet Government is sending similar notes to the 
Governments of France and the United Kingdom. 



Madame Pandit Calls on President 
and Secretary Dulles 

White Houae press release dated October 12 

Madame [Vijaya Lakshmi] Pandit called upon 
the President and the Secretary of State in her 
capacity of President of the U.N. General As- 
sembly. Amonjj other things she explained the 
tasks still before the General Assembly in rela- 
tion to peace in Korea and the performance of the 
Armistice Agreement relative to prisoners of war. 

Tlie President expressed his j^reat appreciation 
of the fact tliat tiie Government of India had 
been willing, in the interest of ])eace, to assume the 
diillcult I'ole of chairman of the Neutral Nations 
(Commission, a role inlierently subject to criticism 
from both sides. The President and tlie Secretary 



of State told Madame Pandit that they would do 
everything possible to facilitate the work of the 
U.N. Command and the Neutral Nations Com- 
mission. The President particularly mentioned 
the reports he had received of the exemplary con- 
duct of the Indian troops in the discharge of their 
duties as custodians of the prisoners of war who 
have elected not to be repatriated. 

The President reaffirmed his faith in the United 
Nations and his determination that the United 
States should cooperate fully with it in all matters 
conducive to peace and justice in the world. 



U.S. Representative To IVIeet 
With Communists at Panmunjom 

Following is the text of a niessage which the 
United States Government has requested the Gov- 
em?nent of Sweden to transmit to the Chinese and 
North Korean Co-mmunists^ together with a com- 
munication to the United States transmitted 
through the Swedish Government by the 
Co7nmunists: 

U.S. Message to Communists 

Press release 560 dated October 12 

The Government of the United States has noted 
the communication of the Central People's Gov- 
ernment of the People's Republic of China and the 
Democratic People's Republic of Korea dated 
October 10, 1953, having reference to the communi- 
cations of the United States Government of Sep- 
tember 10,> 24,= and October 9.^ The United States 
Government notes that your side has agreed to 
appoint representatives to meet with the United 
States representative to hold discussions on the 
question of the fortlicoming political conference 
on Korea. 

The United States representative will be pre- 
pared to meet with your representatives at Pan- 
munjom on October 26. It should be understood 
that our agreement as to this site for the meeting 
of tlie emissaries is not to be considered as any 
indication that our side considers Panmunjom as 
a suitable site for the political conference. 

Paragrapli 6l) of tlie armistice agreement, which 
contemplated that the political conference should 
be restricted to tiu' governments concerned on both 
sides, was drafted initially by your side. Imleed 
your spokesman (iencral Nam II insisted that par- 
ticipation be limited to the governments concerned 
on both sides since some membtu's of the U.N. had 
not sent trooj)s to Korea. It is not correct, there- 
fore, to say that your side held all along that 
neutral nations should participate in the 
conference. 



' Hci.i.i-.TIN of Sept. 28, 1053, p. 422. 
^ Ibid., Oct. 12, liUS, p. 48(i. 
' /fiirf., Oct. 19, 1053, p. .520. 



550 



Oeparfmenf of Sfafe Bu/fef/n 



The composition of our side has been set forth 
in the resolution adopted by tlie General Assembly 
on August 28 in accordance with article 60 of the 
armistice agreement signed on July 27. The Gen- 
eral Assembly also recommended that the Soviet 
Union could be included provided your side de- 
sires it. 

The United States, after consultation with the 
other governments participating on our side, has 
authorized its representative to agree on a time 
and place for a conference and to exchange views 
looking toward early agreement on procedural, 
administrative, and related questions as to ar- 
rangements which it might be appropriate to dis- 
cuss before the conference begins. Our representa- 
tive therefore will be prepared to deal with such 
questions and will also be prepared to exchange 
views on composition of the political conference 
to the extent consistent with the basis above set 
forth in the preceding i^aragi-aphs. 



Communist Message of October 10 

(Unofficial te\t] 

The Central People's Government of the Peo- 
ple's Republic of China has noted and has, to- 
gether with the Government of the Democratic 
People's Republic of Korea, made a study of the 
three communications of the United States Gov- 
ernment transmitted through the Swedish Gov- 
ernment on September 19 and 24 and October 9, 
respectively. I am now authorized to state, on be- 
half of the Central People's Govei'iiment of the 
People's Republic of China as follows : 

1. On September 13 and 14 respectively, 1953, 
the Central People's Government of the People's 
Republic of China and the Government of the 
Democratic People's Republic of Korea put 
forward, in their cables in reply to Mr. Dag 
Hammarskjold, Secretary-General of the United 
Nations, four proposals which provide that the 
iMghth Session of the United Nations General As- 
st'inbly sliould take speediest steps to enlarge the 
composition of the political conference, so that this 
conference might be convened speedily. These 
proposals have officially been communicated to the 
Eighth Session of the United Nations General As- 
sembly by the Secretary-General of the United 
Nations. Mr. Andrei Vyshinsky, head of the dele- 
gation of the Soviet Union to the United Nations, 
by letter dated September 18 addressed to the 
President of the Eiglith Session of the United Na- 
tions General Assembly, asked to have the above- 
mentioned proposals of the Government of the 
People's Republic of Cliina and the Democratic 
People's Rejjublic of Korea included in the agenda. 
However, the Eighth Session of the United Na- 
tions General Assembly has refused to include 
them in its agenda. The Central People's Gov- 
ernment considers this to be an indication that 
the United Nations General Assembly goes against 



the principle of peaceful negotiation of inter- 
national disputes, which is unreasonable, and it 
expresses deep regret at it. 

2. The Central People's Government of the 
People's Republic of China holds all along that 
the political conference should not be a repetition 
of the form of Panmunjom negotiations, but 
should have the participation of neutral nations 
concerned so as to facilitate the smooth proceeding 
of the conference and thereby to seek a settlement 
of the withdrawal of all foreign forces, the peace- 
ful settlement of the Korean question and other 
questions. However, the United Nations General 
Assembly has spurned the purposes and principles 
of the United Nations Charter by assuming the 
jjosition of one of the belligerent sides in Korea, 
and, bowing to the views of the minority who op- 
pose the participation of India in the political con- 
ference, has deprived the gi-eatest majority of 
members of the United Nations of the right to 
settle international disputes by peaceful means in 
accordance with the Charter. The Central Peo- 
ple's Government deems that such actions taken 
by the United ^Nations General Assembly cause 
the United Nations to lose more of its prestige 
which is nearly completely forfeited and that they 
enable people to see more clearly that the United 
Nations is continuing to serve the interests of the 
aggressors in creating international tension. 

3. Nevertheless, for the purpose of insisting on 
the policy of peaceful settlement of the Korean 
question to facilitate the consolidation of peace in 
Asia, the world, and of expediting the speedy 
convocation of the political conference, the Central 
People's Government of the People's Republic of 
China, after consultations with the Government 
of the Democratic People's Republic of Korea, 
agrees that the Governments of the Democratic 
People's Republic of Korea and the People's Re- 
public of China will appoint representatives to 
meet with the United States representative to 
hold discussions on the questions of the political 
conference. 

4. These discussions not only should settle the 
questions of place and time of the political confer- 
ence, but what is more essential, should settle the 
question of composition of the political conference. 

5. Since these discussions are confined to the 
two belligerent sides in Korea, it is appropriate 
that the place of the discussions be Panmunjom, 
Korea. 



Treatment of U.S. Citizens 
in Communist Cliina 

Press release 654 dated October 9 

The Department of State is very seriously con- 
cerned over the continued imprisonment, deten- 
tion and maltreatment of American citizens in 
Communist China. There are now 33 Americans 



Ocfober 26, J 953 



551 



in Chinese Communist jails, some of whom have 
been imprisoned for 2 years. The Chinese Com- 
munist regime has not published the charges on 
whiili most of these Americans are being held. 
The Chinese Communists have not answered the 
numerous protests and notes which the British 
representatives in Peiping have presented on our 
behalf. 

In the case of the 3 Americans seized on the 
yacht Kert last March 21, the Chinese Communists 
have released no information, despite the appeal 
made by the British representative at Peiping on 
March 28, 1953. 

We have also asked the Soviet Union to assist 
on several occasions. The first request was made 
by our Embassy at Moscow in September 1951. 
On March 25 of this year Ambassador Lodge 
asked the Soviet delegate during debate at the 
United Nations ^ if the Soviet Union could furnish 
any information about the Americans, including 
Donald Dixon and Richard Applegate. Our Em- 
bassy in Moscow also has made several approaches 
to the Soviet Foreign Office this year. 

The Department will not overlook any possibil- 
ity of obtaining the release of all the Americans 
unjustly imprisoned by the Chinese Communists 
or denied the right to leave Communist China. 



Viet-Nam To Intensify Struggle 
Against Communist Aggression 

Press release 646 dated October T 

The Department of State oil October 7 received 
the following note from the Embassy of Viet- 
Nam,: 

The Embassy of Viet Nam wishes to express 
to the Government of the United States the grati- 
tude and deep satisfaction of the Vietnamese Gov- 
ernment over the successful conclusion of the 
French-American negotiations leading to a sup- 
plementary aid of as much as $385 million for the 
intensification of the operations against the Com- 
munist Viet Minh.'^ 

The announcement of this new aid is one of a 
series of events which promise a bright future 
for Viet Nam. At this moment His Majesty Bao 
Dai is in France preparing the groundwork for 
negotiations which will lead to a new formula of 
French-Vietnamese cooperation, based on com- 
plete independence for Viet Nam and her free ad- 



' Bui-i.i;tin of Apr. 1.3, !!)",.■?, p. 546. 
' Bulletin of Oct. 12, lir.3, p. 480. 



herence to the French Union. Prime Minister 
Nguyen Van Tam, in the name of His Majesty 
Bao Dai, is preparing a national consultation of 
all Vietnamese political and religious groups prior 
to the negotiations. 

The Government of Viet Nam sees in this in- 
creased aid by the United States, and in the decla- 
ration by France of her intent to give all possible 
assistance to the Associated States' plan for aug- 
mentation of their national forces, tlie certainty 
of an acceleration in the formation of the 135 new 
battalions of the Vietnamese National Army. The 
result will be a greater and more effective partici- 
pation by the Vietnamese in the defense of their 
country, side by side with the troops of the French 
Union, against Communist imperialism. 

The Government of Viet Nam has the firm con- 
viction that the Vietnamese Army, thanks to the 
continuing efforts of France and the generous 
assistance of the United States, will fully justify 
the confidence placed in it by these two countries 
and all its allies for the defense of one of the most 
important and critical sectors of the free world. 

Viet Nam believes that this recent decision is a 
tangible proof that the United States, faithful to 
its democratic ideals and its ardent desire for 
peace, is determined to assist Viet Nam to conclude 
rapidly and gloriously a struggle which was im- 
posed on it by Communist aggression, and to 
preserve its independence. 



Attack by Israeli Forces 

Press release 572 dated October 18 

The U.S. Government has the deepest sympathy 
for the families of those who lost their lives in 
and near Qibya during the recent attack b}- Israeli 
forces. The shocking reports which have reached 
the Department of State of the loss of lives and 
property involved in this incident convince us 
that those who are responsible should be brought 
to account and that effective measures should be 
taken to prevent such incidents in the future. 

The U.S. Government has been increasingly 
concerned at the mounting tension along the 
frontier between Israel and the neighboring Arab 
States. It is for tliis reason that it initiated the 
recommendation and subsequently, in concert with 
the British and French Governments, decided to 
request the Security Council to consider, at the 
earliest possible date, the situation on the frontiers, 
to include a direct report b,v Gen. Vagn Bennike, 
Chief of Staff of tlie United Nations Truce Super- 
vision Organization. 



552 



Department of Sfofe Bulletin )| 



Eric Johnston Leaves on 
Mission to Near East 

Statement iy the President 

White House press release dated October 16 

The Government of the United States believes 
that the interests of world peace call for every pos- 
sible efl'ort to create conditions of greater calm and 
stability in the Near East. 

The administration has continuously under- 
taken to relieve tensions in this sensitive and im- 
portant area of the free world. 

Last spring, the Secretary of State, John Fos- 
ter Dulles, made a first-hand survey of the area.^ 

In furtlierance of this policy, I am now sending 
Eric Johnston to the Near East as my personal 
representative with the rank of Ambassador to 
explore with the governments of the countries of 
that region certain steps which might be expected 
to contribute to an improvement of the general sit- 
uation in the region. In so doing, I have assured 
Mr. Johnston that he will have my full support 
and enjoy the widest j^ossible latitude in dealing 
with all questions relevant to his mission. 

One of the major causes of disquiet iu the Near 
East is the fact that some hundreds of thousands 
of Arab refugees are living without adequate 
means of support in the Arab States. The mate- 
rial wants of these people have been cared for 
through the United Nations Belief and AVorks 
Agency. The Congress of the United States, over 
a period of 4 years, has appropriated a total of 
$153,513,000 to aid these refugees. It has been evi- 
dent from the start, however, that every eilort 
must be made by the countries concerned, with the 
help of the international community, to find a 
means of giving tliese unfortunate people an op- 
portunity to regain personal self-sufficiency. 

One of the major purposes of Mr. Johnston's 
mission will be to undertake discussions with cer- 
tain of the Arab States and Israel, looking to the 
mutual development of the water resources of the 
Jordan River Valley on a regional basis for the 
licuefit of all the people of the area. 

In his conversations in the region, Mr. Johnston 
will make known the concern felt by the Govern- 
ment of the United States over the continuation 
of Near Eastern tensions and express our willing- 
iness to assist in every practicable way in reducing 
the areas of controversy. He will indicate the im- 
portance which the United States Government at- 
taches to a regional approach to the development 



' For the Secretary's report to the Nation on this sur- 
vey, see Bulletin of June 15, 1953, p. 831. 



of natural resources. Such an approach holds a 
promise of extensive economic improvement in the 
countries concerned through the development of 
much needed irrigation and hydroelectric power 
and tlirougli the creation of an economic base on 
tlie land for a substantial proportion of the Arab 
refugees. 

It is my conviction that acceptance of a com- 
prehensive plan for the development of the Jordan 
Valley would contribute greatly to stability in the 
Near East and to general economic progress of 
the region. I have asked Mr. Johnston to explain 
this i^osition to the states concerned, seek their co- 
operation, and help them througli whatever means 
he finds advisable. 

Mr. Johnston left the United States on October 
14, following conversations with me, the Secretary 
of State, the Director of the Foreign Operations 
Administration, and other officials. 



Herbert Hoover, Jr., To Study 
Oil Situation in Iran 

Press release 570 dated October 15 

Herbert Hoover, Jr., recently appointed adviser 
to Secretary of State Dulles on problems dealing 
with worldwide petroleum affairs, will depart for 
Tehran today. 

Mr. Hoover is going to Iran at the request of the 
Secretary and for the express purpose of becoming 
fully acquainted, from on-the-spot observation, 
witli problems inherent in the Iranian oil situation 
so that he will be better able to discharge his duties 
as special adviser on oil. 

Expertly qualified in this field, the .son of the 
former President of the United States has had 
wide experience, for 20 years, on petroleum prob- 
lems in the Middle East as well as in other parts 
of the world. 



Par Value Announced 
for Jordan's Currency 

The International Monetary Fund on October 
5 announced the establishment of the initial par 
value for the Jordanian dinar at one dinar equal 
to U.S. $2.80. 

The parities for the dinar in terms of gold and 
in terms of the U.S. dollar of the weight and fine- 
ness in effect on July 1, 1944, are as follows : 

Grams of fine gold per currency unit 2. 48828 

Currency units per troy ounce of fine gold ... 12. 5000 

Currency units per U.S. dollar 0. 357143 

U.S. cents per currency unit 280. 000 



Ocfober 26, J 953 

276561—53 3 



553 



Inter-American Cooperation and Hemisphere Solidarity 



hy John M. Cabot 

Assistant Secretary for Inter- American Affairs ^ 



In reading comments on international affairs, 
one is often reminded of tlie difference in the im- 
age one sees in looking througli tlie two ends of a 
telescope. Our differences witli other nations fre- 
quently arise because we do not see a given situa- 
tion in the same light. Yet if we are to live in 
constructive friendship with the other nations of 
this world, surely the first essential is mutual 
understanding. Surely in this era of hydrogen 
bombs it is better to sacrifice something of one's 
own viewpoint to the honest views of another if 
that will maintain the peace. 

Since the dawn of history the way of the peace- 
maker has been hard. In international affairs it 
is easier to arouse hatred than understanding, 
suspicion than confidence, selfishness than collab- 
oration. Tliose who appeal to emotion rather 
than reason can point to historical examples to sow 
whatever evil weed they may wish to implant in 
the public's mind. Unhappily the public is not 
told so often, nor does it so vividly remember, the 
times it has been deceived by ajjpeals to its narrow 
prejudices and selfish emotions. Yet wars have 
almost never started in modern times from noth- 
ing; they have resulted from an accumulation of 
grievances, real or fancied, on both sides. It is 
the task of diplomacy to allay those grievances be- 
fore they reach the danger point. 

In the Americas tliere are happily but few cases 
in which there is danger that grievances may reach 
the explosion point. Whatever the shortcomings 
in our mutual relations, we can j)roudly maintain 
as a group of free peoples that in our relations we 
have been a beacon light to the rest of the world. 
The Pan American Union antedates by half a cen- 
tury the United Nations and furnished the U.N. 
Charter the vital concept of regional organiza- 
tions; the concept of I'oint Four liad already been 
in successful operation for years in Latin America 
when it was aunounci'tl as an essential contribu- 



'Addn'KS iiiiicle liofort' tlio Uciienil Fedoratiou of Woiu- 
cii's Clubs at Wusliiiigtou on Oct. 14 (press release 561 
dated Oct. 13). 

554 



tion of the United States to the maintenance of 
peace in the world. The basic principle of the 
Nato treaty had previously been embodied in the 
Eio Treaty of 1947. Thanks to the cooperative 
concepts we had built up over the yeai*s in this 
liemisphere, we were spared the material destruc- 
tion of the Second World War, and we were able 
to devote all of the resources of the Americas to 
maintaining inviolate our lives, our homes, our 
beliefs, and our institutions against foreign 
tyranny, nihilism and imperialism. Let us never 
for a moment forget the horrors from which our 
continental solidarity happily saved us. 

In the years which have passed since our com- 
mon victory in the Second World War. rifts have 
appeared in our continental solidarity, and today 
it is not so firm and unquestioned as it was 8 years 
ago. For the most part, I do not believe that these 
rifts are serious. Even between the closest friends 
an occasional misunderstanding is inevitable. It 
is the duty of friendship to examine such misun- 
derstandings with candor and tolerance; only thus 
can they be prevented from rankling. 

Let us examine some sjjecific problems we have 
recently faced in our Latin American relations. 

Bolivia 

We have just made a unique grant of aid in 
Bolivia.- We have not done this because we have 
uniquely close relations with Bolivia. AVe do not 
necessarily approve all that the present Bolivian 
Government nas done; on the contrary, we have 
had to make strong representations to it regard- 
ing its attitude towards American interests. Why 
then this aid? 

First, let me point out that the present Gov- 
ernment un<|uestu>nably came to power by the will 
of the Bolivian people. If we believe in ilemoc- 
racy, it is surely our duly to deal with regimes 
solidly based on the cijusent of the governed, oven 
if the}' differ soniewiiat from us in their concepts 
of government. 



■BuiJATiN of Oct. 19, in.".;!, p. 518. 



Department of State Bulletin 



Second, the present Government has shown 
much courage in facing the problems it inherited. 
I shall not discuss the question of the nationaliza- 
tion of the tin mines. Bitter charges have been 
flung back and forth, but it would not be proper 
for me to discuss them. Wliat is important is to 
note that preliminary agreements have been 
reached between the Bolivian Government and 
the former ownei-s of the tin mines regarding com- 
pensation. 

The present Government inherited an impos- 
sible economic situation. In an effort to keep down 
the cost of food, the previous governments had 
imported staple items at an unrealistically low 
rate of exchange. As a result foodstuffs disap- 
peared over the frontiers even after importation, 
while domestic farmers were ruined. The propor- 
tion of foodstuffs imported rose to 40 percent of 
consumption. As long as tin prices remained high, 
the necessary exchange could be found to pay for 
food imports, but this year the price in world 
markets dropped abruptly from $1.21 to about 
$0.80 a pound. At the same time we filled our stock- 
pile and were no longer interested in the low-gi-ade 
ores which could be smelted only by us in an un- 
economic smelter. This combination of circum- 
stances spelled disaster for Bolivia. 

With drastically curtailed foreign exchange re- 
ceipts, famine in Bolivia was a mathematical cer- 
tainty. Given the traditional political pattern 
there and the grave stresses to which the country 
is subject, chaos seemed certain and a swing to 
communism probable if we sat on our hands. 
Taking its political life in its hands, the Govern- 
ment has drastically modified the economic con- 
trols which have been ruining the country's econ- 
omy and has tried to put things on a sound eco- 
nomic basis. You will appreciate the tragic 
sacrifices it means for people who have barely 
enough to live on when the prices of necessities 
are suddenly jumped far more than wages. 

It seems to me that our attitude toward this 
question is basically a test of the sincerity of our 
adherence to the true ideals of pan- Americanism 
and hemispheric solidarity. As 21 sovereign Re- 
publics we shall have differences — serious differ- 
ences — in this hemisphere. We have common 
interests vastly more important than our differ- 
ences. We face alike the implacable challenge of 
communism. The true test of our hemispheric 
solidarity, upon which our security so importantly 
depends, is our willingness to sink our differences 
and to cooperate with regimes pursuing a dif- 
ferent course from ours to achieve common goals. 
If we have our reservations regarding some of the 
present Bolivian Government's measures, we be- 
lieve it is sincere in desiring social progress and 
in opposing Communist imperialism. We are 
therefore cooperating with it, for history has 
often described the fate of those who have quar- 
reled over nonessentials in the face of a mortal 
peril. 



Let us turn to a somewhat similar case which 
is very different in its basic implications. 

Guatemala 

Our relations with the Guatemalan Government 
are today not those which we would like to have 
with it and with every other government in this 
hemisphere. Profoinidly believing, as we do, in 
hemisi:)heric solidarity for both spiritual and ma- 
terial reasons, I think we should strive as dispas- 
sionately as we can to seek the causes for the situa- 
tion which has arisen. I also feel that we have 
the right and duty to defend ourselves and ex- 
plain our position in answer to years of wanton 
attacks on this country and its citizens from official 
Guatemalan sources. 

We find it difficult, for example, to be patient, 
after all the blood and treasure we have poured 
out in Korea to safeguard the free world, when 
the official Guatemalan newspaper follows the 
Communist line by accusing us in effect of bac- 
teriological warfare just after our airmen have 
returned to tell us of the tortures to which they 
were subjected to extract fabricated confessions. 
We are also surprised that the Guatemalan Am- 
bassador should misrepresent a perfectly proper 
note I handed him explaining our juridical views 
regarding the expropriation of American prop- 
erty in Guatemala.^ All that we have asked of 
Guatemala is that it respect its obligations, legal 
and moral, within the family of nations. We 
wish to discuss questions outstanding with Guate- 
mala on the basis of the facts, our inter- American 
responsibilities, and international law; and we are 
awaiting their answer to see if they also are pre- 
pared to discuss outstanding questions on that 
basis. 

I shall not at this point discuss the question as to 
whether activities of the international Communist 
conspiracy to destroy free governments are preju- 
dicing the independence of Guatemala and that 
of neighboring Republics, since this is essentially 
a matter of inter-American rather than unilateral 
concern. The American Republics have on 
numerous occasions, notably by Resolution 
XXXII of the Bogota Conference "of 1948,^ made 
clear their opposition to activities of this nature. 



' For text of this note, see md., Sept. 14, 1953, p. 357. 

•Resolution XXXII (1) reaffirmed the decision of the 
Republics represented at the Conference "to maintain and 
further an effective social and economic policy for the 
purpose of raising the standard of livins of their peoples ; 
and their conviction that only under a system founded 
upon a guarantee of the essential freedoms and rights' 
of the individual is it possible to attain this goal;" (2) 
condemned "the methods of every system tending to sup- 
press political and civil rights and liberties, and In par- 
ticular the action of international communism or any 
other totalitarian doctrine;" (3) provided for the adop- 
tion of "the measures necessary to eradicate and prevent 
activities' directed, assisted or instigated by foreign gov- 
ernments, organizations or individuals tending to over- 



Oefofaer 26, 1953 



555 



The Need for Mutual Understanding 

I'rcss release 507 dated October 14 

Ttie following message from Secretary Dulles was 
read h\j Acting Dcpvtii Under Beeretary Robert D. 
Murphy to the Leaders' Conference on Inter-Ameri- 
can Affairs, General Federation of Women's Clubs, 
■which met on October H at the Department of State: 

It gives me great pleasure to welcome here the 
officers and guests of the General Federation of 
Women's (^lubs. Your organization does a valued 
work in focusing the attention of your membership 
on problems, both international and domestic, which 
affect the national interest. And I want you to know 
that your efforts are appreciated. 

I think it indicative of the good judgment so char- 
acteristic of the leaders of the Federation that this 
conference centers on inter-American affairs. 

It is something for which we can be thankful — 
perhaps even a reason f<ir an exchange of congratu- 
lations — that the relations which obtain between the 
Americas are not of the type that usually make 
spectacular news. We should be proud that we 
have in this hemisphere an Organization of Ameri- 
can States in fact as well as in name. When we 
count our blessings we should be .sure to include the 
existence here of the kind of cooperation between 
nations which permits the Americas to work to- 
gether to strengthen the hemisphere for our mutual 
benefit. 

The impact of some of our achievements in the 
hemisphere has been felt far beyond its borders. 
The Inter-American Treaty of Reciprocal Assistance 
was, one might say, the forerunner of the North 
Atlantic Treaty; it was in the Americas that the 
concept of technical cooperation was applied and 
was proved a practical and progressive program. 
And it is in this hemisphere where we have the 
chance to demonstrate, beyond possibility of success- 



ful challenge, the practicability of an international 
order wherein points of difference are peacefully 
resolved and common problems a matter for Joint 
action. 

What we have accomplished in this hemisphere 
is indeed important — but it is nevertheless no more 
than the foundation of the inter-American structure 
we intend to build. Today you will hear a situa- 
tion rei)ort, sector by sector, on the hemisphere as 
well as some discussion of the problems that face 
us as an association of nations. 

It will be clear to you that much remains undone 
and that the problems outstanding will not be easily 
or quickly resolved. I believe that it will, further, 
be apparent that if these problems are to be dealt 
with successfully, either in the near or distant fu- 
ture, we shall have to draw upon the collective wis- 
dom and energies of the ix'oples and leaders of tlie 
Americas. 

To do so, we will first have to work, you and I, 
to strengthen the bonds that link the nations of this 
hemisphere. We shall need to develop our under- 
standing of the iieoples of the nations to the south, 
their traditions, capacities and their problems. We 
shall also be called upon to do what we can to im- 
prove their understanding of us. 

In my opinion, this understanding is of the kind 
that evolves wlien people know each other better. 
It is instinctive ffir many of us to be wary of the 
unknown and sus|iect the stranger. Conversely, we 
accept the familiar and place trust in the friend. 
It is then for us to do what we can to eliminate 
the factor of .strangeness from inter-American re- 
lationships. And if we are met with a reciprocal 
effort, I can visualize nothing which can prevent the 
realization of our objectives. 

This conference here today is a function of that 
process. It is my earnest hope that you will find 
your visit here rewarding in every way. 

I speak for myself and the other officers of the 
Department in voicing this hope and in bidding you, 
as well, a warm welcome. 



With any regime's purpose of social reform, 
insofar as it is sincere, \vc have no qnarrel. On 
the contrary, we appland measures which raise the 
living standards of the underprivileged. Having 
myself served in Guatemala and observed condi- 
tions, I personally would have great sympathy 
with any such purpose. But when we arc resist- 
ing Communist aggression and subversion all over 
tlie world, no regime which is openly playing the 
Connnunist game can expect from us the positive 
cooperation we normally seek to extend to all of 
our sister Republics. We know indeed that de- 
spite its hypocritical appeals on belialf of tlie 
underprivileged, communism does not give a snap 

throw their institutions by violence, to foment disorder 
in their domestic political life, or to disturb, by means of 
pressure, subversive' propaganda, threats or by any other 
means, the free and sovereign right of their peoples to 
govern themselves in accordance with their democratic 
aspirations';" and (4) provided for proceeding "with a 
full exchange of information concerning any of the afore- 
mentioned aclivilies that arc carried on within their re- 
spective jurisdictions." 

556 



of the fingers for the welfare of the masses. It 
will liquidate tliem or send them to slave labor 
camps by tlie millions to advance its tyrannical 
power. 

Allien M'e .seek to defend the riglits of our citizens 
under international law in Guatemala or else- 
where, we are often accused of opposition to any 
form of social progress. Such an argument is 
so obviously absurd, so monstrous in tlie light of 
our entire liistorj% that I find it diflicult to know 
where to start refuting it. Am 1 to recite our 
Declaration of Independence or our Bill of 
Rights? Am I to invoke tlie shades of Jeiferson, 
Lincoln, (he two Roosevelts? Am I to describe 
(ho innumerable curbs which by law we have effec- 
tively placed on abuses of the power of wealth, 
or must I point out that our society is far less 
divided into classes than that of Soviet Russia? 
Need I remind our Latin friends of the freedom 
which we helped to win for Cuba and the Philip- 
pines and yielded to them spontaneously with our 

Department of Sfafe Bulletin 



warmhearted blessing? Is it for nothing that we 
have in the United States the higliest standard 
of living in the world, that under wise laws the 
benefits of our material advancement are so widely 
spread throughout the community? Have other 
countries so soon forgotten what private American 
efforts have done to relieve the sufferings resulting 
from disaster wherever it has struck in the work!, 
or the enormous contributions which our private 
foundations have made towards wiping out pesti- 
lence ? What selfish purpose are we supposed to 
be serving by the aid we have given millions of 
the underprivileged through our Point Four work ? 
Over what people, territory, or class does the Star 
Spangled Banner wave as a symbol of oppression 
or exploitation? No national record could show 
more clearly our sympathy for the weak, the 
stricken, and the oppressed, our desire for the 
greatest good of the greatest number. 



Argentina 

Let us turn to another situation. Our relations 
with Argentina have often been troubled. I am 
not going to analyze the causes and the course of 
the difficulties which arose between us; I doubt 
that any good purpose would be served by raking 
over the dead leaves of the past. 

The Argentine Government follows a different 
political and economic philosophy from ours; 
whether it is well adopted to Argentine domestic 
conditions I shall not venture to say, for it frankly 
is none of our business. It is, however, clear that 
the present Government of Argentina came to 
power by the will of the Argentine people. The 
Government of the United States has repeatedly 
pledged itself not to intervene in the internal 
affairs of its sister Eepublics, and it must and will 
respect its pledges ; they are the cornerstone of our 
inter-American relations. Reviewing the sorry 
history of past years, I hope you will agree that 
this is not only practically sound but morally right. 

We cannot take the attitude that what is good 
for us is necessarily good for other nations under 
vastly different circumstances; that Uncle Sam 
knows best what is good for others and will 
assume the responsibility for seeing that they get 
it; that it is wrong for Soviet Russia to impose 
communism on foreign nations but permissible 
for us to impose democracy on them ; that in the 
present grave state of international affairs we can 
afford to feud with every government whose in- 
ternal politics don't altogether meet our approval. 
If it is not obvious to us that democracy (unlike 
communism) can never be imposed on a foreign 
nation by force, then we should and did learn 
from past interventions that they never produced 
democracy. If we are to have hemispheric 
solidarity, with all that it means to our security, 
we must scrupulously respect the jDrinciple of 



nonintervention in our relations with our sister 
Republics. 

In his inaugural address President Eisenhower 
stated that, much as we cherished our own politi- 
cal and economic institutions, we should never try 
to force them on others. President Peron on his 
part indicated to the new administration his hope 
for better relations between our two nations. 
Thanks to the tact, ability, and understanding of 
Dr. Milton Eisenhower, a marked change in the 
tenor of our relations took place as a result of our 
visit to Buenos Aires in July.° 

In our talks with President Peron, he made it 
clear he wished for good relations with the United 
States based upon mutual respect. The purpose 
of our visit was to make it equally clear that the 
principle of mutual respect was likewise the basis 
of our policy. In today's world, Argentine and 
United States interests coincide far more than 
they clash. Logic and common sense point to the 
course which we should take. 

President Peron has taken steps toward im- 
proving relations by settling outstanding contro- 
versies with us. There have been mischievous 
stories circulated that, in return for better rela- 
tions, he demanded concessions, notably larpe 
loans, of us. The fact is the exact reverse ; he told 
us that Argentine friendship had no price tag on 
it. We welcome the constructive attitude Presi- 
dent Peron has shown. Obviously I cannot pre- 
dict what the future of our relations with Argen- 
tina will be; some of the factors which have 
troubled them still exist. But this much I can 
state : we, on our part, shall strive earnestly to 
consolidate the improvement which has taken 
place in our relations with Argentina. Though 
remembering past disappointments, let us on our 
part do all we can to prevent another. Let us 
demonstrate our profound belief and faith in 
pan-Americanism and hemispheric solidarity. 



Mexico 

In thinking of the future of our relations with 
Argentina, let us take heart from the story of 
our relations with Mexico. In the past 26 years, 
some exceptionally able American diplomats" have 
handled oiu* relations wisely and have resolutely 
adhered to first principles! Their efforts have 
been greeted with equal statesmanship by their 
Mexican colleagues. Our relations have been com- 
pletely transformed, and today they are those of 
friendship, respect, understanding, and trust. If 
there are times, in the innumerable questions 
which inevitably rise between neighbors, that we 
cannot agree, we can disagree without rancor or 
suspicion. The forthcoming meeting between 
President Eisenliower and President Ruiz Cor- 



° For a statement by Dr. Eisenhower on his trip to 
South America, see ibid., Aug. 10, 1953, p. 184. 



October 26, 1953 



557 



tines at the Falcon Dam will symbolize the sincere 
friendship and effective cooperation which char- 
acterizes our relations with our good neighbor to 
the south. 

I Iiave described to you the story of three major 
problems wliich we have had recently in our rela- 
tions with our sister Kepublics. Do not think 
that they arc typical. Our relations in this hemi- 
sphere suffer in a sense fi-om the fact that they 
are not more dramatic. If we are friendly with 
our neighbors, if we cooperate with them, if they 
are going about their own business without creat- 
ing major problems for us, that is not news- 
tragic though that may be as a commentary on 
iiuman relations. Let us, however, take comfort 
from the fact that we can develop our relations 
with our sister Republics in an atmosphere other 
than one of lurid crisis. 

For here is a frontier of human development 
similar to that which raised us in a century to 
our present grandeur . Here is a blackboard where 
history is yet to be written. Here is a group of 
nations where our present policies can greatly 
influence our future relations for good or ill. 
Here is a continent in a period of amazing de- 
velopment—a development so rapid that our Latin 
friends complain more of growing pains than they 
take satisfaction in their increasing stature. 

Now is the moment when we must decide 
whether we are to keep this rendezvous with des- 
tiny. We can foresee for Latin America a de- 
velopment in the next century as portentous for 
world history as our development was in the last 
century. While this is going on, while Latin 
America is going through a period of febrile de- 
velopment, we should not be surprised if it centers 
its attention on its domestic problems. We did. 
Let us remember how deeply we appreciated the 
helping hands which were extended to us when 
we were younger and weaker, and let us coop- 
crate in friendship and understanding in the de- 
velopment of our sister Republics. History 
beckons us. 



Brazil 

Take, for example, our relations with Brazil. 
With no nation in the world have we a record of 
longer, more loyal friendship. Greater than the 
United States in area, more populous than any 
other Latin land in America or Europe, Brazil is 
going forward as though Aladdin had rubbed his 
himj^ If there are today certain maladjustments 
in Brazil's economy, can anyone doubt Brazil's 
majestic future? Reason and sentiment have 
alike cemented our friendship in the past. No 
nation has brighter promise for the future than 
Brazil, and no nation can better help Brazil to 
achieve that future than the United States. If 
the problems of our collaboration are often com- 

558 



plex and prosaic rather than glamorous, let us 
press forward together in continuing, constructive 
friendship. 



Panama 

Or take our relations with the Republic of 
Panama. We are holding discussions with repre- 
sentatives of that Government in regard to certain 
readjustments in our relations which they desire. 
Given the immensely complex relations which exist 
between Panama and the Canal Zone, this is a 
highly intricate, involved subject. Differences of 
opinion will, of course, arise as to whether or not 
some of the Panamanian aspirations are just and 
practical, and some of their demands seem exces- 
sive, but we on our part are examining them in a 
spirit of understanding with a desire to promote 
continuing friendship and mutually beneficial re- 
lations. Not only must we bear in mind that close 
collaboration is essential to the defense of the 
Canal, but also we should always remember the 
example we set for the world in our dealings with 
siTitillGr stiitcs. 

We hear quite a bit in the United States of the 
occasional troubles of American companies oper- 
ating in certain parts of Latin America, but we 
hear little of the economic statesmanship shown 
by many of our sister Republics, notably Venezuela 
and Peru. We hear of dictators, but we scarcely 
hear, for example, of the sturdy democracies of 
Uruguay and Costa Rica. We have as neighbors 
a group of sister Republics with defects and prob- 
lems, but in a period of pulsating change and 
progress. As we seek to solve our day-to-day 
problems, as crises elsewhere distract us, let us lift 
up our eyes to the brilliant future which coopera- 
tion with them can so mightily advance. 

And finally a word which I trust our sister Re- 
publics will not take amiss. Communist imperial- 
ism recognizes the United States as the citadel of 
the free world. So long as we stand intact and 
free, they cannot proceed unhampered with their 
conspiracy to subjugate the world to their godless 
tyranny. So long as the mendacities of Commu- 
nist propaganda can be exposed, it will not be par- 
ticularly effective. As the princiiial obstacle in 
tiieir aggressive path, we must be eliminated; and 
to tliat purjiose they are devoting everv resource 
at their command which they feel it prudent to use. 
Ill Latin America tliey are seeking tlirough a tre- 
mendous campaign of calumny to destroy our 
prestige, to weaken our economy and that of our 
sister Republics by vicious attacks on our private 
companies operating in Latin America. Not a 
few honest ])eople have been misled to a greater or 
lesser degree by this campaign. Recoguizino; a 
few words of fnitli in a lengthy Communist dia- 
tribe, irritated with the United States by the frus- 
trations we all face in this ever-narrowing w(U-Ui. 
they unwittingly lend aid and comfort to their 
mortal enemies. 



Department of Sfofe Bulletin I 



As free men and free nations in tliis hemisphere, 
let us disaoree if we choose as to how we are to 
achieve our goals; but let us disagree with 
friendly tolerance, and let us remember that our 
goals, of governments and peoples, are substan- 
tially the same. As sovereign Republics, we seek 
national development in accordance with respec- 
tive national geniuses; seek rising living stand- 
ards; we emphasize the rights and dignity of the 
individual. In a shrinking world we wish in our 
international relations to secure mutual benefits 



on the basis of mutual respect. We want peace, 
and we know how mighty a force for peace our 
hemispheric solidarity has proved. In short, al- 
though there are some conflicts of interest between 
us as there are even in the most closely knit families 
and although the Communists ceaselessly try to 
exploit these conflicts, our interests, aspirations, 
and goals in the Americas are so closely paralleled 
that they should indissolubly cement our con- 
tinental solidarity. Let us then deal with each 
other with understanding heaits. 



The United Nations in^Focus 



hy James J. Wadsworth 

Deputy United States Representative to the United Nations ^ 



I have great respect for the motion-picture in- 
dustry. And, it seems to me, you, the exhibitors, 
are one of its most important branches. You rep- 
resent, and speak for, the ultimate consumer. You 
are the industry's contact with the millions and 
millions who decide at the box ofEce whether or 
act a picture is to be a success. 

I have an interest in those millions. I want to 
reach them — Mr. and Mrs. America and "their 
sisters and their cousins and their aunts." 

I have a message for these people. And I can 
;hink of no better way to reach them than through 
rou. 

This message is of vital importance. It con- 

^jerns the future of this country and of the world. 

Ct could very well mean the survival of both. Be- 

ieve me, I am not exaggerating or being overly 

Iramatic. I speak in deadly seriousness. 

It seems to me, sometimes, as though Providence 
\ere saying to the human race : 

"AH right, you have shown how smart you are. 
Liju have conquered the air, the sea, the land. You 
ia\ e tamed the fire of the sun. You have reduced 
he elements to be your servants. 

"Now learn to get along peacefully with each 
Uier, men and nations, or these forces will turn 
n you. They will destroy you and all your fine 
ecomplishments. One more war and you are 
lirouffh." 



' Address made before the Allied States Association of 
lotion Picture Exhibitors at Boston, Mass., ou Oct. 7 
U.S. /U.N. press release dated Oct. 6). 



And this is a deadly fact. Either this is going 
to be a peaceful world or civilization, as we know 
it, is done for. 

The United Nations was created to build that 
world — ^"to save succeeding generations from the 
scourge of war." 

"Wlien those words were written in San Fran- 
cisco in 1945, few of us knew about the atom bomb. 
The H-bomb was only a gleam in the eyes of a 
few scientists. But war without either had be- 
come so utterly destructive that peace-loving peo- 
ples all over the world were saying, "No more." 
The U. N. was the machinery created to put this 
worldwide determination for peace into effect. 

The U. N. is not perfect. I would be the last 
to claim that it is. We should remember, how- 
ever, that it is only 8 years old this month. Our 
own Nation took considerably longer than that to 
begin functioning smoothly. 

The charter of the United Nations may not be 
the perfect document. But we have amended our 
own Constitution 20 times, and we knocked out 
one amendment when it failed to work. 

There arc, to be sure, differences between even 
the friendly U. N. nations. But what family does 
not have its squabbles ? And those differences are 
always overblown, overplayed in the press. I am 
frequently unpleasantly astonished when I see the 
news accounts. "Another rift," say the head- 
lines. And it may have been only a minor and 
completely friendly disagreement on a relatively 
unimportant point. 

Aside from all this, what else have we? The 
U. N. is the only medium through which the peace- 



ktober 26, 1953 



559 



ful nations can work cooperatively toward the 
goal of peace. If it did not exist today — now, 
when the need is so urgent — men of good will 
everywhere would be demanding its immediate 
creation. 

Fortunately, that step has been taken. The U.N. 
is there. Our job is to make it work. 

The United States is, of coui-se, a member of 
the United Nations. President Eisenhower has 
repeatedly avowed his support of the Organiza- 
tion, and his belief in its goals. So has Secretary 
of State Dulles and other high Government of- 
ficials. 

It isn't a partisan question. The charter was 
approved in the United States Senate by a vote 
of 89 to 2. Both of our major political parties 
support it. 

But this isn't enough. A government in a de- 
mocracy can do only so much. Basically it is help- 
less unless it has the support of the people — their 
active support. Testifying recently before the 
Senate Committee on Foreign Relations, Am- 
bassador Lodge put it this way : 

In the .struggle for peace, as in every other human en- 
deavor, the .success of the struggle tleiiends directly on 
how hard you work, how deeply you sacrifice, how sin- 
cerely you care ... no amount ol: diplomatic nicety or 
verl)!U courtesy can alter this fact and the future of the 
United Nations is bound up with it. 

While the need for the United Nations is as strong and 
us steady as the human yearning for peace, its future 
success depends entirely on the extent to which its mem- 
bers support it. It is up to them. 

I believe the U.N. does have the support of the 
American people. All recent opinion polls, in 
fact, indicate a rising interest. And again it is 
not partisan. It is party and nationwide. 



The Vocal Minority 

But there is a very vocal minority of dissent. 
There are even those who would have us withdraw 
from the United Nations. And that, in my 
opinion, would be the biggest single step we could 
take toward World War III and all that implies. 

Understand me, I do not believe we are going to 
take that step. But I shoidd like to reach those 
who are asking it, or even considering it, and make 
converts of them. 

I believe it can be done. I am convinced any 
sincerely i)atriotic American who understands (he 
issues and wiiat tiie U.N. is doing would very soon 
become a sui)porter of the Organization. And, 
as you know, there is no more ardent protagonist 
of any faith tlian the convert. 

Then, too, 1 would like to reacli those others 
wlio sup|)()rt tlie U.N. and say so when tiie poll- 
takers call, but let it go at (hat; tliose who do not 
care deejily enough to work actively in (he U.N.'s 
behalf. 

I want to awaken (he sjiirit of (he Amei'ican 
people in this cause. The spirit that makes us 

560 



win wars. The spirit that — in a war — sees no 
sacrifice too great, no labor too tedious. 

The key to awakening that spirit, as I see it, is 
understanding. And that is where I am asking 
your help. 

Now, I agi'ee that the primar}' business of 
motion pictures is enteitainment. But entertain- 
ment can also be instructive. In helping tell the 
U.N. story, you can give your audience both, with- 
out boring them or driving them away from your 
doors. 

I am talking, of course, of the U.N. films. 

A number of you do show them. A great met- 
ropolitan circuit is currently showing two of them. 
I know that and appreciate it. I am familiar, 
too, with the difficulties in (he way of their wider 
use. 

But, frankly, I do not see those difficulties as in- 
surmountable. I am svu'e you could lind a way 
around them if you could be convinced of the neces- 
sity of the task I am asking you to undertake. 

These films are used widely by nontheatrical 
houses, and they do a good job. But that is not 
the audience in which I am interested tonight. It 
does not include the millions I would like to reach. 

I want those millions enthusiastic about the , 
U.N. I want them to appreciate just what the j 
U.N. means to them individually, what it means 
to their children. They must see the U.N. for 
what it is, man's brightest hope for peace. And 
peace for what it is : man's only hope of survival. 

Perhaps some of us would survive another war. 
But the world we would find, when we crawled 
out of the debris, would not be the world we knew. 
It would be a sorry world, a bitter world. 

Building a peace is a many-sided project. It is 
not only stopping aggression in Korea, although 
that, of course, was basic. It isn't only ])utting an 
end to the bloodshed between India and Pakistan, 
between Indonesia and the Dutch, between Israel 
and its Arab neighbors. Those, too, were impor- 
tant, but not the whole story. 

The big story is making peace meaningful. It 
is giving men something for which to live. It is 
removing the causes of war. It is the old fight 
against man's ancient enemies — ^liunger, disease, 
ignorance. 



The "New Kind of War" 

Led by the U.N., this fight is going on all over 
the world. It is what President Eisenhower has 
called the "new kind of war." 

It is, and I would like to emphasize this, a vi(al 
jiart of the struggle for jieace. And it is, un- 
fortunately, practically unknown to millions of 
Americans. 

The work of the U.N.'s specialized agencies 
makes a good story. It has entertainment value. 
And a lot of it is recorded on films. 

1 (hink any Ainei-ican would be i)roud (o know 
(hat he has a part in (his figh(. He would be 



DepaMment of Sfafe Buf/ef/n 



interested, too, I am sure, in knowing that, tax- 
wise, his part, to date, in the U.N. and specialized 
agencies is costing him individually just about 
sixteen cents a year. 

Tlie explanation is, of course, that so many na- 
tions are participating. In the U.N. each can 
del liis bit. Participation is voluntary and some of 
the U.N. nations, I admit, have not seen fit to 
take a part in these programs. The Soviet Union, 
for example, has had no part in the U.N. Food 
and Agriculture Organization, the International 
Labor Organization, the Educational, Scientific 
and Cultural Organization. It has withdrawn 
from the World Health Organization. And it 
has promised only this year, for the first time, to 
make a contribution to the U.N.'s expanded tech- 
nical-assistance program. 

As the Soviet Union goes, so goes the Soviet 
bloc in the U.N. : Byelorussian S. S. R., Czecho- 
slovakia, Poland, Ukrainian S. S. R. The spe- 
cialized agencies, to date, have not interested the 
satellites in the U.N. They do not contribute and 
they take no part in the programs. 

Practically all of the other nations, however, do. 
In most of the agencies there is a full roll call, 
excluding the Communists. Actually, in most of 
them a number of nonmember nations participate. 

The work of these agencies is diverse. There 
are stories to appeal to practically everyone. 

The work of the United Nations with children 
is always an appealing subject. Nine hundred 
million children live in this world. They do not 
make war, poverty, disease, politics, and yet they 
are the victims of all four. 

Unicef, the U.N.'s International Children's 
Emergency Fund, was created in 1946 to bring 
emergency relief to the child victims of World 
War II. It did so good a job that in 1950 it re- 
ceived a new mandate to help children throughout 
the world. It has recently been made a permanent 
U.N. agency. 

Nine hundred million children are quite an as- 
signment. Unicef cannot, of course, give each 
individual care. What it is doing is to help the 
governments of the nations concerned to build 
better, sometimes their first, children's programs. 

One of the interesting angles of the U.N. pro- 
grams is the fashion in which the work of these 
agencies interlock, and the extent to which they 
cooperate in doing a job. 

A project in Thailand near Bangkok is typical. 
The Thai Government is anxious to "re-vamp" 
and modernize its educational system. It ap- 
pealed to the U.N. for help. 

The project was undertaken by the U.N. ex- 
panded technical-assistance program with the 
other specialized agencies cooperating. 

The site picked is that of an ancient Buddhist 
monastery. Teaching has been, and is, the tra- 
ditional function of the priests in Thailand, which 

Ocfofaer 26, 1953 



L; 



no doubt influenced the decision. The priests, in 
fact, are still there. 

The U.N. sent a team, including a New Zealand 
expert in fundamental education, a primary school 
specialist from Denmark, a language teacher, and 
a vocational training expert from the United 
Kingdom and a science teacher from the United 
States. Other specialists were recruited from the 
Netherlands and Norway. 

Thailand, you understand, is putting up most 
of the money. What she lacked, and what the 
U.N. is supplying, was the technicians, the experts, 
the "know-how." 

Thailand is an active member of the U.N. 
Prince Wan, chairman of the Thai delegation, is 
one of the most able and respected of all the men 
and women representing their countries in the 
United Nations. Under his leadership, Thailand 
is playing an important part in the world com- 
munity of peace-loving nations. Her willingness 
to cooperate is an inspiration to all of us. 



Each Nation Can Contribute 

Cooperation is basic to the U.N. philosophy. 
And, as it has developed, practically each oi the 
nations has something to contribute. Each has 
some field in which its "know-how" can be valuable 
elsewhere. 

Just to mention a few examples at random, there 
is a Haitian coffee expert working in Ethiopia, an 
agricultural statistician from Rhodesia in Libya, 
an Icelandic marine engineer in Ceylon. 

A Finnish expert is helping the Government of 
El Salvador construct an airport. India, herself a 
beneficiary under all of the programs, has sent 
84 experts to serve in other countries. Americans 
are everywhere. 

All these people, and many more, are doing a 
job. They illustrate the international character 
of the U.N. programs, and the value of coopera- 
tion in tackling these many problems. 

I, personally, get this feeling at the General 
Assembly session in New York. It is very vivid 
to me on the Assembly floor, in the dining room, 
the lounge, and just walking the U.N. corridors. 

If I have time after a Committee meeting, I go 
into the lounge. Looking out of the big windows, 
I see New York, with all its noise and life. The 
loud speaker calls for a delegate — "Prince Wan is 
wanted on the phone." Nearby are little groups 
deep in conversation, French, Indian, Danish. 
It is the U.N. in miniature. 

There are those who do not think the Commu- 
nists have a place in the United Nations. Ambas- 
sador Lodge was asked recently if it were not like 
having an arsonist in a fire house. He said it was, 
but what better place could be found to keep an 
eye on a "fire bug"? In a fire house he would be, 
at least, under surveillance. The firemen would 
have an idea of what he was doing. 

561 



That makes sense to me. And it is the way it 
has worked. The Communists have found it dif- 
ficult to import the Iron Curtain. Everything is 
in tlie open in the U.N. This openness, 1 have 
noted, is frequently an embarrassment to the Com- 
munists. I am convinced that they would very 
much like to get out. It is like luiving a bear by 
the tail. They can't control it. They dare not 
drop it. And it is giving them some very uncom- 
fortable moments. 

Incidentally, there are a number of films show- 
ing the U.N.Headcpiarters in New York. I do 
not know if any of them feature the deputy per- 
manent U. S. representative, but I would be very 
happy to arrange that for you. 

A major Broadway picture theater is regularly 
showing a series of U.N. films known as the Screen 
Magazine. There are several quite recent ones 
and all are good. 

I recently saw one of the new ones, "Afghanis- 
tan Moves Ahead," and was quite impressed. It 
is a good story, and one in which, I think, there 
would be a lot of interest. The setting is highly 
picturesque. 

Afghanistan has been long isolated by history 
and geograjjhy. The way of life of the people 
has changed practically none at all in over a 
thousand years. The picture turns back the pages 
of history. 

The Government of Afghanistan is making a 
heroic eflFort to bridge this thousand-year gap. 
And, with U.N. help, it is doing it. The project 
has enlisted the energies of 12 or more nations. 
A Swiss agriculture expert, for instance, is con- 
tributing his knowledge of mountain farming. 
A man from Colorado is working to improve the 
sheep flocks. Austria sent a man in a jeep to 
travel the almo.st impassable back-country, dem- 
onstrating the use of modern agriculture imple- 
ments. 

Other experts on the project hail from the 
United Kingdom, India, Norway, France, the 
Netherlands, Chile, Denmark, Finland, Belgium 
and (ireece. There may be more and, if so, I apol- 
ogize for not mentioning them. 

They are fine people, the Afghans. The chair- 
man of the U.N. delegation, Mohammed Ludin, 
is a friend of mine. We first met at a luncheon 
given by Ambassador Lodge. Ludin sat across 
from me and suddenly leaned over to ask : 

"How are things in the Genesee Valley ?" 

"What," I demanded, "do you know of my 
valley?" 

"Heck," he lauglied, "I'm a Cornell man. I 
spent 4 years in upstate New York." 

And so he had. Today he is one of the top en- 
gineers in the East. And he knows this country 
like a book, having visited every one of our 4S 
states. A grand fellow. I wish you all could 
know him. 

I find the contacts I am making at the U.N. 



richly rewarding. I am getting the "feel" of this 
new spirit of cooperation that is stirring the world, 
of the determination of all peace-loving peoples to 
make this world of ours a better place for all men. 

I would like to share this experience with all 
my 160 million fellow-Americans, in the little 
towns, the farms, the factories, mills, everywhere. 

It is a privilege to belong to the U.N. It is a 
privilege you and I and all Americans share. But 
privileges carry duties and obligations. If we 
Americans are to meet those obligations, properly 
carry out those duties, there must be wider under- 
standing of the United Nations throughout our 
entire country. 

Men have talked and dreamed of a Golden Age 
for centuries. Modern technology has given us 
the tools to convert that dream into reality. It 
has opened the door to a new life for all of us. 

That is the life I want for my child and gi-and- 
children. You, I know, want it for yours. So do 
millions, hundreds of millions, all over tlie world. 

The job will not be done overnight. But the 
U.N. has made a start. 

This is our country. It is our world. It can 
be a pleasant place or a grim one destined to havoc 
and destruction. 

Tlie choice is ours. 



United Nations Budget 
for 1954 

Statement hy Jamen P. Richards 

U.S. Representative to the General Assembly'^ 

U.S. delegation press release dated October 1 

I would like to observe at the outset that the 
United States has cause this year to be well sat- 
isfied by one important aspect of the report of the 
Committee on Contributions. 

As a Member of the Congress of the United 
States, I am fully aware of the efforts that have 
been made annually by this body to realize the 
principle adopted in 1918 that no one member 
state should contribute more than one-third to 
the i-egular budget of the United Nations. It is 
a souive of gratilication to me and my Govern- 
ment that the seventh session of the CJeneral As- 
semi)ly decided to effect the reduction of the 
United States contribution to ;5;5i/;{ percent be- 
ginning January 1, 11)54, and that the Contribu- 
tions Conunittee has submitted this year a report 
which will give effect to this decision. 

The Contril)ul ions Conunittee has carried out 
its dillicult assignment, this year as in the past, 
with thoroughness and skill, and I am sorry that 



' .Miule ill CoMiiiiitloe V (Administrative iiiul Budget- 
iiiy ) on fKt. 1. 



562 



Department of State Bulletin 



the very able and distinfriiishetl former cluiirinaii 
of the Committee - has left our midst without there 
beiiif;; an opportunity for us to express our appre- 
ciation for her own great contribution to the work 
of the Contributions Committee and this Com- 
mittee. 

I now hasten to state that, despite the financial 
effects of a reduction in the United States rate of 
contribution, there is no lessening of concern and 
interest on the part of my Government with re- 
gard to keeping the total budget at the lowest 
possible level consistent with the efficient dis- 
chai'ge of the duties laid upon the United Na- 
tions Secretariat. 

I promise my colleagues that we will study 
with the greatest sympathy any proposals which 
may be advanced for further economies in the 
budget. All of the governments represented in 
, this room are faced with difficult domestic finan- 
cial problems. A common desire for the maxi- 
: mum economies without damage to the United 
Nations programs is shared by all of us. My 
Government intends to cooperate with others in 
reacliing that objective. 

The Secretary-General has helped us. In the 
first place his budget estimates for gross expendi- 
tures are approximately $200,000 less than for 
1953, and the net budget is nearly $430,000 less 
than the net total for 1953. However, I believe 
analysis of the estimates will reveal that more 
than $1,000,000 of the expenditures for 1953 are 
of a nonrecurring nature. The chairman of the 
Advisory Committee may correct me later, but I 
believe I am right in noting that the proposed 
/ Advisory Committee reductions of $850,000 bring 
the 1954 budget level back to approximately that 
of 1953, exclusive of these nonrecurring coets. 
In tlie absence of definite figures some additional 
small reductions in the Geneva estimates are also 
assumed. 

Yesterday we had a further indication of co- 
operation on the part of the Secretary-General. 
He stated that while he would be glad to explain 
,and justify his own estimates, he would not en- 
Igage in any special pleading. His recognition of 
the identity of interest of the Secretariat and 
member governments and his approach to the ob- 
jective of mutual agi-eement and confidence is in- 
deed refreshing. The United States delegation 
will, therefore, support the Advisory Committee 
figures and will oppose efforts to increase those 
estimates through the submission of supplemental 
estimates or restorations. With regard to the 
supplementals, many of the points made by the 
Secretary-General will require careful examina- 
tion and will be dealt with at a later date. 

My delegation has noted the comment of the 
Advisory Comjuittee in paragraph 9 of its re- 
port.'' The Committee states that it has refrained 



' Maria Witteveen of the Netherlands. 
'U.N. doc. A/240.3. 



from including in its report general proposals on 
reorganization. Under the assumption of this 
clear policy of restraint it is clear that the Com- 
mittee has acted properly in restricting its pro- 
posals for budgetary reductions. 

Plowever, I would be less than candid if I did 
not clearly express the belief of my Government 
that this year and next the Secretary-General 
and the Advisory Committee have both the op- 
portunity and the responsibility of approaching 
the review of the budget with more fundamental 
considerations in mind. The estimates for 1954 
are based on a continuation of an administrative 
organization and policy whicli has been relatively 
unchanged since 1946. The distinguished fir.st 
Secretai'y-General, Trygve Lie, during his term 
of office, did his best within the administrative 
structure established at the first Assembly to pro- 
vide an efficient and economical administration 
for the United Nations Secretariat. 

He has laid the basic foundations soundly, and 
the United Nations has a Secretariat of which it 
can well be proud. But Mr. Lie, like many 
executives — governmental and private — was him- 
self not fully satisfied with his creation. On the 
eve of his retirement he made a number of signifi- 
cant recommendations for increased efficiency and 
economy by changes in the structure of the Sec- 
retariat. These recommendations were discuased 
to some extent by this Committee last year. The 
Committee indicated at that time its apprecia- 
tion to Mr. Lie for sharing with the Committee 
his ideas for improvement of the Secretariat 
which resulted from his long years of experience. 

It was appropriate, of course, that the Commit- 
tee and the Assembly should postpone considera- 
tion of reorganization of the Secretariat until the 
new Secretary-General had had an opportunity to 
review the recommendations and to formulate his 
own conclusions. We now await with interest Mr. 
Hammarskjold's promised recommendations. We 
fully expect the new broom to sweep clean. His 
appraisal, I am confident, will provide this Com- 
mittee, during the current session and next year 
as well, an opportunity to do more than apply the 
brakes on expenditure here and there. In short, 
my Government will expect additional savings on 
the 1954 budget and reduced estimates for 1955. 

With the Secretary-General's help we should 
be able to turn the curves of expenditure and staff 
growtlis downward at the same time that we ben- 
efit from improved and more effective services. 

The Secretary-General will, I am sure, have 
many suggestions, drawn from his long experience 
in the Swedish Treasury, which will help us 
achieve our goal of intelligent economy. How- 
ever, it may help him if each of the delegations 
around this table freely and openly provides sug- 
gestions based on its own observations and experi- 
ences. I fully recognize some of these suggestions 
will be contradictory; others may be impractical 



Ocfofaer 26, J 953 



563 



or even impossible, but I would hope that they 
niiglit serve to challenge and sharpen thinking on 
these questions not only in the Seci'etariat and in 
this Conunittee but amongst interested members 
of the public. 



Organization and Administration 

My delegation would submit that the new look 
at the organizational and administrative problems 
of the United Nations should devote attention to 
the following four items among others: 

First, as pointed out by the Advisory Committee 
and in the discussion in this Committee in previous 
assemblies, the organization of the headquarters 
can be considerably streamlined. To achieve this, 
primary attention should be given to the reduc- 
tion in the number of separate organizational units 
and scaling down of overhead and supervisory 
costs. 

Second, the relationship between United Na- 
tions activities at headquarters and in the various 
regions should be carefully reviewed and rede- 
fined. For example, as the Advisory Committee 
points out, the relationship between the headquar- 
ters organization and the regional economic com- 
missions does not seem to be adequately defined, 
either in terms of function or from the standpoint 
of administrative controls. 

Third, insufficient attention has been given in 
the past by the Secretary-General, by the Advisory 
Committee, and by this Committee to the means 
of affording thorough, overall review of the ad- 
ministrative expenditures of the United Nations 
technical-assistance program. In the case of the 
United Nations, since part of these expenditures 
are met out of the regular budget and part out of 
the Special Fund, it is time, in the view of my 
Government, that the Advisory Committee and the 
Fifth Committee undertake, as part of its review 
of part IX of the regular budget, an evaluation of 
the administrative costs of the technical-assist- 
ance program being financed out of the Special 
Fund and particularly those connected with the 
Technical Assistance Board. Only in this manner 
can there be a satisfactory governmental review 
of the total activity. 

Fourth, a further effort should be made to de- 
velop interchangeability of skills between the 
several Secretariat units and staff members. The 
Secretary-General acknowledged this in his speech 
yesterday; we therefore feel that we can be as- 
sured of improvements in this area. At the mo- 
ment there exist too many administratively water- 
tight compartments within the Secretariat. The 
Advisory Committee has cited a number of ex- 
amples in recent years. The fact can be readily 
demonstrated, however, by the large amounts in- 
cluded in the budget for temporary assistance for 
conferences and for special consultants for various 
special studies. The classic example is of course 
the special unit of 23 persons at a direct cost of 

564 



$173,000 devoted in its entirety to the servicing of 
the Economic and Social Council. The General 
Assembly is also partly responsible for this situ- 
ation. Our colleagues in other committees and 
the councils have a penchant for either underesti- 
mating the abilities of the permanent staff mem- 
bers or demanding such exclusive service that extra 
staff must be employed. Either situation results 
in special committees and advisory groups being 
set up to perform tasks which could have been 
handled by the Secretary-General and his staff. 

That, Mr. Chairman, summarizes briefly four of 
the areas in which my delegation believes that 
significant administrative improvements can be 
devised and on which attention might well be 
focused next year. This does not mean, however, 
that there are not many other problems or that 
we have reached the best solution to problems 
in other areas. Far from it. And as a conse- 
quence, I wish to mention again certain obviously 
wasteful practices and expenditures which the 
Advisory Committee and this Committee have 
stressed in the past and which have not been as 
yet eliminated. 



Curtailment of Documentation 

Despite the previous resolutions of this Com 
mittee we have not made much progress in re- 
ducing documentation. We have the observations 
of the Advisory Committee on this subject in the 
report before us. To demonstrate the actual size 
of this problem, I have brought with me today 
with the help of other members of my delegation 
and a small truck, this enormous stack of docu- 
mentation. This pile represents only part of the 
material produced during the last year for the 
General Assembly, the Economic and Social 
Council and the Trusteeship Council. This does 
not, of course, include the Security Council or any 
of the specialized agencies, but I am sure the out- 
put of their paper factories is staggering as well 
if one can judge by samples such as these. 

Now I am well aware that this mountain of 
paper represents much essential work as well a.' 
necessary records for the conduct of the business 
of this great organization. There is ample justi- 
fication, however, for curtailment of documenta- 
tion along the lines suggested bj' the Advisory 
Committee for reasons of economy alone. More 
imi)ortant, however, as M'e all know, the efTicienl 
functioning of this organization depends on over- 
burdened government departments not being need- 
les.sly swamped by the paper output of inter- 
national organizations. However, at present those 
]irei)aring for the meetings of these international 
organizations are literally inundated with jvaper 
If we are to save our national i-ivil services from 
breakdown or alternatively from swollen growth 
it is essential that we ruthlessly reduce the ap- 
propriations for documentation. 

The Secretary-General has already issued ad- 

Deportment of Stote Bulletin 



i 



ministrative instructions whicli, if strictly fol- 
lowed, should result in a real contribution by the 
Secretariat toward the reduction of documenta- 
tion. However, my delegation fully recognizes the 
justice and wisdom of the Advisory Committee's 
observation that in the final analysis reduction of 
documentation is the responsibility of member 
states. This means that we must control our pro- 
pensities for long speechmaking and refrain from 
requests for unnecessary reports. My Govern- 
ment will cooperate in this endeavor. We will 
welcome advice by the Secretary-General when- 
ever action on the part of governments might be 
taken to induce a shrinkage of this mountain by 
my side. We also ask that he inform us whenever 
our representatives fail to follow this economy 
directive. 

The second point on which the records before 
us indicate that past directives of this Committee 
lave not been followed relates to travel. This 
arises in two ways — travel of staff members and 
the travel paid by the United Nations for gov- 
ernment representatives to meetings of United 
Nations bodies. Every human institution can be 
criticized for the tendency to expand travel ex- 
Denditures. 

In the United States, bureaucrats often shake 
off the daily routine by viewing foreign and 
greener pastures. I observe from the Advisory 
Committee report that love for travel is not 
restricted to national officials. I would be the last 
member of this Committee to oppose travel ex- 
penditure which is vital to the conduct of the 
business of the organization, but one could justi- 
fiably ask whether high officials who spend long 
periods of time at one stretch away from their 
desks are really serving the interests of the United 
Nations. I am certain that the Secretary-General 
and everyone here recognizes that appropriations 
for legitimate travel are jeopardized by travel 
which is not justifiable. 



Suiting Travel Costs 

This problem can be met in two ways. One is 
for those of us sitting around this table and repre- 
senting governments to take responsible, well- 
5onsidered decisions with regard to the place, 
;iming, and length of meetings of United Nations 
jodies. In this connection 1 should like to indi- 
:ate our emphatic agreement with the position 
;aken by the Administrative Coordination Com- 
nittee, i. e., the heads of the United Nations and 
dl the specialized agencies, that the pattern of 



conferences for Geneva and headquarters which 
was approved by this Body at the seventh session 
of the General Assembly must be adhered to by 
all the organs concerned if rational and econom- 
ical conference planning not only of the United 
Nations but also of the specialized agencies is to 
be obtained. 

The second method in which unessential travel 
costs can be reduced is through tighter admin- 
istrative controls in the Secretariat. In this con- 
nection my Government endorses strongly the 
opinion of the Advisory Committee that many of 
the conferences away from headquarters are ex- 
cessively staffed. It would be desirable to have 
the personal review by the Secretary-General, if 
this is possible, of all trips proposed in connection 
with conferences. 

I cannot omit from this general consideration 
of the climbing costs for travel in international 
agencies one further observation. I note in the 
tables which have been made available to us that 
travel on home leave in the United Nations in 
1954 will reach nearly $1,150,000. Since almost 
all of the specialized agencies have a similar policy 
on home leave, the total cost for home leave in 1954 
among the United Nations agencies will approxi- 
mate nearly $2 million. 

Given the times we live in, Mr. Chairman, and 
the sacrifices which we are all making, I should 
like to suggest that the time has come to consider 
whether our liberal home-leave policy is one which 
we can or should continue to support. I should 
note that the United States Government has fol- 
lowed the lead of other governments around this 
table in adopting a policy of adjusting the fre- 
quency of home leave to the conditions of the post 
at which the individual is serving. Home leave 
on a 2-year basis will henceforth be the exception 
rather than the rule. Since my own Government 
has belatedly adopted the policy long followed 
by other foreign offices, I believe that I can justi- 
fiably ask that the Secretary-General restudy 
this policy and its application to the Secretariat. 

I should not like to conclude these remarks on 
purely financial and administrative matters with- 
out emphasizing that tliey must be viewed in a 
broader perspective. While I have raised points 
of criticism, I would emphasize that they are 
directed primarily toward questions of detail. 
They should not be allowed to obscure the fact 
that the United States wholeheartedly supports 
the basic program of the United Nations and also 
has complete confidence that the new Secretary- 
General will carry out this program in the most 
effective possible way. 



)cfober 26, 1953 



565 



U. N. Action in the Social Field 

Statement by Charles W. Mayo 

V.S. Representative to the General Assembly'^ 

D.S. delegation press release dated October 7 

I wish to state at the outset that my Government 
supports the program of practical action in the 
social field adopted by the Economic and Social 
Council on July 31, 1953. This subject has re- 
ceived detailed and careful consideration by the 
Secretariats of the United Nations and the spe- 
cialized agencies, and many hours of constructive 
debate have taken place in the Social Commission 
and the Economic and Social Council in complying 
with the request of the General Assembly in its 
resolution 535 (VI) of February 21, 1952. 

The United Nations and its member govern- 
ments are concerned with many different kinds of 
problems — political, economic, social, human 
rights, and others. Each of these problems must 
receive due emphasis if the United Nations and 
member governments are, in the words of the char- 
ter, "to promote social progress and better stand- 
ards of life in larger freedom." Not the least im- 
portant is the social field, including such subjects 
as health, housing, education, and labor standards. 
This is a field in which, as a member of the medical 
profession. I am personally interested, and also 
one to which the new administration in my country 
has attached particular significance by creating a 
new Cabinet department to deal with health, edu- 
cation, and welfare. 

It is also a significant function of the United 
Nations. Article 55 of the charter, among other 
things, sets forth the authority of the United Na- 
tions to "promote . . . conditions of . . . social 
progress and development" and "solutions of inter- 
national . . . social . . . problems." From the 
beginning the United Nations and the specialized 
agencies have done extensive work in this field. 
In February 1952, the General Assembly in resolu- 
tion 535 (VI) called special attention to the im- 
portance of social issues and initiated the develop- 
ment of the program of practical action. In par- 
ticular, the General Assembly affirmed that action 
to promote social development and technical as- 
sistance in social matters .should go hand in hand 
with action to promote economic development, and 
requested the Economic and Social Council "to 
draw up a program of practical action for the 
United Nations in the social field to be imple- 
mented in cooperation with the specialized 
agencies." 

The Report on tlie World Social Situation = pre- 
pared by the United Nations Secretariat for the 
first time focused attenti(m on social problems on a 



'MikU> oh <»<t. 7 In ('oiuiiiltlL'C III (Social, lluuiaiiitur- 
lan mid Cultural). 

-U.N. doc. K/CN.rj/2«7/Rev. 1. 

566 



worldwide basis. The document entitled "Pro- 
gram of Concerted Practical Action in the Social 
Field of the United Nations and Specialized Agen- 
cies" (E/CN.5/291), prepared by the Secretariat 
in cooperation with governments and the special- 
ized agencies, supplemented the Report on the 
World Social Situation by focusing attention on 
United Nations programs already underway and 
on recommendations for further action. These 
two documents taken together afforded the Eco- 
nomic and Social Council with the factual basis 
for determining what a program of practical 
action in the social field should be. 

The result is that we have before us a specific 
program of activities adopted by the Economic 
and Social Council to be undertaken in the social 
field, as well as practical methods and techniques 
for assisting governments in carrying out these 
activities. The core of the work of the Social 
Commission and the Economic and Social Council 
is found in paragraphs 7, 8, and 9 of the resolution 
of the Economic and Social Council, 496 (XVI). 
Paragraph 7 sets forth several important general 
principles. It recognizes that economic develop- 
ment and social development go hand in hand and 
that in selecting projects to be financed by the 
United Nations and specialized agencies this inter- 
relationship should be borne in mind ; that projects 
should be concerted with development plans of the 
beneficiary governments; and that projects should 
yield early and permanent results to a maximum 
"number of people. 

Paragraph 8 sets forth clearly the projects 
where concentration is necessary, including im- 
provement of food distribution and dietary prac- 
tices, strengthening of national health services, 
and other projects. . 

Paragraph 9 includes techniques of particular 
importance in a program of jiractical action in the 
social field, such as community-development proj- 
ects, training programs, and the development of 
organizations for the administration of social 
programs. 

It is especially important to note that the last 
paragraph of the Council's program recognizes 
the continuous nature of the problem of concen- 
trating the attention of the United Nations and the 
specialized agencies on those areas where the great- 
est benefit can result. Provision is therefore mad&i 
whereby the Secretary-General will make recom- 
mendations on further practical measures which 
might be taken to strengthen and make more ef- 
fec-tive the methods and techniques for carrying 
out United Nations activities in this important 

field. , 

The Economic and Social Council has reported 
to the General Assembly in response to our request 
in resolution 535 (VI) "on the manner in which it' 
has carried out our request. It has developed aj 
program in which the United Nations, the special- I 
ized agencies, and tlie member governments have 

Depatlmeni of State Bulletin 



concerted, and it has provided for continued co- 
operation. It lias developed a practical program 
and has provided for consideration of further 
practical measures which might be taken to 
strengthen this program. 

We have joined with the distinguished repre- 
sentative of Ecuador, the Philippines, and Yugo- 
slavia in presenting a simple yet important draft 
resolution in which the General Assembly ex- 
presses its appreciation for the work the Economic 
and Social Council has done.^ I hope that other 
delegations will be willing to support this 
resolution. 



U.N. Command Questions 
NNRC Procedures 

FoUoioing in the text of a letter doited October 6 
from. Gen. Marh W. Clark, retiring U.N. Com- 
mander., to the chairman of the Neutral Nations 
Repatriation Co7n7nission {NNRC). General 
Clark left Tokyo on October 7, after turning over 
his command to his successor.. Gen. John E. Hull. 

General K. S. Thimatya, 

Chairman., Neutral Nations Repatriation 
Cominission. 

In view of the differences that have arisen as 
to the meaning and application of the terms of 
reference for the Neutral Nations Repatriation 
Commission, and in view of their vital importance 
to the entire world, I consider it desirable to set 
forth briefly the background of that document.'' 

After April 1952, there remained one unre- 
solved issue in the armistice negotiations which 
(vas not resolved until June 1953, when agreement 
(vas reached on the terms of reference. The issue, 
simply stated, was: "Would the United Nations 
Command agree to use physical force to return to 
2!ommunist control those captured personnel who 
jlearly demonstrated they would physically resist 
•epatriation?" The Communists insisted that all 
•captured personnel must be returned regardless of 
heir individual desires. During most of the time 
hat this issue was in dispute, the Unc had in its 
custody about 83,000 North Korean and Chinese 
)risoners of war who, of their own free will, indi- 
ated that they would not physically resist return 
Communist control. These prisoners we did 
eturn in good faith as soon as it became possible 
do so. The remaining prisoners refused to be 
eturned to Communist control. Because of its 
egai'd for their human rights, the United Nations 
yommand insisted that they, as individuals, be 
llowed to express their own will without coercion 
f any kind. They were free, at any time while 



in our custody, to change their decision regarding 
repatriation. A few of them did, in fact, subse- 
quently ask for repatriation, and they were in- 
cluded with those who were returned. 

Although these anti-Communist prisoners had 
very clearly manifested their violent opposition 
to repatriation, the Unc, in the interests of achiev- 
ing an honorable armistice and bringing to a halt 
the bloodshed in Korea, agreed to a proposal by 
which each side would be permitted to conduct 
explanations without force or coercion to prisoners 
of the other side who had signified they did not 
wish to exercise their right of repatriation. It was 
in connection with this agreement that the Nnro 
was established. 

As I review the progress of about 3 weeks of 
activity of the Nnkc, I do not fail to appreciate 
the administrative difficulties encountered in the 
organization of any such body. However, I am 
impelled, as Commander in Chief of the United 
Nations Command, to present our views on certain 
aspects of proceedings to date. 

Certainly, the United Nations Command has, 
from the outset, sought in every way to fulfill its 
obligations to the Commission and to the Cus- 
todian Force India. It will continue to meet its 
present and future commitments. On the other 
hand, the Unc is deeply and directly concerned 
that the Nnrc will also fulfill the obligations im- 
posed upon it by the armistice agreement and the 
terms of reference, and will adhere scrupulously 
to the humanitarian intent of those documents. 
Having continued, at heavy cost, the conflict in 
Korea for more than a year while our negotiators 
at Panmunjom were striving to achieve an honor- 
able armistice which would uphold the principle 
of freedom of choice as to their future by the 
prisoners of war of both sides, the Unc cannot now 
condone any abrogation or compromise of this 
principle. Nor can it condone the use of force or 
coei'cion, either overt or implied, in connection 
with this principle, while these prisoners are 
under the control of the Nnrc. 

Your position that prisoners were misinformed 
by the Unc of the provisions of the terms of 
reference is completely at variance with the facts. 
As you and the Commander, Custodian Force 
India,'' have previously been informed, the pro- 
visions of this document were given in their 
entirety to all the prisoners in Unc custody. In 
our opinion, the plain words of the terms of refer- 
ence need little interpretation. Wliere an inter- 
pretation had to be made, or when such was 
requested by the prisoners, it was based on the 
fundamental principle of freedom of choice, with- 
out duress or coercion. Allegations of misinter- 
pretation by the Unc are unwarranted and 
undeserved. 

Any assertion that the Unc has led anti-Com- 



' U.N. doe. A/C. 3/L. 348. 

* For text, see Bulletin of June 22, 1953, p. 866. 



" Maj. Gen. S. T. Patil Thorat. 



icfober 26, 7953 



567 



munist prisoners of war to believe they ■would be 
released at the end of 90 days' custody is in error. 
As a matter of fact, the prisoners were shown 
graphically, in chart form, a chronology of events 
pertaining to them while in Nnkc custody, which 
unmistakably provided for a maximum period of 
120 days as prisoners of war, after which they 
would revert immediately to civilian status and, 
30 days thence, the Nnkc would be dissolved. 

I understand you have objected to an informa- 
tional leaflet on India previously distributed by 
the Unc to the prisoners of war solely because it 
did not discuss exact duties of the Nnrc under the 
terms of reference. You will recall that, at the 
express request of the head of the Indian Red 
Cross, the Unc agreed to send to the Nnrc Camps 
for the use of the prisoners all informational and 
educational materials on hand at its Unc Prisoner 
of War Camps. These included not only informa- 
tional leaflets, but text books, materials and ath- 
letic and recreational equipment. At no time was 
it indicated that the material requested should be 
related to the mission and functions of the Nnrc. 
You are aware that, because of the deep distrust 
of the Nnrc and the Cri on the part of the prison- 
ers, we found it necessary to undertake positive 
measures to encourage them to share our faith and 
trust in the integrity and impartiality of India. 
Only through such a program were we able to 
secure the cooperation of the prisoners in the move 
to the demilitarized zone and in placing themselves 
in your custody without violence and bloodshed. 

Also in error is the statement that prisoners were 
told by the Unc they would go to Formosa. All 
prisoners were informed that, under the terms of 
reference, those who refused repatriation would 
be free to make application to go to a neutral 
country or to a country of their choice. Certainly 
you are aware that the anti-Communist Chinese 
have indicated a strong and natural desire to go 
to Formosa. It is public knowledge that the 
President of the Rerublic of China has invited to 
Formosa those Chinese anti-Communists who de- 
sire to come. Similarly, the President of the Re- 
public of Korea has extended his welcome to those 
nnti-Communist Koreans who wish to live in his 
nation. 

Furtliermore, I am sure you agree that there is 
nothing in the terms of reference which prevents 
tliose prisoners who refuse repatriation from 
going to Formosa or the Republic of Korea after 
termination of the period of custody by the Nnrc. 
Para 11 of tluit document states in part that 120 
days after tlie Nnrc takes custody of the prison- 
ers, they shall revert from prisoner of war status 
to civilian status. Therefore, at that time they 
are no longer prisoners, nor are they subject to 
tlie custody or to the control of the Nnrc. They 
are free to go where they choose. This same para 
also states tliat those who choose to go to neutral 
nations sliall be assisted by tlie Nnrc and (lie Red 



568 



Cross of India. This assistance by the Nnrc and 
the Red Cross of India is available only for a 
period of 30 days, or 150 days from the date upon 
which the Nnkc assumed custody. Thereafter, the 
Nnkc is dissolved. Obviously, these free men, 
formerly prisoners, who do not request assistance 
from the Nnrc and Red Cross of India will not 
remain in the demilitarized zone. Having re- 
jected repatriation, thej' must make their way to 
a country of their choice. The obvious and natural 
choice of these men is Formosa for the Chinese 
and the Republic of Korea for the Koreans. 

It is important to note here that para 11 was 
proposed by the Communists. When, on 4 June 
1953, armistice negotiators were discussing this 
para, the Unc asked this question : "Does your pro- 
posal indicate that all such prisoners would have 
to go to some neutral state or would Koreans, for 
example, be allowed to remain in Korea?" The 
record indicates that the Communists interposed 
no objection to this interpretation. 

It is difficult to accept the assertion that a state- 
ment recently distributed to the prisoners in your 
custody is a "perfectly correct interpretation" of 
the terms of reference. Our objections to both its 
tone and intent have already been made known 
to you. While you now assert that the original 
text represented the commission's unanimous p 
views, there appears to be considerable confusion ■ 
as to the translation given to the prisoners. Spe- I 
cifically, a press statement attributed to you, per- 
sonally, indicates that the statement distributed to 
Chinese anti-Communist prisoners was an earlier 
version of a draft not approved by the commission. 

I desire to reiterate that the explanation period, 
which apparently has been a matter of consider- 
able discussion by the commission, in no way caili 
extend beyond 23 December, or 90 days from 241 
September, the date on which the Nnrc assumedl * 
full custod}'. This is not subject to interjjreta- 
tion by the commission, is clearly stipulated in the 
terms of reference, and has been covered so thor- 
oughly in previous correspondence with you that 
I feel the subject needs no further discussion. 

Your refusal to permit observers of the United, ! 
Nations Command to witness the validation of re- In- 
quests of prisoners for repatriation is both sur- 
prising and disappointing. It is difficult to i-ec- 
oncile such a position witli the provision of the 
terms of reference, whicii very clearly permit our 
representatives to observe the operations of the 
commission, to include, but certainly not restricted 
to, explanations and interviews. The Nnrc ruled 
tliat tlie transfer of prisoners from the Unc to tho 
custody of the Cfi was an operation of tiie com- 
mission and, accordingly. Communist representa- 
tives had the right to observe sucli operation. Cer- 
tainly, the final act of determining a prisoner's 
destiny by the validation of his application for re- 
patriation is a most important ojieration of the 
commission and its subordinate bodies. The same • 
principle must apply ; therefore, validations prop- ■ 

Department of State Bulletin 



ill 



erly slioukl be witnessed by the representatives 
of the Unc; it would be most desirable that the 
press also be present. Para 1 of the terms of ref- 
erence can have no other interpretation and con- 
stitutes full authority for such observation. 

In summary, it appears that the decisions and 
activities of the commission to date have been 
predicated upon the assumption tluit the prisoners 
in your custody actually desire repatriation. This 
is especially difficult to understand in view of the 
strong opposition Korean and Chinese anti-Com- 
munist prisoners have demonstrated, individually 
and collectively, even to the physical presence of 
Communist representatives. It would seem that 
the commission has not taken full cognizance of 
the fact that the Korean and Chinese prisoiiers 
made their choice many months ago and that, in 
the absence of force or coercion, the vast majority 
will adhere to their decision. If there exists any 
real doubt as to tlie attitude of the prisoners, I 



strongly recommend that advantage be taken of 
the provisions of para 9 of the terms of reference 
and that prisoners be encouraged to state their 
views directly to the Nnro and its subordinate 
bodies on the situation as they see it. Tliis should 
provide conclusive evidence of their personal feel- 
ings and desires. 

While, under the armistice agreement and the 
terms of reference, the United Nations Conunand 
will continue to fulfill its commitments to the 
Nnrc, this command is confident that the Nnrc 
will, under your direction, fulfill its solemn obli- 
gations with strict integrity and complete impar- 
tiality, the governing consideration being the wel- 
fare of the prisoners of war and their freedom of 
choice as to ultimate disposition. 
Sincerely, 

Mark William Clark 
General, United States Army 

Comnnaruler in Chief 



Enforcing Strategic Trade Controls 



THIRD REPORT TO CONGRESS ON THE BATTLE ACT 



Harold E. Stassen, Director of Foreign Opera- 
tions, on September £7 submitted to the Congress 
''hi' third semiannual report on operations under 
'hi' Mutual Defense Assistance Control Act of 1961 
{the Battle Act)} Printed below are Mr. Stas- 
len's letter of tran'^mittal, a su-mrnary of the con- 
tents of the report, and the full text of Chapter 
'IV, dealing with control of trade with Gonvrrm- 
list China. 



.ETTER OF TRANSMITTAL 

Vo the Congress of the United States: 

The document which I submit herewith is the 
bird semiannual report on operations under the 
Vlutual Defense Assistance Control Act of 1951, 
he administration of which has been a part of 
ny responsibilities since January 28, 1953. 

The period covered is January through June, 
.953. 



^^Yorld-n•ide Enforcement of Strategic Trade Controls. 
Copies of the report may be obtained from tbe Superin- 
endent of Documents, U. S. Government Printing Office, 
Pasiiington 25, D. C. (300). 



I am glad to report to the Congress that these 
6 months have brought considerable improvement 
in the administration of controls on the shipment 
of strategic materials from the free world to the 
Soviet bloc. 

I must also report that the program is ham- 
pered by lack of public knowledge, both in the 
United States and abroad, concerning the aims 
of the program and concerning the activities that 
go on continually in connection with it. 

This lack of knowledge, often leading to false or 
exaggerated notions, is hardly surprising in view 
of the secrecy which the free world has often had 
to employ in its strategic trade control operations. 

Much of the secrecy is still necessary. But to 
fill gaps in knowledge is necessary, too. I hope 
that this report will go far toward that objective. 
It contains a detailed account of the world-wide 
enforcement of strategic trade conti'ols, with ex- 
amples of successes and failures in the campaign 
to block illegal shipments. Furthermore it pro- 
vides the facts necessary to dispel certain illusions 
that have sprung up in the field of East-West 
trade. 

Harold E. Stassen 
Director of Foreign Operations. 



)cfofaer 26, 7953 



569 



SUMMARY OF THE REPORT 

Chapter I of tlie report cites cases from the files 
sliowiiig how controls are enforced. The under- 
world of East-West trade tries to divert strategic 
cargoes to the Soviet bloc in violation of the laws 
of free nations, by means of falsehood, forgery, 
and intricate arrangements to confuse the authori- 
ties and throw them off the trail. Some of the at- 
tempts are successful; illegal trade is a serious 
problem. But the free governments are far from 
idle. They have improved their cooperation with 
one another in enforcement matters. They have 
intensified their enforcement activities and made 
them increasingly effective. 

Chapter II gives a behind-the-scenes glimpse of 
the nations at work in Paris, coordinating their 
strategic trade controls. Without close interna- 
tional cooperation, an effective system of controls 
would be out of the question. An embargo of a 
given item by one country, or even two or three 
countries, would be of little value if the Commu- 
nists could readily get the item somewhere else. 

Chapter III dealt with certain myths that have 
grown up concerning East- West trade in Europe. 
On both sides of the Atlantic, some people are 
nursing erroneous conceptions, based more on 
emotions and desires than on hard facts. In West- 
ern Europe, for example, some people influenced 
by Communist propaganda have embraced an ex- 
aggerated vision of the potentialities of trade with 
the Soviet bloc; they think that a vast increase in 
East- West trade, serving as a sort of cure-all for 
the ailments of Europe, would come about if it 
were not for the trade controls of the West. This 
is not true. Soviet policies are the main deterrent 
to peaceful trade. In the United States, on the 
other hand, there are people who have gained the 
false notion that our allies, disregarding their own 
security, are supplying arms and ammunition to 
the Soviet bloc, and there are those who have fallen 
victim to the fallacy that all East-West trade is 
wrong and ought to be abolished.^ 

Sound policy must be based on reality. The 
United States Government and the other major 
governments of the free world do not attempt to 
shut off all East- West trade ; they do cooperate to 
witlihold strategic items in the interest of their 
security. 

Chapter IV reviews the China trade. The 
United States lias proliibited all exports to Com- 
munist China. Our allies, which are in different 
economic and political circumstances, continue to 
ship nonstrategic commodities. But they joined 
with us, in accordance with the United Nations 
resolution of May 18, 1951, in an embargo of 
strategic sliipments to the Chinese mainland. This 
emharg(j is far more extensive tlian the one apjily- 



' For nil article liy Kcnnnth Hansen, As.slstant Deputy 
Adinliilstrator <if the liattle Act, dm fallacies current in 
the I'nlted States, see I5ui.i.trriN of Auji. lil, 11)5:5, \^. IJTl. 

570 



ing to the Soviet bloc in Europe. Nonstrategic ) 
trade with China was on the increase during the 
early months of 1953. This did not mean a relaxa- 
tion of controls. In fact, the strategic embargo 
was tightened in the first half of 1953 by expand- 
ing the embargo lists and by new controls over 
siiipiDing and bunkering. Furthermore, the Ko- 
rean truce did not bring a relaxation of controls, 
for winning an armistice on a single battleground 
does not mean that we have won peace in the world. 

Chapter V deals with the administration of the 
Battle Act and discusses some of the operations 
carried on by the U.S. Government during the 
6-month period covered by the report, including, 
for example, the purchase of a cargo of refined 
kerosene that was on its way to Communist China 
in the Finnish tanker Wiiina. 

The report concludes with the following ap- 
pendixes: Summaries of trade control measures 
of free-world countries, including those of the 
United States; documents on continuance of aid 
to West Germany, France, Norway, and the 
United Kingdom ; ^ statistical tables on trade be- 
tween free countries and the Soviet Union and its 
satellites ; and the text of the Battle Act. 



THE CHINA TRADE 

Much of what was said about relations between 
Western and Eastern Europe is equally appli- 
cable to the Orient. For example, the free nations 
must and do stand together in united purpose 
whether Far Eastern or European matters are 
being considered. And the contention that our 
allies are shipping military articles to the Com- 
munists is fallacious and harmful, whether one is 
talking about the Cliinese Communists or the , 
Russian Communists. 

China trade, however, must be reo;arded as a , 
different problem. It is different Ibecause the 
Chinese Communists throughout the six months 
covered by this report were engaged in aggi'essive ] 
warfare against the United Nations in Korea. , 
None of the free countries was in an all-out de- , 
clared war with China, but the urgent situation i 
in Korea, aggravated by other Comnuuiist vio- 
lence in tlie soutii of Asia, made it necessary for 
the free world to maintain strategic ti'ado controls 
against Communist China that were much more i 
severe and sweeping than the system applicable 
to the rest of the Soviet bloc. 



Strategic Goods Embargoed 

One of the chief events in the development of 

these tighter controls over shipments to Conumi- 
nist China had taken place on May 18, 1951. That 
was the day when tno United Nations General 
Assembly recommended that all nations apply an 

* For texts, see also ihiil., p. 300. 

Department of State Bulletin i 



embargo to Communist China and North Korea 
covering "arms, ammunition, and implements of 
war, atomic energy materials, petroleum, trans- 
])()rtation materials of strategic value, and items 
useful in the production of arms, ammunition, and 
implements of war." 

With extremely rare exceptions all the free 
nations of the world have complied with this res- 
olution ever since. 

Furthermore the embargo was steadily im- 
jiroved, month after month, for the duration of 
the Korean war. The important industrial na- 
tions that cooperate with one another in the in- 
formal Consultative Group (described in chapter 
II) have devoted special attention to the China 
trade. In addition to the items embargoed to the 
P^uropean Soviet bloc, these nations have extended 
their China embargo lists to cover several hundred 
other items which they believe to be of strategic 
significance to the Chinese Communists. 

New measures that were taken by the free gov- 
ernments to tighten their China controls during 
the period under review will be described later in 
this chapter. But first it is necessary to deal witJi 
a matter that has caused much confusion — namely, 
the difference between the China-trade policy of 
the United States and the policies of our allies. 



The United States Embargoes Everything 

The Congress provided that the Battle Act shall 
be administered in such a way as to give the fullest 
support to the United Nations embargo of stra- 
tegic shipments to Communist China, and this 
Government has indeed worked to extend that 
embargo throughout the free world and make it 
more eiTective. But this Government, in respect 
to its own exports, went even further. 

United States exports to China had been $354 
million in 1947, $273 million in 1948, $83 million 
in 1949, and $47 million in 1950. After the Chi- 
nese Communists entered the Korean fighting, the 
United States in December 1950 prohibited the 
export of all items, whether strategic or non- 
i strategic, to Communist China. In addition 
United States ships were forbidden to call at 
Communist Chinese ports. For a while, the 
United States continued to allow certain imports 
of Chinese origin. Official statistics for 1952 show 
U. S. imports from China of $27.7 million, of 
which more than four-fifths came in the first half 
of the year. The imports of Chinese origin were 
largely hog bristles and crude feathers, needed 
at that time for strategic stockpiles. The statistics 
also include, however, imports of goat hair and 
marmot fur from Outer Mongolia, which is not 
considered a part of Communist China, except for 
statistical purposes. 

The reason for the United States prohibition 
against all exports to Communist China was not 
that every kind of merchandise was considered to 



be directly helpful on the battlefield. Rather the 
prohibition was based on a deep-felt conviction 
that an aggressor nation, engaged in fighting and 
killing the troops of the United States and other 
free countries, ought to be subjected to the maxi- 
mum possible economic pressure, and that we 
ought not to supply its economy with any articles 
whatever, even civilian-type articles. 

The United States also took into account the 
fact that the Chinese Communists, in addition to 
being aggressors, were trying to build a stronger 
war-potential base for their weak and primitive 
industry and needed outside help to do it; there- 
fore many items were considered strategic to them 
which were not strategic to the rest of the Soviet 
bloc. 

A policy of total embargo to Communist China 
has been the consistent position of the United 
States. And this Government suggested that 
other free nations take the same position. 



Nonstrategic Trade Goes On 

Most of the major trading countries of Western 
Europe and Asia could not accept the position of 
the United States. These nations cooperated in 
the embargo of strategic items, but when it came 
to goods like cotton, fertilizer, textiles, textile ma- 
chinery, dves, and drugs, they were not willing to 
cut off their exports to China. One does not need 
to assume that these governments were any less 
sincere in their decision than the United States, but 
only that they were in different circumstances and 
saw the problem through different eyes. 

Many of these countries feel keenly their heavy 
dependence on foreign trade. They argued that 
they got economic benefits not only from selling 
nonstrategic exports to China but from the im- 
ports they received from China in return, and 
from the shipping services they provided. They 
argued that this sort of trade was to the advantage 
of the free world, not of the Chinese military ma- 
chine. It was contended, too, in some quarters, 
that it was wise to preserve a strong economic link 
between China and the West, in order to reduce 
China's dependence on Moscow and perhaps some 
day turn Mao into a Tito. The trading policies 
of some of these countries were also influenced 
by the fact that they, unlike the United States, had 
extended diplomatic recognition to the Chinese 
Communist Government. 

So most of our allies kept on shipping what they 
considered to be nonstrategic items and obtaining 
Chinese goods in return. Exports from the free 
world to Communist China in 1952 were about 
$257 million. In 1951 they had been $433 million. 
The drop in 1952 was caused by a number of fac- 
tors, including the free-world embargo of stategic 
items and the fact that in the first part of 1952, 
Communist China was outwardly cool toward 
trade with the West. In the latter part of 1951 
and the early part of 1952 the Chinese were trying 



October 26, 7953 



571 



to orient their trade away from the free world and 
toward the Soviet Union. They reorganized and 
centralized their foreign trade machinery and car- 
ried on an "anti-five-vices" campaign, directed in 
part against "foreigners" and trade with the free 
world. The Chinese made an about-face in 1952, 
and by the fall of that year were actively seeking 
Western trade again, this campaign began to be 
reflected in the statistics in 1953. 

Of all the free countries that exported goods to 
Comiminist China in 1952, Hong Kong led the list 
with $91 million (contrasted with $281 million in 
1951) and Hong Kong's principal items— largely 
reexports originating in other countries— were 
medicines, fertilizer, dye, wool tops, paper, and 
textile machinery. Pakistan, in second place, 
shipped $83.9 million worth of raw cotton. Ceylon 
shipped $26 million worth of rubber in exchange 
for Chinese rice (rubber is a strategic item but 
efforts to persuade Ceylon not to ship it have 
failed. The United Kingdom shipped $12.8 mil- 
lion of miscellaneous items, the major ones being 
sodium compounds such as caustic soda, fertilizer, 
rugs, wool tops, and textile machinery. Egypt 
(cotton), Finland (paper and wood pulp), India 
(jute products), and Switzerland (dye, textile 
machinery, medicines) followed in that order. 
While the free world was exporting $257 mil- 
lion in goods to Communist China, it was import- 
ing from Communist China about $345 million. 
Among the principal items were soybeans, dried 
eggs, fi-uits, ground nuts, vegetable oils, iron ore, 
grains, and hog bristles. Hong Kong imported 
$145 million, Malaya $40 million, India $32 mil- 
lion, and the United States was in fourth place 
with $27.7 million. West Germany, Japan, Swit- 
zerland, and the United Kingdom followed in that 
order. Japan managed to import $15 million de- 
spite the fact that its carefully-screened exports to 
Communist China were not much over half a 
million. 

The Chinese Communists are not entirely de- 
pendent on goods from the free world. They re- 
ceived from their European Soviet allies during 
1952 several times as much as they received from 
the free nations. The shii)ments of Communist 
origin included arms and ammunition and other 
strategic materials. Most of them moved over the 
trans-Siberian railroad. Tlic Chinese Communists 
claim that only 25 i)ercent of China's total foreign 
trade in 1950 was with Soviet-bloc countries, and 
that tills had risen to 72 percent in 1952. 

In (he early months of 195.",, trade between many 
nations of the free world and Communist Cliina 
was on the increase. For example, shipments from 
Hong Kong, Ceylon, West Germany, the United 
Kingdom, France, Italy, Belgium, and the Nether- 
lands were running at a higlier annual rate than 
their unusually low shipments of last year. If 
free-world exports continued at the same rate as 
that of the first 3 or 4 months of the year- and 
that is not at all certain— the 1953 total would 



572 



be around $375 million. This would be higher 
than 1952 but not as high as 1951. 

The 1953 increase was not due to a relaxation of 
strategic trade controls. The strategic embargo 
was being tightened in the first half of 1953, not 
relaxed. The increase was in nonstrategic goods. 
The main reason for it seems to be the changed 
attitude of the Chinese Communists, who had 
dropped their reluctance to deal with the West and 
were placing more and bigger orders for the kind 
of goods that the free governments would have 
been willing to ship all along. 

First Things First 

The difference between the China-trade policy 
of the United States and the policies of its major 
allies was one part of the many-sided Far Eastern 
problem that confronted the new admmistration 
when it took office in January. 

With Chinese Communist soldiers fighting our 
troops in Korea, what was the best thing to do? 
Should we bomb Chinese territory and go all- 
out in the war against Communist China ? Should 
we blockade the Chinese coast and attempt to stop 
all ships, whether belonging to the Soviet bloc or 
to our allies? Should we notify our allies that 
we would terminate or reduce our aid to them— 
or punish them in other ways— if they continue 
to trade with the Chinese Communists? 

Tlie policy chosen by the administration in- 
cluded building up South Korean strength in 
Korea, building up the Chinese Nationalist Forces 
in Formosa, strengthening the forces hgnting 
communism in Indochina, and at the same time 
showing a willingness to reach a truce in Korea. 
With respect to the China trade, the adminis- 
tration during the first half of 1953 followed a 
policy of concentratinir on lirst things fir.'^t. Our 
policy was to get our allies to exert economic pres- 
sure on Communist China, but we had no iHusion 
as to the immediate feasibility of stopping trade 
in noii'^trategic goods. We had to recognize that 
transactions in the China trade could be advan- 
tageous to the free world ( the United States itself 
had imported strategic items from China m 19.v_). 
And we had to recognize that otlier sovereign coun- 
tries were entitled to make judgments of their 
own with respect to their own trade, and tliat we 
could not stop their nonstrategic shipments with- 
out taking measures that in the long run would do 
the free world and the United States far more 
harm than the existing trade could possiblv do. 

Tims the United States Government, m the pe- 
riod under review, did not press other govern- 
ments to cut off their nonstrategic trade with 

China. , . . „ j 

Instead, this Government used its influence and 
its energies in a direction more likely to pay ou 
in increased security for the United States and 
the free world— namely, toward the more effec- 
tive control of strafef/ic materials. 



Deparfment of Slal9 Bullatin 



strategic Embargo Tightened 

There were two principal ways in which the 
free governments could improve their control of 
strategic items in the China trade: 

1. The free governments could make sure that 
their lists of strategic items for emhargo did m- 
deed include all those items which were strategic 
in nature. Steady progress was made in this di- 
rection during the 6 months. Discussions on the 
strategic importance of specific items took place at 
Paris throughout the period. The lists were fur- 
ther expanded. The area of disagreement among 
the Western nations was further reduced. Dif- 
ferences over the strategic importance of com- 
modities are inevitable, for there is no hard and 
fast boundary between "strategic" and "nonstrate- 
gic." To get adequate facts as to how a com- 
modity is being used by a given country sometimes 
requires a vast amount of careful intelligence 
work. There have been, and still are, commodities 
which the United States considered strategic to 
Communist China but which some of our allies 
did not. This relatively small area of disagree- 
ment over whether specific items were strategic 
should not be allowed to obscure the vastly greater 
area of agreement existing among the free 
countries. 

2. The free gover?wiejits could inake sure that 
ttieir ships did not carry to Com^mmist China any 
of the strategic items luhich they listed for em- 
hargo. Helpful strides in shipping controls were 
made during the (5 months. 

An important event having to do with shipping 
controls was announced in Washington on March 
7, 1953, at the close of talks between Secretary of 
State Dulles and Anthony Eden, the British For- 
eign Secretary. Mr. Eden stated that the United 
Kingdom, in addition to the existing controls over 
the export of strategic materials from Britain and 
her colonies, liad decided to introduce a new sys- 
tem of licensing British-flag ships so that they 
could not cari'y strategic materials from non- 
British sources to Red China.* Mr. Eden also 
stated that his Government would take additional 
steps designed to insure that no ships of any na- 
tionality carrying strategic cargoes to China 
! should be bunkered in a British port. The two 
Governments agreed to concert their efforts to ob- 
tain the cooperation of other nations in such 
measures. 

The new British licensing procedure went into 
force on March 31. Commenting on this proce- 
dure and on British trade with China, the Joint 
Under-Secretary of State for Foreign Affairs, Mr. 
Nutting, told the House of Commons on June 17 : 

I welcome this opportunity of making our position clear 
on the question of British trade with China. 

We stand by the United Nations resolution of May 18, 
19")!, which called for an embargo on the supply of strate- 



gic goods to China and we are carrying it out with vigour. 
Export licenses lor strategic goods to China had in fact 
been refused by the United Kingdom for nearly a year 
before the United Nations resolution. Lists of strategic 
materials are coordinated by a group of nations of which 
the United States is one. We have recently still further 
tightened up our controls. Ships on United Kingdom or 
Colonial registers require licenses for any voyage to a 
Chinese port or between Chinese ports. If any of our 
ships were to contravene these regulations they would be 
liable to be hunted down on the High Seas by British 
Naval vessels and their managers and masters would 
become liable to severe penalties. 

We have no power to apply these measures to ships 
flying other tlags but we have taken steps to ensure that 
no ship of any nation can be bunliered in ports under 
our control unless we are satisfied that it is not carrying 
strategic materials to China. 

So long as the United Nations resolution of May 18, 
1951, is in force we shall continue these policies. 

With regard to goods which are not the subject of these 
security controls It is the policy of Her Majesty's Govern- 
ment to develop trade with the countries of the Soviet bloc 
and with China. We cannot live without trade and we 
consider that this trade in nonstrategic goods is to the 
advantage of the free world. I repeat that the goods 
which we allow to be exported or carried to China by ships 
tiying our tlag are all goods which are not on the lists of 
strategic materials to which I have referred. 

The new licensing and bunkering controls, as 
instituted by the British, spread rapidly to other 
countries in one form or another. On March 28, 
at the conclusion of United States-French talks in 
Washington, the United States and France an- 
nounced that France would put similar controls 
into effect.^ During the next few months a number 
of other countries either established, or said they 
would soon establish, new arrangements designed 
to insure that their ships would not carry strategic 
goods from anywhere to Communist China. These 
countries included the Netherlands, Belgium, Can- 
ada, Denmark, Norway, Italy, and Japan. (Ap- 
pendix A contains brief descriptions of the trade 
controls of major nations, including shipping 
controls. ) 

Some countries made it clear, while issuing new 
regulations, that in practice their vessels had not 
been carrying strategic goods to China. Many 
governments of the free world have taken pains to 
point out during the last few months that the mere 
fact that a Western shijj calls at a Chinese port 
does not mean that it delivers strategic goods 
there. It does not necessarily mean the delivery of 
any goods at all, for a common practice of Western 
sliips is to unload cargoes at Japan or Hong Kong, 
then proceed to the China coast in ballast in order 
to pick up Chinese bulk cargoes for the free world. 
The types of goods coming out of China are gen- 
erally more bulky than those goods going in, and 
far more shipping space is required for the goods 
leaving China. 

Meanwhile, on March 17, the Greek Government 
liad forbidden all Greek-flag vessels to stop at ports 
in Communist China." 



' Ihid., Mar. 16, 19.53, p. .",96. 
Ocfober 26, 7953 



' Ibid., Apr. 6, 1953, p. 491. 

" For a Department statement on this action, .see ibid., 
Apr. 13, 1953, p. 5.32. 

573 



The United States took new steps to make its 
own extensive sliipping and bunkering controls 
more effective. For example, on February 20 the 
Mutual Security Agency changed its charter re- 
quirements in such a way as to deter foreign-flag 
vessels from calling at Communist ports within 60 
days after carrying Msa cargoes to Formosa. 
This procedure was refined and adopted by other 
United States agencies, with the result that foreign 
ships chartered by the United States Government 
for the carrying of any civilian bulk cargoes — not 
only to P'ormosa but also to other destinations — 
were put on notice that if they called at Commu- 
nist Far Eastern ports within 60 days after dis- 
charging the cargoes they would forfeit part of 
their charter fees. The basic intent of these 
measures was to insure that vessels would not be 
placed by virtue of United States contracts into a 
profitable and advantageous position to engage in 
the China trade. Another United States meas- 
ure was taken on June 7 when the Department of 
Commerce tightened its controls over the furnish- 
ing of fuel or provisions to foreign ships or air- 
planes scheduled to visit Communist China.' 

Some countries, of course, had established ship- 
ping controls before this year. We have already 
seen that the United States removed all its ves- 
sels from the China trade in December 1950. 
Panama did the same in August 1951. The Hon- 
duran and Costa Rican republics issued similar 
regulations. Liberia prohioited the carrying of 
strategic goods to any Soviet-bloc port in a Li- 
berian-flag vessel. 

But the new shipping regulations of the first 
half of 1953 applied a welcome reinforcement to 
the free world's embargo over the shipment of 
strategic materials to Communist China. 

After the Korean Truce 

The armistice in Korea was signed on July 27, 
nearly a month after the end of the period covered 
by this report. The post-armistice developments 
in the Chnia trade will be discussed in the next 
semiannual Battle Act report. No one can with 
certainty predict the outcome of efforts to reach 
a political settlement in Korea. But these facts 
can be reported now : 

The July truce brought no relaxation of the stra- 
tegic embargo exercised by the major free govern- 
ments. 

The United Nations resolution of May 18, 1951, 
did not go out of existence when the truce was 
signed. 

The policy of the United States was to maintain 

' Ihiff., June 29, 195.S, p. 904. 



its own strict controls over shipments to Commu- 
nist China and to recommend that other countries 
maintain their controls also. 

On July 14, about two weeks before the truce 
was signed, the foreign ministers of Britain, 
France, and the United States concluded several 
days of talks in Wasliington. The communique * 
contained this sentence : "They considered that, in 
existing circumstances and pending further con- 
sultation, the common policies of the three Powers 
toward Communist China should be maintained." 
With respect to trade, this meant that a Korean 
armistice would not automatically lift their em- 
bargo on strategic goods to Communist China. 

Certain private trading interests in some coun- 
tries of the free world have been hoping that the 
barriers standing in the way of unrestricted trade 
with China would be eliminated, or at least low- 
ered somewhat so that the strategic embargo 
would be no more strict than the embargo on ship- 
ments to the European Soviet bloc. 

Delegations of businessmen have traveled to 
Peiping this summer and made unofficial trade 
agreements — not joined in by their governments — 
to trade in certain commodities. These tentative 
arrangements have included Western exports of 
nonstrategic goods, and also of certain strategic 
goods which, however, the businessmen well knew 
they could not ship unless controls were relaxed. 
Regardless of private arrangements to the con- 
trary, governmental controls over strategic items 
are always overriding. Private arrangements 
should not be confused with the official actions of 
governments, which continue to consult closely 
with one another and to examine all proposals in 
the light of the security of the free world. 

For example, after a group of private British 
businessmen visited China in June, the President 
of the Board of Trade said in the House of Com- 
mons on July 9, that "our strategic controls will 
not, of course, be affected in any way by any ar- 
rangements that have been made in Peking." 

Events of great importance are brewing in the 
Far East. But the people of the free world can- 
not permit visions of the future to blind them to 
the grim realities of the jiresent. As President 
Eisenhower said on July 27 : 

We have won an armistice on a single battleground, 
not peace in the world. 

We may not now relax our guard nor cease our quest. 
Throughout the coming montlis, dnriiiL.' the jieriod of 
prisoner screening and exchange, and during the possibly 
longer period of the politicai conference whicli looks 
toward tlie unification of Korea, wc and our United Na- 
tions allies must lie vigilant against the possibility of 
untoward developments. 



'Ibid., July 27, 19.';:?. p. 104. 



574 



Department of Sfafe Bulletin 



Jctober 26, 1953 



Ind 



ex 



Vol. XXIX, No. 748 



imerican Principles 

:^e need for mutual understanding 666 

American Republics 

nter-Amerlcan cooperation and hemispheric soli- 
darity 554 

Lsia 

OMMUNIST CHINA: Treatment of U.S. citizens In 

Communist China 551 

:OREA : 
Madame Pandit calls on President and Secretary 

Dulles 550 

UN. Command questions Nnrc procedures .... 567 
lET-NAM: Viet-Nam to Intensify struggle against 

Communist aggression (text of note) 552 

:ommunism 

,8. representative to meet with Communists at Pan- 

munjom (text of Communist message) .... 650 

Congress 

Dforcing strategic trade controls (third report to 

Congress on Battle Act) 569 



Check List of Department of State 


Press Releases: October 12-18 


Releases may be obtained from the News Division, 


Department of State, Washington 25, D. C. 


Press releases issued prior to October 12 which 


appear in this issue of the Bulletin are Nos. 540 of 


October 7 and 554 of October 9. 


No. 


Date 


Subject 


t555 


10/12 


L'Heureux appointment 


t556 


10/12 


Dulles : Columbus Day 


t557 


10/12 


U.S.-Greeli military pact 


t558 


10/12 


Flinn appointment 


1559 


10/12 


Cartwright appointment 


560 


10/12 


U.S. message to Communists 


561 


10/13 


Cabot : Latin America 


562 


10/13 


Foreign Ministers Meeting 


t563 


10/13 


Travel of Hungarian personnel 


t564 


10/13 


Pacific Science Congress 


♦565 


10/13 


Visit of Greel£ rulers 


t566 


10/14 


Validation of German bonds 


567 


10/14 


Dulles : Latin America 


t568 


10/14 


Robertson : Far East Problems 


569 


10/14 


Dulles : London Meeting 


570 


10/15 


Hoover : Trip to Iran 


571 


10/18 


Note on 4-power meeting 


572 


10/18 


Israeli-Arab tension 


tHeld for a 


later issue of the Bulletin. 


•Not printed. 









Europe 

Foreign Ministers examine common problems .... 546 
U.S. reiterates willingness to discuss International 
questions at four-power meeting (texts of U.S., 
Soviet notes) 547 

International Meetings 

Representative government: an expression of faith 

(Eisenhower) 541 

U.S. reiterates willingness to discuss International 
questions at four-power meeting (texts of U.S., 
Soviet notes) 547 

Mutual Aid and Defense 

Vlet-Nam to Intensify struggle against Communist 

aggression (text of note) 552 

Near and Middle East 

Attacli by Israeli forces 552 

Eric Johnston leaves on mission to Near East .... 653 
IRAN: Herbert Hoover, Jr., to study oil situation In 

Iran 553 

JORDAN : Par value announced for Jordan's currency . 553 

Prisoners of War 

Madame Pandit calls on President and Secretary 

Dulles 550 

U.N. Command questions Nnhc procedures 567 

Protection of U.S. Nationals and Property 

Treatment of U.S. citizens in Communist China . . . 551 

Trade 

Enforcing strategic trade controls (third report to 

Congress on Battle Act) 569 

U.S. dependence on foreign trade (Eisenhower) . . . 539 

Treaty Information 

The new International Sugar Agreement (Callanan) . 542 

United Nations 

GENERAL ASSEMBLY: Madame Pandit calls on Presi- 
dent and Secretary Dulles 550 

U.N. action In the social fleld (Mayo) 586 

U.N. budget for 1954 (Richards) 562 

The United Nations in focus (Wadsworth) 559 

Name Index 

Bidault, Georges 546 

Cabot, John M 554 

Callanan, Paul E 542 

Clark, Gen. Mark W 567 

Dulles, Secretary 546, 550, 556 

Eden, Anthony 646 

Eisenhower, President 539, 541, 550, 553 

Hoover, Herbert Jr 553 

Johnston, Eric 553 

Mayo, Charles W 566 

Pandit, Madame Vijaya Lakshml 550 

Richards, James P 562 

Stassen, Harold E 569 

Wadsworth, James J 559 



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^ol. XXIX, No. 749 
November 2, 1953 




FALCON DAM— A MONUMENT TO INTER-AMERICAN 

COOPERATION • Address by the President .... 579 

ECONOMIC GROWTH AND HUMAN WELFARE IN 
THE^ WESTERN HEMISPHERE • by Nelson A. 

Rockefeller 581 

THE COMMUNIST CAMPAIGN IN THE FAR EAST • 

by Assistant Secretary Robertson 592 

JURISDICTIONAL ARRANGEMENTS FOR U.S. 

FORCES IN JAPAN • Text of Agreement 595 

ADMISSION OF NEW MEMBERS TO THE U.N. • 

Statements by James F. Byrnes 605 

U.S. RESPONSIBILITY— A SOCIETY OF CONSENT • 

Address by Secretary Dulles , 587 



For index see inside back cover 




^Ae ^efia/yl^mit ^ c/tale Js_/ Li. 1 JL \D L x i X 



Vol. XXIX, No. 749 • Publication 5254 
November 2, 1953 



ros<-on Public Library 
Superintendent of Documents 

NOV 3 1953 



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or 8TAI1 Bi'LLHTiN u the source will be 
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The Department of State BULLETIN, 
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Falcon Dam — A Monument to Inter-American Cooperation 



Address by the President ^ 



To you, President Ruiz Cortines, permit me to 

address my first thought, as we meet to dedicate 

I" this great structure to the use of our two peoples. 

I prize the opportunity of meeting you personally. 
Moreover, I should like for you to accept my 
pledge that, as the political head of the United 
States of America, I shall ever deem it a privilege 
and a useful service to my own countiy to work 
with you cooperatively and in friendship. The 
citizens of the United States here gathered are 
honored by your presence, as all, throughout our 
country, prize the friendship implicit in this 
meeting. 

To be here at this moment in the history of our 
two nations fills me with pride and with hope. 
Pride is for the past, for this latest achievement 
of the united labor of our two peoples. Hope is 
for the future, for the kind of future that two 
such peoples, in such proven unity, can surely 
build. 

More than a mute monument to the ingenuity 
of engineers, this Falcon Dam is living testimony 
to the understanding and the cooperation binding 
our two peoples. More than any volume of words, 
the sound of its rushing waters and spinning gen- 
i era tors speaks of this understanding. And more 
meaningful and powerful than all the energy it 
shall generate is the force for common good which 
we have found in this cooperation. 

' Made at the dedication of Falc6n Dam on Oct. 19 
and released to tlie press by the White House on the same 
date. 

Falc6n Dam and Power Plant are located on the Rio 
Grande about 130 miles upstream from Brownsville, 
Tex., and Matamoros, Tamaulipas, Mexico, and about 75 
miles below Laredo, Tex., and Nuevo Laredo, Tamaulipas. 
A 5-mile-long compacted earth and rockfiU structure, with 
la maximum height of 1.50 feet, the Dam will impound Rio 
Grande waters in a lake approximately 60 miles long and 

II miles wide when filled to its capacity of 4,085,000 acre- 
feet, and will provide for the Lower Rio Grande Valley 
of both countries, long subject to flood and drought, means 
of water conservation and flood control. Identical power 
plants, one on each side of the river, will provide electric 
energy to the two countries. 



This work is one of the most dramatic achieve- 
ments of the International Boundary and Water 
Commission,^ which conceived and executed its 
construction. Founded almost 65 years ago, this 
Commission has repeatedly throughout its history 
resolved such problems as elsewhere in the world 
have flared into bitterness and hostility. It has 
done more. It has provided the means for the 
peoples of two free, sovereign nations to work con- 
structively for their common welfare. And it has 
done yet more. It has given the world a lesson in 
the way neighbor nations can and should live : in 
peace, in mutual respect, in common prosperity. 

But behind the work of this historic Commis- 
sion — beyond even all the efforts of the govern- 
ments of these two nations — is the spirit of two 
neighbor peoples. This Dam and all works like it 
can, in the deepest sense, be appraised or under- 
stood not simply as the achievements of officials 
and technicians, nor as the grand purchases bought 
by appropriations of vast sums of money. Works 
such as this are created in the hearts of the citizens 
of two nations who respect and believe in one an- 
other. They are bought with the most precious 
coin in the world — the good will among peoples. 

I pay my tribute, then, to the men who truly 
created this work : the citizen of Mexico and the 
citizen of the United States. Each proudly pro- 
claims himself a patriot of his country. 

And what else is he ? First, he respects all that 
belongs to his neighbor — ^his culture, his history, 
his just possessions, and his honest aspirations. He 
honors his neighbor's rich heritage as heartf ully as 
he cherishes his own. He respects the dignity of 
another and expects no less of his neighbor. 

He is, in yet deeper ways, a lover of freedom. 
He is profoundly aware of the ugly menace of to- 
talitarianism, its gaudy promise and grim practice. 

^ This Commission, established pursuant to the Treaty 
of 1889 as the International Boundary Commission, is 
charged by treaty and law with making recommendations 
to the two countries for solution of problems connected 
with the U.S. -Mexican boundary. 



November 2, 1953 



579 



He is particularly alert to that kind of aggressive 
totalitarianism today propagating the deadliest di- 
visions — class against class, nation against nation, 
people against people. In his heart and his mind 
and his conscience, this man despises all the quali- 
ties and trappings of this totalitarianism : its pre- 
tense, its strut, its slander, its self-seeking — and its 
contempt for man himself. 

And, finally, this man knows his own true source 
of strength : his own free, creative initiative — all 
the strength and dignity which are his because God 
so endowed him. He looks to no government, 
neither his own nor someone else's, to chart his life. 
He knows that his own happiness and the healthy 
progress of his whole nation alike are to be won 
essentially by his own hands and his own brains. 

In all this, the man we salute today is the same, 
on whichever side of this border he lives. Citizen 
of Mexico or citizen of the United States, he is also 
citizen of the free world. 

This, I deeply believe, is the spirit that not only 
rules our hearts here today but also unites this 
whole hemisphere. 

Extending southward from this spot is a conti- 
nent of magnificent resources and infinite promise. 

I need not emphasize the weight of the respon- 
sibilities that fall upon the United States in our 
dealings with the whole free world. Understand- 
ably, I think, these have often in the past conspired 
to center our attention on points of the globe re- 
mote from this continent. These responsibilities 
persist — indeed, they increase. But something 
else has likewise increased : our awareness of the 
vital problems and the exciting opportunities here 
in the lands of the Americas. 

To these lands, our attention is turned in warm 
friendship and constructive concern for the well- 
being of all our neighbors. We hope to under- 
stand their needs and problems. 

We know of the longings of so many for a life 
enriched not only by greater material blessings 
but also by the educational and cultural oppor- 
tunities due all free men. We know the scarcity of 
capital to provide vital stimulus to industry and 
agriculture — to all production enterprise. We 
know tlic urgent demand for technical assistance in 
many areas. We know the grave issues of inter- 
national trade that must be resolved to allow ]iro- 
ductive prosperity for all. We know these mat- 
ters to be the common concern of all our nations 
and peoples, for -whatever touches one of us 
touches all. 

And above all we know this: The conquest of 
(liese i)r()bli>ms is within (he power of our united 
energy, skill, and determination. 

On this day and on this border there meet not 
only the heads of the governments of neighbor 
nations and fraternal peoples. Here meet the past 
and the future : the lesson of one, the promise of 
the second. 



580 



Out of this past — out of its trials, its not in- 
frequent shows of national selfishness, its occa- 
sional sharp anxieties and differences — out of all 
this there has come and prevailed a kind of con- 
tinental concert of spirit and will and purpose. 
Ours is the imperishable spirit of free men, un- 
swayed by the cheap promises of totalitarianism, 
undismayed by its blustering threats. 

Our common purpose is the pursuit of a peace 
that is productive and lasting. 

We seek, indeed, that age whose grandest mon- 
lunents are not built to honor military or physical 
accomplisliments of the past, but rather those very 
different monuments: schools to teach our young, 
hospitals to heal our sick, roads to bear our com- 
merce, power to give warmth and light, religious 
institutions to rouse the spirit, and the structure i 
of abiding peace in which men may faithfully 
seek all that is good and noble in life. 

We confidently believe that such purposes con- 1 1 
tinue to grow throughout this hemisphere. I; 

We humbly believe them to be worthy enough 
to ask the blessing of the Almighty upon our 
peoples as we seek, with prayer and patience, their 



full attainment. 



I 

JOI 
!I 

i 


i 



Columbus' Contribution to 
Religion off New World 

Message from Secretary Dulles ^ 

Press release 556 dated October 12 

In commemorating the anniversary of Colum-i 
bus' discovery of America, let us always bear in 
mind that perhaps his most valuable contributioi 
to this hemisphere was the introduction of th( 
Christian religion. It is significant that in all th( 
New World settlements, whatever the language 
and the national origins, the first act of discoverers 
and colonizers was to give thanks to God and to 
implore His guidance. 

A mutual faith in (lod has been a fraternal bond 
among the American peoples throughout their his- 
tory. In their efforts to enlarge the area of inter- 
American understanding and cooperation, the 
Knights of Columbus and the Citizens Committee 
are contributing toward tiiat hemisphere solidarity 
which is based on a belief in God and a confidence 
in the future of mankind. In doing so, tliey are* 
furthering the peai'cful objectives of the people of 
the United States and strengthening tlie inter- 
American system. 



i 



a 



K 



' Iliad by Assistant Secretary John M. Cnbot at the 
Coluinluis bay Celebration nt the I'an American Unlooy 
Wasliington, D. C, on Oct. 12. 



Department of Stale Bulletin* 



Economic Growth and Human Welfare in the Western Hemisphere 



by Nelson A. Rockefeller 

Under Secretary of Health., Education, and Welfare ' 



Today's anniversary is perhaps even more sig- 
lificant for us in this generation than for the gen- 
rations that preceded us. For there are more 
likenesses than may be at first apparent between 
lur world and the world of the daring Genoese. 
i in 1492 men were on the verge of tremendous 
iliscoveries which were to change not only the 
geographic pattern of the earth but were to alter 
n many ways the world's designs for living, so 
re we now near ever vaster discoveries in the 
ealm of science and ever further flights into the 
mknown. 

On this anniversary let us recall the prophetic- 
lly appropriate words of Columbus in his letter 
eporting the Discovery: "The eternal Almighty 
lod, our Lord, it is, Who gives to all who walk in 
lis way victory over things apparently impos- 
ible." 

Indeed, it will be with the strength which comes 
rom the unity through faith and belief in Him 
bat we, as Columbus, can navigate successfully 
lie uncharted waters of today. 

All of us are grateful to the Citizens Committee 
f the Knights of Columbus, the Ambassadors, 
nd the Pan American Union for this special Co- 
unbus Day program. Any group dedicated to 
le tradition of unity based on the spiritual affin- 

y among the peoples of the Americas will always 
nd a warm response in the United States. The 
■adition of Simon Bolivar has become an integral 
art of our rich heritage, a heritage which is a 
uhvark in these times of international turmoil. 

President Eisenhower's personal concern for the 
itality of this relationship was evidenced when 
e sent his brother Milton on the recent tour of 

le hemispliei-e. It is particularly significant, 
rst because of the confidence the President has in 
is brother and secondly because of Dr. Milton 

' Address made at the Pan American Union, Washing- 
■n, D. C, on Oct. 12. 



Eisenhower's outstanding ability and deep human 
understanding. 

In the great tome of the written and unwritten 
history of mankind there are pages bright with 
the record of human progress alternating with 
others dark with the evidence of cruelty, selfish- 
ness, and degradation of the human spirit. 

The record of no nation, no people, no area is 
free of shadowed pages, but I believe that in the 
long perspective of history the Western Hemi- 
sphere will be judged to have made a great contri- 
bution toward increasing the stature of man. Its 
accomplishment may be discounted by some as 
weighted on the side of materialism, but I believe 
that the contribution will be recognized as an 
enlargement of the human spirit. The Western 
Hemisphere has offered a new frontier of oppor- 
tunity by demonstrating that the world's resources 
coulct yield an increasing return for the many 
rather than the few. It has given new vitality 
and faith to the concept that the goal of society is 
to provide every individual with an opportunity 
to develop his highest potential as a citizen, as a 
productive member of society, and as a spiritual 
being. An expandinir liorizou of material oppor- 
tunity is not an end in itself but the means for 
offering an environment in which there can thrive 
a generosity of the human spirit that equates the 
development and welfare of each individual with 
the development and welfare of all. 

It is, then, more than an historical accident that 
the discovery by Columbus of the Western Hemi- 
sphere with its rich resources provided a labora- 
tory for the development of the institutions of 
democracy, the concepts of the dignity and worth 
of the individual, and the conviction that material, 
cultural, and spiritual growth could be general to 
all. The Western Hemisphere, by providing both 
a rich soil of opportunity for the growth and de- 
velopment of these concepts and by providing an 
expanding frontier for European migration and 
trade, gave new life and vigor to these values in 
the European society that had cradled them. 



November 2, J953 



581 



Because of my present association with the new 
Department of Health, Education, and Welfare, a 
Department whose sole concern is the well-being 
of the individual citizen, I should like to take the 
liberty of focusing on the basic factors affecting 
the well-being of the individual citizens through- 
out the 21 American Republics. 

Economics in Terms of Human Welfare 

Human welfare is the true goal of economic 
progress. This is a particular concern of Presi- 
dent Eisenhower's. I know that he shares with us 
a faith in the inherent dignity and worth of the 
individual and in the capacity and desire for self- 
improvement of human beings of whatever na- 
tionality, race, creed, or color. Basic to this well- 
being is economic growth and a rising standard of 
living. 

In view of this conviction, it is important to de- 
fine in more specific terms what is meant by eco- 
nomic growth and to examine the record oi that 
growth in the Western Hemisphere. 

Since democracy is concerned with the welfare 
of individuals and not with the aggrandizement of 
the State, it is insufficient to measure increases in 
national income in terms of money alone. 

Genuine economic growth occurs only when the 
average man is earning more money and can buy 
more of the things he needs and wants. To 
achieve this, total income in terms of buying power 
must be increasing at a faster rate than the growth 
of the population and must be distributed in a 
pattern that allows all to benefit from expanding 
total production. This type of economic gi-owth 
is basic to what is popularly known as a rising 
standard of living. 

In examining the growth record, thus defined, 
of the Western Hemisphere, it is interesting to 
compare what has been happening in three sepa- 
rate areas — the Latin American Republics, the 
United States, and Canada. 

The United States has taken justifiable pride in 
a long-term growth record that from about 1880 
to the present shows a steady improvement in per 
capita income to the extent of doubling livmg 
standards for everyone each 40 years. Over the 
same period, the average work week of production 
workers has been cut from 65 hours in 1880 to 41 
hours in 1952, and the pattern of income distribu- 
tion has assured that a more than proportionate 
share of the increased return has gone to those in 
the lower brackets of income. 

In recent years the growth trend in Canada, ex- 
pressed in the same terms, has been equally 
dramatic. Between 1938 and the end of 1951, Can- 
ada's real output in terms of production has in- 
creased at an average rate of 5.6 percent per year 
against a population growth of 1.7 percent per 
year. Thus, the real increase in the standard of 
living of the people of Canada during this period 
has been at an average rate of 3.8 percent per year. 

582 



This is considerably higher than the long-term in- 
crease in the United States, which has averaged 
about 2 percent per year. Canada is going 
through one of the most dynamic developments 
that the world has ever known. 

Until recently, there has been insufficient data 
upon which to base any comparable appraisal of 
the growth trend of the 20 Republics of Latin 
America considered as a whole. This can now be 
done, thanks to two pioneering studies of the 
United Nations Economic Commission for Latin 
America published in March of this year. 

These studies show that the economy of Latin 
America is on the march. Over the past two 
decades the real per capital income for Latin 
America has been increasing at an average rate of 
21/4 percent per year. In the postwar period, from 
1946 through 1952, the rate of increase is even 
better — £1/2 percent per year, a rate which is 
higlier than that of the United States. 

The magnitude of this achievement is better ap- 
preciated when it is noted that at the same time 
Latin America's population was increasing by 
more than 2 percent a year. This population 
growth is about twice as great as the world aver- 
age. It means that, in terms of physical output, 
Latin American progress has hud to be twice as< 
great as in other areas to make comparable ad- 
vances in living standards. In physical terms, 
total production of Latin America in the postwar 
period has shown an annual increase of almost 5 
percent, which has provided the 21/2 percent an- 
nual increase in the per capita income of its rap- 
idly growing populace. This record surpasses tnei 
United States and Canada for the postwar yeara 

It is an extraordinary record indeed and on« 
which few of us in the Americas recognized was* 
in the making because of our preoccupation withi 
the many problems of postwar readjustment. Even! 
more significant is the potential increase ini 
standards of living which it indicates is possiblej 
for the future. 

However, magnificent as this accomplishment i 
it does not mean that Latin America has solv© 
its economic problems. Her start on the road to 
economic dynamism was late, and the distance isi 
long to catch up witli the levels already iichieved 
in Canada and the United States. Further, the 
balance and maintenance of a dynamic economy is 
always precarious and something that must be 
guarded and continuously reinvigorated through 
the maintenance of strong individual incentiveB' 
and wise goveriuncnt policy. 

This rapid expansion in production, coupled 
with the steady growth in population, has liigh- 
lighted some of the basic underlying cconouiii' 
weaknesses which exist in the liemisphere. These 
must be faced realistically and dealt with 
promptly if we are to achieve our connnon goals 
of hiunan dignity and well-being for all the peo- 
ples of the Americas, goals which are still far shortjl 
of realization. 

Department of State Bulletin 



Seven Major Problems 

, In my opinion there are seven such problems 
that may be listed as of major importance. They 
are as follows : 

1. The possiMlity th-at the relatively high prices 
recently enjoyed by many of Latin America''s ex- 
ports vnll 7iot be maintained. 

Since this favorable price position acted as a 
powerful stimulant to Latin America's recent de- 
velopment progress, a further shrinking of this 
idvantage would have increasingly sharp reper- 
cussions. 

There is need for constructive and imaginative 
thought upon effective methods of dealing with 
ihis pi'oblem, in a way that reflects the best in- 
ierests of all. 

2. In many of the Rep^iblics there is a serunis 
lack of adequate transportation, power, and do- 
niestic fuel supply. 

These shortages are major bottlenecks to con- 
tinuing economic gi'owth and should be decisively 
iealt with. 

3. The failure of agricultural production m 
Latin Ajnenca as a whole to keep pace icith popu>- 
'ation growth. 

Compared with the excellent record of growth 
n the industrial and commercial fields, there has 
)een a lag in food production. A healthy, well- 
balanced development requires progress on all 
fronts. While the postwar emphasis on industrial 
orogress was justified, it is now clear that agri- 
ulture must be stepped up to a growth trend 
;hat will provide better standards of nutrition for 
fast-growing populations. 

The industrialization of tropical agriculture 
jased on the use of chemicals and mechanization 
^ives promise of tremendously increased yields. 
5uch a development requires large capital outlays. 
However, the possibility of greatly increased pro- 
luctivity and earnings should attract much-needed 
nvestments and permit a sharp rise in the stand- 
ard of living of rural workers. 

4. The increasing need for investment capital, 
wfh domestic and foreign. 

In the postwar period the Latin American na- 
ions have done well on this score with capital 
nvestment of all types amounting to IGi/o per- 
•ent of the total output of the area. The record 
s an excellent one, particularly since 95 percent 
)f all postwar investment in Latin America has 
>een made with local capital. However, continu- 
ng capital investment is so crucial a key to eco- 
lomic development that measures to insure its 
-vailability in sufficient volume and to channel it 
pto the most productive paths must be unre- 
oitting. 

The Latin American Republics need modernized 
nvestment institutions and organized capital mar- 
:ets to encourage the increased flow of domestic 



and foreign capital for continuing growth. High 
on the list of requirements is control of inflation 
that distorts the investment pattern and encour- 
ages speculation. 

5. Persistent shortages of foreign exchange to 
purchase imports essential to continuing economic 
growth. 

In some areas of Latin America this shortage 
is sufficiently acute to require severe belt-tighten- 
ing procedures. In the long run, the best solu- 
tion lies in building up the volume of export prod- 
ucts and in the control of inflation that fosters 
trade deficits. 

The United States is also importantly involved 
in this problem. As the American Bankers Asso- 
ciation put it: 

A nation can sell abroad only as it buys abroad. We 
believe that the United States should live up to its inter- 
national responsibilities as the world's greatest creditor 
and producing Nation by continuing to open its marljets 
increasingly to foreign goods. Such a policy will help 
to create a larger volume of world trade, the eventual 
restoration of freely convertible currencies, and stronger 
economies in the United States and other nations of the 
free world. 

6. The shortage of educational facilities to train 
manpower in administration, management, and 
the professions adequate to ths needs of modern 
society. 

The scale and complexity of present-day gov- 
ernment, industry, and, increasingly, agriculture 
require a tremendous number of highly trained 
and experienced men and women. Shortages in 
this field will become an increasing obstacle to ex- 
panding development and to the achievement of 
increased efficiency essential to improve services 
and lower costs to the people. This scarcity of 
adequately trained personnel also affects the 
growth and improvement of health and welfare 
services. 

A large-scale educational effort is essential 
throughout the hemisphere. The experience of 
one area can be of great usefulness to others. 
However, the problem is of such pressing magni- 
tude that it can only be met through major ex- 
pansion and improvement of educational facilities 
within the respective American Republics. A 
cooperative effort in this field can be rewarding 
to all. 

7. The limitations to economic growth imposed 
by restrictive national frontiers that cut across 
the natural, lines of economic interdependence. 

Despite a very strong nationalistic tradition, 
this problem has been clearly recognized in Europe 
and the Schuman Plan now in operation repre- 
sents a tangible evidence that the European coun- 
tries are willing to take action to meet it. 

The community of economic interest in the 
Western Hemisphere is no less compelling, and 
there is a strong case for giving thought to how 
its nations might collaborate to reduce barriers 
and promote common interests. 



i/ovember 2, 1953 



583 



It is my understanding that these seven major 
problems are already being considered for the 
agenda of the forthcoming 10th inter- Amei'ican 
conference to be held next March at Caracas. 

They are common problems and must im- 
portantly be met within a framework of common 
understanding. The representatives of the 21 
American Republics meeting in Caracas next 
March have a unique opportunity to lay the 
foundation for their joint solution in accord with 
the long-established tradition of the Americas. 

My confidence that they can and will be met is 
reenforced first by the conviction that most of 
them are easier to handle in the framework of an 
expanding inter-American economy and secondly 
by the evidence that the economies of the Latin 
American Republics are going forward at a pace 
comparable to the rest of the Western Hemisphere. 

Tliere must be a working partnership among all 
of the nations of the Western Hemisphere to pre- 
serve and continuously strengthen this area's tra- 
ditional role in the world as a frontier of expand- 
ing opportunity. Each of the nations that make 
up this hemisphere has deeply established ties to 
the European cultures from which we derived 
basic infusions of population and ideology. It 
is natural that our earliest ties of cultural and 
economic exchange should have run east and west 
rather than north and south. 

Many scholarly accounts have repeated as a 
truism the statement that our basic resource pat- 
terns were competitive, rather than complemen- 
tary, and that inevitably our economies would 
continue this east- west focus; that there would be 
relatively little economic exchange between us; 
and that our political and intellectual orientation 
would follow the lines of our economic interests. 

Now that we all are coming of age, this concept 
is being uprooted both by the formidable force 
of mutual interest and by the inexorable force of 
common understanding. The truism is evap- 
orating, simply because it is not true. 

The increasing community of Western Hemi- 
sphere economic interest is dramatically attested 
by our foreign trade figures. 

In closing, I should like to give you these 
briefly : 

In 1938 trade with Canada and Latin America 
accounted for 34 percent of the foreign commerce 
of the United States. In 1952 it represented 47 
percent of our total foreign trade. 

In 1938 trade with the United States and Latin 
America accounted for hi percent of Canada's 
foreign commerce. In 1952 it was 70 percent. 

In 1938 trade with the United States and Canada 
made up 3G percent of Latin America's total for- 
eign trade. In 1952 the proportion had mounted 
to 55 percent. 

In 1938 the total trade between the three major 
divisions of the AVestcrn Ilcmispliere represented 
25 percent of all world trade. In 1952 it repre- 
sented 36 percent of all world trade. 



The cementing of our political, intellectual, and 
cultural ties has been no less solid, if less amen- 
able to statistical demonstrations. This meeting 
is one evidence of their validity. 

I hope and I believe that the scope and the 
depth of Western Hemisphere collaboration upon 
all planes will continue to grow. Ours should be 
a genuine partnership — a demonstration that mu- 
tual respect, trust, and recognition of common 
interest can keep alive the concept of opportunity 
and growth, not for the aggrandizement of a hem- 
isphere or for any one group but for the nourish- 
ment that an atmosphere of growth affords to 
man's spirit, to his physical well-being, and to the 
institutions of freedom and democracy. 



U.S. Aid to Bolivia 

Folloiuinci are the texts of letters exchanged he- 
tioeen President Eisenhower and the President of 
Bolivia, Victor Paz Estenssoro^ together with the 
text of a telegram from President Paz Estenssoro, 
concerning U.S. aid to Bolivia: 

President Paz Estenssoro to 
President Eisenhower, October 1 

Your Excellency : On August 13, 1953, thai 
Government of Bolivia delivered to the Depart- 
ment of State and to other agencies of the Govern- 
ment of the United States of America a copy of 
a "Plan for the Diversification of Production. ' - 

That plan was formulated after the visit to this ( 
country of your brother, Dr. Milton Eisenhower, 
and his advisors, Messrs. Cabot, Overby, and 
Anderson of the Departments of State, the Treas- 
ury, and Commerce, respectively. 

The qualities of an educator which Dr. Eisen- 
hower possesses, his extraordinary comprehen- 
sion, and his sympathetic grasp of the problems of 
my country made it possible for the conversations 
held with him and his advisoi-s to be carried out 
with complete frankness and on the level of the 
broadest cordiality and mutual understanding. 
I therefore wish to express again to Your Excel- 
lency my appreciation for your vision in having 
asked Dr. Eisenhower to visit Bolivia as your rep- 
resentative. 

The plan presented after those conversations 
for the study and consideration of the high officials 
of the Government of the United States of Amer- 
ica deals with the technical and economic assist- 
ance which my country needs in order to diversify 
its economy, which is now dependent almost com- 
pletely on tin, as well as to overcome the economic 
crisis caused by the low price of that mineral. 

Since that moment the Bolivian financial situa- 
tion has deteriorated dangerously. Our avail- 

' While House press release dated Oct. 14. 
' Not priiUi'd. 



. 



584 



Department of State Bulletin 



abilities in foreign currency have diminished so 
considerabljr throiigli the fall in the price of tin 
and other minerals that we find ourselves in the 
insurmountable difficulty of not being able to 
provide food and other essential articles for the 
people, since in order to import them we need for- 
eign currency. 

This circumstance impels me to address Your 
Excellency to ask you that those pai'ts of the above- 
mentioned plan which refer to providing food and 
other essential articles for the people of Bolivia 
and to additional technical assistance indispen- 
sable for developing a program of emergency food 
production be considered and resolved urgently. 

Such assistance, granted in time, will serve on 
the one hand to spare the people of Bolivia from 
the menace of hunger which hangs over them, and 
on the other hand will permit tlae alleviation of 
the present disequilibrium in our balance of pay- 
ments. 

Such measures as Your Excellency may take in 
this matter will constitute yet another step in the 
program of technical and economic collaboration 
which Bolivia has been receiving from the United 
I States of America and which has made possible 
the construction of the important Cochabamba- 
Santa Cruz highway and of certain works in our 
petroleum and agricultural industries. 

The Bolivian currency which would be obtained 
from the sale to the public of the food and other 
1 essential articles furnished us could be utilized to 
put into effect that part of the plan of diversifi- 
cation of the Bolivian economy which might be 
carried out through the use of local currency. 

I believe that Your Excellency will receive this 
letter with sympathy and good will since it con- 
cerns the furnishing of aid to a people who, as is 
the case in Bolivia, are sincerely pledged to im- 
prove the democratic institutions inherent in the 
I free world, to which they firmly adhere, and who 
furthermore are solidary with the principles of 
mutual security which govei'n the nations of the 
Western Hemisphere. 

In thanking Your Excellency in advance in 
the name of the people of the Government of Bo- 
livia for the measures which you may be good 
enough to take so that this assistance may reach 
us opportunely, I express sincere wishes for the 
happiness of the great American people, whose 
idestiny Your Excellency guides so wisely, as well 
as for your personal well-being. 

V. Paz Estenssoro 



President Eisenhower's Reply 
of October 14 

rT Dear Mk. President : 
I have received your letter of October 1, 1953, in 
which you describe the very grave economic emer- 
gency now threatening Bolivia and in which you 



request financial and technical assistance from the 
United States. 

The people of the United States feel deep con- 
cern for the welfare of the people of the sister 
Kepublic of Bolivia. The friendly spirit of co- 
operation between our two nations has in the past 
motivated the progi'ams of technical assistance and 
the ExiDort-Import Bank loans for economic di- 
versification to which your letter refers. Our 
concern for the welfare of the Bolivian people 
motivated the recent decision to make a further 
purchase of Bolivian tin at a time when this coun- 
try had no immediate need for additional tin.^ 
This concern is founded today not alone on the 
traditional friendship between our two peoples 
but also on the realization that the security of the 
entire Free World is threatened wherever free men 
suffer hunger or other severe misfortunes. 

We ajDpreciate fully the fact that the present 
emergency in Bolivia is one which the Govern- 
ment and the people of Bolivia are unable to meet 
without the assistance of friends. The Govern- 
ment of Bolivia is already taking wise and courage- 
ous measures of self-help looking toward the 
diversification and stabilization of the Bolivian 
economy, but unfortunately these measures cannot 
produce their full effect in time to prevent severe 
suffering by the people of Bolivia in the immediate 
future. 

To assist Bolivia in this emergency, and to help 
accelerate the economic diversification of your 
country, the Government of the United States will 
provide the following emergency aid in response 
to your request : 

(a) As announced on October 6,^ I have deter- 
mined that up to $5 million of Commodity Credit 
Coi'poration stocks of agricultural products shall 
be made available to meet the urgent relief re- 
quirements of Bolivia ; 

(b) In addition, the Director of the Foreign 
Operations Administration is allocating up to $4 
million of Mutual Security Act funds to be used 
in providing additional essential commodities and 
services required by the people of Bolivia; 

(c) In accordance with your request, most of 
the Bolivian currency funds accruing from the sale 
of these commodities to Bolivian consumers are to 
be used by your Government for projects which 
will contribute to the economic development of 
Bolivia; 

(d) The United States contribution to the co- 
operative technical assistance program in Bolivia 
has been more than doubled, and the additional 
funds, together with the matching contribution 
of your Government, are to be used for a program 
of emergency food production. 

In closing I wish to express my deep personal 
appreciation for the kind reference in your letter 



'Ibid., .July 20, 1953, p. 82. 
* Ibid., Oct. 19, 1953, p. 518. 



November 2, 7953 



585 



to the visit to Bolivia of my brother, Dr. Milton 
Eisenhower. He has given me a first-hand account 
of the situation in Bolivia, and he has been among 
the strongest advocates of assistance to your 
country. 

Sincerely yours, 

DwiGHT D. Eisenhower 

President Paz Estenssoro to President Eisenhower 

[TraDBlationli 

I am informed of the decision taken by Your 
Excellency's Government, in response to the re- 
quest of my Government, to provide immediate aid 
to Bolivia in the form of foodstuffs and other 
essential commodities, as well as technical assist- 
ance for the production of these commodities in 
Bolivia. In the name of the Bolivian people I 
express to Your Excellency my most sincere grati- 
tude for this collaboration, which is all the more 
valuable in that it will permit us to overcome the 
crisis through which the economy of my country is 
passing. The attitude of Your Excellency clearly 
demonstrates the solidarity of the American peo- 
ple with their brothers of the continent. I take 
this opportunity to reiterate to Your Excellency 
the assurances of my personal esteem. 

Victor Paz Estenssoro 
Constitutional President of Bolivia 



Governor Lodge's Mission 
to Panama and Costa Rica 

White House prees release dated October 15 

At the request of the President, Governor John 
D. Lodge of Connecticut will travel to Panama 
and Costa Rica early next month. As personal 
representative of the President, with the rank of 
Special Ambassador, Governor Lodge will depart 
from Washington, D. C, on October 30, for Pan- 
ama, where he will head the U.S. delegation to 
the 50th Anniversary celebration of the independ- 
ence of the ReiJublic of Panama, October 31 to 
November 5. At the conclusion of this celebra- 
tion, Governor Lodge will proceed to San Jose, 
Costa Rica, where, again as the President's Per- 
sonal Representative with the rank of Special 
Ambassador, he will head the U.S. delegation to 
the inauguration of Senor Jose Figueres as Presi- 
dent of Costa Rica, November G to November 11. 

Members of the United States delegation attend- 
ing the celebration of Panama's 50th Anniversary 
of independence will be: 

John C. Wiley, U.S. Anibiissador to Pannma 
Lt. General Horace McBride, Commauiler in Chief of the 
Caribbean Command 

586 



John S. Sojbold, Governor of the Panama Canal Zone 
Jack D. Neal, Deputy Director, Office of Middle American 

Affairs, Department of State 
Ranking officials from the Canal Zone and the American 

Embassy in Panama 

Members of the United States delegation to the 
inauguration of President Figueres will be: 

Brooks Hays, U.S. House of Representatives 
Nathaniel P. Davis, former U.S. Ambassador to Costa 

Rica and former Minister to Hungary 
Jack D. Neal, Deputy Director, Office of Middle American 

Affairs, Department of State 
Ranking officials accredited to the American Embassy at 

San Jos6, Costa Rica 

The following letters were exchanged by Secre- 
tary Dulles and Governor Lodge relative to the 
designation of the Governor: 

Deab Govebnoe Lodge: President Elsenhower has re- 
quested me to ask you to head, with the rank of Special 
Ambassador, two official delegations which will represent 
the United States Government at important ceremonies 
in this Hemisphere next month. The first of these is the 
celebration of the Fiftieth Anniversary of the Independ- 
ence of the Republic of Panama on November 3, 1953, 
and the second is the inauguration of Senor .Ios4 Figueres 
as President of Costa Rica on November 8, 1953. 

Both of these ceremonies are events requiring special 
recognition by this Government and both the President 
and I are very anxious to have a public figure of out- 
standing qualifications as head of our delegations. The 
President and I are aware of the notable work you did 
on a similar mission to Puerto Rico, which you undertook 
at his request earlier this year. We also had in mind 
your broad experience during your four years on the- 
House Foreign Affairs Committee. We are confident 
that you will be able to carry out these missions wli 
distinction and we are both most anxious to have yi 
undertake these tasks 

May I add that we realize this Is a very difficult tinw 
for you to take on extra duties of this sort and that W| 
would not ask you to make the sacrifice if we did not feti 



ind 



that this was a matter very much In the national interest) 
I am hopeful, and I know I express the hope of the Presli 
dent as well, that you will be able to accept tbeat^ 
designations. 

With kind personal regards 
Sincerely yours, 

John Fosteb DrrLLni 



Dear Mb. Secretaby : Thank you for your letter il 
which you advise me of the President's request that ; 
head the delegations representing the United States G 
ernment next month in I'anama and Costa Klca. I deepl] 
appreciate the expression of confidence which underUei 
this invitation. 

I am faced with such a busy schedule In Connectl 
that if the mission were to be purely ceremonial I woul( 
not feel myself in a position to accept. However, I aoi 
aware to a considerable extent of the real problems hen 
Involved, and since the President and you feel that till 
mission Is Important to our national interest, I want yo» 
to know that I shall be happy to undertake this respon i|, 
sibility. Accordingly I shall start immediately to re J 
adjust my schedule for the period concerned. 

Will you please convey to the President my acceptano 
of his wishes in this matter. I shall await detailed Id 
formation from your office. 

With kind personal regards. 
Sincerely yours, 

John Lodob i 



R 



Department of State Bulletlii 



U.S. Responsibility— A Society of Consent 



Address by Secretary Dulles ' 



You are discussing new patterns for mid-cen- 
tury living. We need new patterns for our foreign 
relations because the past half century has greatly 
changed us. During the preceding century we 
were a young Nation, experimenting with a free 
society. As such, we had influence, for what we 
did caught the imagination of many peoples and 
led them to follow in our way. But we were not 
a world power, as that term is ordinarily used. 
- 1 Now we have grown to maturity and possess great 
military and economic strength. What w© do 
with that strength is vital to ourselves and others. 
Conceivably, we could adopt a pattern of isola- 
tion. That is only a theoretical possibility. It 
. .runs counter to basic American tradition. Our 
E 1 founders from the beginning saw our Nation as 
' one which existed not merely for itself but for 
':■ mankind. They were endowed with a sense of 
. 1 mission. That spirit was persistent. It still per- 

■ sists. The problem that we face is not whether 
to be part of the world but how to be part of the 

. world. 

Coercion 

That problem is now complicated by the fact 
of our material power. It is so large that there 
is danger that we seem to use it for coercion. 

Coercion is the Soviet way. Its rulers have 
built a power bloc of some 800 million people, all 
subject to a single will. They believe that differ- 
ence inevitably breeds discord, with consequent 

■ inefficiency and even war. Therefore, it is taught 
,. .that all the peoples, in all the nations, must be 
vr iforced into a strait jacket of conformity. 

A central will resides in Moscow, and thus Mos- 
cow becomes the capital of all the captive world. 

" IV Society of Consent 

We shall not emulate that example and try to 
make Washington the place from wliich decisions 
are imposed. Our pattern of living must be a 



' Made before the New York Herald Tribune Forum at 
New York, N. Y., on Oct. 20 (press release 577). 



pattern of unity. But that unity must not be 
coerced. It must flow from the free acceptance 
of concepts which override differences. It must 
be a society of consent. 

There are those among our own people who, 
knowing the power we could wield, wonder and 
sometimes gi-umble that we do not use that power 
to impose what they feel certain would be right. 
There are those in other countries who imagine 
coercion behind proposals which are designed to 
evoke willing consent. Also, it is not easy to be 
inventive and creative and to find the formula- 
tions which, like magnets, will draw together those 
who, in particular cases, are apart. Nevertheless, 
free association is the only decent way to live, 
nationally and internationally. It is the only safe 
way to live. For both isolation and coercion are 
bound to bring disaster. 

Officials of me present administration have done 
much traveling. They have not been sightseeing 
but idea-seeking. We seek exchange of views and 
the knowledge which would enable us better to 
help in developing a society of consent. I have 
myself been to over 20 countries this year. I re- 
turned yesterday from a trip to London, where I 
met with Sir Winston Churchill and Mr. Eden of 
Great Britain and Mr. Bidault of France. 

This meeting in itself illustrates the kind of ef- 
fort that is being made between the free-world 
nations. As in almost every case of free-world 
meetings, there were initial differences. These 
quickly fell into the background as we immersed 
ourselves in constructive efforts conducted in an 
atmosphere of complete cordiality. 

I shall mention here some of the matters we 
discussed. I do so, not to elaborate in detail, for 
which we have not time, but to illustrate how we 
sought to find unifying principles which might 
relax tension in various areas. 



Germany 

We considered the problem of Germany. It is 
normal that Germany should contribute to its own 
defense and that of Europe. But also German 
military strength must never again become a 
menace. The free world needs the Germans as 



fiovember 2, 1953 



587 



an asset. But Western civilization must never 
again be exposed to the tragedy of self-inflicted 
vfounds. 

So, French minds invented, and German minds 
endorsed, the unifying idea of making Western 
Europe into a single defense and political com- 
munity. Thus two objectives, which otherwise 
would clash, are resolved by a unifying principle. 
This principle is in the course of political adop- 
tion. Days of decision are near. In London we 
gave the European project our strongest backing. 

At the same time we considered the unification 
of Germany, of which the eastern portion is still 
held by the Soviet Union. We again invited the 
Foreign Minister of the Soviet Union to meet with 
us to discuss this vital matter.^ We suggested 
November 9 as a date. 

It is our view that few things would be more 
dangerous than a meeting which produced the 
illusion of agreement, without the reality of agree- 
ment. Therefore we proposed a meeting of For- 
eign Ministers about Germany. This will pro- 
vide an answer to whether the Soviet Government 
is willing to have a meeting on terms which will 
provide an actual testing of its intentions in terms 
sufficiently concrete to be significant. That is the 
single project now before the Soviets. Their de- 
cision in relation to that is what we now await. 
We hope that the answer will be affirmative. In 
any event it will be revealing. 

Trieste 

Trieste is an area of historic bitternesses. A new 
concept is in the making which could bury these 
bitternesses. It would draw Yugoslavia together 
with Italy and the other Nato allies in a common 
strategy designed to insure the safety and well- 
being of South Europe. Yugoslavia cannot be 
secure as an independent nation without associa- 
tion witli its Nato neighbors, Turkey, Greece, and 
Italy. Conversations between some of them have 
been taking place in the hope of developing a 
common strategy. But tliese conversations failed 
of adequate results because Trieste was always a 
divisive and limiting factor. 

Yugoshvvia is already administering de facto 
half of the Trieste Territory (Zone 13). Great 
Britain and the United States are the occupying 
powers in the other half (Zone A). This Zone is 
predominantly Italian. So, after many explora- 
tions, we concluded to relinqui.sh the administra- 
tion of zione A to Italy. We believe this will pave 
the way to a final peaceful solution. 

The United States has sought in many ways to 
strengthen Southern Europe, including Yugo- 
slavia. We have not allowed ourselves to be de- 
terred by points of disagreement, of which there 
are plenty. We have given priority to the higher 



•Bulletin of Oct. 26, 1953, p. 547. 
588 



concept of unity in the face of common peril. 
That is the concept which England, France, and 
the United States embraced at London and which 
we hope will be honored by both Italy and Yugo- 
slavia. 

Israel 

We considered the grave incidents of violence 
which mar Israel's relations with its neighbors. 
It was the United Nations which played an essen- 
tial part in creating the State of Israel, and we felt 
that this was clearly an occasion to invoke tl\e 
concept of decent respect for the opinion of man- 
kind as represented by the United Nations. So we 
agreed to join in asking the United Nations Se- 
curity Council to take jurisdiction of this matter. 

Korea 

We exchanged views about Korea. There the 
basic principle upon which we now rest is the 
preservation of peace. We hope it will be a uni- 
fying principle. 

In 1950 the United States joined with the Re- 
public of Korea and with contingents from 15 
other nations of the United Nations to fight armed 
aggression and to establish the principle that the 
weak shall not be the easy prey of great offensive 
forces. That principle has been sustained. 
There remains the problem of unifying Korea. 
The division of Korea is wrong and, unhappily 
there are similar wrongs elsewhere, as in Ger- 
many. But new war is not the way to right such: 
wrongs. They should be made to respond tc 
peaceful treatment applied with patience, per- 
sistence, and wisdom. 

Indochina 

We talked of Indochina. The United States' 
as the first colony to win its freedom, understands 
the aspirations of the peoples of Indochina. W( 
also imderstand and endorse the French deter- 
mination to save tliis important area and its peo 
pies from being taken over by the enemies o; 
freedom. 

These two principles have been in conflict. Bui 
now a new political arrangement is being workec 
out by France and the Associated States. It is 
designed to advance the aspirations of these peo 
pies and also rally them against Communis' 
encroachment. Thus, the two aims would be com 
bined in mutual support rather than in hostile con 
flict. In London we welcomed these developments 
They are fraught with difficulty but also vibran 
with new hope. 

Conclusion 

These examples, drawn from our conference o: 
the past weekend, show how it may be possible t« it 

Department of State Bulletii 



i\ 



d 



develop a society of consent by invoking new con- 
cepts which will put differences to rout. 

Let me add that, while what we did was impor- 
tant, what we did not do was equally important. 
We did not undermine the moral strength of the 
free world by resort to measures of short-range 
expediency. We avoided platitudes without prac- 
tical relevancy. 

This pattern for living wliich I outline is not 
easy. It is simple to formulate broad principles. 
But it is hard to be sure that they actually fit the 
facts of a particular case. That is why we seek 
to learn from others what otherwise we cannot 
know. 

Also, it requires patience. Great ventures 
usually i-equire time. Consent, in particular, is 
often slow business. Persistence, and unwilling- 
ness to be discouraged, are the ingredients of a 
system of consent. 

We shall not always succeed. We should have a 
fair measure of success. But our Nation will never 
fulfill its destiny and our own security will be- 
come gravely impaired, if it only moves when suc- 
cess is 100 percent assured. Policies, to be ade- 
quate, must risk some temporary setbacks as part 
of a total strategy of success. 

There is need also of private enterprise, such 
as that which you are displayinjj here. Imagina- 
, tion and resourcefulness are all that stand between 
us and gi-eat disaster. But, after all, these quali- 
ties are the stock-in-trade of n free society and, 
above all, of its private members. 

Peace and freedom are only won in the same 

way that great wars are won — that is, by sus- 

". tained sacrificial effort, by affirmative planning, by 

, broad cooperation, by technical competence, and, 

above all, by clarifying the issues so that we strive 

only for what is right. 

I suggest that this be our pattern for interna- 
, tional living during the second half of the second 
century of our Eepublic. 



Trieste's Relation to Defense 
)f South Europe 



Tess release 578 dated October 20 

Asked at his press conference on October 20 
ohether he regarded a five-power conference as the 
hest approach to a settlement of the Trieste ques- 
tion at this time, Secretary Dulles made the fol- 
owing reply: 

At the recent meeting of the Foreign Ministers 
it London we had a preliminary and exploratory 
ixchange of views on the question of Trieste. 
Vhile no formal pi'oposal has as yet been made, 
t was our view that a conference consisting of 
epresentatives of the United States, United King- 
,1, lorn, France, Italy, and Yugoslavia could be a 

g i/ovember 2, 7953 



useful step in putting the Trieste matter into its 
proper perspective. 

The basic problem of that area is the develop- 
ment of a sound strategic plan for the defense of 
South Europe. There have been conversations 
between the Governments of Turkey, Greece, and 
Yugoslavia along these lines. There have been 
conversations along these same lines here in Wash- 
ington between Yugoslav, United States, British, 
and French military leaders. Conversations with 
Italy are a continuing part of Nato strategic 
planning. 

But in all this, Trieste arises as an obstacle in 
the way of the larger concept and interferes with 
planning for matters which are far more impor- 
tant than the particular distribution of the Trieste 
area. It is thus our belief that discussions between 
these five powers would be a useful step in putting 
our decisions on Trieste into its proper setting in 
the larger concept of the defense of the vast area 
affected. 



Secretary Dulles' Statement 
on Aid to Israel 

Press release 594 dated October 23 

In answer to inquiries as to what Secretary 
Dulles said at his press conference on October W, 
1953, regarding aid to Israel, the Department of 
State, on October 23, released the following quota- 
tions from the Secretary's press conference: 

The Secretary was asked whether the United 
States had cut off aid to Israel for the time being. 
He replied : 

"We are continuing, as I understand it, our so- 
called technical cooperation aid. As far as the 
allocation of funds is concerned, out of the amount 
which was made available by the last Mutual Se- 
curity Act, there has been no allocation, as yet, 
to Israel and we have deferred making that in view 
of the problems which exist in that area between 
the United Nations and Israel. 

"That deferment of allocation was made at the 
time of the decision of General Bennike [Chief of 
Staff of the United Nations Truce Supervision Or- 
ganization] with reference to the water develop- 
ment of the Jordan. It was not based upon the 
more recent incidents." 

Wlien asked whether there had been any allo- 
cations to other Near East States from that fund, 
the Secretary replied : 

"I do not think it has been done in any im- 
portant way except as it may have been drawn on 
in the allocation that was made to the Government 
of Iran, which was announced some time ago." 

When asked to state more precisely why the al- 
location to Israel had been deferred, the Secretary 
replied : 

589 



"It was deferred because it seemed to us that 
the State of Israel should respect General Ben- 
nike's decision, and that as long as the State of 
Israel was acting in defiance of that decision, it 
was questionable at least as to whether we should 
make the allocation. I might add we recognize 
that there was a right of appeal from General 
Bennike's decision to the Security Council, but we 
felt that pending the exercise of that appeal it 
would have been better that the work be suspended 
unless General Bennike agreed that it could go on 
without prejudice to the interests which he 
thought were jeopardized on the part of Syria." 

Asked whether he meant work on the hydro- 
electric project, the Secretary replied: 

•'It is a water diversion project." 



U.S.-lranian Friendship 

Statement by Secretary Dulles * 

It is a pleasure to greet Dr. Nazrollah Entezam 
as Ambassador-Designate of Iran to the United 
States and as a respected friend of long standing. 

Dr. Entezam is no stranger here, having served 
his country in a similar capacity in the past. He 
also hns served his country with distinction as 
Iran's representative to the United Nations, being 
president of the General Assembly 2 years ago, 
and has furthered the cause of free people every- 
where through his devotion to and energetic sup- 
port of the principles and purposes of the United 
Nations Charter. 

Under the leadership of the Shah and Premier 
Zahedi, Iran today is recovering from the effects 
of the recent Communist-abetted disorders and is 
striving to overcome serious economic dislocations 
which have come about during the past 2 years. 
The United States, as a means of helping Iran 
carry out urgent measures to stabilize her economy, 
has extended $45 million in emergency aid, in ad- 
dition to that previously granted under the techni- 
cal-cooperation program. 

These constitute conci-ete evidence of the friend- 
ship and concern of the United States toward Iran 
and our desire that Iran prosper as an independent 
country and a respected member of the family of 
free nations. 

It is with genuine pleasure that I look forward 
to working with Dr. Entezam in furthering the 
mutual feeling of friendship and respect that al- 
ready exists between our two countries, sharing 
as they do the desire for freedom and the hope 
that peace shall prevail in the world. 



' Made on reccivins the new Iranian Ambassador on 
Oct. 22 (press release 586). Dr. Entezam previously 
served as Ambassador In Washington from September 
ID.IO to September 1952. 



590 



Preliminary Meeting in Korea 

Press Conference Statement by Secretary Dulles 

Press release 579 dated October 20 

I want first to make a brief statement with ref- 
erence to the message that we have received from 
the Chinese Communists through the courtesy of 
the Swedish Government. 

You may recall that we have previously sent 
three communications to the Chinese Communists 
through that channel in an effort to advance and 
assure the holding of a political conference as 
foreseen by the Korean armistice. AVe urged in 
our last communication that instead of exchang- 
ing written communications, which seemed to bo 
getting nowhere, there might usefully be an ac- 
tual face-to-face meeting of the representative of 
the United States acting on behalf of the 17 na- 
tions designated by the United Nations Assembly 
with representatives of the Chinese Communists 
and the North Koreans to make the practical ar- 
rangements necessary to get that conference going. 
We did this in a further effort to reach agreement 
upon a time and place. 

The communication which we have just received 
from the Communists indicates acceptance of that 
proposition of ours. The communication contains 
a number of statements that we do not agree with, 
but the essential is that at least one practical step 
will be taken toward getting the political con- 
ference under way. 

Mr. Arthur Dean, who has been designated by 
the President as a Special Ambassador for the 
purpose of this political conference, will be leav- 
ing tomorrow for Panmunjom to have these dis- 
cussions about arrangements. We certainly hope 
that out of those talks will come the actual po- 
litical conference itself. I want to make clear 
these talks are merely on arrangements and will 
not deal themselves with any substantive matters. 

It continues to be our view that the question 
of composition insofar as our side is concerned is 
disposed of by the United Nations Assembly reso- 
lution designating the 16 United Nations bellig- 
erents and the Republic of Korea. The Chinese 
Communists' note says they reserve the right tofl*' 
raise this question again, and we cannot prevent i 
their speaking of it if they wish to speak of it. 

Message From Chinese Communist 
Government, October 19 

U.N. doc. A/2515 dated October 19 

The Central Peoples' Government of the Peo- 
ples' Republic of China has noted and has, to- 
gether with the Government of the Democratic 
Peoples' Republic of Korea, made a study of the 
communication of the United States Government 
transmitted through the Swedish Government on 

Department of State Bulletin 



October 14, 1953.' I am now authorized to com- 
municate, on behalf of the Central Peoples' Gov- 
ernment of the Peoples' Republic of China, as 
follows: 

1. In its communication of October 14, the 
United States Government asserts that General 
Nam II, senior delegate of the Korean and Chinese 
; delegation to the armistice negotiations, previ- 
ously insisted that participants in the political 
conference should be confined to governments con- 
cerned on both sides. This is totally inconsistent 
with the fact. When Agenda Item 5 of the Ko- 
rean armistice negotiations was under discussion 
in February 1952, the negotiating representative 
of the United Nations Command side tried hard 
to include the greatest majority of members of the 
United Nations, who did not participate in the 
Korean war, in the opposing side of the two bel- 
. ligerent sides in the Korean war. Therefore, Gen- 
eral Nam II in the course of discussions explicitly 
defined the connotation of the term "governments 
of countries concerned of the opposing sides" as 
the governments of the Democratic Peoples' Re- 
public of Korea and the Peoples' Republic of 
China on the one side, and the governments of 
countries concerned of the United Nations Com- 
imand on the other side. General Nam II also 
jpointed out that the greatest majority of members 
of the United Nations who did not participate in 
; jthe Korean war should not be included in the op- 
posing side of the two belligerent sides in Korea. 
This interpretation was agreed to at that time by 
:Vice- Admiral Joy, spokesman of the United Na- 
tions Command. During the entire course of the 
armistice negotiations, the Korean and Chinese 
negotiating delegation never held the opinion that 
- Ithe political conference should not have the par- 
i ticipation of other neutral nations concerned. It 
is also utterly impossible to draw from Paragraph 
60 of the Korean Armistice Agreement the con- 
clusion that the political conference must exclude 
: the participation of other neutral nations con- 
cerned. Furthermore, it is also recognized in 
Resolution B adopted by the 430th Plenary Meet- 
; ;ing of the United Nations General Assembly that 
:. jthe Soviet Union who is not on either of the two 
belligerent sides may participate in the political 
conference: This is suflScient to show that the 
, principle that composition of the political confer- 
l ence should not be limited to the two belligerent 
sides is already approved by the greatest majority 
of members of the United Nations. Therefore, 
the Central Peoples' Government of the Peoples' 
Republic of China deems that the proposition on 



' BtJixETiN of Oct. 26, 1953, p. 550. 



which it insists all along is completely correct, 
namely, that the political conference should have 
the participation of neutral nations concerned, es- 

?iecially Asian neutral nations concerned, apart 
rom the two belligerent sides in Korea. 

2. Based on the above, the United Nations Gen- 
eral Assembly should have accepted the proposals 
put forward by the governments of the Peoples' 
Republic of China and Democratic Peoples' Re- 
public of Korea in their cables in reply to Mr. Dag. 
Hammarskjold, the Secretary General, dated Sep- 
tember 13 and 14 respectively. It should have 
recommended the entire composition of the politi- 
cal conference, including both the two belligerent 
sides and other neutral nations concerned. How- 
ever, the United Nations General Assembly has 
rejected the reasonable proposals of the Chinese 
and Korean side, bowing to the will of a minority 
of nations and going against the purposes and 
principles of the United Nations Charter. The 
Central Peoples' Government of the Peoples' Re- 
public of China cannot but once again express 
deep regret at it. 

3. In accordance with the principled attitude 
taken by us on the question of the political con- 
ference, and taking into account the demand of 
the people of the whole world who ardently wish 
the political conference to be convened speedily, 
the Central Peoples' Government of the Peoples' 
Republic of China, after consultations with the 
government of the Democratic Peoples' Republic 
of Korea, agrees to dispatch representatives 
jointly to meet with the United States representa- 
tive at Panmunjom on October 26, for conducting 
discussions on the question of the political 
conference. 

4. The Central Peoples' Government of the Peo- 
ples' Republic of China deems that in these dis- 
cussions, there could be included the settlement 
of the place and time of the political conference, 
and the various procedural, administrative and 
related questions as to arrangements as set forth 
in the communication of the United States Gov- 
ernment. 

However, the Central Peoples' Government still 
holds that, what is more essential, these discussions 
should settle the question of composition of the 
political conference. On account of this the Cen- 
tral Peoples' Government hereby declares that it 
reserves the right to raise the question of composi- 
tion of the political conference for discussion and 
settlement in these discussions. 

Chou En-Lai. 
Minister for Foreign Affairs of the Centred 
Peoples'' Government of the Peoples' 
Republic of China. 



November 2, 7953 



591 



The Communist Campaign in the Far East 



hy Walter S. Robertson 

Assistant Secretary for Far Eastern Affairs '' 



My responsibilities in the Department of State 
are concerned with a vast area of some three- 
quarters of a billion people stretching from Japan 
to the frontier of India. It includes Japan, Ko- 
rea, Red China, Formosa China, the Philippines, 
Indochina, Indonesia, Burma, Thailand, and Ma- 
laya. A large map of the area hangs on the side 
wall of my office. You could stand before it blind- 
folded and throw a spitball — or, more elegantly, 
a dart — and wherever spitball or dart might land 
would spell trouble, not just ordinai-y trouble but 
trouble basically concerned with the ideological 
struggle which is holding our world in a gi'ip of 
tension and uncertainty. Fortunately for us there 
is not time enough to tell you about all of these 
troubles. In fact there is not time to tell you all 
about any one of them. I therefore shall discuss 
in more or less general terms the central issues 
which are basic to them all. 

To begin with, let us consider what the Far East 
means to the Kremlin, what they see from Mos- 
cow when they look out across Sinkiang and Mon- 
golia. I think what they see is fairly simple. The 
Far East means three things to the Kremlin, I 
believe. First, it means the manpower of China — 
not 450 million people but 450 million units of 
manpower. Second, it means the industrial ca- 
pacity of Japan, one of the great manufacturing 
centers of the world. Third, it means the re- 
sources of Southeast Asia, which is tlie rice bowl 
of Asia and the source of an abundance of strate- 
gic raw materials, badly needed by the Conmiunist 
bloc. 

The Kremlin has long had as one of its main 
objectives the control of these assets. Until r.)45 
its designs had been frustrated. Then in tliat year 
the defeat of Japan removed tlie outstanding 
counter-poise to Kussian power in East Asia while 
the catastrophic concessions made to Stalin at 
Yalta placed the Russians in effective control of 
the ricli provinces of Manchuria, a strategic prize 



' .Vddrcss made before the Chamber of Commerce at 
Louisville, Ky.. on Oct. 14 (press release 508). 

592 



of great value and an ideal base from which to 
render the maximum assistance to the Chinese 
Communists in their contest with the National 
Government. In addition, by refusing for a pe- 
riod of about 3 months to allow the United States 
to transport troops of the Chinese National Gov- 
ernment into Manchuria to accept surrender from 
the Japanese, the Soviet Russians were able to 
vitiate the Potsdam declarations providing for 
such surrender and to turn over large areas and 
vast quantities of Japanese arms and equipment to 
the guerrilla Chinese Communists. The net result 
of this and other factors behind the debacle in 
China was that the Communists — Russians and 
Chinese — acquired control of mainland China and 
reaped the fruits of the victory the United States 
had won after 'iy^ years of terrific sacrifice in 
blood and in treasure. 

The Communist conquest of China gave the 
Communists not only 450 million Chinese farmers, 
artisans, factory workers, and soldiers; it gave 
them also a vast base of operations against the 
other two components of the Far East, Japan and 
Southeast Asia. 

Speaking in November 1949, Malenkov, the pres- 
ent Prime Minister of the Soviet Union, said 
meaningfully : 

The national struggle of liberation of the peoples of 
Asia, the Pacific Ocean basin, and of the whole colonial 
world, has risen to a new and considerably higher stage. 

Seven months later, tlic Communist advance on 
Japan began with the launching of the southward 
drive of the Communist North Korean army. 

It is intensely satisfying to bo able to record : 
that the Soviet Union had tiiis time made a very 
l)ad miscalcuhition. We had learned something 
from tiie fail of China, from the Soviet attempts 
on the integrity of Greece and Turkey, from the 
Connuiinist takeover of Czechoslovakia, from the 
Soviet blockade of Berlin. The reaction to the at- 
tack upon the Republic of Korea was swift and] 
to the point. Our Nation will have eternally to; 
its credit its leadcrsliip of the first collective police* 
action in history against an act of international 

Department of State Bulletin 



banditry. If mankind at long last is to free itself 
from the scourge of war, it may well look back 
upon the rallying of the 16 nations against the 
aggressor in Korea as the turning point in its 
struggle. 

The Communists have paid severe penalties for 
their crime in Korea. Tliey have suffered many 
more than 1 million casualties — how many more 
they themselves probably do not know. They 
stand now behind the line from which the attack 
was launched — as far as ever from Japan, the 
ultimate goal. Their losses in materiel, particu- 
larly transportation equipment, have been enor- 
mous. Above all, the West has been fully and 
finally aroused to its peril. The expenditures of 
the United States on defense were approximately 
quadrupled after the Korean aggression. I may 
also observe that we hear the United States less 
frequently referred to in the Chinese Communist 
press as a "Paper Tiger." We have demon- 
strated that the United States, even in a very 
limited mobilization, is not powerless to support 
the independence of a free nation on the other side 
of the Pacific. 

The Communist Campaign 

We must not for one moment imagine, however, 
that the Communists have given up their objec- 
tives in Korea. They have fought for every inch 
and will continue to do so — if not militarily then 
certainly in the arena of political action, con- 
spiracy, and propaganda. On the covert side, we 
may be sure that no efforts are being spared to 
move Communist agents into the Republic of 
Korea. Another sort of campaign is being con- 
ducted in the open. The Communists are trying 
by every expedient to whip up mistrust of the 
Republic of Korea and of the United States 
among other peoples. They are seeking to ex- 
ploit the natural desires of people everywliere for 
peace and a relaxation of world tensions by crying 
to the four winds that our Government and the 
Government of President Syngman Rhee are bel- 
ligerent, self-seeking, and arrogant and are 
plotting a renewal of the war with a military drive 
to the North. Wliile our purpose in the Korean 
political conference — scheduled according to the 
armistice to begin by October 28 — is to provide 
for the reuniting of Korea in accordance with the 
passionate desires of the Korean people, the Com- 
munists continue to impede the preparations for 
the conference by dragging in extraneous issues 
and to accuse us of plotting to sabotage the con- 
ference. We may say this for Communist propa- 
ganda, that what it lacks in subtlety and plausi- 
bility it makes up for in vehemence and persist- 
ence. 

T^liile making their main effort in Korea, the 
Communists have not held up on their drive to- 
ward the South. Just as Korea is the bridge 
between China and Japan, so the plains of north- 
November 2, J953 

277547—53 3 



ern Viet-Nam, in Indochina, form the corridor 
between China and Southeast Asia. 

When, at the end of 1949, the Chinese Com- 
munists completed their march from Manchuria 
to the southern border of China they were able to 
join hands with another powerful Communist 
movement across that border in Viet-Nam, the 
largest of the three countries in Indochina. The 
Communists in Viet-Nam, organized in the Viet 
Minh League under Ho Chi-minh, had obtained a 
strangle hold on the revolutionary movement 
against French rule that had broken out at the 
end of World War II. 

The war in Viet-Nam today is between the 
forces of the Communist-dominated Viet Minh 
League, which have been receiving arms, training, 
and technicians from Communist China, and the 
combined forces of the French Union and of the 
Vietnamese Government that was organized under 
Bao Dai late in 1949. This Vietnamese Govern- 
ment, like the Governments of the other two Asso- 
ciated States of Indochina — Cambodia and Laos — 
has been progressively taking over the full powers 
of self-rule by agreement with France. Today, 
the independence of the State of Viet-Nam, like 
that of the other Associated States, is very nearly 
an established fact. The State of Viet-Nam has 
come to challenge with increasing force and effec- 
tiveness the false claim of the Viet Minh to repre- 
sent Vietnamese nationalism, while the Viet Minh, 
in its increasing dependence upon Communist 
China, has become ever more clearly revealed 
as an instrument of international Communist 
imperialism. 

Buildup of National Armies 

The national armies of the Associated States 
are now being rapidly built up. Already there 
are three times as many Indochinese soldiers as 
there are soldiers from other parts of the French 
Union fighting on our side in Indochina. This is 
one of tne developments that has made us feel 
encouraged about the military outlook in Indo- 
china. Another has been the strong initiative and 
determination displayed by the new commander of 
French Union forces in Indochina, General Na- 
varre. We must recognize how important it is, 
not only to Free Asia but to France and to West- 
ern Europe, for France and the State of Viet-Nam 
to wrest the military initiative from the Viet 
Minh so that the proportions of the military prob- 
lem may be speedily reduced. The war has been 
horribly costly to France. Last year the casual- 
ties among French officers in Indochina were 568 — 
18 more than the entire number, 550, that gradu- 
ated from the French Military Academy of St. 
Cyr. In addition, the war has represented a seri- 
ous hemorrhage in the French economy. 

Since 1950 the United States has had a military 
supply mission in Lidochina and has been bearing 
about one-third of the cost of military operations. 



593 



Recently we have agreed to increase our assistance 
by a very substantial amount. 

In Indochina, as in Korea, our fundamental ob- 
jective is in the creation of real strength on the 
side of the nationalist forces and confidence among 
them that the future belongs to them. This should 
be the objective of all the free nations. It is not 
necessary for me to enlarge upon the consequences 
that would follow for the whole f I'ee world if the 
Communists broke through Korea or Viet-Nam 
in their drive to add the industrial power of Japan 
and the resources of Southeast Asia to the man- 
power of China that they already control. 

I will say this, however. We hear a great deal 
about Communist dogma and Communist doctrine. 
The Communists spout a great deal of theoretical 
jargon at one another. Let us remember, how- 
ever, that what counts with the Communists — as 
with every one else who intends to survive — are 
results. A Soviet official who fails to achieve 
results is short-lived. I have never heard of any 
such official claiming that while he fell short in 
performance, his course of action was sound from 
the point of view of doctrine. To the Commu- 
nists, failure to achieve results is ipso facto proof 
of doctrinal en-or, if not of downright treason. 

It is in achieving results that we have to meet 
the Communists and prove ourselves superior. In 
Korea and Indochina the residt the forces of free- 
dom must achieve is defeating Communist ex- 
pansion. We cannot allow ourselves to become 
distracted by considerations that, however inviting 
and important in their own right, are secondary. 
We cannot allow ourselves to wake up a year or so 
hence and find that, however admirably we have 
lived up to other standards, the Communists have 
obtained control of those two gateways to the 
domination of Asia. 

U. S. Position Unique 

The position of the United States in the Far 
East differs from that of any other nation. It is 
true that other peoples are much more immediately 
threatened by Communist imperialism than we. 
However, if they find themselves inadequate to 
cope with Communist pi'essure, they have the 
knowledge that there is the United States behind 
them. But behind us there is no one. If we mis- 
calculate and leave a vital flank exposed to a Com- 
munist thrust, we cannot look over our shoulder 
for someone to bring up the reserves and plug the 
gap. There just isn't anybody there. We cannot 
afiord to take chances. We have to deal with 
reality in a spirit of realism. 

That is what we must bear in mind in Korea. 
It has been argued that the task of the United 
Nations would be greatly facilitated if the atti- 
tude of President Syngman Rhee and his Govern- 
ment were broader and more cooperative. We 
would reply that much would be gained if all gov- 
ernments had a broader and more cooperative at- 



titude. As it is, the attitude of all governments 
reflects reality as they have experienced it and they 
must be dealt witli as they are. President Rhee 
and his Government are the reality with which 
we must deal in Korea. They are the reality and 
they are the product of reality — of two generations 
of autocratic foreign rule, of brutal Communist 
assault, of 3 years of unbelievably destructive war, 
of Korea's physical isolation on the borders of the 
huge Communist empire. The Republic of Korea 
has proved itself in the face of the greatest diffi- 
culties. It has shown itself to be a most import- 
ant element of strength on the side of the free 
world in the Far East. It is an asset in its spirit- 
ual and moral force no less than in its military 
force, and incidentally it commands the largest 
Asian army on the side of the free world, an army 
trained and equipped at our expense. 

We shall not cease to work for the unification of 
Korea in accordance with our long announced 
objectives. If the Political Conference leaves 
Korea still divided, we shall carry out our program 
of countrywide reconstruction in the Republic of 
Korea from the ground up. We shall see that the 
Republic of Korea has sumcient military strength, 
backed by a security treaty with the United States, 
to give it a sense of safety and of confidence. Our 
record with respect to Korea must make clear that 
the greater the threat to the freedom of an inde- 
pendent nation and the more resolutely that nation 
meets the threat, the more surely it can count upon 
our support. 

The things we are doing in the Far East are 
things we could never forgive ourselves Twt doing. 
They are things about which, in the final reck- 
oning, we have no choice. We shall find our task 
easier if we remember that. For the conflict with 
the Moscow-Peiping axis will be a protracted one. 
And, given our national psychology, it will often 
be a frustrating one. We like jobs that are well- 
defined, to whicli there is a recognizable conclusion. 
But the task before us will seem to go on and on. 
Often we may not realize the pi'ogress we are 
making. The Comnuniists will do their utmost 
to prevent our realizing it. Whenever they lose, 
they shift their ground. If they are balked in 
Europe, they switch to the Far East. If they are 
thrown back in battle, they turn to political 
maneuver, and vice versa. They are mastei-s of 
the art of confusing the point and distracting their 
adversaries. They never admit it when they have 
been hurt, they never confe.ss their losses. We may 
berate ourselves for all our shortcomings, but we 
shall never hear the Comnumists acknowledging 
that we disnipted their strategy in Korea, that 
we established the principle that those who have 
been forced to fight the Communists' battles may 
come over to the side of freedom without fear of 
being sent back to their former masters. 

That is one more reason why I say we must keep 
our attention on the real issues. It is important 



594 



Department of State Bulletin 



for us not only to achieve results but to be aware 
of the results when we have achieved them. This 
is essential to our confidence in ourselves, and to 
the confidence of others in us. The Communists 



will, if they can, talk us out of our victories, talk 
us out of using our real strength, talk us out of our 
faith in what we stand for. I propose that 
do not let them. 



we 



Jurisdictional Arrangements for U.S. Forces in Japan 



Press release 525 dated September 28 

An agreement on the exercise of jurisdiction 
over offenses involving members of the U.S. armed 
forces in Japan was signed by the United States 
and Japan at Tokyo on September 29 (Sept. 28, 
Washington time) . The agreement will come into 
force 30 days from the date of its signing. 

The agreement fulfills an obligation of the 
United States expressed in the Administrative 
Agreement between the United States and Japan.^ 
The Administrative Agreement prescribes the con- 
ditions which shall govern the disposition of U.S. 
forces in Japan pursuant to the Security Treaty 
' between the United States and Japan.= The obli- 
gation, expressed in article XVII of the Adminis- 
j trative Agreement, was to conclude with Japan 
1 immediately upon the coming into force of the 
Nato Status of Forces Agreement ^ an agreement 
on criminal jurisdiction similar to the correspond- 
ing provisions of the Nato agreement. The Nato 
agreement came into force on August 23, 1953. 

The new agreement recognizes that the United 
States and Japan have concurrent jurisdiction 
over members of the U.S. forces with respect to 
offenses committed in Japan which are punishable 
both under the law of Japan and under the United 
States Code of Military Justice. It provides that 
the United States shall have the primary right to 
'exercise jurisdiction over (1) offenses affecting 
other members of the U.S. armed forces or the 
property or security of the United States; and 
i (2) offenses arising out of an act or omission done 
in the perfonnance of official duty. It provides 
jthat Japan shall have the primary right to exer- 
cise jurisdiction over other offenses. There is also 
a provision, as in the Nato agreement, that the 
state having the primary right may waive its right 
either unilaterally, or at the request of the other 
state. Detailed procedures for giving appropriate 
notice of the exercise or waiver of jurisdiction will 
be worked out by the Joint (United States- Japa- 

' For test of the Administrative Agreement, see Buixe- 
TiN of Mar. 10, 1952, p. 382. 

" For text of the Security Treaty, see Md., Sept. 17, 
1951, p. 464. 

" For information on the Nato agreement, see ibid., 
Apr. 27, 1953, p. 628. 

November 2, J 953 



nese) Committee which is charged with day-to-day 
execution of the details of the Administrative 
Agreement. 

The negotiators of the agreement gave particu- 
lar attention to matters on which the U.S. Senate 
expressed concern when the Nato agreement was 
approved. The agreement contains an enumera- 
tion of rights accorded to an American serviceman 
who commits an offense over which Japan exer- 
cises jurisdiction. The enumeration includes both 
the rights contained in the Nato agreement and 
other rights accorded to accused persons under 
the Japanese Constitution. The rights as enumer- 
ated are substantially the same as those accorded 
in the United States to persons accused of com- 
mitting crimes, with the addition that the Ameri- 
can serviceman has the right to communicate with 
a representative of the U.S. Government and to 
have such a representative present at his trial. 

Following is the official text of the agreement: 



PROTOCOL TO AMEND ARTICLE XVII OF THE 
ADMINISTRATIVE AGREEMENT UNDER 
ARTICLE III OF THE SECURITY TREATY 
BETWEEN THE UNITED STATES OF AMERICA 
AND JAPAN 

Whereas the "Agreement between the Parties to the 
North Atlantic Treaty regarding the Status of Their 
Forces", signed at London on June 19, 1951, came into 
force on August 23, 1953 with respect to the United States 
of America ; and 

Whereas Japan desires to conclude with the United 
States of Atnerica an agreement on criminal jurisdiction 
similar to the corresponding provisions of the said Agree- 
ment in accordance with the provisions of paragraph 1 
of Article XVII of the Administrative Agreement, signed 
at Tokyo on February 28, 1952, under Article III of the 
Security Treaty between the United States of America 
and Japan ; 

Now the Governments of the United States of America 
and Japan have agreed that the existing provisions of 
Article XVII of the said Administrative Agreement shall 
be abrogated and the following provisions shall be 
substituted : 

Article XVII 

1. Subject to the provisions of this Article, 
(a) the military authorities of the United States shall 
have the right to exercise within Japan all criminal and 

595 



disciplinary jurisdiction conferred on them by the law 
of the United States over all persons subject to the mili- 
tary law of the United States ; 

(b) the authorities of Japan shall have jurisdiction 
over the members of the United States armed forces, the 
civilian component, and their dependents with respect to 
offenses committed within the territory of Japan and 
punishable by the law of Japan. 

2. (a) The military authorities of the United States 
shall have the right to exercise exclusive jurisdiction over 
persons subject to the military law of the United States 
with respect to offenses, including offenses relating to its 
security, punishable by the law of the United States, but 
not by the law of Japan. 

(b) The authorities of Japan shall have the right to 
exercise exclusive jurisdiction over members of the United 
States armed forces, the civilian component, and their 
dependents with respect to offenses, including offenses re- 
lating to the security of Japan, punishable by its law but 
not by the law of the United States. 

(c) For the purposes of this paragraph and of para- 
graph 3 of this Article a security offense against a State 
shall include 

(i) treason against the State; 
(ii) sabotage, espionage or violation of any law 
relating to official secrets of that State, or se- 
crets relating to the national defense of that 
State. 

3. In cases where the right to exercise jurisdiction is 
concurrent the following rules shall apply : 

(a) The military authorities of the United States shall 
have the primary right to exercise jurisdiction over mem- 
bers of the United States armed forces or the civilian 
component in relation to 

(i) offenses solely against the property or security 
of the United States, or offenses solely against 
the person or property of another member of 
the United States armed forces or the civilian 
component or of a dependent ; 
(ii) offenses arising out of any act or omission done 
in the performance of official duty. 

(b) In the case of any other offense the authorities of 
Japan shall have the primary right to exercise jurisdiction. 

(c) If the State having the primary right decides not 
to exercise jurisdiction, it shall notify the authorities of 
the other State as soon as practicable. The authorities 
of the State having the primary right shall give sympa- 
thetic consideration to a request from the authorities of 
the other State for a waiver of its right in cases where 
that other State considers such waiver to be of particular 
importance. 

4. The foregoing provisions of this Article shall not 
imply any right for the military authorities of the United 
States to exercise jurisdiction over persons who are 
nationals of or ordinarily resident in Japan, unless they 
are members of the United States armed forces. 

5. (a) The military authorities of the United States 
and the authorities of Japan shall assist each other in 
the arrest of members of the United States armed forces, 
the civilian component, or their dependents in the terri- 
tory of Japan and in handing them over to the authority 
which is to exercise jurisdiction in accordance with the 
above provisions. 

(b) The authorities of Japan shall notify promptly the 
military authorities of the United States of the arrest of 
any member of the United States armed forces, the civilian 
component, or a dependent. 

(c) The custody of an accused member of the United 
States armed forces or the civilian component over whom 
Japan is to exercise jurisdiction shall, if he Is in the 
hands of the United States, remain with the United States 
until he is charged by Japan. 

596 



6. (a) The military authorities of the United States 
and the authorities of Japan shall assist each other in the 
carrying out of all necessary investigations into offenses, 
and in the collection and production of evidence, includ- 
ing the seizure and, in proper cases, the handing over of 
objects connected with an offense. The handing over of 
such objects may, however, be made subject to their return 
within the time specified by the authority delivering them. 

(b) The military authorities of the United States and 
the authorities of Japan .shall notify each other of the 
disposition of all cases in which there are concurrent 
rights to exercise jurisdiction. 

7. (a) A death sentence shall not be carried out in 
Japan by the military authorities of the United States 
if the legislation of Japan does not provide for such pun- 
ishment in a similar case. 

(b) The authorities of Japan shall give sympathetic 
consideration to a request from the military authorities 
of the United States for assistance In carrying out a sen- 
tence of imprisonment pronounced by the military author- 
ities of the United States under the provisions of this 
Article within the territory of Japan. 

8. Where an accused has been tried in accordance with 
the provisions of this Article either by the military author- 
ities of the United States or the authorities of Japan and 
has been acquitted, or has been convicted and is serv- 
ing, or has served, his sentence or has been pardoned, 
he may not be tried again for the same offense within 
the territory of Japan by the authorities of the other State. 
However, nothing in this parasraph shall prevent the mili- 
tary authorities of the United States from trying a mem- 
ber of its armed forces for any violation of rules of disci- 
pline arising from an act or omission which constituted an 
offense for which he was tried by the authorities of 
Japan. 

9. Whenever a member of the United States armed 
forces, the civilian component or a dependent is prosecuted 
under the jurisdiction of Japan he shall be entitled : 

(a) to a prompt and speedy trial; 

(b) to be informed, in advance of trial, of the specific 
charge or charges made against him; 

(c) to be confronted with the witnesses against him; 

(d) to have compulsory process for obtaining witnesses 
in his favor, if they are within the jurisdiction of Japan ; 

(e) to have legal representation of his own choice for 
his defense or to have free or assisted legal representa- 
tion under the conditions prevailing for the time being in 
Japan ; 

(f) if he considers it necessary, to have the services 
of a competent interpreter ; and 

(g) to communicate with a representative of the Gov- 
ernment of the United States and to have such a repre- 
sentative present at his trial. 

10. (a) Regularly constituted military units or forma- 
tions of the United States armed forces shall have the 
right to police any facilities or areas which they use under 
.\rticle II of this Agreement. The military police of such 
forces may take all appropriate measures to ensure the 
maintenance of order and security within such facilities 
and areas. 

(h) Outside these facilities and areas, such military 
police .shall be employed only subject to arrangements 
with the authorities of Japan and in liaison with those 
authorities, and in so far as such employment is necessary 
to maintain discipline and order among the members of 
the United States armed forces. 

11. In the event of hostilities to which the provisions of 
Article XXIV of this Agreement apply, either the United 
States or Japan shall have the right, by giving sixty days' 
notice to the order, to suspend the application of any of 
the provisions of this Article. If this right is exercised, 
the United States and Japan shall immediately consult 
with a view to agreeing on suitable provisions to replace 
the provisions suspended. 

The present Protocol shall come into effect thirty days 
after the date of its signing. 



Department of State Bulletin 






In witness whereof the representatives of the two Gov- 
ernments, duly authorized for the purpose, have signed 
the present Protocol. 

Done at Tokyo, in duplicate in the English and Japanese 
languages, both texts being equally authentic, this twenty- 
ninth day of September, 1953. 

For the Government of the United States of America : 

John M. Allison 
For the Government of Japan : 

Katsuo Okazaki 

Takeeu Inukai 



Agreed Official Minutes Regarding Protocol 
To Amend Article XVII of the Administrative 
Agreement Between the United States of 
America and Japan 

Re paragraph 1 (a) and paragraph 2 (a) : 

The scope of persons subject to the military law of the 
United States shall be communicated, through the Joint 
Committee, to the Government of Japan by the Govern- 
ment of the United States. 

Ke paragraph 2 (c) : 

Both Governments shall Inform each other of the de- 
tails of all the security offenses mentioned in this sub- 
paragraph and the provisions governing such offenses in 
the existing laws of their respective countries. 

Re paragraph 3 (a) (ii) : 

Where a member of the United States armed forces or 
the civilian component Is charged with an offense, a cer- 
tificate issued by or on behalf of his commanding oflScer 
Stating that the alleged offense, if committed by him, 
arose out of an act or omission done in the performance 
of oflBcial duty, shall, in any judicial proceedings, be suflS- 
cient evidence of the fact unless the contrary is proved. 

The above statement shall not be interpreted to preju- 
dice in any way Article 318 of the Japanese Code of 
Criminal Procedure. 

Re paragraph 3(c): 

1. Mutual procedures relating to waivers of the primary 
right to exercise jurisdiction shall be determined by the 
Joint Committee. 

2. Trials of cases in which the Japanese authorities 
have waived the primary right to exercise jurisdiction, 
and trials of cases involving offenses described in para- 
graph 3 (a) (ii) committed against the State or nationals 
of Japan shall be held promptly in Japan within a reason- 
able distance from the places where the offenses are alleged 
to have taken place unless other arrangements are 
mutually agreed upon. Representatives of the Japanese 
authorities may be present at such trials. 

Re paragraph 4: 

Dual nationals. United States and Japanese, who are 
subject to the military law of the United States and are 
brought to Japan by the United States shall not be con- 
sidered as nationals of Japan, but shall be considered as 
United States nationals for the purposes of this paragraph. 

Re paragraph 5 : 

1. In ca.se the Japanese authorities have arrested an 
offender who is a member of the United States armed 
forces, the civilian component, or a dependent subject to 
the military law of the United States with respect to a 
case over which Japan has the primary right to exercise 
jurisdiction, the Japanese authorities will, unless they 
deem that there is adequate cause and necessity to retain 
such offender, release him to the custody of the United 
States military authorities provided that he shall, on 
request, be made available to the Japanese authorities, 
if such be the condition of his release. The United States 
authorities shall, on request, transfer his custody to the 



November 2, 7953 



Japanese authorities at the time he is Indicted by the 
latter. 

2. The United States military authorities shall promptly 
notify the Japanese authorities of the arrest of any 
member of the United States armed forces, the civilian 
component or a dependent in any case in which Japan 
has the primary right to exercise jurisdiction. 

Re paragraph 9 : 

1. The rights enumerated in items (a) through (e) of 
this paragraph are guaranteed to all persons on trial in 
Japanese courts by the provisions of the Japanese Con- 
stitution. In addition to these rights, a member of the 
United States armed forces, the civilian component or a 
dependent who is prosecuted under the jurisdiction of 
Japan shall have such other rights as are guaranteed 
under the laws of Japan to all persons on trial in Jar*- 
anese courts. Such additional rights include the follow- 
ing which are guaranteed under the Japanese Constitu- 
tion. 

(a) He shall not be arrested or detained without being 
at once informed of the charge against him or without 
the Immediate privilege of counsel ; nor shall he be de- 
tained without adequate cause ; and upon demand of 
any person such cause must be immediately shown in open 
court in his presence and the presence of his counsel; 

(b) He shall enjoy the right to a public trial by an 
impartial tribunal ; 

( c) He shall not be compelled to testify against himself ; 

(d) He shall be permitted full opportunity to exam- 
ine all witnesses ; 

(e) No cruel punishments shall be imposed upon him. 

2. The United States authorities shall have the right 
upon request to have access at any time to members of the 
United States armed forces, the civilian component, or 
their dependents who are confined or detained under 
Japanese authority. 

3. Nothing in the provisions of paragraph 9 (g) con- 
cerning the presence of a representative of the United 
States Government at the trial of a member of the United 
States armed forces, the civilian component or a de- 
pendent prosecuted under the jurisdiction of Japan, shall 
be so construed as to prejudice the provisions of the 
Japanese Constitution with respect to public trials. 

Re paragraphs 10 (a) and 10 (b) : 

1. The United States military authorities will normally 
make all arrests within facilities and areas in use by and 
guarded under the authority of the United States armed 
forces. This shall not preclude the Japanese authorities 
from making arrests within facilities and areas in cases 
where the competent authorities of the United States 
armed forces have given consent, or in cases of pursuit 
of a flagrant offender who has committed a serious crime. 

Where persons whose arrest is desired by the Japanese 
authorities and who are not subject to the jurisdiction of 
the United States armed forces are within facilities and 
areas in use by the United States armed forces, the United 
States military authorities will undertake, upon request, 
to arrest such persons. All persons arrested by the United 
States military authorities, who are not subject to the 
jurisdiction of the United States armed forces, shall im- 
mediately be turned over to the Japanese authorities. 

The United States military authorities may, under due 
process of law, arrest in the vicinity of a facility or area 
any person in the commission or attempted commission 
of an offense against the security of that facility or area. 
Any such person not subject to the jurisdiction of the 
United States armed forces shall immediately be turned 
over to the Japanese authorities. 

2. The Japanese authorities will normally not exercise 
the right of search, seizure, or inspection with respect to 
any persons or property within facilities and areas in use 
by and guarded under the authority of the United States 
armed forces or with respect to property of the United 
States armed forces wherever situated, except in cases 
where the competent authorities of the United States 
armed forces consent to such search, seizure, or inspec- 



597 



tion by the Japanese authorities of such persons or 
property. 

Where search, seizure, or insi)ection with respect to 
persons or property within facilities and areas in use by 
the United States armed forces or with respect to proi)erty 
of the United States armed forces in Japan is desired by 
the Japanese authorities, the United States military au- 
thorities will undertake, upon request, to make such 
search, seizure, or inspection. In the event of a judgment 
concerning such property, except property owned or uti- 
lized by the United States Government or its instrumen- 
talities, the United States will turn over such property 
to the Japanese authorities for disposition in accordance 
with the judgment. 

Re application of the Protocol : 

The provisions of the Protocol shall not apply to any 
offenses committed before the coming into effect of the 
Protocol. Such cases shall be governed by the provisions 
of Article XVII of the Administrative Agreement as it 
existed prior to the coming into effect of the Protocol. 

John M. Allison Katstto Okazaki 

Ambassador Extraordinary Minister for Foreign Af- 
and Plenipotentiary of the fairs of Japan. 
United States of America. takeru Inukai 

Minister of Justice of Japan. 
Tokyo, September 29, 195S. 

Removal of Bodies 

From Shanghai Cemetery 

Press release 588 dated October 23 

The Department of State has received infor- 
mation that the Chinese Communist authorities 
in Shanghai are taking over the Bubbling Well 
Cemetery for other purposes and will move the 
bodies interred there. According to incomplete 
reports received by the Department, owners of 
cemetery lots who wish to transfer at their own 
expense remains buried there are required to reg- 
ister before October 31, 11)53, with the Funeral and 
Interment Control Office, Civil Affairs Bureau, 
1452 Yenan Koad East, Shanghai. It is under- 
stood that limited space for reburials is available 
at other cemeteries in Shanghai. 

Interred remains not removed through in- 
dividual arrangements by relatives reportedly will 
be removed at Chinese Communist expense to a 
special section of a Chinese burial ground, not now 
consecrated, which is located some 15 miles north 
of Shanghai. 

Reports indicate that the Bubbling Well chapel 
will remain as it is and that the columbarium will 
continue to be used for the custody of cremated 
remains. 

While the Department is unable to assume re- 
sponsibility for registration or for making ar- 
rangements for reburials, relatives and other inter- 
ested parties may obtain any available information 
and assistance in the procedures involved by com- 
municating with : 

The Department of S(ate, 

Office of Special Consular Services, 
Washington 2.5, D. C. 

598 



Initial Payment IVlade on 
German Debt 

Following is the text of a note which the Charge 
d'' Affaires of the Federal Republic of Germany, 
Ambassador Heinz L. Krefceler., presented on 
October 9 to Thorsten V. Kalijarvi., Acting Assist- 
ant Secretary for Economic Affairs, concerning a 
payinent made in fulfillment of the series of agree- 
ments relating to Germamfs external debts signed 
at London on February 27, 1953^ together with 
statements made by Ambassador Krekeler and Mr. 
Kalijarvi: 

Dr. Krekeler to Secretary Dulles 

The Charge d'Affaires of the Federal Republic 
of Germany presents his compliments to His Ex- 
cellency, the Secretary of State, and has the honor 
to state the following : 

Since the Intergovernmental Agreement on 
German External Debts, signed at London on 
February 27, 1953, entered into force on Septem- 
ber 16, 1953, the Govermnent of the Federal Re- 
public of Germany was desirous to ftilfiU its ob- 
ligations arising out of this agreement and related 
agreements between the United States of America 
and the Federal Republic of Germany, especially 
to pay 

a) interests of the External (Dawes) Loan 1924, 

b) interests of the Internal (Young) Loan 1930, 

c) interests at the original contractual rates of 
Konversionskasse Bonn and Scrip, 

d) interests of the External Sinking Fund Dollar 
Bonds of 1926/27 of the State of Prussia as 
provided by Articles 4 and 6 and Annex I, Art 
A, 1, 2, 4 and B, 7 (2) (a) of the Agreement on 
German External Debts signed at London on 
February 27, 1953, amounting altogether to 
$2,020,835,99, 

e) interests in the amount of $12.500.000, — as pro- 
vided by Art. 1 of the Agreement between the 
United States of America and the Federal Re- 
public of Germany regarding the settlement of 
the claim of the United States of America for 
post-war economic assistance (other than sur- 
plus property) to Germany, signed at London 
on February 27, 1953, 

f ) the first installment of $3.000.000.— as provided 
by Articles 1 and 2 of the Agreement between 
the United States of America and the Fed- 
eral Republic of Germany relating to Indebt- 
edness of Germany for Awards made by the 
Mixed Claims Commission, United States and 
Germany. 

The Charge d'Affaires of the Federal Republic 
of Germany takes pleasure to notify the Secretary 



lU'LLETiN of Mar. 9, 1953, p. 373. 

Department of State Bulletin 



of State that the above-mentioned payments in the 
total amount of $17,520,835,99 have now been 
made to the proper paying agents. 

Statement by Ambassador Krekeler 

The Government of the Federal Republic of 
Germany, after having acknowledged, in March 
1951, its liability for the prewar debts of the Reich 
and for postwar economic aid, and after having 
signed and I'atified the London Debt Agreement 
and the related agreements on February 27, 1953, 
by these payments pledges itself to the principles 
on which the economic life of the Western nations 
is based, that is, the fulfillment of treaties and the 
I'espect for private ownership. 

Statement by Mr. Kalijarvi 

Press release 551 dated October 9 

Mr. Ambassador, it is with pleasure that I am 
authorized in the name of the Secretary of State 
to accept this notification of payment of the Gov- 
ernment of the Federal Republic of Germany to 
the Government of the United States. 

The German debt agreements were the fore- 
I runners of normal commercial relations between 
lour two countries and represented an additional 
tie of the Federal Republic into the Western com- 
munity of free nations. Naturally we appreciate 
the prompt action of the German Govermnent in 
fulfilling its obligation under the debt agreements, 
and we believe it augurs well for lasting good re- 
lations between our two countries. 



Establishment of 
German Bond Board 

Press release 566 dated October 14 

I The Department of State announced on Octo- 
ber 14 that the Goverimients of the United States 
and the Federal Republic of Germany have 
■jointly ajjpointed David A. Stretch, of the New 
York law firm of Simpson, Thacher & Bartlett, 
to be Chairman of the Board for the Validation of 
German Dollar Bonds. 

The two other members of the Board, previously 
named, are Douglas William Hartman, the Amer- 
ican representative, and Walter Reusch, repre- 
senting Germany. 

The Validation Board, the first operation of its 
kind in international finance, is the vehicle 
through which the United States and Germany 
will cooperate to determine which of approxi- 
mately one million German dollar bonds of an 
estimated value of $700 million are legitimately 
entitled to the payments provided for in the Debt 
Settlement Agreement between the two countries. 

The question of the validity of the bonds arises 
from the fact that an estimated $350 million of 



German dollar bonds, which had been purchased 
for cancellation by the German Government, were 
seized by the Soviet Armed Forces when they 
captured Berlin at the end of World War 11. 
The whereabouts of tliese bonds is not known, and 
the validation procedure is designed to prevent 
their being unlawfully presented for payment. 

Only those bonds found by the Board to have 
been outside Germany on January 1, 1945, will be 
validated. It is expected that in this way the 
bulk of the bonds held in the United States will 
be cleared for payment. American bondholders 
who own lawfully acquired bonds which do not 
meet the tests established by the Validation Board 
will be able to obtain validation in the Federal 
Republic of Germany through other procedures 
established by the German Government. 

The Board has established offices at 30 Broad 
Street, New York City. On August 26, 1953, the 
Board issued the first of its public announcements 
calling for bondholders to register their bonds by 
August 31, 1954. The Board will publish further 
information from time to time as the validation 
program progresses. 

In the meantime, the State Department urges 
bondholders to hold their securities in order to 
obtain the benefits of the Debt Settlement Agree- 
ment when it goes into effect. 

The Validation Board was created in accord- 
ance with the terms of the agreement of February 
27, 1953, between the United States and the Fed- 
eral Republic of Germany ^ which establishes the 
procedures to be followed in the United States for 
validating German dollar bonds. The agreement 
provides that the Chairman of the Board shall be 
appointed by the two Governments jointly and 
shall be a national of the United States. 



Parole and Clemency Board for 
War Criminals Appointed 

Press release 580 dated October 20 

The Office of the U.S. High Commissioner for 
Germany and the Headquarters of the Coni- 
mander in Chief, United States Army, Europe, 
jointly announced on October 20 the appointment 
of an Interim Mixed Parole and Clemency Board 
for persons convicted by the War Crimes Tribu- 
nal.^ The Board is expected to begin functioning 
before the end of the month. 

The three American members are: 

Henry Lee Shattuck, prominent Boston attorney and 
former member of the Massachusetts Legislature and 
Boston City Couuril, who will serve as chairman ; 

Maj. Gen. Walter Joseph Muller, Deputy Chief of Staff 
for Ix)ffistics and Administration of Allied Forces, Cen- 
tral Europe; and 



' For text, see Bulletin of Mar. 9, 1953, p. 376. 

" For text of an Allied High Commission announcement 
concerning the mixed boards, see Bulletin of Sept. 21, 
19.53, p. 391. 



V/ovember 2, 1953 



599 



Edwin August Plitt, a career Minister in the U.S. For- 
eign Service from Baltimore, Md., and former president 
of tiie International Control Commission in Tangier. 

The Gei-man members of the Board are Emil 
Lersch, a retired Justice of the German Federal 
Supreme Court, and Hans Meuschel, president of 
a State court in Bavaria. They were nominated 
by the Federal Government and their appoint- 
ments were confirmed on October 20 by U.S. au- 
thorities. Paul J. Gernert of the HICOG Prisons 
Division has been appointed parole officer for the 
Board. 

The Board is authorized, without questioning 
the validity of the convictions and sentences, to 
make recommendations to the competent U.S. au- 
thorities for the termination or reduction of sen- 
tences or for the parole of persons convicted by 
the War Crimes Tribunal. 



Loan for Development 
of Southern Italy 

The International Bank for Reconstruction and 
Development on October 7 announced a loan of 
$10 million to further assist in the development of 
southern Italy. The borrower is the Cassa per il 
Mezzogiorno, a government agency charged with 
the administration of Italy's Plan for the Eco- 
nomic and Social Development of the South. 

This is the second $10 million loan the bank has 
made to the Cassa for this purpose. Like the one 
made in October 1951, it will help Italy to pay 
for additional dollar imports needed because of 
greater economic activity and employment result- 
ing from the plan. The lire counterpart of the 
loan will be re-lent by the Cassa to finance projects 
supplementary to the plan. The loan is guaran- 
teed by the Government of Italy. 

The new loan is for a term of 25 years and bears 
interest of 5 percent including the 1 percent com- 
mission which, in accordance with the bank's 
Articles of Agreement, is allocated to a special 
reserve. Amortization payments will begin No- 
vember 1, 1958. Disbursements on the loan will be 
geared to expenditures by the Cassa for its overall 
program. 

Italy's plan for the development of the south is 
the first comprehensive large-scale attempt by the 
Government to remedy the unemployment and 
underemployment and resulting low standards of 
living from which southern Italy has suffered for 
decades. The Government adopted the plan in 
August 1950 and established the Cassa to adminis- 
ter it. The Cassa operates under the supervision 
of a committee of Italian Cabinet Ministers and 
through regional agencies and organizations which 
are responsible for the execution of works included 



in the plan. The original program contemplated 
expenditures of 1,000 oillion lire ($1,600 million) 
over a period of 10 years. The program has since 
been altered to cover a 12-year period, ending in 
1962, with total expenditures of 1,280 billion lire 
($2,048 million). 

The plan involves the execution of a far-reaching 
program of public works, the largest of which 
are land reclamation and irrigation projects. To- 
gether with related erosion and flood-control proj- 
ects, they will absorb nearly half the Cassa funds. 
The plan's land reclamation program covers an 
area of about 8 million acres. Of this, about 
900,000 acres will be irrigated, a tenfold increase 
over the existing irrigated area in southern Italy; 
the rest will be drained, leveled and cleared. Ero- 
sion and flood-control works consist of the re- 
forestation of about 30,000 acres and of stream 
regulation on mountainsides. The plan provides 
for farm improvements, such as secondary canals, 
ditches, buildings and machinery. About one- 
fourth of the funds for the plan will be spent on 
aqueducts, roads and tourist facilities. Construc- 
tion or completion of 44 aqueducts throughout the 
southern mainland and the islands is contemplated 
and will provide drinking water to about 1,000 
communities. The construction of 2,200 kilo- 
meters of new roads and the repair of 10,700 
kilometers of existing roads are to be carried out 
during the first 4 years of the plan. 

Operations under the plan started in November 
1950. Work is now well under way, and in the 
past few months Cassa expenditures have approxi- 
mated the annual rate of 100 billion lire ($160 
million) originally contemplated. It is too early 
to measure the extent to which the plan is achiev- 
ing some of its principal long-term olijectives, such 
as an increase in agricultural production and in 
permanent employment. However, the Cassa's 
construction activities have already brought new 
employment opportunities to the south of Italy and 
are increasing the economic potentialities of the 
region. 

A feature of both bank loans is the use of the lire 
counterpart for projects related to but not part of 
the plan. The projects selected by the Cassa and 
approved by the bank for financing from the 
counterpart of the first loan, iiu'lude a super- 
phosphate plant, a welded tube plant, two cement 
factories and a woolen mill. All but the woolen 
mill are under construction, and work on that mill 
should start shortly and be completed within a 
year. The bank and the Cassa will decide at a 
later date how the new counterpart funds will be 
used. 

After having been approved by the bank's execu- 
tive directors, the loan documents were signed on 
October 6, 1953, by His Excellency Alberto Tar- 
chiani, Ambassador for Italy in Wasliington, on 
behalf of the Italian Government and of the Cassa 
per il Mezzogiorno, and by Robert L. Garner, vice 
president, on behalf of the International Bank. 



600 



Department of State Bulletin 



FOA Mission in Spain 

Harold E. Stassen, Director of Foreign Opera- 
tions, on October 6 announced the appointment of 
Edward L. Williams as Director of the United 
States Operations Mission in Spain. This mis- 
sion is being established under the recently nego- 
tiated mutual-security agreements with Spain.^ 

Mr. "Williams will make his headquarters at 
Madrid and will have charge of the economic- and 
technical-assistance phases of the Spanish pro- 
gram. Under the agreements Spain is eligible 
for economic, technical, and military assistance 
from this country, and the United States is au- 
thorized to develop and use certain airfields and 
ports in Spain. 

Of the $226 million available for the overall 
program this fiscal year in Spain, $85 million will 
be used to finance imports of raw materials, com- 
modities, and equipment, and for such technical 
help as is necessary, in support of the military- 
cooperation i^rogram. 



Travel of Hungarian Legation 
Personnel in the U.S. 

Press release 563 dated October 13 

New regulations pertaining to the travel of mem- 
bers of the Hungarian Legation staff and their 
dependents in the United States were presented 
by the Secretary of State to the Hungarian Min- 
ister in Washington on October 13. This action 
follows upon a decision by the Hungarian Govern- 
ment, communicated by the Hungarian Ministry 
of Foreign Affairs to the American Legation at 
Budapest in a note of August 4, 1953, to cancel 
the restrictions imposed on January 22, 1951, on 
the travel of members of foreign diplomatic mis- 
sions within Hungary and to permit such person- 
nel greater freedom of movement. 

The new procedures for travel by Hungarian 
Legation personnel in the United States take effect 
immediately and supersede regulations previously 
in force which were communicated to the Hun- 
garian Legation on January 29, 1951.^ 

The texts of the note to the Hungarian Minis- 
ter and of the Hungarian note of August 4 to the 
American Legation at Budapest follow. 

U.S. Note of October 13 

The Secretary of State presents his compli- 
ments to the Honorable the Minister of the Hun- 
garian People's Republic and has the honor to re- 



' For texts of the agreements, see BnLLEXiN of Oct. 5, 
1953, p. 436. 

" Bulletin of Feb. 12, 1951, p. 261. 



fer to the regulation of travel of United States 
diplomatic personnel in Hungary and of Hun- 
garian diplomatic personnel in the United States. 

The restrictions on the travel of Hungarian Le- 
gation personnel in the United States which were 
notified to the Minister of the Hungarian People's 
Republic on January 29, 1951 were instituted only 
after the Hungarian Ministry of Foreign Affairs 
informed the American Legation in Budapest on 
January 19, 1951 that restrictions were being im- 
posed on the travel of United States diplomatic 
personnel in Hungary. The Department of State 
affirmed clearly at that time that in applying re- 
strictions on the travel of Hungarian Legation 
staff members in the United States it would take 
into account the consideration accorded to mem- 
bers of the American Legation in Budapest who 
might wish to travel beyond the limits of the re- 
strictive zone established by the Hungarian 
Government. 

The Secretary of State welcomes the decision 
of the Hungarian Government, made known in a 
circular note of August 4, 1953, to cancel the reg- 
ulations communicated in its note of January 19, 
1951 and to establish new procedures and regula- 
tions allowing freer and more extensive movement 
by foreign diplomatic personnel within Hungary. 

In view of the Hungarian Government's modi- 
fication of travel restrictions hitherto in force, the 
competent United States authorities have decided 
upon appropriate changes in the regulations which 
have previously governed the travel of Hungarian 
Legation personnel in the United States. The 
Minister of the Hungarian People's Republic is 
accordingly informed that the restrictions notified 
to the Hungarian Legation on January 29, 1951 
are superseded by the following regulations : 

1. Members of the Hungarian diplomatic mis- 
sion in the United States and their dependents 
may travel freely within a radius of 40 miles from 
the Zero Milestone located on the north side of 
the Ellipse in Washington, D. C. 

2. Elsewhere throughout the United States, 
travel by members of the Hungarian Legation staff 
and their dependents will be permitted upon writ- 
ten notification 24 hours in advance of such travel. 
The required notification shall be made to the 
Chief of Protocol, Department of State, on a pre- 
scribed form, a copy of which is enclosed. 

The Government of the United States continues 
to support the principle of freedom of travel for 
diplomatic personnel. The Secretary of State re- 
quests the Minister of the Hungarian People's Re- 
public to inform his Government in this regard 
and expresses the hope that the Hungarian Gov- 
ernment, upon further consideration of the ques- 
tion of travel restrictions, will find it desirable at 
an early date to enlarge the areas in Hungary 
where travel may be freely undertaken or to re- 
move all travel restrictions. 



November 2, 7953 



601 



Enclosure : 

Copy of Department of State form 
"Notification of Travel." 

[The Notification of Travel requests the last, first, and 
middle name of tlie traveler, the full title of the traveler, 
the name and relationship of the accompanying members 
of the family, the dates of travel including time of de- 
parture from and return to Washington, the destination, 
the routes of travel to the destination and return travel, 
the means of travel, whether by automobile, train, or 
plane on the outward and return journey, the automobile 
license number, a space for the signature of the Chief of 
Mission to be undersigned by the si^aiature of the principal 
traveler and the date of notification.] 



Hungarian Note of August 4 

circular Note 
No. 08903/1053 

The Ministry of Foreign Affairs of the Hun- 
garian People's Republic presents its compliments 
to the Diplomatic Missions accredited to Buda- 
pest and has the honor to inform them that the 
competent Hungarian authorities have decided 
to cancel the regulation communicated in Note 
Verbale No. 031577/1951 of 19 January, 1951 re- 
garding residence and travel of all members of 
foreign missions residing in Hungary. 

P>om August 10, 1953 the above-mentioned per- 
sons may circulate freely in Hungary except in 
the barred zones listed below : 

a. County of Szabolcs-Szatmar, 

b. Districts of Polgar and Debrecen in the 
County of Hajdu except the towns of Debrecen 
and Hajduszoboszlo, 

c. County of Borsod, 

d. District of Salgotarjan in the County of No- 
grad, 

e. Csepel Island, 

f. County of Veszprem, except the District of 
Keszthely, 

g. The zone along the frontiers of Austria and 
Yugoslavia indicated on the attached map. 

Nevertheless, within the barred zones, members 
of foreign missions residing in Hungary may use 
the railroad line Budapest-Hegyeshalom ; Buda- 
pest-Kelebia and Budapest-Bekescsaba-Lokoshaza, 
as well as the highways Budapest-Hegyeshalom- 
Vienna, No. 1, and Budapest-Szeged-Roszke, No. 
5, freely to enter and leave tlie country. The Pro- 
tocol Section of the Ministry of Foreign Affairs 
should be notified on the attached forms 24 hours 
before travel by rail or road through the barred 
zones. 

The Protocol Section of the Ministry of For- 
eign Affairs should also be notified of each trip 
outside the territory of Pest County. The noti- 
fication should be made 24 hours before tlie trip 
using the attached forms. 

The Ministry of Foreign Affairs takes this oc- 
casion to renew to the Diplomatic Missions ac- 
credited to Budapest, the assurance of its high 
consideration. 



Import Quota and Fees on 
Shelled Almonds Continued 

White House press release dated September 2ft 

The President on September 29 issued a procla- 
mation, under section 22 of the Agricultural Ad- 
justment Act, continuing the current import limi- 
tations and fees on shelled and prepared almonds 
for the period October 1, 1953, to September 30, 
1954. These limitations and fees represent the 
unanimous findings and recommendation of the 
U. S. Tariff Commission. They were found nec- 
essary in order to keep the level of the imports 
from interfering with the objective of the Depart- 
ment of Agriculture's marketing agreement and 
order on almonds. 

The President also approved the Commission's 
finding that present conditions do not warrant the 
continuation of an import quota on shelled fil- 
berts. Consequently the quota established for the 
crop-year ending September 30, 1953, will become 
ineffective after that date. 

Likewise the President concurred with the Tar- 
iff Commission's conclusion that the facts do not 
warrant the imposition of restrictions on walnuts, 
brazil nuts, casnews, or unshelled almonds. 

The proclamation imposes a fee of 5 cents per 
pound on shelled almonds and blanched, roasted, 
or otherwise prepared or preserved almonds (not 
including almond paste) imported for consump- 
tion, or withdrawn from warehouses where stored 
as a result of importation, during the 12-month 
period beginning October 1, 1953, until an aggre- 
gate quantity of 7 million pounds have been so 
entered or withdrawn, and a fee of 10 cents per 
pound on such almonds entered or withdrawn for 
consumption during this 12-month period in excess 
of an aggregate quantity of 7 million pounds. The 
fees are in addition to any other duties imposed on 
the importation of such almonds. 

The report of the Tariff Commission is its fourth 
report on the edible tree nut marketing situation 
since the investigation was initiated in 1950. In 
its report the Tariff Commission recommended 
that the proclamation apply both to the coming 
year and to subsequent years. However, the Presi- 
dent restricted the application of the proclamation 
to the period October 1, 1953, to September 30, 
1954.1 

Text of Proclamation 3034 > 

Imposing Import Fees on Shelled and Prepared Almonds 

1. Whebeas, pursuant to section 22 of the Agricultural 
Adjustment Act, as added by section 31 of the act of 
August 24, 193f), 49 Stat. 773, rcenacted by section 1 
of the act of June 3, 1937, 50 Stat. 246, and amended 



' Copies of the report may be obtained from the Tariff 
Commission, Washington 25, D. C. 
' 18 Fed. Rcff. 6345. 



602 



Department of Stale Bulletin 



by section 3 of the act of July 3, 1948, 62 Stat. 1248, 
and section 3 of the act of June 28, lOM, 64 Stat. 261 
(7 U. S. C. 624), on April 13, 1950, the President caused 
the United States Tariff Commission to make an investiga- 
tion to determine whether almonds, filberts, walnuts, 
Brazil nuts, or cashews are being or are practically cer- 
tain to be imported into the United States under such 
conditions and in such quantities as to render or tend 
to render ineffective, or materially interfere with, certain 
programs undertalien by the Department of Agriculture 
with respect to almonds, pecans, filberts, or walnuts, or 
to reduce substantially the amount of any product proc- 
essed in the United States for almonds, pecans, filberts, 
or walnuts with respect to which any such program Is 
being undertalien ; and 

2. WHEStEAs the said Commission instituted such an 
investigation on April 13, 1950, which it has been conduct- 
ing since that date on a continuing basis and in the course 
of which it has from time to time reported to the Presi- 
dent resarding the need for the imposition of restrictions 
pursuant to the said section 22 In order to prevent 
imports of almonds, filberts, walnuts, Brazil nuts, or 
cashews from rendering ineffective, or materially inter- 
fering with, the said programs, or from reducing sub- 
stantially the amount of any product processed in the 
United States from almonds, pecans, filberts, or walnuts 
with respect to which any such program is being under- 
talcen ; and 

3. Whereas import fees on shelled almonds and 
blanched, roasted, or otherwise prepared or preserved 
almonds (not including almond paste) imposed pursuant 
to the President's proclamation of September 27, 1952 
(Proclamation 2991; 17 F. R. 8645),' which proclamation 
was issued under the authority of the said section 22, 
will cease to apply to such articles entered, or withdrawn 
from warehouse, for consumption after September 30, 
1953; and 

4. Whereas further in the course of the said investiga- 
tion, on September 21, 1953, the said Commission reported 
to me its findings regarding the need for import restric- 
tions under the said section 22 on almonds, filberts, wal- 
nuts, Brazil nuts, and cashews after September 30, 1953 ; 
and 

5. Wheibeas, on the basis of such report of September 
21. 1953, I find that shelled almonds, and blanched, 
roasted, or otherwise prepared or preserved almonds 
(not including almond paste) are practically certain to 
be imported into the United States during the period 
October 1, 1953 to September 30, 1954, both dates inclusive, 
under such conditions and in such quantities as to render 
or tend to render Ineffective, or materially interfere with 
the program undertalien by the Department of Agriculture 
with respect to almonds pursuant to the Agricultural 
Marketing Agreement Act of 1937, as amended, which 
program will be in operation during such period; and 

6. Whereas I find and declare that the imposition of 
the import fees hereinafter proclaimed is shown by such 
investigation of the Commission to be necessary in order 
that the entry of almonds described in the fifth recital 
of this proclamation will not render or tend to render 
ineffective, or materially Interfere with, the said program 
undertaken by the Department of Agriculture : 

Now, therefore, I, Dwight D. Eisenhower, President of 
the United States of America, acting under and by virtue 
of the authority vested in me by the said section 22 of 
the Agricultural Adjustment Act, as amended, do hereby 
proclaim that a fee of 5 cents per pound, but not more 
than 50 per centum ad valorem, shall be imposed upon 
shelled almonds and blanched, roasted, or otherwise pre- 



pared or preserved almonds (not including almond paste) 
entered, or withdrawn from warehouse, for consumption 
during the period October 1, 1953 to September 30, 1954, 
both dates inclusive, until an aggregate quantity of 
7,000,(K)0 pounds of such almonds have been so entered, 
or withdrawn, during such period, and a fee of 10 cents 
per pound, but not more than 50 per centum ad valorem, 
shall be imposed upon such almonds entered, or witli- 
drawn from warehouse, for consumption during such 
period in excess of an aggregate quantity of 7,000,000 
pounds. The said fees shall be in addition to any other 
duties imposed on the importation of such almonds. 

In Witness Whereof, I have hereunto set my hand and 
caused the seal of the United States of America to be 
afilxed. 

Done at the City of Washington this 29th day of Sep- 
tember in the year of our Lord nineteen hundred 
[seal] and fifty-three, and of the Independence of the 
United States of America the one hundred and 
seventy-eighth. 

By the President : 

John Foster Dulles, 
Secretary of State. 



Letters of Credence 

Brazil 

The newly appointed Ambassador of Brazil, 
Joao Carlos Muniz, presented his credentials to the 
President on October 20. For the text of the Am- 
bassador's remarks and the text of the President's 
reply, see Department of State press release 575 of 
October 20. 

Dominican Republic 

The newly appointed Ambassador of the Domin- 
ican Republic, Don Manuel de Moya Alonzo, pre- 
sented his credentials to the President on October 
24. For the text of the Ambassador's remarks 
and the text of the President's reply, see Depart- 
ment of State press release 590 of October 24. 

Indonesia 

The newly appointed Ambassador of Indonesia, 
Moekarto Notowidigdo, presented his credentials 
to the President on October 24. For the text of 
the Ambassador's remarks and the text of the 
President's reply, see Department of State press 
release 593 of October 24. 



" Bulletin of Oct. 13, 1952, p. 569. 



Correction 

Bulletin of October 12, 1953, page 481, first 
column : the twelfth line should read "a half billion 
dollars of private debts. . . ." 



hlovember 2, 7953 



603 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Calendar of Meetings ' 

Adjourned During October 1953 

Horticultural Congress and Exposition Hamburg Apr. 30-Oct. 11 

Itu International Radio Consultative Committee : 7th Plenary Session . London Sept. 3-Oct. 7 

"Conquest of the Desert" Exhibition Jerusalem Sept. 22-Oct. 14 

Gatt Sth Session of the Contracting Parties Geneva Sept. 17-Oct. 24 

6th International Congress of Criminal Law Rome Sept. 27-Oct. 3 

Consultative Committee on Economic Development in South and South- New Delhi Sept. 28-Oct. 19 

east Asia ("Colombo Plan"). 

International Council for Exploration of the Sea: 41st Statutory Copenhagen Sept. 28-Oct. 6 

Meeting. 

I Lo Asian .Advisory Committee: Sth Session Nuwara-Eliya Oct. 2-3 

Joint Fag/Ece Timber Committee Rome Oct. 5-10 

Paso Executive Committee: 20th Meeting Washington Oct. 5-7 

International Meeting on Sulphur Paris Oct. 5-9 

Ilo Asian Maritime Conference Nuwara-Eliya Oct. 5-15 

U. N. Ecafe Subcommittee on Electric Power: 3d Session Bangkok Oct. 5-10 

U. N. Ecafe Railway Subcommittee: 2d Session Paris Oct. 5-17 

Wmo Executive Committee: 4th Session Geneva Oct. 6-27 

Nato Planning Board for Ocean Shipping: 5th Session London Oct. 6-9 

UNESCO Regional Study and Information Seminar for Youth Leaders Tokyo Oct. 6-27 

of South and East Asia. 

1st International Communications Conference Genoa Oct. 7-10 

1st International Congress of Engineers Rome Oct. 8-11 

Icem Meeting of Finance Subcommittee Venice Oct. 8-21 

42d Conference of the Interparliamentary Union Washington Oct. 9-14 

Paso 7th Session of Directing Council and 5th Regional Committee of Washington Oct. 9-16 

Who. 

Oeec Conference on European Inland Transport Brussels Oct. 12-17 

IcEM 6th Session of the Committee Venice Oct. 12-21* 

Rubber Study Group, Special Meeting of Management Committee . . London Oct. 12-30* 

South Pacific Commission: 12th Session Noumea Oct. 12-29 

International Conference of Representatives of National Committees London Oct. 12-17 

on Vital and Health Statistics. 

Tripartite Meeting of Foreign -Ministers (France, U. K., U. S.) . . . London Oct. 16-17 

3d Joint Fao/Who Latin American Nutrition Conference Caracas Oct. 19-28 

International Wheat Council: Resumed 13th Session; 14th Session . . Madrid Oct. 20-23 

Paso Executive Committee: 2Ist Meeting Washington Oct. 16 and 19 

Pan American Highway Congress: 1st Meeting of Technical Com- Mexico City Oct. 26-30* 

mittee on Financing the Pan .\merican Highway. 

In Session as of October 31, 1953 

UN (jencral As.seinbly: Eighth Session New York Sept. 15- 

Ilo Building, Civil Engineering & Public Works Committee: 4th Ses- Geneva Oct. 26- 

sion. 

UN Permanent Central Opium Board: 63d Session Geneva Oct. 26- 

UN 10th Joint Session of Permanent Central Opium Board & Narcotic Geneva Oct. 26- 

Drugs Supervisory Body. 
Imco Meeting of Nations Which Have Ratified the Intergovernmental London Oct. 27- 

Maritime Consultative Organization Convention. 
UN Technical Assistance Committee Working Party New York Oct. 30- 



' Prepared in the Division of International Conferences, Department of State, Oct. 21, 1953. Asterisks indicate 
tentative dates. Following is a list of abbreviations: Itu — International Telecommunication Union; Gatt^— General 
Agreement on Tariffs and Trade; Ilo — International Labor Organization; Fao — Food and -Agriculture Organization; 
EcE — Economic Commission for Europe; Paso — Pan .American Sanitary Organization; U.N. — United Nations; Ecafe — 
Economic Commi.ssion for Asia and the Far East; Wmo — World Meteorological Organization; Nato — Nortli .\tlantic 
Treaty Organization: Unesco — United Nations Educational, Scientific and Cultural Organization; Icem — Intergovern- 
mental Committee for European Migration; Okkc — Organization for European Economic (\ioperation; Who — World 
Health Organization; Icsu — International Counciljof Scientific Unions; and Imco — Intergovernmental Maritime 
Consultative Organization. 

404 DeparlmenI of State Bulletin 



Scheduled November 1, 1953-January 31, 1954 

International Cotton Advisory Committee: 2d Session of the 12th 
Plenary Meeting. 

Joint Fao/\Vho Technical Committee on Dietary Requirements (Protein 
Malnutrition). 

1st International Congress of Tribunals of Accounts (General Account- 
ing Offices). 

Wmo 1st Session of Commission for Agricultural Meteorology .... 

Icsu Joint Commission on Kadio-Meteorology 

U. N. 4th Conference on Technical Assistance 

Fag Committee on Commodity Problems: 22d Session 

Symposium on Physical and Biological Oceanography (In conjunction 
with 8th Pacific Science Congress). 

8th Pacific Science Congress 

U. N. Reconvening of Intergovernmental Tin Conference 

Fao Drafting Committee 

Fag Committee on Relations with International Organizations .... 

IcAoAfrican-IndianOceanRegional AirNavigationMeeting: 2d Session . 

Fag 18th Session of the Council 

Ilo Governing Body (and its Committees): 123d Session 

Wmo Commission for Bibliography and Publications: 1st Session . . . 

Fao Annual Conference: 7th Session 

Ilo Coal Mines Committee: 5th Session 

Caribbean Commission: 17th Meeting 

World Coffee Congress and International Coffee Culture Exposition . . 

Nato Ministerial Meeting of the North Atlantic Council 

3d International Conference on Low Temperature Physics 

1st Meeting of the International North Pacific Fisheries Commission . 

U. N. Subcommission for Prevention of Discrimination and Protection 
of Minorities. 

Who Executive Board and Committee on Administration and Finance . 

Fao Indo-Pacific Fisheries Council: 5th Session 

Wmg 1st Session of the Regional Association for the Southwest Pacific . 

U. N. Trusteeship Council: 13th Session 



Washington Nov. 2- 

Jamaica Nov. 2- 

Habana Nov. 2- 

Paris Nov. 3- 

Austin (Texas) .... Nov. 9- 

New York Nov. 12- 

Rome Nov. 13- 

Quezon City Nov. 16- 

Manila Nov. 16- 

Geneva Nov. 16- 

Rome Nov. 16- 

Rome Nov. 17- 

Santa Cruz de Tenerife . Nov. 17- 

Rome Nov. 18- 

Geneva Nov. 18- 

Paris Nov. 21- 

Rome Nov. 23- 

Dusseldorf Nov. 30- 

Trinidad Nov. 30- 

Curitiba Dec. 11- 

Paris Dec. 16- 

Houston Dec. 17- 

United States Dec. or Jan. 

New York Jan. 4- 

Geneva Jan. 12- 

Bangkok Jan. 22- 

Melbourne Jan.- 

New York Jan.- 



Admission of New Members to the United Nations 



Sfate^nents iy James F. Byrnes 

V. S. Representative to the General Assembly ^ 



CHARTER REQUIREMENTS FOR MEMBERSHIP 

U.S. delegation press release dated October 5 

Membership in the United Nations is not open to 
all states. By the language of article 4 of the 
charter, membership is specifically restricted to 

peace-loving states which accept the obligations contained 
in the present Charter and, in the Judgment of the Organi- 
zation, are able and willing to carry out these ohligations. 

Nineteen applications are presently pending. 
Of these, 14 applicant states have been judged by 
the great majority of United Nations Members to 
be fully qualified to take their place among us. 
Their applications have been approved by large 
majorities in the General Assembly. In the Se- 
curity Council equally impressive majorities have 
consistently voted for their admission. 

These 14 states represent a goodly seginent 
of our world. They are scattered through 
Europe, Asia, the Middle East, and Africa. They 
have varying govermnental structures. They are 



made up of peoples of many different faiths and 
cultural backgrounds. Included in their number 
are old established states whose peoples have con- 
tributed much to our civilization. Others are 
newly independent states but with ancient cul- 
tures, stretching back into the dawn of history. 

Let me name these 14 states—Italy, Japan, Ire- 
land, Portugal, Austria, Finland, the Eepublic of 
Korea, Ceylon, Libya, Nepal, the Kingdom of Jor- 
dan, Cambodia, Laos, and Viet-Nam. 

In a statement heard by the Committee last 
week, five of these countries, Japan, the Eepublic 
of Korea, Laos, Cambodia, and Viet-Nam, were 
passed over in silence, as if they had not applied 
for membership. 

To name these 14 states makes an impressive 
list. These countries are entitled to a place at 
our council tables, to a voice in our debates and 
decisions. 



' Made on Oct. 5 and Oct. 13 in the Ad Hoc Political 
Committee. 



No\/ember 2, 7953 



605 



Our Organization will never speak with full 
authority until it speaks for all peace-loving na- 
tions. We need these nations and these peoples 
just as they need us. We need their wisdom and 
their strength. We are incomplete until they are 
added to the United Nations. 

The effort to bring these states into the United 
Nations dates back to 1946 when the Security 
Council first considered the applications of Jor- 
dan, Portugal, and Ireland. In the years that 
have followed, other names have been added to the 
list, but our doors still remain closed. 

We should keep the record straight. These 
states have been barred from U.N. membership 
solely and entirely by the one vote of the Soviet 
Union in the Security Council. 

The Soviet Union does not maintain that all of 
these states lack the qualifications required by the 
charter. On the contrary, it has included nine of 
them in its "package" proposal. We must assume 
the Soviet Union would not declare its willingness 
to vote for these nine, along with others, unless it 
believed these states qualified. 

If the Soviet Union will now vote to recommend 
these nine states they will become members at this 
session. But the Soviet Union has made its ap- 
proval of even these nine applications dependent 
upon a deal. It insists that the United Nations 
make a trade. We must abandon principle, dis- 
regard article 4 of the charter, and accept five 
Soviet-sponsored candidates if even these nine are 
to be admitted. 

The five Soviet-sponsored candidates, Albania, 
Bulgaria, Kumania, Hungary, and the Mongolian 
Peoples Republic, have been rejected in the Se- 
curity Council because they have failed to demon- 
strate that they qualify under article 4. 

We do know that while their applications were 
pending, these states gave moral and political sup- 
port to the forces designated by the United Na- 
tions as aggressors. 

Article 2, paragraph 5 of the charter provides 
that: 

All Members shall give the United Nations every as- 
sistance in any action it takes In accordance with the 
present Charter, and shall refrain from giving assistance 
to any state against which the United Nations is taking 
preventive or enforcement action. 

Can we say that had these applicants been mem- 
bers of the United Nations during the hostilities 
in Korea (hey would have complied with either 
of these obligations? 

Several of these applicants were guilty of fos- 
tering aggression against Greece, supporting a 
minority in rebellion against the legally consti- 
tuted Greek Government. They have refused to 
cooperate in repatriating the abducted Greek 
children. They have mistreated foreign diplo- 
mats and imprisoned foreign citizens on false 
charges. 

As for the Mongolian Peoples Republic, we 



have yet to be shown that this is in truth a state, 
an independent state, "able and willing" to carry 
out the obligations of United Nations member- 
ship. 

In the case of Bulgaria, Hungary, and Rumania, 
their governments have disregarded and violated 
important provisions of the peace treaties made 
with those states. 

Mr. Chairman, at the end of World War II, I 
was intimately concerned with the drafting of 
these treaties. 

The treaties were not harsh. My Government 
did not wish them to be. It is our opinion that a 
treaty of peace drafted in a spirit of vengeance is 
more apt to breed war than peace. In the past, 
relations between these states and my country had 
been friendly. Our peoples shared many ties of 
blood and culture. We wished to welcome them 
back into the community of free nations and free 
peoples. 

And, let me add here, with the peoples of those 
countries we still have no quarrel. The old ties 
are not forgotten, and it is our hope that, someday 
they will be renewed. 

We are not concerned here, as some have sug- 
gested, with the internal structure, policies, or 
ideology of any of the five Soviet-sponsored can- 
didates for membership. Our concern is whether 
they are states that are peace-loving and able and 
willing to fulfill charter obligations. The Se- 
curity Council has found them wanting by that 
standard. 

That action was not, of course, irrevocable. It 
did not permanently bar these candidates from 
the United Nations. Governments have changed. 
Governments will change. Mr. Chairman, my 
Government is not unaware of the gestures made 
by some of these applicants. But they have j'et 
to give real evidence that they are willing, and 
able, to meet the requirements of the charter. 

The Soviet Union, however, insists that we ig- 
nore the record and the charter and admit these 
candidates. That is the price they demand for 
the admission of nine qualified states. 

But we cannot engage in bargaining where the 
question is one of principle. Heretofore we have 
objected to the admission of these five applicants 
on the ground that they are not peace-loving, as 
required by the charter. If under any paclcage 
deal we now agree to admit them, by implication 
we are saying tliey liave become "peace-loving" 
states. We cannot say that. 

If we cannot say it, then we are saying we are 
willing to sacrifice principle for a price. The 
United States Government is uinvilling to do that. 

We are an.xious to see tiic 14 qualitied peace-lov- 
ing states admitted but we deem it far more im- 
portant for the welfare of those states and all 
other states tliat this organization should maintain 
its integrity as an agency for the preservation of 
peace. 



606 



Department of State Bulletin 



Since 1946 the General Assembly has viewed 
with increasing concern the deadlock in the Se- 
curity Council. Patiently and persistently the 
Assembly has tried to find a solution which would 
not sacrifice clearly defined principles. 

In 1947 the Assembly asked the International 
Court of Justice for an opinion as to whether a 
member might condition its approval of one ap- 
plicant on the admission of another. 

The Court gave its opinion in 1948. The answer 
was "no". Article 4 could not be disregarded. It 
states the sole qualifications for membership in 
the United Nations. 

The General Assembly continued its efforts. 
Resolutions of approval on each of the 14 appli- 
cants have been adopted and referred to the Se- 
curity Council. The Council was urged to re- 
examine those applications in accordance with the 
ruling of the Court and article 4. 

The Soviet Union, however, remained adamant. 
It insisted we should accept the deal it had pro- 
posed or no state would be admitted. 

Last year the General Assembly took a further 
step. Upon the initiative of several of the Latin 
American representatives and in the hope of break- 
ing the deadlock, a Special Committee on New 
Members was established to study and explore the 
problem. 

The Committee reported to this Assembly.^ 
That it reached no positive agreement on a solu- 
tion was in no way surprising in light of the dif- 
ficulties of the task assigned it. The report 
presents an excellent analysis of the problem and 
a clear statement of the views of members. 

A number of our members, however, feel that we 
cannot leave the problem in this state. The dis- 
tinguished representative of Peru, Ambassador 
Belaunde, with admirable perseverance and de- 
termination, has developed an idea which is 
incorporated in the resolution he has presented 
to our Committee.* 

My Government will support the Peruvian pro- 
posal. We do not now see the way to an accept- 
able solution in light of the attitude of the Soviet 
world; however, we do want to leave the door 
open. 

The Committee proposed in the Peruvian reso- 
lution could serve as a liaison with members of 
the Security Council. As stated by the distin- 
guished delegate of Peru in his eloquent address, 
it would have no authority to negotiate a package 
j deal. But it could ascertain whether the Soviet 
Government intends to put in actual practice the 
so-called policy of peace it has been preaching and 
agree to admit the states it has recognized as 
peace-loving and yet has kept out of the United 
Nations. 



In any event, the establishment of this Commit- 
tee will let these 14 states know that a majority 
of the General Assembly still want them in the 
United Nations and will exhaust every effort to 
secure their admission consistent with the charter. 

While these efforts continue, we should bear in 
mind, as we look ahead to the future, the prospect 
of a charter review conference as envisaged in 
article 109. Every proposed amendment should 
receive most careful consideration. If, by the 
time such a conference is held, a solution of the 
membership problem has not been found, there 
will be proposals to deal with it by an amendment 
of the charter. In the interim, we should study 
the possibilities which a review conference may 
offer. 

Mr. Chairman, in the interests of the many 
qualified applicant states and of the United Na- 
tions, my Government ardently desires an end, 
and an early end, of the deadlock. The key is in 
the hands of the Soviet world. We are most 
eager, when a solution is found, to welcome all 
qualified applicant states to full membership. 
Their place is ready for them. It will be a most 
happy day for all of us when they can take that 
place. 



THE SOVIET "PACKAGE" PROPOSAL 

U.S. delegation press release dated October 13 

Having observed the limited appeal of his pack- 
age of 14,* the Soviet representative has made the 
package smaller. He offers us a package of 5.^ 

This new package is allegedly based on provi- 
sions of the Potsdam agreement and of the peace 
treaties with the ex-enemy states. These provi- 
sions, it is claimed, obligate all signatories to sup- 
port the applications of the ex-enemy states for 
membership in the United Nations. 

This is an old story which the various Soviet 
representatives repeated at various times despite 
the repeated rebuttals by the other signatories. 

The Soviet representative failed to read the full 
text of the peace treaty provisions. 

I shall read the relevant clause in the treaty with 
Bulgaria : 

Whereas the Allied and Associated Powers and Bulgaria 
are desirous of concluding a treaty of peace, which, con- 
foi-ming to the principles of justice, will settle questions 
still outstanding as a result of the events hereinbefore re- 
cited and form the basis of friendly relations between 
them, thereby enabling the Allied and Associated Powers 
to support Bulgaria's application to become a member of 
the United Nations and also to adhere to any Convention 
concluded under the auspices of the United Nations; 



'U.N. doc. A/2400. 

' U.N. doc. A/AC.72/L. 1. The resolution, as amended, 
was adopted unanimously by the Committee on Oct. 15 
and by the General Assembly on Oct. 23. 



* U.N. doc. A/AC. 72/L. 2. 

' U.N. doc. A/AC. 72/L. 5. The five countries included 
In the draft are Bulgaria, Hungary, Rumania, Finland, 
and Italy. 



November 2, 7953 



607 



This provision stemming from a comparable 
clause in the Potsdam agreement obviously does 
not create an obligation that any signatory will 
unconditionally support applications for member- 
ship of the treaty states. This provision says that 
only when the treaties come into force will the 
Allied and Associated Powers be in a position to 
support these applications assuming, of course, 
that the applicants meet the charter qualifications. 
In the very nature of things, the treaties could 
not modify our charter obligations. "To enable" 
is a permissive verb ; it authorizes support but it 
does not create obligation to support. 

To hold otherwise would be giving these ex- 
enemy states in the last war a blank check to be- 
have as nonpeace-loving states and still be sup- 
ported for membership in the U.N. regardless of 
article 4. 

The Soviet representative is not sincere in his 
argument. The Soviets signed the treaty with 
Italy. For years Italy has been an applicant and 
for years the Soviet representative on the Security 
Council has vetoed Italy's admission. My Govern- 
ment believes that both Italy and Finland meet the 
charter qualifications and should be admitted on 
their own merit. 

The peace treaties with Bulgaria, Eumania and 
Hungary were concluded on the assumption that 
they would "form the basis of friendly relations" 
with the signatories and thus enable the latter to 
support membership applications of the ex-enemy 
states. 

There was nothing wrong with this provision of 
the treaties. The difficulties have arisen fi-om the 
subsequent violation by these states of the treaties. 
In my statement during our debate I referred to 
the flagrant violations of the very same treaties by 
the Governments of Bulgaria, Rumania, and Hun- 
gary. These ex-enemy states also flouted the rec- 
ommendations of this Assembly with respect to 
the violations of their peace-treaty obligations and 
disregarded the Advisory Opinion of the Inter- 
national Court on their peaceful settlement obliga- 
tions under these same treaties. By their policies 
the three Governments not only prevented the de- 
velopment of friendly relations with the United 
Nations; in fact, their conduct has not been that 
of peace-loving states willing and able to abide by 
charter obligations. 

Thus, Mr. Chairman, the United States cannot 
support their applications in the absence of a real 
change in their policies. 

I am not as pessimistic as Mr. Malik appears to 
be as to the prospects for such a change. In our 
view it is more than "wishful thinking" to believe 
that perhaps in the not too distant future the 
governments of these states will assert their real 
independence. When they begin to respect the 
rights and interests of their own people they will 
come to respect the rights and interests of other 
nations. They will become peace loving. 



Reference was made here to proceedings in the 
Security Council in August 1946. At that time, 
more than 7 years ago, the United States in an 
effort to obtain an agi-eement proposed the ad- 
mission of eight applicants, including Albania 
and the Mongolian People's Republic. 

We then expressed our "misgivings" concerning 
the eligibility of these two applicants. These mis- 
givings were shared by a number of other members 
of the Security Council. We made the proposal 
with the ceneral desire to give these two appli- 
cants the benefit of every doubt which appeared 
justified at the end of the war. 

The Soviet representative, Mr. Gromyko, re- 
jected this proposal with the following words: 

I cannot agree that we should adopt resolutions with 
the wholesale admission to the organization of all coun- 
tries who have applied for membership. Countries can- 
not be regarded as things, and dealt with in accordance 
with a standard measure. When we discuss the question 
of admission to the organization, we are bound to discuss 
each concrete application separately, taking into con- 
sideration all the facts and circumstances relating to the 
application in question. 

Times have really changed, Mr. Chairman. 

After this rejection by the Soviet Government 
the United States withdrew its proposal. 

The position the Soviet Union has adopted on 
the membership issue in the following years has 
no similarity to the United States proposal of 1946. 

In 1946 the United States disregarded its own 
misgi\nngs with respect to two applicants in the 
hope that the remaining six which were supported 
by most Security Council members could enter this 
organization. Under that plan all the then pend- 
ing applications would have been approved after 
individual consideration. 

Wliat the Soviet Union has been urging in its 
package deal proposals is just the opposite. The 
Soviet Union has been blocking the admission of 
the applicants approved by large majorities in the 
Assembly and in the Security Council by making 
their admission illegally conditioned on the ap- 
proval of five applicants which have not received 
majority support either in the Security Council or 
in the General Assembly. 

In 1948 the International Court of Justice 
clearly held this attitude illegal and contrary to 
the charter. 

Mr. Chairman, the Soviet proposals are not 
genuine efforts toward universality. These pro- 
posals group together only partial lists of candi- 
dates whose applications are presently pending. 
They include some of (he present applicants and 
exclude others on the basis of no stated standards. 
We have heard what the Soviet representative said 
yesterday about the applications of Japan, the 
Republic of Korea, Cambodia, Laos, and Viet- 
Nam. My delegation was particularly shocked by 
the cynical attack on the valiant Republic of 
Korea, in whose defense so many U.N. soldiers 
have lost their lives. If the bargain is closed and 
if all the applicants in whom the Soviet Union has 



608 



Doparlment of State Bulletin 



expressed an interest should now be admitted, 
what would induce the Soviet Union in the future 
not to veto the admission of the five States omitted 
from its proposals and of other States which might 
apply? 

Although we are deeply sympathetic with the 
principle of universality, we favor universality 
based on the charter rather than on "deals." 

There is another reason, Mr. Chairman, for op- 
position to the two Soviet proposals. 

The Peruvian resolution provides for a Good 
Offices Committee to consult with the members of 
the Security Council. This committee is charged 
with the task of exploring the possibilities for a 
solution in accordance with article 4. We should 
not curtail the freedom of the committee by 
prejudging its work. The adoption of either of the 
two Soviet proposals would create confusion as to 
the connnittee's authority. Would that authority 
be confined to the applicants mentioned in one of 
the two Soviet's proposals or would it be confined 
to the applicants not mentioned in those pro- 
posals? 

We should not hamper the committee by endors- 
ing an approach which is not only inconsistent 
with article 4 but which has been emphatically re- 
jected by four of the five permanent members of 
the Security Council whose concurrence is re- 
quired for an understanding. 

If the Soviet Union really desires to contribute 
to the alleviation of international tension it will 
genuinely cooperate with the committee and adjust 
its position to the requirements of the charter. 

Mr. Chairman, my delegation will vote against 
the two Soviet draft resolutions. 



Inclusion of Trieste on 
Security Council Agenda 

statement by Henry Cabot Lodge, Jr.< 
U.S. Representative to the United Nations' 

U.S./U.N. press release dated October 15 

I should like to say a few words on the ques- 
tion of the adoption of the agenda. The decision 
reached by the United States and the United 
Kingdom concerning Trieste- is a good-faith, 
honest attempt to increase stability in a very im- 
portant part of Europe and to lead to a lasting 
solution of a most vexing problem. It was reached 
after most careful and deliberate thought. 

It is as plain as anything can be that the pro- 
posal by the Soviet Union ^ to discuss this matter in 
the Security Council is not a serious plan but, as 
unhappily is so often the case, is but another 



' Made in the Security Council on Oct. 15. 
' Bulletin of Oct. 19, 1953, p. 529. 
" U. N. doc. S/3105. 



propaganda device introduced for the purpose 
of making as much trouble as possible. 

The first part of the Soviet proposal before us 
says that, because of the American and British 
action, the Trieste region has been converted into 
a foreign military base. If this were true — and, 
of course, it isn't — why didn't the Soviet Union 
object in 1947 when the American and British 
troops were asked to remain ? 

In the second part of the Soviet proposal, it 
is contended that the decision just announced by 
the United Kingdom and the United States "is 
creating a threat to peace." In other words, in 
one place the Soviet proposal says that the pres- 
ence of our troops is a threat to peace and imme- 
diately thereafter they say that the withdrawal 
of our troops is a threat to the peace. Mr. Presi- 
dent, what kind of shenanigans is that? 

The Soviet proposal then dusts off concepts 
which were intelligent and constructive at the 
time they were made but which, of course, have 
long since become obsolete. 

Maybe this talk of withdrawing troops makes 
the representative of the Soviet Union ntu-vous. 

The Soviet proposal to discuss this matter in 
the Council is unfortunately quite on a par with 
the statements which the representative of the 
Soviet Union has made all through the stnnmer 
and autumn — statements which offer an interest- 
ing contrast with the attitude which has been 
piu)licly ex^Dressed on several occasions by Mr. 
Malenkov. Listen to these words uttered from 
Moscow in August: 

We firmly maintain that at the present moment there Is 
uo disputable or outstanding issue that could not be 
settled in a peaceful way on the basis of mutual agree- 
ment between the countries concerned. This refers also 
to those issiies under dispute between the U.S.A. and the 
USSR. We stood and stand for a peaceful co-existence 
of two systems. 

The man who said these words was Mr. 
Malenkov. 

Contrast these words of the Soviet Premier with 
the following words which also have been recently 
uttered: "the aggressive North Atlantic bloc"; 
"Fascist organizations" on the free-world side 
which "flex their muscles"; Secretary of State 
Dulles is depicted as the author of "the criminal 
plans of the enemies of peace''; the armistice in 
Korea, we are told, foiled "the forces of aggression 
and international adventure", meaning, of course, 
the nations which fought in Korea for the cause 
of the United Nations. 

The man who said these words was Mr. Vyshin- 
sky. 

And today comes this resolution which is a mere 
debating trick on a par with his other statements. 

IMr. President, we of the United States are in- 
curably optimistic about the achievement of world 
peace. We hope that Mr. Vyshinsky's remarks 
will steadily draw near to the sentiments expressed 
by Mr. Malenkov, which we have just quoted. We 
will not, therefore, oppose inclusion of this item on 
the agenda. 



November 2, 1953 



609 



statement by James J. Wadsworth 
Deputy U.S. Representative to the U.N.< 

It is hardly necessary to say that no government 
could be more interested in obtaining peace for 
this troubled area of Trieste than the United States 
Government. If we for one moment believed that 
discussion in this Council at this time would fur- 
ther that objective, we would be the last to agree 
to a postponement. But the facts are quite op- 
posite, as has been so aptly pointed out by the 
representative of Colombia, supported by the 
representative of the United Kingdom. 

Speaking for my own Government, I would 
point out that such a request for postponement is 
indicative of optimism rather than pessimism, a 
feeling of hope that these new beginnings which 
have been mentioned spell out a possibility of 
success for the future. Mr. President, if my Gov- 
ernment were inclined to pessimism or defeatism, 
the frustrations of the past years — many of them 
directly attributable to the honorable representa- 
tive of the Soviet Union — would indeed have 
brought us to a low state of discouragement. But 
such is not the case and will not be the case. 

Both here in the United Nations, and, in regard 
to Trieste, in other parts of the world, important 
conversations are taking place and we are anxious 
to see that nothing be done here which would in- 
terfere with developments and with the progress 
that we all so strongly hope for. 

My Government strongly urges, therefore, the 
adoption of the motion for postponement.^ 



U.S. Attitude Toward 
Moroccan Self-Govern merit 

Statevient hy Henry Cabot Lodge^ Jr. 

U. S. Representative to the General Assembly ' 

U.S. delegation press release dated October 13 

The aspirations of peoples who are not now 
independent toward self-government always 
evoke sympathy and support from Americans. 
Our birth as a nation in 1776 and the consolida- 
tion of our union, and the abolition of slavery 
under the leadership of Abraham Lincoln as a 
result of the war of 1861-18G5, are actions, which 
speak more loudly than words ever can, of our 
understanding of those who seek self-government 
and individual freedom. 



•Made in the Security Council on Oct. 20 (U.S./U.N. 
press release). 

'The Coloinbiiiii proposal for ijosliionoiiicnt of discus- 
sion on Trieste until Nov. 4 was adopted on Oct. 20 by a 
vote of !>-l (U.S.S.R.)-l (Lebanon). 

' Made on Oct. 13 in Committee I (Political and 
Security). 



This truth is basic, in spite of the fact that we 
have already said we do not consider the matter 
before us as one which endangers the maintenance 
of international peace and security. Nor do we 
consider that this body is equipped to act as a 
court, to adjudicate the various claims which have 
been made by various parties concerning events 
in Morocco. What we can do here, however, is ex- 
press the hope that France and Morocco will move 
continually closer together in achieving self- 
government for the people of Morocco. 

We noted with interest and encouragement the 
statement by Maurice Schumann in which he de- 
scribed in the following terms the additional re- 
forms in Morocco which France proposes: "The 
institution of elected representative assemblies at 
all levels in public life; a statute of the judiciary 
that assures the independence of judges; a proce- 
dure in penal cases that strictly guarantees the 
protection of the rights of the individual; legal 
provisions that give the workers not only de facto, 
but also de jure, the benefit of labor union 
freedom." 

These words are particularly encouraging when 
added to Mr. Schumann's other statement that 
"it must be clearly acknowledged once and for 
all that we recognize our own special responsi- 
bilities, that we agi'ee with the United Nations 
organization on the nature and scope of these re- 
sponsibilities, but that, for that very reason, we 
cannot agree to share them." We therefore look 
for the day when these hopes and aspirations will 
become actual realities. 

Such are the sentiments which will guide us in 
this debate. May nothing that we do here pro- 
mote disorder or confusion in Morocco. May our 
action here promote an atmosphere in which 
France and Morocco will move continually closer 
to effectuating self-government for the people of 
Morocco. 



United States Commends 
U.N. Report on Refugees 

Statement by Charles W. Mayo 

U.S. Representative to the General Assemibly * 

U.S. delegation press release dated October 15 

On behalf of the United States delegation, I 
should like to join the previous speakers in ex- 
pressing sincere appreciation to the High Com- 
missioner, Dr. Goedhart, for his written report ' 
and for the very moving statement which he made 
before this Committee. Dr. Goedhart, as High 
Commissioner, has emerged as one of the ablest 



' Made in Committee III (Social, Humanitarian, and 
Cultural) on Oct. 1.^. 
' U.N. doc. A/23SW. 



610 



Deparfmen/ of Sfofe Bulletin 



and most devoted servants of the United Nations. 
He is a man of courage, intelligence, imagination, 
and, most important, of conscience — the kind of 
man without whom the United Nations could not 
succeed. There are hundreds of thousands of refu- 
gees who, directly or indirectly, owe Dr. Goedhart 
a personal debt of thanks for the protection and 
assistance received from his Office — that office 
which encourages, assists, and coordinates govern- 
mental organizations to safeguard the basic rights 
of these tragic victims of war and revolution. 

In addition to commending and thanking the 
High Commissioner for all that he personally has 
done to better the lives of the refugees, we should 
also commend and thank the leaders of the many 
nongovernmental organizations who have worked 
so closely with the High Commissioner in this im- 
portant enterprise. The task of the High Com- 
missioner of giving protection to refugees can be 
fulfilled only if he has the cooperation of everyone 
concerned — governments, specialized agencies, 
other international organizations, and the non- 
governmental organizations. 

After hearing the chorus of praise which the 
representatives of the United Kingdom, the Neth- 
erlands, and many others rendered in honor of the 
High Commissioner yesterday, I found it rather 
difficult and unpleasant to listen to the long series 
of discords produced by the representative of the 
Soviet Union. I understand from my colleagues 
who have participated in this Committee before 
that this is one of the oldest and most-played 
phonograph records in the entire Soviet collection. 

An individual, an organization, or even a nation 
may receive constructive criticism — it should be 
recognized and accepted gracefully and grate- 
fully. But destructive, dishonest criticism — I 
have been brought up on the policy to ignore — 
or let us say reply silently by continuing to abide 
by the rules of honest effort. 

However, Mr. Chairman, I am compelled to 
make a few observations here. I shall not bore 
my colleagues in the Committee by commenting 
on all of tlie evidently old, familiar, and absurd 
tunes which the Soviet representative played in his 
phonograph record yesterday, but I should like to 
deal with one with which I have had some personal 
e.xperience. The Soviet representative, if I heard 
him correctly, quoted an American newspaper to 
the effect that a single refugee working as a farm 
laborer receives only $70 a month and that a mar- 
ried refugee receives only $100 a month. Now it 
happens that I employ four refugees on a farm 
on which I live in Minnesota, and that I know 
of many other refugees employed on farms in my 
neighborhood. These refugees receive their food 
and lodging free of charge and, in addition, they 
receive more than $100 in cash per month. So far 
as I know, the refugees on our farms in Minnesota 
are quite content with their new life, despite the 
concern which the Soviet representative expressed 
about their welfare, and they would not trade their 



new life for a return-trip ticket to a collective farm 
in Eastern Europe. 

The Soviet representative also made an interest- 
ing statement, as I understood him, about the al- 
leged profit that my Government makes from refu- 
gees who come to this country. He asserted that it 
costs $299 to resettle a refugee here, and that this 
$299 is recovered in three years by my Government 
through income taxes. Now, Mr. Chairman, if 
this is true, it means that a refugee in this coun- 
try pays a Federal income tax of $100 for each of 
the first three years he is here. And that means 
that, if he is a single man with no dependents, he 
receives a gross income of $1,200 in each of those 
3 years. $1,200 a year perhaps does not sound 
very spectacular, but it compares favorably to 
the average per-capita income of about $1,100 in 
this country and is a pretty good income for a 
refugee who may have had no income at all in 
a refugee camp somewhere in Europe. If the 
refugee is on a farm, as many of them are, his in- 
come actually exceeds the national agricultural 
average of $925. $1,200 a year might look like 
quite a fortune not only to the tens of thousands 
of refugees in those camps, but also to the millions 
of persons who are condemned to forced labor in 
the concentration camps of the Soviet Union, or 
even to the average Soviet citizen who, according 
to the United Nations publication on National arid 
Per Capita Incomes in Seventy Countries in 1949, 
receives only $308 per year. 

We have already heard a great deal in this Com- 
mittee, Mr. Chairman, about the alleged achieve- 
ments that have been made in the Soviet Union, 
Byelorussia, the Ukraine, Czechoslovakia, and Po- 
land in advancing the status of women and in pro- 
moting social welfare. Perhaps I might ask the 
representatives of these countries, Mr. Chairman, 
why, if their countries have created such a "para- 
dise" on earth, thousands upon thousands of their 
fellow-countrymen risk their lives every year to 
escape from their "paradise" to become refugees 
in search of liberty in a free world? The task 
of the United Nations High Commissioner for 
Refugees would be much easier if these Govern- 
ments did not — through tyranny and persecu- 
tion — drive their fellow citizens to the desperate 
gamble of trying to escape to liberty and freedom 
through the laarbed-wire boundaries of slavery. 

Returning now to the report of the High Com- 
missioner, may I note that it contains much perti- 
nent material and many statements of the situation 
concerning refugees in various countries in which 
they have found asylum. The report is encourag- 
ing; it recites the numerous activities of gov- 
ernments, international agencies, and voluntary 
agencies on behalf of refugees. Present accom- 
plishments are impressive, but total needs for 
refugees are incomplete. 

The United States delegation, with all other 
delegations, wishes there no longer existed a refu- 
gee problem, that there no longer existed the 



November 2, 1953 



611 



necessity for the Office of High Commissioner for 
Refugees. The fact remains that the problem of 
the refugees has not yet been solved and that the 
fate of these victims of war, tyranny, and oppres- 
sion still concerns the United Nations. Like my 
colleague from the United Kingdom, I am deeply 
concerned over the fate of the European refugees 
in China and of the refugees in Ti"ieste. Obvi- 
ously, the United Nations must continue giving 
•what i)rotection and assistance it can to the refu- 
gees within the mandate of the High Commis- 
sioner. It is equally obvious that the High Com- 
missioner must be able to plan ahead for a period 
of years. For these reasons, the United States 
delegation favors this proposal, based upon the 
recommendation of the Economic and Social 
Council, that the Office of the High Commissioner 
for Refugees be extended for 5 yours.^ 

It would seem only proper for the General As- 
sembly to review the problem again one year be- 
fore the end of the 5-year period. This review 
at the twelfth session of the General Assembly, 
in 1957, would permit the Third Committee to ex- 
amine the refugee situation on a worldwide basis 
and to decide whether the Office of the High Com- 
missioner should be continued further and, if so, 
under what terms. The Assembly will, of course, 
continue to receive and discuss an annual report 
from the High Commissioner. 

The draft resolution, which proposes that the 
Office of the High Commissioner be continued for 
5 years, contains all that is necessary to enable the 
High Commissioner to carry on his work. The 
draft resolution does not otherwise alter the text 
of the Statute of the High Commissioner. I 
might point out, however, that the present text of 
the Statute is obviously out of date in several re- 
spects. For example, paragraph 4, which merely 
authorizes the establishment of an Advisory Com- 
mittee, does not take account of the present mem- 
bership and functions of that Committee. Other 
sections of the Statute might be considered some- 
what ambiguous and in need of clarification. For 
example, paragraphs 6 and 7 of the Statute, de- 
fining the categories of refugees within the man- 
date of the High Commissioner, might be some- 
what revised in order that they might conform 
exactly to the corresponding portion of the Con- 
vention Relating to tlie Status of Refugees. 

My delegation had considered the possibility of 
introducing some suggestions to improve these 
obsolete and ambiguous portions of the Statute. 
However, like the delegation of Israel, it has con- 
cluded that this would not be advisable, because the 
debate might take far too much time of the Com- 
mittee. The Economic and Social Council, how- 
ever, might well consider in future the possibility 



' Oil Oct. 20 Commlttop III voted 43-5 (Soviet bloc)^ to 
Cfintiniio the nflicc for .') years. The resolution was ap- 
proved iu plenury on Oct. '2'.i, 47-5-3. 



of bringing the Statute up to date. A careful re- 
view of the Statute will, m any case, have to take 
Blace in 1957, when the status of the Office of the 
[igh Commissioner will again be discussed by the 
General Assembly. 

It is the view of the United States Government 
that the Statute is, in general, adequate for the 
continuation of the High Commissioner's work 
for refugees. It would certainly be unwise to ex- 
pand the mandate of the High Commissioner or 
to authorize him to deal with categories of refugees 
beyond those specified in the present Statute. The 
High Commissioner, with the limited resources at 
his disposal, is already overburdened. Indeed, 
there is always a danger that he may be asked by 
interested States and organizations to undertake 
more responsibilities than he can effectively fulfill. 

The primary task of the High Commissioner is 
the protection of refugees — legal, administrative, 
and political protection. While I agree with the 
distinguished representatives of the Netherlands 
and Denmark that the High Commissioner should 
do what he can to carry out the additional respon- 
sibilities contained in his Statute, the High Com- 
missioner will always have to take care that he 
does not become too directly concerned in the fields 
of assistance and economic development that 
might involve commitments beyond the resources 
at his command. 

After all, the finding of permanent solutions for 
the long-term problems — the problems of assimi- 
lation, economic development, and resettlement — 
is something neither the High Commissioner nor 
even the United Nations as a whole can accomplish. 
Only national governments — encouraged, assisted, 
and prodded by the High Commissioner — can find 
these permanent solutions. It is up to our Govern- 
ment, all of our governments, to find these perma- 
nent solutions and, in particular, to take care of 
the refugees in our own territories. The United 
States is making a special contribution in the 
refugee field by its assistance to the movement of 
migrants from Europe and to the persons who es- 
cape from tyranny in Eastern Europe. 

Another and verj' important aspect of the High 
Commissioner's woi"k, and one which the High 
Commissioner himself has quite properly empha- 
sized, is the need for adequate coordination be- 
tween the work of his Office and the work of other 
international agencies concerned with refugees. 
The United States Government has had a long- 
standing interest in developing machinery for the 
coordination of activities in the economic and so- 
cial fields, with a view to eliminating, so far as 
po.ssible, any overlapping and duplication of ef- 
fort. Our delegation notes with satisfaction the 
report of the High Commissioner that his relations 
with otlier agencies in the refugee field are prog- 
ressing successfully. We feel confident that he 
will conliiuie to do everything possible, in cooper- 
ation with the other agencies, to avoid any dupli- 



612 



Department of Stale Bulletin 



cation of effort. So little money is available to all 
of the agencies concerned with refugees that none 
of it should be wasted in overlapping activities. 

Relative to the avoidance of duplication of ef- 
fort between the Office of the High Commissioner 
for Refugees and other international organiza- 
tions operating in this field, the United States is a 
member of one of these organizations, the Inter- 
governmental Committee for European Migration, 
which, as the High Commissioner has noted, has 
enabled many thousands of refugees to move to 
new homes overseas. So far as the United States 
is concerned, its representatives in the Intergov- 
ernmental Committee for European Migration, as 
well as in the Economic and Social Council and 
in the High Commissioner's Advisory Committee, 
will do everything they can to insure that the work 
of the Intergovermnental Committee and the 
United Nations is coordinated and avoids any du- 
plication of effort. 

May I conclude by again expressing the ap- 
preciation of the United States delegation for the 
outstanding skill and devotion with which the 
High Commissioner has fulfilled his mandate and 
by expressing our confidence that the Office of the 
High Commissioner will continue to bring hope, 
through aid and protection, to the hundreds of 
thousands of refugees who still need the United 
Nations. 



U.S. Delegations to 
International Conferences 



Pacific Science Congress 

The Department of State announced on October 13 
(press release 564) that the United States will be repre- 
sented at the Eighth Pacific Science Congress of the Pacific 
Science Association, which will convene at Manila on 
November IG, by the following delegates : 

Knowles A. Ryerson, Dean, College of Agriculture, Uni- 
versity of California, Chairman 
Frederick Eggan, Professor of Anthropology, University 

of Chicago 
W. McD. Hammon, Head, Department of Epidemiology 

and Microbiology, University of Pittsburgh, Graduate 

School of Public Health 
Earl M. Irving, Geologist, Foreign Geological Branch, 

Geological Survey, Department of the Interior 
George P. Murdock, Professor of Anthropology, Institute 

of Human Relations, Yale University 
Robert C. Murphy, Chairman, Department of Birds, the 

American Museum of Natural History, New York, 

N. Y. 
Cyril Pemberton, Head, Department of Entomology, Ha- 
waiian Sugar Planters' Association, Experiment 

Station, Honolulu, Hawaii 
Charles F. Richter, Professor of Seismology, Seismolog- 

Ical Laboratory, California Institute of Technology, 

Pasadena, Calif. 
Athelstan F. Spilhaus, Dean, Institute of Technology, 

University of Minnesota 
Thomas G. Thompson, Professor of Oceanography, Ocean- 

ographic Laboratories, University of Washington 



Previous congresses in this series have been held as 
follows : 

1920— Honolulu, Hawaii 

1923 — Melbourne and Sydney, Australia 

1926— Tokyo, Japan 

1929 — Batavia and Bandoeng, Java, Netherlands Indies 

1933 — Victoria and Vancouver, Canada 

1939— Stanford and San Francisco, Calif. 

1949— Auckland and Christchurch, New Zealand. 



Commission for Agricultural Meteorology (WMO) 

The Department of State announced on October 19 
(press release 573) that the United States will be repre- 
sented at the first session of the Commission for Agricul- 
tural Meteorology of the World Meteorological Organiza- 
tion (Wmo), which is to be held at Paris from November 
3 to 20, by the following delegation : 

Principal Delegate: 

Milton L. Blanc, Synoptic Reports and Forecasts Division, 
Weather Bureau, Department of Commerce 

Delegate 

Arthur W. Johnson, Meteorological Attach^, Geneva, 
Switzerland 



Building, Civil Engineering, and 
Public Works Committee of ILO 

The Department of State announced on October 22 
(press release 5S4) that the United States will lie repre- 
sented at the fourth session of the Building, Civil Engi- 
neering, and Public Works Committee of the Interna- 
tional Labor Organization (Ilo), which is to be held at 
Geneva, Switzerland, from October 26 to November 7, 
1953, by the following delegation : 

Government Delegates: 

Herman B. Byer, Assistant Commissioner, Bureau of La- 
bor Statistics, Department of Labor 

John C. Hazeltine, Housing and Home Finance Agency, 
Washington, D.C. 

Employer Delegates: 

Martin W. Watson, General Contractor, National Bank of 
Topeka Building, Topeka, Kans. 

Lester C. Rogers, President, Bates and Rogers Construc- 
tion Company, Chicago, lU. 

Worker Delegates: 

Richard J. Gray, President, Building and Contracting 
Trades Department, American Federation of Labor, 
Washington, D.C. 

William A. O'Neill, Assistant General Secretary-Treas- 
urer, United Association of Journeymen and Appren- 
tices, Plumbing and Pipe Fitting Industry, Ring 
Building, Washington, D.C. 

The Building, Civil Engineering, and Public Works 
Committee is one of eiglit committees that have been estab- 
lished by Ilo since 1045 to deal with problems in several 
industries of international significance. The other com- 
mittees are concerned with coal mines, inland transport, 
iron and steel, metal trades, textiles, petroleum, and 
chemical industries. 

In addition to making a review of recent events and 
developments in the construction industry, the Commit- 
tee will consider two sijecial topics at its fourth session : 
"methods of facilitating the progressive application in the 
construction industry of the principle of a guaranteed 
wage" and "factors affecting productivity in the construc- 
tion industry." The Committee may also examine the 
effect which has been given to conclusions adopted at its 
previous sessions (Brussels 1946, Rome 1949, Geneva 
1951). 



November 2, 7953 



613 



FOREIGN SERVICE 



3.The status of the News Division (ND) remains as out- 
lined in Department Circular No. 33, dated June 23, 1053.' 
In addition, the funttimis, supplies, efiuipment and per- 
sonnel of the Radio and Television Branch of the former 
Division of Public Liaison are transferred herewith to 
the News Division. 



Appointment 

Herv6 J. L'Heureux was appointed on October 12 as 
Exocutive Director of the Office of the U.S. High Com- 
missioner for Germany (press release 555). Since July 
1952 Mr. L'Heureux has been serving as Supervisory 
Consul General in Germany. 

Recess Appointments 

The President on October 20 appointed Rudolf E. Schoen- 
feld to be Ambassador to Colombia. 

On October 21 the President appointed George Wads- 
worth to be Ambassador to Saudi Arabia and Minister 
to Yemen, succeeding Raymond A. Hare. He announced 
on the same date that Edward J. Sparks would continue 
as Ambassador to Bolivia and that Raymond Ames Spru- 
ance would continue as Ambassador to the Philippines. 

The President on October 23 appointed Robert C. Hill to 
be Ambassador to Costa Rica. 



THE DEPARTMENT 



Reorganization of Public Affairs Area 

Department Circular No. 63 dated October 6 

1. Effective immediately the Office of Public Affairs 
(PA) and its constituent divisions. Division of Public 
Liaison (PL), Division of Public Studies (PS), Division 
of Historical Policy Research (RE) and Special Pro- 
gram and Writing Staff are abolished. The functions, 
supplies, equipment and personnel of these units are here- 
by transferred to the organizational units indicated below. 

2. The following organizational units are hereby estab- 
lished under the jurisdiction of the Assistant Secretary 
for Public Affairs (P) : 

a. Public Services Division (SEV) (Formerly PL and 
Special Program and Writing Staff) 

General Publications Branch ' 
Speech and Special Drafting Branch 
Magazine and Feature Press Branch 
Organization Liaison Branch 
Public Correspondence Branch 

b. Public Studios Division (PS) (remains as is) 

c. Historical Division (HD) (formerly RE) 
Policy Studies Branch 

Research Advisory Brancli 
Foreign Relations Branch 
(Jernian Documents Branch 



Appointment of Officers 

Christopher H. Phillips as Special Assistant to the 
Assistant Secretary for United Nations Affairs, effective 
October 21 (press release 5S2). 

Robert F. Cartwright as Deputy Administrator, Bureau 
of Security, Consular Affairs, and Personnel, effective 
October 12 (press release 5.")0). 

Dennis Allen Flinn as Director of the office of Security, 
Con.sular Affairs, and Personnel, effective October 12 
(press release 558). 



' The Bulletin, Field Reporter, and Foreign Policy 
Uriefn are produced in the General Publications Branch 
of tlie Public Services Division. 



Checl( List of Department of^State Press 
Releases: October 19-24, 1953 

Releases may be obtained from the News Division, 
Department of State, Wasliington 25, D. C. 

I^ress releases issued prior to October 19 which 
appear in this issue of the Bulletin are Nos. 525 of 
Septeml)er 28 ; 551 of October 9 ; 555, 556, 558, and 
559 of October 12; 503 and 564 of October 13; and 
566 and 5(>!S of October 14. 

Subject 
Agricultural Meteorology Group 
Smith : U.S. objectives 
Brazilian credentials (re-write) 
Morton: United Nations 
Dulles : U.S. re.sponsiliility 
Dulles: Press conference 
Dulles : Panmun.iom meeting 
Mixed parole lioard 
U.S. note on Polish tanl;er 
Phillips' appointment 
Peieira : Visit to U.S. 
ILO committee meeting 
IcAO North Atlantic program 
Dulles : NazroUah Entezam 
Murphy : I'.S. role in U.N. 
Bubbling Well Cemetery 
Dreier : The Americas 
Dominican credentials (re-write) 
Visit of Ureelc rovalty 
Dulles: U.N. Day 
Indonesian credentials (re-write) 
Dulles : Statement on Israel 



• Not printed. 

t Held for a later is.sue of the Bulletin. 



No. 


Date 


573 


10/19 


t574 


10/20 


575 


10/20 


t;)iu 


10/20 


577 


10/20 


578 


10/20 


579 


10/20 


5S0 


10/20 


t5Sl 


10/20 


582 


10/21 


•583 


10/21 


584 


10/22 


t585 


10/22 


586 


10/22 


t587 


10/22 


588 


10/23 


t58!) 


10/23 


.590 


10/24 


•591 


10/23 


t592 


10/23 


593 


10/24 


5!M 


10/2;5 



" Bulletin of July 13, 1953, p. 58. 



614 



Department oi State Bulletin 



November 2, 1953 

Agriculture 

Commission for Agricultural Meteorology 

Aid to Foreign Countries 

Secretary Dulles' statement on aid to Israel .... 
U.S. aid to Bolivia (texts ot letters) 

American Principles 

Columbus' contribution to religion ot New World 
(Dulles) 

Falcon Dam — A monument to inter-American coopera- 
tion (Eisenhower) 

U.S. responsibility — a society of consent (Dulles) . . 

American Republics 

BOLIVIA: U.S. aid to Bolivia (texts of letters) . . . 
Economic growth and human welfare in the Western 

Hemisphere (Rockefeller) 

Governor Lodge's mission to Panama and Costa Rica . 
MEXICO: Palc6n Dam — a monument to Inter-Amerl- 

can cooperation (Elsenhower) 

Asia 

The Coramvmlst campaign In the Far East (Robert- 
son) 

COMMUNIST CHINA: Removal of bodies from Shang- 
hai cemetery 

JAPAN: Jurisdictional arrangements for US. forces 
in Japan (text of agreement) 

KOREA: Preliminary meeting in Korea (Dulles) (Com- 
munist message) 

Communism 

The Communist Campaign in the Far East (Robert- 
son) 

Preliminary meeting in Korea (Dulles) (Communist 
message) 

Education 

Economic growth and human welfare In the Western 
Hemisphere (Rockefeller) 

Europe 

GERMANY: 

Establishment of German Bond Board 

Initial payment made on German debt 

Parole and Clemency Board for war criminals ap- 
pointed 

HUNGARY: Travel of Hungarian Legation personnel 

in the U.S. (texts of U.S., Hungarian notes) . . . 

ITALY: Loan for development of Southern Italy . . 

SPAIN: FOA mission in Spain 

TRIESTE: Trieste's relation to defense of South 

Europe 

U.S. attitude toward Moroccan self-government 
(Lodge) 

Finance 

Establishment of German Bond Board 

Loan for development of Southern Italy 

Foreign Service 

Appointments (L'Heureux) 

Letters of credence (Brazil, Dominican Republic, Indo- 
nesia) 

Recess appointments (Hill, Schoenfeld, Sparks, 
Spruance, Wadsworth 

International Meetings 

Calendar of meetings 

Governor Lodge's mission to Panama and Costa Rica . 

U.S. DELEGATIONS: 

Building, Civil Engineering and Public Works Com- 
mittee of Ilo 

Commission for Agricultural Meteorology .... 
Pacific Science Congress 



Index Vol. XXIX No. 749 

Labor 

613 Economic growth and human welfare In the Western 

Hemisphere (Rockefeller) 681 

S89 Near and Middle East 

^^* IRAN: U.S.-Iranian friendship 590 

ISRAEL: Secretary Dulles' statement on aid to Israel . 589 

680 Presidential Documents 

PROCLAMATIONS: Import quota and fees on shelled 
579 almonds continued 602 

^^'^ Prisoners of War 

Parole and Clemency Board for war criminals ap- 

pointed 599 

584 

Refugees and Displaced Persons 

681 United States commends U.N. report on refugees 

586 (Mayo) qiq 

579 State, Department of 

Appointments (Cartwrlght, Pllnn, Phillips) .... 614 
Reorganization of Public Affairs Area 614 

592 Trade 

Economic grovrth and human welfare in the Western 

Hemisphere (Rockefeller) 581 

ggj Import quota and fees on shelled almonds continued . 602 

Transportation 

Travel of Hungarian Legation personnel in the U.S. 

(texts of U.S., Hungarian notes) 601 

Treaty Information 

592 

Initial payment made on German debt 598 

ggg Jurisdictional arrangements for U. S. forces in Japan 

(text of agreement) 595 

United Nations 

581 Admission of new members to the United Nations 

(Byrnes) 605 

SECURITY COUNCIL: Inclusion of Trieste on Security 

Council agenda (Lodge) (Wadsworth) .... 609 

599 United States commends U.N. report on refugees 

598 (Mayo) 610 

^99 Name Index 

gQ2 Byrnes, James P 605 

600 Cartwrlght, Robert P 614 

601 Dulles, Secretary 580, 586, 587, 589, 590 

589 Eisenhower, President 579, 584, 602 

En-Lai, Chou 591 

610 

Entezam. NazroUah 590 

Estenssoro, Victor Paz 584 

599 Fllnn, Dennis Allen 514 

600 

Kalijarvl, Thorsten V 598 

Krekeler, Heinz L 598 

^** L'Heureux, Herv6 614 

gQ3 Lodge, Henry Cabot, Jr 609, 610 

Lodge, John D 586 

^1* Mayo, Charles W 610 

Phillips, Christopher H 614 

604 Robertson, Walter S . . 592 

586 Rockefeller, Nelson A 581 

Ryerson, Knowles A 613 

Stretch, David A 599 

613 

gj8 Wadsworth, James J 610 

613 Williams, Edward L 601 



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Vol. XXIX, No. 750 
November 9, 1953 



-vi*^"^ o«. 




UNDERSTANDING THE UNITED NATIONS • U.N. Day 

statement by Secretary Dulles; addresses by Assistant Secre- 
tary Murphy, Assistant Secretary Morton, Mrs. Frances P. 
Bolton ..,, 619 

BUILDING A COMMUNITY OF FREE NATIONS • by 

Under Secretary Smith 53Q 

THE DEFENSE OF EUROPE • by Gen. Alfred M. 

Gruenther ••......,. 633 

ROLE OF FORCED CONFESSIONS m COMMUNIST 
"GERM WARFARE" PROPAGANDA CAMPAIGN • 

Statement by Charles W. Mayo 641 



For index see inside back cover 



Boston Public Li'-rary 
Superintendent of Documents 

NOV 3 1953 




^/le z/^efut/jilm^e^ xJ' c/tate VJ H 1 1 Kj till 



Vol. XXIX, No. 750 • Publication 5262 
November 9, 195Z 



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The Department of State BULLETIN, 
a weekly publication issued by the 
Public Affairs area, provides the 
public and interested agencies of the 
Government with information on 
developments in the field of foreign 
relations and on the trork of the 
Department of State and the Foreign 
Service. The BULLETIN includes 
selected press releases on foreign 
policy, issued by the ffhite House 
and the Department, and statements 
and addresses made by the President 
and by the Secretary of State and 
other officers of the Department, as 
well as special articles on various 
phases of international affairs and the 
functions of the Department. Infor- 
mation is included concerning treaties 
and international agreements to 
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Understanding the United Nations 



United Nations Day and Week provided an opportunity for Department 
officials to re-state U.S. policy toward the United Nations; the annual New 
York Herald Tribune Forum.i held at U.N. Headquarters on the theme '■''New 
Patterns for Mid-Century Living " also was an occasion for addresses hy 
U.S. representatives active in U.N. affairs. Folloiuing are texts of a United 
Nations Day statement by Secretary Dulles and of addresses by Robert 
Murphy, Assistant Secretary for United Nations Affairs; Thruston B. 
Morton, Assistant Secretary for Congressional Relations ; and Mrs. Frances 
P. Bolton, Memher of Congress from Ohio and a U.S. 7'epresentative to the 
Eighth General Assembly. 



STATEMENT BY SECRETARY DULLES 

Press release 592 dated October 23 

Eight years ago at San Francisco, representa- 
tives of 51 nations met in high hope to draw up 
a blueprint for peace, justice, and well-being. To- 
day, as we look back over those 8 years, we can 
see that their high hopes have been fulfilled only 
in part, but the test of time — and a very short 
time — has shown that the blueprint is in the main 
a good one; that with time, patience, and perse- 
verance, it can and will meet the expectations of 
its architects. 

President Eisenhower pointed out recently that 
the United Nations is more than merely a desir- 
able organization in these days; it has become 
sheer necessity. It still represents man's best or- 
ganized hope to substitute the conference table 
for the battlefield. Our Government is deter- 
mined to use, for peace and justice, the opportuni- 
ties which the United Nations provides. If this 
is to be done effectively, we all must share in the 
responsibility. Those of us who are concerned 
■with the daily workings of foreign policy have a 
special responsibility. More effectively than most, 
we can explain the need for faith in the United 
Nations ; we can help dispel the doubts and fears, 
the misconceptions that may be expressed. 

On October 24 some 80 nations will observe the 
eighth anniversary of the launching of the United 
Nations. The fact that 20 nonmember countries 
are joining with members in this observance is 
heartening evidence of the hopes of people every- 
where that the United Nations will succeed. 



THE ROLE OF THE UNITED STATES 

by Assistant Secretary Murphy ^ 

I am very happy to be here today and to be able 
to participate in your celebration of U.N. Day. 
Talking shop is always relaxing, and your group 
and I, after a fashion, are in the same business — 
world affairs. 

In length of service, perhaps, I have a slight 
edge. One of your parent organizations, the For- 
eign Policy Association, was founded in 1919. I 
made my official debut in world affairs in 1917 as 
a junior clerk in the American Legation in Bern. 

During these 36 years I have had to revise from 
time to time my earlier concepts of Foreign Serv- 
ice. Or, it may be, the Service and circumstances 
have changed. Certainly I have found myself 
with some assignments which once I would have 
thought far outside the traditional orbit of diplo- 
macy. 

Of course, there are many popular fallacies 
about diplomats. As a group they seem to be 
rather suspect. That may be due to the fact that, 
usually, they do not have opportunities to build 
their fences at home. I remember my first chief, 
whose knowledge of European affairs proved to 
be of great value to our Government, especially 
in time of war. He had not been in the United 
States for 19 years; his small salary and large 
family not permitting the expense of a trip home. 

Some people, however, thought he was not a 
good American, because he had, naturally, ac- 

' Address made before the World Affairs Council at Phil- 
adelphia, Pa., on Oct. 23 (press release 587). 



November 9, 1953 



619 



?uired a few foreign mannerisms and picked up a 
ew foreign languages. But I knew tliat in liis 
case, as in that of most of my associates in the 
Service, there could have been no more loyal Amer- 
ican, loyal to our Government and to our people. 
That loyalty, in fact, had been intensified rather 
than diminished by his long-enforced absence. 

Through the years I have had opportunities to 
make comparisons with other American groups, 
business and professional, the armed services. No- 
where have 1 seen greater dedication to duty and 
the best interests of our country and to our people 
than in the men and women of the U.S. Foreign 
Service of the Department of State. As a veteran 
in its ranks in both cold and hot wars, let me as- 
sure you that life in the Foreign Service fortu- 
nately is not a glamorous social enterprise. A 
good 90 percent of it is hard work, even drudgei-y, 
with plenty of risks and dangers. 

In the military field victories are usually attrib- 
uted to the commanding officers. In business suc- 
cess brings profits and at times fame. The various 
professions have their special awards. In diplo- 
macy the material reward is conspicuous by its 
absence, and it is usually unwise to claim a vic- 
tory. To do so, in many cases, would nullify the 
result. 

To win a military victory is glamorous. To 
avoid a war, which is obviously much more im- 
portant, does not lend itself to popular acclaim. 
It rates no headlines. There are no welcoming 
home parades. 

I ask your indulgence for having digressed 
from my tlieme at this point to say a word to you 
in behalf of the men and women, my colleagties, 
in the Foreign Service. I do it because I think 
they need the encouragement of knowing that the 
American people, their people, back them. They 
are your business representatives abroad, promot- 
ing American interests. Without your confidence 
in them, they are not going to be as effective as 
they, and you, would wish them to be. 

I am confident you want our country's repre- 
sentation abroad to yield to none in quality and 
competence. By encouraging them, you can make 
a practical contribution to America's participa- 
tion in world uffairs. There never has been a time 
when it was more important that this Service be 
in a position to give its best. 



Reluctant Acceptance of World Leadership 

Recent years have seen important developments 
in tlie position of the United States in world af- 
fairs. An eminent Harvard historian once re- 
marked that the most notable and important de- 
velopment in the first half of the 20th centui-y had 
been the reluctant acceptance by the United States 
of world leadership. He emphasized the word 
"reluctant." 

Certainly the emergence of the United States 
as the leader of the free world has tremendous 



historical significance. How we handle the job 
will shape the future of generations to come, our 
own included. 

We didn't ask for it. We didn't want it. Most 
of us have moments of nostalgia for the old days 
when our responsibilities stoj^ped at the water's 
edge. 

There is an old story of a Danish king who 
ordered the tides to recede. Naturally they didn't. 
We have found liistory equally uncooperative. 

The truth is, we had no choice. Had we re- 
fused, there was another candidate, ready and far 
from reluctant. The Soviet Union would have 
been very glad to have accepted those responsi- 
bilities. 

We are, however, trying to give the world some- 
thing new in the way of leadership. Perhaps this 
too was inevitable. The 20th century has intro- 
duced a new concept into the pattern of interna- 
tional relations. That concept is cooperation. 
The leadership of the United States is based upon 
cooperation. We have sought allies rather than 
satellites. 

The most decisive act of our leadership was the 
organization of the United Nations. Perhaps 
there could have been a United Nations back in 
1945 without the United States. But I doubt it. 
The world, weary after the war, was certainly 
ready for the idea. But picking up the pieces 
after World War II was a staggering prospect 
to many battle-torn and bereft nations. 

The great goal of the United Nations from the 
beginning was peace — "to save succeeding genera- 
tions from the scourge of war." But it was more 
than that. It was to make peace meaningful. 
It was to give men everywhere a stake in that 
peace. 

In the U.N. we hoped to develop partners in 
this tremendous undertaking. We hoped that the 
nations of the world, working together in mutual 
respect and tolerance, could move together toward 
the U.N. goals. 

We had accepted the responsibilities of leader- 
ship. But we saw o\ir new position in world af- 
fairs as an obligation rather than an opportunity. 
We saw that our interests lay in helping rather 
than exploiting. 

That was 8 years ago. Today the U.N., in its 
great glass tower on the East River in New York, 
is a going concern. It is a vital force everywhere 
in the world. 

Having returned recently from Korea and Ja- 
pan, I can testify to the practical manner of U.N. 
operations in a crucial area. 

The course of events since 1945, however, has 
called for some drastic changes in the original 
U.N. concept. As Secretary of State Dulles re- 
cently said: 

The United Natkms was built larwiy on tlie expecta- 
tion tliat the leaders of the grand alliance, who had 
worked toRether for victory, would continue voluntarily 
to work to^'etlior for pence. That expectation was 111- 
fouuded. 



620 



Department of State Bulletin 



It was indeed. 

Tlie ink had hardly dried on the signatures to 
the charter before it had become clear to the rest 
of us that the leaders of the Soviet bloc had a 
different concept of the U.N. Year by year that 
dismal fact has become increasingly clear. 

That the U.N. has survived this betrayal — for 
it is nothing less than that — is, to me, a near- 
miracle. It is a tribute, as I see it, to the basic 
soundness of the stiiicture. It is a tribute to the 
deep sincerity of the other U.N. member nations 
and, I like to think, to the leadership of the United 
States. 

The U.N. took the shock of the aggi-ession in 
Korea. The United Nations met that first major 
test with courage and determination. 

We have to be realistic in evaluating the record 
of the United Nations in Korea. The test came 
when the flood tide of Communist imperialism had 
reached its peak. The aggi-essors were ready. 
Their plans had been carefully made. The rest 
of us were not. 

That is, of course, always an advantage enjoyed 
by the outlaws in any community. They are not 
bound by ties that restrict honorable men. 

But the U.N. met the challenge. That the 
United States was obliged to bear a dispropor- 
tionate share of the burden is true. We did. But 
it is also true that 15 U.N. nations other than the 
United States did contribute armed forces and that 
a total of 46 nations made some form of contribu- 
tion, whether military or economic. And it should 
be added that during the past months 75 percent 
of the frontline in Korea was manned by non- 
United States forces. 

Only time will reveal the ultimate bearing of 
the Korean experience on the prospects for world 
peace. It is a lesson, however, for other would- 
he aggressors and one, I think, that will not be 
lost. From now on small independent countries 
can have a gi'eater sense of security that they will 
not be battered down by international big bullies. 

The U.N. learned much by the Korean action. 
It has already begun to improve its procedures. 
In the case of a future such attack, it is hoped that 
all the nations of the free world will want to make 
their resources available. 

All of us here today remember the failure of the 
League of Nations to meet aggression in the case 
of Ethiopia. At the time the aggression was 
launched in Korea, the Ethiopians themselves did 
not forget it. Emperor Haile Selassie, in sending 
his troops to fight with the U.N. forces, told them 
to remember that, in paying this debt of honor, 
they were laying the foundations of a universal 
system of collective security not only in behalf of 
Ethiopia but for all nations of the world, great 
and small, powerful and weak. 

The United Nations has not shied away from 
the realities of the postwar threat to peace. The 
original concept of the U.N. stands. It is the 



world that has changed since 1945. It isn't a 
happy world. But it will not become happier 
merely by our closing our eyes and pretending 
that it is happy. 

The situation has added tremendously to the 
responsibilities of the United States. It has made 
our task infinitely more difficult. 

The tasks we faced in 1945 were difficult enough. 
But with even a minimum of good will on the part 
of all nations, they could have been resolved in 
time. And, with the exception of the Soviet bloc, 
that will was there. Again excepting the U.S.S.R. 
and the nations in chains to the Kremlin, it is 
still there. 



Major Developments in the International Picture 

This past year has seen a combination of major 
developments in the international picture. 

In the United States a new administration under 
President Eisenhower has come into office. It has 
demonstrated firmness in its resolve for peace and 
firmness in its determination to maintain vigilance 
until the leaders of the Soviet Union have demon- 
strated by deeds, not words, their intention to co- 
opei'ate in the efforts to bring peace and pros- 
perity to the world. 

In the Soviet Union the Stalin era has ended, 
and we are witnessing the difficulties of bequeath- 
ing his malignant power to his successors, who- 
ever they may be. The courage of the East Ger- 
mans and unrest in the satellites has shaken the 
illusion of Soviet invincibility. It has demon- 
strated that these 8 years of satellite slavery have 
not dimmed the will for freedom. 

The fighting in Korea has been halted and the 
Communist aggression there repelled. 

These are bright notes. They are shadowed, 
however, by the fact that awesome weapons of 
destruction, we know now, are in the hands of 
a little group of unprincipled men in the Com- 
munist orbit bent upon world domination. It is 
one of the most dangerous facts of history that 
these weapons are in tlie hands of men who have 
no conception of moral law. 

The alternatives under this situation were re- 
cently stated by President Eisenhower. The first 
is the prolongation of world tension, deeper and 
deeper shadows. 

The second alternative is the goal set by the 
United Nations. It is a world moving toward 
peace and prosperity through the cooperative ef- 
forts of all men and all nations. It is a world, 
freed from fear, tackling its other problems in the 
spirit of cooperation to which the U.N. is dedi- 
cated. 

One of the tasks of American leadership is to 
make these alternatives clear to the world — clear, 
if possible, to the Soviet world. And until the 
Soviet world has made the right choice, the United 
States has these responsibilities set forth in Presi- 



November 9, 7953 



621 



dent Eisenhower's speech of October 6,^ which I 
would like to quote to you : 

We and our friends in the free world must l)uild, main- 
tain, and pay for a military might assuring us reasonable 
safety from attack. From this position of secure con- 
fidence, we must seek to know and respond to the legiti- 
mate aspirations and hopes of all peoples. We must ar- 
range trade systems that will provide each with the 
necessaries of life and opportunity for self-advancement. 
We must seek to understand and resolve age-old preju- 
dices, amhitions, and hatreds that still scar great parts of 
the whole world. . . . We must provide machinery and 
teclmiques to encourage that peaceful communication and 
mutual confidence which alone can finally lift the burden 
of arms from the backs of men. 

These are heavy responsil)ilities. They call for 
the best we can offer in the way of leadership. 
They call for almost superhuman qualities of 
patience, tolerance, and wisdom. 

I think we are equal to the task. We are very 
fortunate, however, that we will not have to carry 
it alone. Ambassador Lodge said once that if the 
U.N. did not exist men everywhere today would be 
demanding its immediate creation. He added: 
"It, the U.N., stands between the U.S. and inter- 
national anarchy. It stands between us and 
World War III or the extinction of human free- 
dom — or both." 



U. N. Has Nationwide and Nonpartisan Support 

We built better than we knew back in 1945. 

At the time the U.N. was organized, the Ameri- 
can people were solidly back of the proposal. Sup- 
l^ort was nationwide and nonpartisan. When the 
charter came up for ratification in the Senate, you 
will remember, the vote was 89 to 2. 

That support, I am convinced, has not wavered. 
Recent opinion i)olls, in fact, indicate that it has 
even risen. The American people believe in the 
U.N. 

There are, to be sure, critics. Some of these, 
though relatively small in number, are pretty in- 
temperate and a good deal of the time get more 
attention with their loud noises than those who 
express mature and realistic support for the 
United Nations. 

Support of the U.N., however, has, I think, un- 
dergone certain changes. I have only recently re- 
turned to the United States after some years on 
foreign assignments, and I detect the difference. 
I sense on the part of many people an increasingly 
analytical frame of mind where the U.N. is con- 
cerned. 

That is healthy and should be encouraged. It 
is a more mature approach to the tasks facing the 
world and the United States. Too many of our 
peojile, I am afraid, indulged in a lot of day- 
dreaming at the time the U.N. was organized. 
In the liglit of their own hopes, they saw it as an 
end of their war-worn frustrations, as a sort of 



• Bur-LETlN of Oct. 19, 195.3, p. 507. 
622 



magical machine into which we could pour the 
nations of the world and the peoples and auto- 
matically grind out peace and prosperity. 

The pitfalls in that attitude were many. In 
the first place, it was not true. And in the sec- 
ond, it relieved a lot of the daydreamers of per- 
sonal responsibility in the matter. The machine 
was to do the job. The U.N. alone could accom- 
plish the miracle. 

It didn't work that way. It didn't, and it will 
not. 

Testifying recently before the Senate Commit- 
tee on Foreign Relations, Ambassador Lodge put 
it this way : 

In the struggle for peace, as in every other human 
endeavor, the success of the struggle depends directly on 
how hard you work, how deeply you sacrifice, how sin- 
cerely you care. 

While the need for the United Nations is as strong and 
as steady as the human yearning for peace, its future 
success depends entirely on the extent to which its mem- 
bers support it. It is up to them. 

It is up to US. 

How to bring this sense of personal responsi- 
bility home to all Americans is a problem. It is 
one that you and I should be seriously studying 
and working upon at this crucial stage in the U.N. 

America's support of the U.N. must be based on 
sound and realistic understanding of its capabili- 
ties and its limitations. It has not brought and 
cannot bring the millennium. But it is still man- 
kind's brightest hope for peace. And peace could 
well be his only hope of survival. 

American leadership finds its voice in Washing- 
ton. But that voice is powerless unless it is 
backed by the people. 

Here your group, and other groups with similar 
interests, have a special assignment. And it is an 
assignment that goes beyond this room and your 
membership. It covers the entire United States. 

One concluding thought. Americans are not a 
patient people, but in tliis crisis we must learn and 
practice patience. President Eisenhower has 
said: 

. . . peace cannot be achieved suddenly by force, by 
edict or by treaty. It can come only slowly and tor- 
tuously. It will not be won by dark threats, or glittering 
slogans. It will be born only of courage, knowledge, pa- 
tience and leadership. 

These are hard facts. But I think America can 
face them. To face them, however, Americans 
must have the facts. And that, I'll admit, will be 

It isn't, as I see it, only a question of explaining 
the provisions of the Cliarter of the U.N. This, of 
course, is basic and important, but there is more 
to the story. To understand the U.N., to recog- 
nize its strength and its limitations, one must look 
beyond the U.N. Charter to the steady day-to-day 
operations of the U.N. The U.N. is faced, day 
by day, with hundreds of problems — political, eco- 
nomic, and social. Every time the U.N. faces a 

Department of State Bulletin 



problem, it must resolve conflicting pressures from 
its members. Resolvinji these pressures requires 
persistent efforts which receive little if any notice. 
It is these eilorts, however, that are building the 
U.N. into an increasingly effective instrument of 
peace. 

The American people should get a full picture 
of how the U.N. operates. Your Government can 
help and will. But much of the work of inform- 
ing the people can best be done through the efforts 
of organizations sucli as yours. 

Together we can help to lay a foundation for the 
peaceful world we want — a world in which, as 
Secretary Dulles said, we will "put to rout the vast 
impersonal forces which seem imperiously to de- 
mand that humanity be bent and broken merely 
to produce the engines for its own destruction." 



PUBLIC OPINION AND THE UNITED NATIONS 

hy Assistant Secretary Murphy ' 

Our Government gave full support to the 
United Nations when it was founded because an 
organized effort by the sovereign nations was 
essential if the world was to avoid the disaster 
of a third world war. After 8 years of experience, 
strong support for the United Nations remains 
fundamental to our foreign policy. As President 
Eisenhower recently put it, the United Nations 
is "sheer necessity." It is "man's best organized 
hope to substitute the conference table for the 
battlefield." 

This policy is founded on a broad base of public 
support. 

The United Nations Charter was approved in 
the Senate by the overwhelming vote of 89-2. 
Both major parties have sustained their support 
through the years and have made positive contri- 
butions to United States leadership in the United 
Nations. The United States has always been 
represented in the General Assembly by a 
bipartisan delegation. 

lou recall, I am sure, the great enthusiasm 
with which the American public greeted the 
United Nations when it was founded. Since then 
we in the State Department have maintained a 
close watch on the trend of American public 
opinion in relation to the United Nations. All 
indications of public opinion trends — polls, news- 
paper editorials, opinions of organizations and 
leaders, etc. — have been regularly evaluated. I 
would like to give you three significant conclusions 
of these surveys : 

1. Tlie vast majority of Americans continue to 
believe in the value of the United Nations and to 



' Address made at the Herald Tribune Forum ou Oct. 18 
(U.S.AI-N. press release dated Oct. 16). 



support United States membersliip in it. No other 
institution or issue in the field of foreign relations 
draws such sustained support from organizations 
and groups of citizens throughout the country. 

2. Naturally, individual Americans from time 
to time express dissatisfaction with progress in 
the United Nations. The degree of their dissatis- 
faction has varied with specific events but has not 
affected their underlying belief in the United 
Nations. 

3. During recent years, the United Nations 
has been under heavy attack from a vociferous 
minority of the press and from a few zealous in- 
dividuals and organizations. Such attacks have 
apparently been effective in producing, in some 
limited areas, the impression that local sentiment 
was predominantly hostile to the United Nations. 

What is the meaning of these conclusions ? 

First, I believe it is a mistake to underestimate 
the firm American faith in the United Nations. 
This faith springs from the deep-seated feeling of 
almost all Americans that the world should be or- 
ganized under conditions of law and justice so that 
sovereign nations can work together to prevent 
war and improve conditions of life. The aims of 
the United Nations Charter coincide with the aims 
of United States foreign policy. 

Now this does not mean at all that we as a gov- 
ernment or as a people are blindly committed to 
some visionary adventure. It does not mean that 
the United States has sacrificed sovereign rights 
to the United Nations, or that the United Nations 
is the only instrumentality of oiu" foreign policy. 
Nor do we have to accept without question \)i\. 
posals of other nations or agree with the actions 
or views of United Nations officials when they are 
contrary to our national interest. 

What this basic faith does mean is simply that 
we intend as a nation to do our best to fulfill our 
obligations as a member of the United Nations. 
We want to use United Nations machinery wher- 
ever it will be helpful. We want to see the United 
Nations as an instrument of world peace get 
stronger, not weaker. 

We know, of course, that the United Nations 
mirrors the world as it is, not as most of us would 
like it to be. Occasionally there is a tendency to 
blame the mirror if the image is disturbing. It 
seems to me that some of the periodic expressions 
of frustration with the United Nations could be 
avoided or at least lessened if responsibility for 
lack of progress in some fields were placed not on 
the organization but on those who fail to caiTy out 
their international obligations and the purposes 
of the charter. 

I daresay, too, that some dissatisfaction with the 
United Nations among its American friends is due 
to genuine lack of understanding. Many Ameri- 
cans are glad to play host to the United Nations. 
They like to visit the United Nations as a tourist 
attraction. They follow sensationalized or major 
events in the United Nations. They know how 



November 9, 7953 



623 



much the success of the United Nations depends on 
American support. But the}' are sometimes ir- 
ritated and exasperated by how others talk and 
vote in the United Nations. Sometimes they may 
tliink our spokesmen are not forthright or ag- 
gressive enough. They want more and faster ac- 
tion and less talk. 

These are, by and large, the healthy, normal 
sentiments of people who are searching to adjust 
their earlier rosy hopes for the United Nations to 
the hard realities of the postwar years. 

The challenge here, I believe, is to help these 
Americans in a constructive way by giving them a 
better understanding of the way the United Na- 
tions works. 

For example, let me consider with you for a 
minute the role of public opinion in the United 
Nations as one factor that requires greater appre- 
ciation. 

Wliat happens in the United Nations affects not 
only American public opinion but also public 
opinion throughout the world. The United Na- 
tions has perhaps the largest assemblage of inter- 
national press, radio and other media representa- 
tives of any place in the world. Wliat United 
States delegates say and do in the United Nations 
echoes throughout the world and affects public 
opinion in these countries. Our delegates, there- 
fore, try to act in M'ays which will be persuasive 
to other public opinions as well as to our own. 
Foreign delegates are faced with similar prob- 
lems. They, too, must often take into account 
public opinion pressures from their own countries. 
And so, if what Amei'icans hear in the United 
Nations is not always exactly what they would 
wish to hear, they should remember that the dele- 
gates are perfonning on a world stage, not just 
an American stage, and that their remarks must 
be prepai-ed accordingly. 

There are from time to time in the United States 
hostile attacks against the United Nations. These 
are very different from the dissatisfaction ex- 
pressed by supporters of the United Nations. 
Some of these attacks have been launched by 
vociferous and well organized local groups and 
are apparently intended to discredit international 
cooperation by destroying American faith in the 
United Nations. Tiie fact that these attacks come 
only from a small minority should not lead to 
underestimating their potential for undermining 
support for the United Nations. Some of these 
hostile attacks have proved effective in certain 
local areas. I think that it is important that close 
attention be paid to these local movements. 

The primary i-esponsibility for meeting this 
destructive criticism of the United Nations rests 
with the oj-ganizations and individuals who sup- 
port the United Nations with vigor and intelli- 
gence. Witli the overwlielming support of the 
American ])eople, there is no reason for United 
Nations supporters to be less vocal, energetic, or 



organized than destructive minority elements. 
There is need for expression in this democracy 
of ours of the strong public opinion which seems 
unquestionably to favor American participation 
in this great international body. The more that 
experienced organizations pool their efforts, the 
stronger will be the response to these destructive 
attacks upon the United Nations. 

I cannot stress too strongly how dependent 
effective American leadership is upon the develop- 
ment of greater public understanding of the 
United Nations. Without such intelligent under- 
standing. United States leadership may be frag- 
ile and vulnerable to destructive attacks. With 
proper understanding, the possibilities for 
strengthening the organization in its effort to 
i-ealize its basic aims are greatly increased. 

We in the Government look to American public 
opinion for guidance with respect to our official 
policy toward the United Nations. We want to 
continue our policy of firm support for the United 
Nations. We intend to do so. We will succeed 
if those organizations and leaders who favor the 
United Nations assume responsibility for develop- 
ing support for it by the American people on a 
basis of constructive understanding. 



OUR BEST HOPE FOR PEACE 

by Assist ant Secretary Morton * 

The U.N.'s founding may be officially com- 
memorated one day a year. But the U.N. itself 
is worthy of our thoughts and our full confidence 
every day of tlie year. It represents our best hope 
for peace. Its support is basic to our foreign 
polic^y. It does have a very real bearing on our 
national security. 

I will admit that the United Nations has its 
shortcomings. Most of them result from the fail- 
ure of some member states to live up to their 
charter obligations. However, there are some in- 
adequacies which might be remedied by changes 
in the charter itself. 

In 1955 the General Assembl}' will vote on the 
calling of a review conference as jirescribcd in the 
charter. The Secretary of State has already an- 
nounced that we will vote in favor of such a con- 
ference. In the meantime, interested Americans 
are urged to study the issues and to offer their 
reconuuendations for constructive and realistic 
improvements which the U.S. can propose. 

AVe have an open mind on this. We want to 
take steps which will strengthen, not weaken, the 
United Nations. 

However, I would not leave the impression that 



' .Xddress iiiaiio nl tlii" United Nations Week ob.servnnce 
lit KinKsport, Tenn., on Oct. 22 (press release 57(i dated 
Oct. 20). 



624 



Department of Sfofe Bulletin 



any changes in the charter, of themselves, are 
going to provide us with a made-to-order solu- 
tion of all the major problems plaguing mankind 
today. Nor do I want to leave the impression 
that the existing charter lias handcuffed the U.N. 
Such has certainly not been the case. 

If the U.N. has not lived up to all the hopes of 
its founders, that is largely because many of those 
hopes were unrealistic. As Secretary of State 
Dulles has said : 

They arose from underestimating the profound difliculties 
which lie in the way of establishing an international order 
of peace and justice. 

A more realistic view of the kind of world in 
whicli we live M'ill make it easier for those who 
expected miracles to be satisfied with what the 
U.N. has actually accomplished. And it has ac- 
complished much. 

Consider what it has achieved in the political 
sphere. Nineteen hundred and forty-six may seem 
like a long time ago in an era in which political 
developments are geared to jet propulsion and 
atomic power. But the United Nations met and 
solved a particularly difficult problem in that year. 

Soviet troops had occupied northern Iran dur- 
ing the war. The Soviets had agreed to remove 
these troops within a given period of time follow- 
ing the war's end. 

The Soviets showed no sign of honoring this 
agreement in early 1946. Further, their troops 
were hindering the efforts of the Iranian Govern- 
ment to i^ut down a Communist-led revolt in 
northern Iran. The Iranian Government there- 
fore brought the matter to the attention of the 
United Nations. 

An aroused world opinion — aroused by the pub- 
lic debate of the issues before the U.N. — caused 
the Soviets to withdraw their troops. A very 
short time later, the revolt in northern Iran 
collapsed. 

In 1946—17, the Indonesians and the Dutch were 
in conflict witli each other. There was a definite 
threat to peace. The matter was brouglit to the 
attention of the U.N. by various member nations. 

U.N. mediators stepped into the picture. They 
convinced both parties to transfer their differences 
from the battlefield to the conference table. And 
in 1949 the new Republic of Indonesia took its 
place among the independent nations of the world. 

The U.N. had scored again. 

In 1946-47, Communist-led rebels were seeking 
to overthrow the legitimate Greek Government. 
They were receiving assistance from various Com- 
munist States of Eastern Europe. The United 
States went to the aid of the Greek Government 
with military equipment and technical advice. 

And the United Nations, upon receiving a com- 
plaint from the Greek Government, set up a spe- 
cial committee to observe and report to the world 
on what the Communist States to the north were 
doing to help the rebels inside Greece. 

This U. N. measure, coupled with our own di- 



rect aid to Greece, did much to help the Greek 
Government to win its battle against the 
revolutionaries. 

The new State of Israel was born with the help 
of the United Nations as well as our own support. 
But Israel, emerging in an area of great tension 
and distress, found itself at war with neighboring 
Arab States. The causes of the conflict were com- 
plex, even as are those which continue to make 
the Arab-Israeli relationship a difficult one. 

But the United Nations was able to bring the 
fighting to a close. An armistice — uneasy though 
it is today — has replaced war in the Near East. 

The former Italian colonies in North Africa 
represented a major problem in the years imme- 
diately following World War II. (ireat Britain, 
France, the Soviet Union, and the United States 
could not agree as to their disposition. The 
matter was Drought before the U.N. General 
Assembly, the Great Powers having agreed to 
accept the General Assembly's recommendations. 

The General Assembly recommended a course 
of action and in so doing made possible the inde- 
pendence of Libya and opened the road to inde- 
pendence for Italian Somaliland in 1960, with 
Italy serving as trustee until then. Eritrea be- 
came an autonomous unit federated with Ethiopia. 

The U.N. had demonstrated that colonies could 
move toward self-government through peaceful 
discussion and negotiations. And it had elimi- 
nated a source of friction in world affairs. 

And, then, there was Korea. Korea has been 
a painful experience for America. It brought 
suffering and unhappiness into many American 
homes. We have had to pay a bitter price in 
Korea. 

I know these things. And I know how hard 
it is for those American families who have lost 
a dear one in Korea to think in terms of the polit- 
ical necessities which caused us to support the U.N. 
action in Korea. 

But it is a fact that we had no sound alternative 
to meeting the Communist aggression in Korea. 
And we have gained — not lost — in the process. 

Collective Security on the Battlefield 

An international organization has been able 
to make collective security work on the battle- 
field for the first time in history. The aggressor 
has been halted. An independent Eepublic has 
been saved from being overrun. Other free 
peoples have been shown that the United Na- 
tions had no intention of allowing the Commu- 
nists to get away with aggi'ession in Korea or 
anywhere else. 

Wliat might have been a vital Communist 
step toward control of all Asia became an equally 
vital misstep for the Communists. Any time- 
table that the Kremlin might have had for piece- 
meal destruction of the free nations went out of 
date in Korea. 



November 9, 1953 



625 



We Americans fought for America when we 
fought in Korea. Had we not fought, had we not 
helped to stop the Communists in Korea, we might 
today be trying to stop them on our own doorsteps. 

Today, there is no fighting in Korea. Mass 
bloodshed has been brought to a close. The Com- 
munists have signed what from our point of view 
is an honorable truce. Under the terms of this 
armistice, we have sacrificed neither principle 
nor any major defensive advantage. And there 
are adequate safeguards provided by the armistice 
should the Communists seek to violate it. 

As you know, the armistice agreement provides 
for the holding of a political conference to settle 
the problems which grew out of the Korean con- 
flict. Article 60 of that agreement spells out 
the foi-m this conference is supposed to take. 
Article 60 was phrased as it was at the specific 
insistence of chief Communist negotiator General 
Nam II. 

By an overwhelming majority, the United Na- 
tions has accepted the terms of reference for the 
conference as laid down in the armistice agree- 
ment. We have been abiding by those terms of 
reference. 

In doing so, we have been neither dogmatic nor 
obstructive. We have made it clear that we seek 
a reasonable and effective solution to the Korean 
problem. We feel that such solution is an essential 

f)rerequisite to the settlement of the broader prob- 
ems that bedevil Asia. 

We intend to adhere firmly to those armistice 
terms which provide that no prisoner of war is to 
be forcibly repatriated. We seek a unified and 
independent Korea. We want a stable peace in 
Korea. We want the Korean people to feel se- 
cure and to be secure. We want to help them to 
reconstruct their devastated country. In fact, 
we are already helping them to do so. 

We ask only that the Communists work with 
us in achieving these ends. 

I have spoken at some length about Korea and 
about the sort of settlement we would like to see 
there. I would be clear on this one point : There 
is no easy road to solution of the Korean problem. 

If and when the political conference is held, we 
must be prepared for the most difficult and sensi- 
tive of negotiations. We must be realistic in our 
e.xpectations as to results. We must be tolerant. 
And we must certainly be patient. 

What ultimately hapjiens in Korea is of concern 
to the entire world. A satisfactory solution there 
might well open the way to an easing of the many 
other tensions that trouble our relations with the 
Communist nations. The fact that we can even 
dare to tliink in terms of a satisfactoi-y solution in 
Korea is primarily due to the United Nations 
and what it has achieved there. 

I have concentrated rather heavily on the U.N.'s 
accomplishments in the political spliere. I would 
not leave the impression that the U.N. has limited 
itself to political achievements. It has not. 

626 



U.N. Accomplishments in Other Fields 

Through its specialized agencies, the U.N. has 
done a good deal in the fields of education, eco- 
nomic development, health, and others. It has 
waged a constant campaign against illiteracy, 
hunger, and disease — against those evils of mind 
and body which make for instability. It has 
worked for peace by helping to remove those causes 
of mass dissatisfaction m which subversion breeds. 

It has worked for peace by making it possible 
for millions of the underprivileged to understand 
the meaning of freedom and to hope for a better 
life through cooperative effort. 

U.N. technicians are teaching agricultural 
"know-how" to people whose only farm implement 
heretofore was a pointed stick. They are helping 
to set up school systems in southeast Asia and in 
other places where the ability to read and write has 
been limited to a very small percentage of the pop- 
ulation. 

U.N. specialists are carrying the techniques of 
preventive medicine to peoples for whom killers 
like malaria and TB have been constant compan- 
ions. Underdeveloped areas are getting U.N. 
advice on how to harness water power and how to 
increase and store food supplies. 

In these and many other ways the U.N. is con- 
tributing to peace and to human welfare. And 
it is doing so with a healthy respect for the culture 
and the traditions of those being helped. 

It is heeding the words of the Ceylonese engineer 
who told a U.N. official : 

We want to improve our standard of living, but we 
aren't crying out for skyscrapers. Never forget this : I 
may dress on my job and work in the same way you do, 
but when I go home, I get into my sarong, I eat my rice 
and curry with my fingers, 1 chew my betel, and I lead 
my own life. 

Now, the great majority of Americans under- 
stands the essential role of the United Nations and 
has been constant in its support of the U.N. 

But there are those Americans who do not sup- 
port it. They oppose it from honest conviction. 
And, though I disagree with their point of view, I 
respect their right to hold that point of view or 
any other. 

Freedom to hold any opinion — like the freedom 
to express it — is the essence of democracy. 

However, I cannot bo as charitable with those 
few — the very few — Americans who make a pro- 
fession of hurling false and misleading charges 
against the U.N. 

And it is of the greatest importance that these 
charges be exposed for what they are. I'd like to 
examine just a few of them this evening. 

One all-too-common accusation is that the 
United Nations is controlled by the Soviet Union 
and its satellites. That may sound preposterous 
to you, but there are people who believe it. What 
are the facts? 

Department of State Bulletin 



No major Soviet proposal in the U.N. has ever 
been adopted over the opposition of the U.S. 
and the free world. The Soviet Union can rarely 
count on more than 5 supporting votes out of the 
60 in the General Assembly. The Soviet Union 
has boycotted most of the work of the U.N.'s 
specialized agencies. 

There is certainly no better evidence of how 
little the Soviets have actually influenced the U.N. 
than the fact that U.N. forces went into Korea 
to halt aggression by North Korea and Communist 
China — both allies of Soviet Russia. 

Some people feel that Soviet influence on U.N. 
affairs is such that the United Nations could oper- 
ate more effectively if the Soviet Union were not 
a member. Frankly, I cannot see this line of 
reasoning at all. 



Value of Soviet Membership 

The issues we face today would be very much 
the same whether the Soviet Union were inside or 
outside the U.N. And are we not better off having 
the Soviet Union in the U.N. M'here we can hear 
its official point of view expressed at close range 
and where there is always an opportunity for 
discussion and negotiation with Soviet representa- 
tives ? 

Of course we are. You will recall, I am sure, 
Soviet efforts to force the West out of Berlin bj' 
blockade methods in 1948-49. Our amazing air- 
lift which kept Berlin supplied and the courage of 
the Berliners broke the Soviet blockade. But the 
negotiations which actually led to the removal of 
the blockade began in the halls of the United 
Nations. 

This is but one concrete example of how Soviet 
membership in the U.N. has been beneficial from 
our point of view. 

A very common fallacy about the U.N. is that 
it can send American boys to fight anywhere at 
any time. The U.N. cannot force any nation to 
send troops anywhere at any time. The national 
forces which have fought with the U.N. in Korea 
were sent there by their own countries. Other 
U.N. member nations volunteered to send troops 
to Korea even as we did. 

I might further point out that the United States 
can veto any action by the U.N. Security Council 
dealing with the use of armed force. 

Some of the U.N.'s more violent critics have 
gone to gi-eat lengths to brand it as a "Godless 
organization." These people find considerable 
fault with the fact that the U.N. Charter does not 
name God. 

This is a strange — even fantastic — argument. 
Our own Constitution does not name God. Does 
that make us a Godless people ? Hardly ! 

The U.N. General Assembly opens its sessions 
with a moment of silence so that each delegate 
can offer his own prayer as he sees fit. Delegates 
and employees have regular access to a prayer 



room. And the U.N. Charter itself expresses 
hopes and aims fully consistent with beliefs com- 
mon to the major religious groups of the United 
States. 

One complaint you hear every now and then is 
that the U.N. is a great burden on the American 
taxpayer. Just how great is that "burden" ? 

In 1952 our contribution to the regular pro- 
gram of the U.N. — this does not include our con- 
tributions to specialized agency work — was 
slightly over $251/4 million. That amounted to 
just 16 cents for each American. 

Does 16 cents per person per year sound like 
an imposition on the American taxpayer? In 
1952, our defense budget was $60 billion — almost 
$400 for each American. 

I do not question the need for a sizable defense 
budget. But I do question the argument that we 
cannot afford 16 cents for an international or- 
ganization devoted to peace and security when 
each of us is asked to pay almost $400 to deter 
attack and if necessary to defend ourselves against 
it. 

The more the U.N. is able to do, the less likely 
is the attack we fear. 



Tlie Cliarter and Our Constitution 

I should like to examine just one last criticism 
of the U.N. I refer to the belief that the U.N. 
Charter is a threat to our sovereignty and to our 
Constitution. 

The United Nations is an organization of sov- 
ereign states and its charter says so. It is not a 
world government or anywhere close to it. Each 
member retains the right to conduct its own do- 
mestic affairs as it sees fit as long as it does not 
foment aggression or otherwise threaten the peace. 

The U.N. Charter is a treaty. Like all treaties, 
it had to be ratified by the Senate. The ratifica- 
tion vote was 89 to 2. Further, the Supreme Court 
has ruled that no treaty can force us to do what 
the Constitution forbids us to do (Askura vs. the 
city of Seattle). 

The U.N. Charter is not a threat to our sover- 
eignty or to the American Constitution. 

There are those who not only believe that the 
U.N. is such a threat but also carry the argument 
a step farther. These people hold that the exist- 
ing treaty powers of the President should be 
severely curtailed. They believe that such cur- 
tailment is necessary to protect our traditional 
domestic rights and liberties. 

There are today several amendments before 
Congress which would severely cripple the Presi- 
dent's treaty powers. Any severe limitation of 
the President's treaty powers would be a blow to 
our entire foreign policy-making process and to 
our national security. I am convinced of this. 

Both Secretary of State Dulles and President 
Eisenhower have made it clear how strongly they 
feel about the issue. 



November 9, J 953 



627 



The President has said : ° 

. . . I am unalterably opposed to any amendment 
which would change our traditional treaty-making power 
or which would hamper the President in liis constitu- 
tional authority to conduct forei^^n affairs. Today, 
probably as never before in our history, it is essential 
that our country be able effectively to enter into agree- 
ments with other nations. 

As President I have taken an oath to defend the Con- 
stitution. I therefore oppose any change which will 
impair the President's traditional authority to conduct 
foreign affairs. 

Article VI of our Constitution — the treaty 
clause — has guided our treaty practices for more 
than 175 years. In all that time, not a single treaty 
has ever been invalidated by the Courts for any 
reason. And, I repeat, the Supreme Court has 
the power to invalidate any treaty which it finds 
at odds with our Constitution. 

Are we going to change that which has stood 
the test of time so well ? Are we going to fly in 
the face of the factual evidence of the past simply 
because some of us fear something might happen 
in the future? 

Those who would limit the treaty power today 
use some of the same arguments which were heard 
at tlie Constitutional Convention in Philadelphia 
in 1787 when the treaty clause was being dis- 
cussed." In 1787, these arguments were over- 
whelmingly defeated. The present treaty clause 
was adopted by the Constitutional Convention by 
unanimous vote. 

As I have already pointed out, the Senate repre- 
sents a very important check on any abuse of the 
treaty power even as does the Supreme Court. 
The Senate has always exercised the greatest cau- 
tion in approving treaties of any kind. 

Between 1789 and March 1953, the Senate con- 
sidered 1.224 treaties. It rejected more than 10 
percent of them outright. And it either rejected, 
took no action or approved with limitations al- 
most 30 percent of them. 

Those who would limit the President's treaty 
powers today are showing something less than the 
full confidence in the Senate which that great 
body deserves. 

Nor is tlie Senate tlie only House of Congress 
which can influence (lie treaty process tinder ex- 
isting constitutional provisions. Any treaty can 
be invalidated the day after it was made by a 
simple act of Congress. 

Let me repeat that: The Senate and the House 
of Representatives can erase a treaty of any kind 
by passing a bill to that effect. 

The final check on any abuse of treaty power 
lies with the American people. The people can 
and do sit in on the treaty jjrocess. The Ad- 
ministration Iiolds hearings before a major treaty 
or executive agreement is to bo made so that there 



can be no question as to how interested people 
feel. 

Individuals and organizations affected by the 
prospective agreement are invited to testify. And 
that testimony plays a vital role in the govern- 
ment's decision as to whether the agreement ought 
to be made and, if so, what it should contain. 

Finally, by casting ballots on election day, the 
American people can vote in those whom they 
want to conduct their foreign affairs as well as 
vote out those with whom they are dissatisfied. 
No ill-advised treaty — should it by some rare 
chance slip tlirough the many checks designed to 
prevent it — could for long withstand the wrath 
of the people. 

Democracy would be a sham if it could. 

I have spoken at length about the United Na- 
tions and related matters. Yet I have only 
scratched the surface. I believe that the United 
Nations deserves all the reasoned consideration 
and discussion we Americans can give it. And I 
believe that in all sincerity. 

The United Nations is vital to us and to all 
humanity. 

President Eisenhower spoke for the overwhelm- 
ing majority of us, I think, when he said recently : ~ 

. . . It [the United Nations] is far more than merely 
a desirable organization in these days. Where every new 
invention of the scientist seems to make it more nearly 
possible for man to insure his own elimination from this 
globe, I think the United Nations has become sheer 
necessity. 

I do not think that the United Nations impor- 
tance can be stated any more simply or any more 
directly than that. 



THE U.N. : A FAMILY OF NATIONS 

by Mrs. Frances P. Bolton 

U.S. Bepresentative fo the General Assembly * 

The United Nations to me is a family — strange, 
turbulent, inconsistent, often immature. 

A family is tlie backbone of a conmninity. It 
is our own basic formula, the foundation upon 
which a commimity builds itself. Tlie town grows 
from tlic comnninity; many towns make a nation. 

I look to this family to do the same thing for the 
world, and I ask most earnestly for patience even 
though this is a moment in man's liistory when 
evolution itself appears in a hurrv. 

Surely we cannot e.xpcct the I uited Nations to 
solve the many far-reaciiing problems of the world 
in so short a time. How can we expect it to liave 
gained wisdom wlien it is but 8 years old — this 
family of wliich I am privileged to be at least a 
temporary member^ 



'■ I!ri.i.];Ti.\ of Aug. 10, Wr,^, p. 102. 
'For an article on the drafting of the treaty clause, 
see ibid., Mar. 10, 1SI52, p. M71. 



' Ibid.. Oct. r,. m.w, p. iru. 

'Address made at llie Herald Tribune Forum on Oct. IS 
(U.S./L'.N. press release dated t'et. liil. 



628 



Depor/menf of State Bulletin 



Wliat is it all about, this family of nations? 
Basically it is a dream taking shape — the dream of 
human understanding and world peace. Here 
there are no guns. We hurl words at each other, 
words that sometimes may be harsh but are ulti- 
mately clarifying. Do you know of any parlia- 
mentary body where that is not so ? 

I am a Member of the Congress of the United 
States. We all speak the same language, studied 
at the same kind of schools, which taught us pretty 
much the same ideas and ideals ; yet we battle each 
other daily. Coming to this great international 
parliamentaiy forum, I have been amazed that 
men and women from 60 different countries with 
different histories, cultures, ideals, and languages 
could have learned to cooperate with each other 
so quickly in so many fields. 

Today we should be grateful that men do not 
cross the street to avoid each otlier as the early 
delegates to Geneva did in the beginning of the 
League of Nations! That much at least we all 
learned. 

So I would say to you : Be glad of the noise 
and the battles of words— and be patient while 
we grow up. I would further suggest to you that 
we have the bone, sinew, and tissue — the blood, 
vigor, and vision of the world to gi'ow up in and 
fulfill the dream. 

No one is more aware of the criticism of the 
United Nations than I, for I come from the edge 
of the section of this country which has always 
been suspicious of international contacts, of in- 
ternational organizations of all sorts and kinds. 
Loyal Americans all, but curiously unaware of the 
inevitable effect of communication and transpor- 
tation changes which make this country so closely 
related to all other countries. Tuberculosis in 
Greece and leprosy in the Pacific touch us; hoof 
and mouth disease and rinderpest half way across 
the world may mean the same plagues here unless 
stopped at the source. 

Many peojjle are not aware that the United Na- 
tions and its special agencies are working in the 
fields of health, the development of national re- 
sources, etc. Such a forum as this, bringing to 
the people of this country a broad picture of the 
many-sidedness of this amazing organization will, 
I hoj^e, be an incentive to schools and clubs and 
organizations of all sorts, to look at the world in a 
new light. Surely only when there is more knowl- 
edge can there be greater understanding out of 
which can come peace ! 

The United Nations today is young — all too few 
people know its possibilities. It has weaknesses. 
It presents possible dangers. Even so, it is an 
effort of good will between people of all sorts 
and kinds to take mankind out of the dungeons 
of misunderstanding into the light. 

Achievement and purpose become possible only 
as and if patience and tolerance are used. 

But I would warn those who would take us 



asunder, for in our uncertain fashion — often with 
trembling fingers that have not yet become adept — 
we seek to build though our cement may not be 
well mixed, for in the overeagerness of youth we 
do not understand the ingredients too well. Yet 
I do suggest that this inexperience itself has 
certain achievements. Fashioned roughly, but 
nonetheless with certain strength and adherence 
to good will, it shows to those who have patience 
and foresight that we are building a tower of 
strength. 

This is not our tower; it is for your preservation 
and ours, for the preservation of mankind. Have 
patience, friends, with our efforts as we seek to 
bring this intransigeant, tm-bulent, not yet even 
half-grown family to maturity. 

There are those who see only our shortcomings; 
we know they ai'e there for all the world to see. 
There are those who see only danger within this 
young family. Of these I would ask: "Wliat 
would you have done better?'' How dare those 
without a plan say it cannot work ! I say to you 
that it can and must work because we have come 
together in holy covenant that it shall be so. 



U.S. To Cease Participation 
in Ocean Station Program 

Press release 585 dated October 22 

The Government of the United States has in- 
formed the International Civil Aviation Organi- 
zation that the United States will not participate 
in the North Atlantic Ocean Station progi-am ^ 
after the expiration of the present agreement, 
June 30, 1954. 

This action was taken in response to a request 
from IcAO for a statement of the U.S. position on 
future participation. Icao will notify the other 
member nations which are parties to this agree- 
ment of the U.S. position. 

Representatives of the private U.S. civil air 
carriers operating on the North Atlantic air routes 
have informed the Air Coordinating Committee 
that, in their opinion, no further civil-aviation 
requirement exists for the services rendered by 
the program. 

A thorough re-examination of all the benefits 
derived by the United States has recently been 
conducted by intere-sted agencies of the Govern- 
ment. Taking into consideration the views of the 
air carriers, the Government of the United States 
has concluded that continued participation in the 
program, which involves substantial cost, can no 
longer be justified. 



' For an article concerning this program, see Bulletin 
of Nov. 7, 1949, p. 683. 



November 9, 7953 



629 



Building a Community of Free Nations 



by Under Secretary Smith ^ 



It is the belief of this administration that the 
welfare of the American people is best advanced 
in a community of nations at peace. American 
foreign policy has as its objective the building of 
a world peace, one that is equitable and endunng. 
Our allies in the community of free nations have 
similar aims. 

Eegrettably, since the end of World War II, 
we have been met at almost every turn by the ex- 
pansionist policies of international communism. 
These policies, no matter how they were executed 
at any particular time or place, supported one 
single aim — the extension of the influence and con- 
trol of the Soviet orbit. 

The conflict between the peaceful aims of this 
country and its associates and the dynamic expan- 
sionism of the Soviet Union is a condition which 
we confront everywhere in the world. It is the 
source of most of the tensions that endanger world 
peace. 

This phenomenon accents the complexity of the 
problems with which we must deal, but the fact is 
that, even if the Soviet attitude were conciliator}- 
and cooperative, the peace we seek would not be 
easily won. The difficulties to be resolved would 
still be extensive even if communism were s\id- 
denly to vanish from the face of the earth. 

Thus, we find ourselves dealing with problems 
which have no direct connection with the Soviet 
Union but which are nevertlieless complicated by 
the character of Soviet policy. And, in addition, 
we must cope with situations which are exclusively 
the product of aggi'essive Communist policy. 

These peculiar conditions have made demands 
on American leadership which are without paral- 
lel in history. We are in a situation which I will 
call "nonwar," for want of a better term, and dur- 
ing this unliappy period of history we must pur- 
sue a dual purpose. We are called upon simul- 
taneously to prevent war and make peace. 

In order to prevent war, we have oeen increas- 
ing our strength — our moral, our economic, and 
our military power. The latter element, increase 

' Address made at the University of South Carolina, 
Culumbla, S. C, on Oct. 20 (press release 574). 



in military power, may seem inconsistent with our 
peaceful purposes. Actually it is not. We have 
ourselves sought peace through weakness for 100 
years, and this formula has failed. 

We are aware that the Soviet leaders have a 
realistic respect for strength, and their behavior 
has demonstrated repeatedly that strength is an 
effective deterrent to aggressive adventures. 

To create the necessary defensive strength, we 
have entered into a partnership with the other 
free nations who share our ideals. This is simply 
realistic. Obviously, no single nation can stand 
alone against the Communist orbit. Obviously, 
also, no coalition which does not include this coun- 
try can muster power necessary to sur\ave. On the 
other hand, an effective defensive coalition whicli 
includes the United States can demonstrate such 
strength as to place it beyond challenge. 

But physical strength alone has negative over- 
tones. So the factor of strength in our policy is 
joined with constructive action to develop a more 
viable pattern of international relations. 

The U.N., a Focal Point of U.S. Policy 

One focal point of the positive phase of U.S. 
policy is the United Nations. The fact that Gov- 
ernor Byrnes was asked to serve on our delegation 
indicates the importance we attach to the U.N. as 
a forum where statesmen from all nations can meet 
to resolve the difficulties whicii confront the world. 
In the U.N., we have the machinery for negotiat- 
ing differences and settling controversies by 
peaceful means. And beyond this, in the special- 
ized agencies, a vast amount of constructive activ- 
ity is afoot, designed to deal with current problems 
by eliminating the causes which generate tliem. I 
refer to the World Health Organization, the Food 
and Agriculture Organization, and others like 
them. 

We all have heard criticism of these efforts. 
At one time, in my ignorance, I was inclined to 
criticize them myself. I know better now. I real- 
ize that they are an eil'ective blend of idealism 
and practicality, part of a concerted effort to help 



630 



Deparfmenf of Sfafe Bulletin 



the peoples of the world improve their lot — to give 
them something better to live for. Their purpose 
is to keep alive and foster that spiritual quality 
that distinguishes free men from the slaves of 
Communist totalitarianism. 

And when one studies the strategy of commu- 
nism, it becomes apparent that only by positive 
action of this kind can we make headway. 

Hunger, disease, and misery are root causes of 
unrest — seedbeds of violence, revolt, and of ex- 
tremism. They are the conditions on which com- 
munism thrives. 

Those who live in want, poorly sheltered, and 
chronically underfed, are not likely to be impressed 
by talk of intangibles like freedom, democracy, 
and independence. But when the highly organ- 
ized and cleverly disguised Communists promise 
better food, housing, and medical care, they re- 
spond. Not until too late do they realize that the 
price exacted from them includes everything that 
makes man, as an individual, a self-respecting hu- 
man being instead of a slave. 

Often, several phases of American policy are 
brought into play jointly or in sequence in a par- 
ticular area. Korea is an illustration. The 
Cairo declaration of 1943 first set forth our ob- 
jective of a unified and independent Korean nation. 
We still seek a unified and independent Korea. 
Despite a formal commitment to that effect, the 
Soviet Union blocked unification and transformed 
a line of demarcation drawn for the Japanese sur- 
render into an unnatural boundary that divided 
the country. After several years of unsuccessful 
effort to persuade the Soviet Union to live up to 
its pledges, we went ahead without Russia. In 
conjunction with the U.N., we helped the Korean 
people south of the 38th Parallel to establish the 
Republic of Korea. 

We provided economic assistance to get the new 
nation on its feet and took part in the training 
and equipping of a modest military force for the 
defense of the Republic. 

Then came the brutal Communist aggression 
and the reaction of the United States and the 
United Nations. Collective security was invoked, 
and the free peoples met aggression with force. 
In doing so, we wrote a new page in history, 
because we demonstrated, even though imperfectly, 
the principle of collective security against 
aggression. 

Although the issue is far from resolved as yet, 
we have been through a period of political and 
economic action in Korea, then a military inter- 
val, and now we have returned to the political 
and economic arena once more. As you know, we 
have already initiated a program of economic re- 
habilitation to help repair the damage of war. 
And whether or not the political conference called 
for in the armistice agreement is actually con- 
vened, we will not cease our efforts to obtain a 
unified and independent Korea. 

There is one point which has not been suffi- 



ciently emphasized. Article 60 of the armistice 
agreement provides that the conference should be 
made up of the two sides actually engaged in the 
fighting. This article appears in the agreement be- 
cause the Communists insisted on it. We accepted 
it for that reason. And now, the Communists are 
opposing the joint proposal adopted by the U.N. 
General Assembly which conforms to the language 
.of their own article. 

In this, and in other matters relating to Korea, 
the United Nations have followed a decent and 
reasonable course. If the conference is not con- 
vened, the blame will lie entirely with the Com- 
munists. And if we cannot get a conference, it 
will be because, once more, the Communists have 
blocked a settlement while maintaining the ap- 
pearance of wanting to negotiate. 

The Struggle in Indochina 

Another pressure point in the Far East is Indo- 
china. Although the nature of the situation there 
differs in some respects from Korea, it is cut from 
the same pattern. 

In Indochina the Communist apparatus, work- 
ing through local elements, has likewise resorted 
to force to gain control. The Communist-spon- 
sored guerrilla movement marches under a banner 
as fraudulent as any ever devised. It purports to 
represent the f oixes of nationalism and independ- 
ence, although clearly an arm of Communist ag- 
gression, receiving direction, supplies, and equip- 
ment from the Red masters of China. 

This bitter and bloody struggle between the to- 
talitarian forces of communism and the demo- 
cratic French Union is now in its eighth year. It 
has cost France men and resources she can ill af- 
ford and the people of the Associated States have 
paid a proportionate toll. The war has been 
draining the French treasury at the rate of more 
than a billion dollars a year. Total French Union 
casualties exceed those the United States suffered 
in Korea. 

Concurrently with the fighting, France and the 
legitimate governments of the Associated States 
have attempted to proceed with an orderly transi- 
tion from colonial status to full independence. 

This has required time, patience, and tolerance. 
Meanwhile, in France the continued outpouring 
of blood and treasure without clear prospect of 
final success was causing serious misgiving. 
Counsels of despair began to be heard. 

The situation was a matter of great concern to 
this country, as well as to our allies. Indochina 
is of vital importance strategically and politically. 
If it should fall to the Communists, it might well 
open the door to all Southeast Asia. And once 
having grasped this vital area, the Communists 
would be in a position to exert overwhelming pres- 
sure on neighboring areas. 

Two recent developments have radically altered 
the situation for the better. Last July, a declara- 



Novemfaer 9, 7953 



631 



tion of the French Government invited the Asso- 
ciated States in effect to write their own tickets 
as far as tlieir relations with France were con- 
cerned. This dechiration lias done much to re- 
move lingering doubts about French intentions. 
It has dealt a crushing blow to tlie Communist 
claim that the Viet Minh is fighting for liberty. 

This foresighted political action supplied a vital 
ingredient to the success of the French Union ef- 
fort tluit previously had been lacking. 

Concurrently, there has been a revitalization of 
the military effort. General Navarre has brought 
a fresh vigor — a determination to discontinue a 
policy of static defense and to assume a strong of- 
fensive strategy. Increased military strength, 
French and native, is being provided. 

Considering the domestic situation in France 
and the severe strain being exerted on the coun- 
try, one must applaud the courage and determina- 
tion with which this struggle is being carried on. 
We are inclined to forget about it here, but we 
must not do so. The war in Indochina cannot be 
carried to a successful conclusion without timely 
assistance from the United States. Such assist- 
ance is essential to our own security and to that of 
the free world. We have therefore agreed to make 
a very substantial increase in our aid and thus to 
bolster the French plan in the coming year. 

We are already seeing some of the results of 
this investment in the struggle against aggi-ession, 
and there is good reason to be optimistic about the 
future. A few months ago, Indochina presented 
a gloomy prospect. Now. because of a well- 
planned,'collective effort by France, the Associated 
States, and the United States, the situation has 
changed decidedly for the better. 

In Korea, in Indochina — indeed in our relations 
with all nations — American policy can be fully 
understood only if account is taken of its central 
thread of morality and principle. Throughout 
our political history, we have adhered to the ideals 
of liberty and decency and self-determination. 
We cannot be true to ourselves if ever we exclude 
these ideals from our foreign policy, or if we com- 
promise them in any way. 

On tlip other hand, we have endeavored, and 
will continue to endeavor, to avoid even the ap- 
pearance of imposing our w^ay of life on our allies 
and associates. I am fearful that this is not fully 
realized either here or abroad. 

Last evening I read witli genuine emotion an 
article by a disfinguislied Canadian journalist, a 
w-arm friend and objective critic, on the resent- 
ments and misunderstandings between the people 
of America and of (he free nations wlio ai'o asso- 
ciated with us. He said that probably the most 



important and certainlj' the most terrifying fact 
in the free world today is not Russia's strength, 
Eurojie's weakness, or anything that can be meas- 
ured by statistics. It is the dry rot of mutual 
resentment. It is the intangible misunderstand- 
ings developing in the minds of nameless millions 
that is steadily undermining tlie friendship of the 
old world and the new, the friendship on which 
the fate of both must hang. 

I have heard this referred to as a decline of 
American prestige. This is not correct. Pres- 
tige, in one sense, is measured by material and 
moral strength. The material and moral strength 
of this country has increased, not declined. If the 
man in the street in London, in Paris, or in Berlin 
is inclined to indulge in the luxury of hating 
America, and if we are inclined at times to recipro- 
cate, it is because we have failed to grasp the first 
facts of each other's lives. Let us differ if we 
must. But let us not permit our differences to 
obscure our abiding, mutual interest in freedom, 
or our willingness calmly and objectively to dis- 
cuss and resolve our mutual problems. 

We and our associates are allies in an ideological 
struggle. The outcome of this struggle will de- 
termine whether men will become the puppets of a 
superstate or continue as masters of their own des- 
tinies. Our adversaries are advancing a doctrine 
that is corrupt in principle and morally bankrupt. 
It is therefore in the realm of ideals and of the 
spirit that our great common advantage lies. 

Let us then press that advantage. Let us wage 
the battle according to the precept in a motto of 
this sovereign State: 

"Prepared in spirit and i-esources." 



U.S. Forces in Europe 

Press release 601 dated Octol)er 27 

Asked inhcther there was any substance to recent 
reports that the United States might withdraw 
some of its troops from Eiirope and ichethcr this 
represented any change in American foreign pol- 
icy. Secretary Didles at his press conference on 
October 27 made the folloicing reply: 

There is no change whatsoever in that respect, 
and there is no contemplated withdrawal of the 
United States forces from Europe. I have said 
that in substance before. I am very glad to re- 
iterate it, because there seems to be quite a spate 
of rumors to the effect tliat wo are contemplating 
a witlidrawal of our troops. Thei'e is no such 
withdrawal in contemphdion. 



632 



Department of State Bulletin 



The Defense of Europe 



hy General Alfred M. Gruentker 
Supreme Allied Commander, Europe ' 



I am delighted to have the opportunity to talk 
to you this evening about the North Atlantic 
Treaty Organization, commonly known as Nato. 
It has a membership of 400 million people from 
14 nations. 

The organization is unique in the history of the 
■world. Nothing like it has ever been attempted 
before. It would be easy for a cynic to prove that 
it could not possibly succeed. But Nato today is 
a thriving success. The degree to which it will 
continue to thrive is of tremendous importance 
to you and to the entire free world. Its ability 
to jireserve peace in this troubled world may well 
determine the future of our civilization. 

As Supreme Allied Commander, Europe, I am 
charged by Nato with the defense of Europe, ex- 
tending from the nortliern tip of Norway to the 
eastern borders of Turkey, an arc of some 4,000 
miles. I am charged with defending it tonight, 
tomorrow, or next year. I am charged with de- 
fending all of Western Europe, not merely the 
easy portions. Our headquarters is located 10 
miles from Paris. It is called Shape. The 
initials stand for Supreme Headquarters, Allied 
Powers, Europe. 

To provide for more effective control in an 
emergency, the vast Shape area has been divided 
into regional commands : The Northern Command 
under General Mansergh, a ]5ritish General, 
charged witli the defense of Norway and Den- 
mark ; the Central Command under Marshal Juin 
of France at Fontainebleau, 30 miles south of 
Paris; the Southern Command — Italy, Turkey, 
and Greece — under Admiral Fechteler at Naples; 
and the Mediterranean Command under Admiral 
Mountbatten, a British Admiral, with head- 
quarters at Malta. 

It is encouraging to be able to report to you 
that our defense forces are now from two to three 
times as effective as they were when General Eisen- 
hower came to Europe in January 1951. This 
applies particularly to our aid forces which 

' Address made at the Alfred E. Smith Memorial 
Foundation Dinner, New York, N. Y., on Oct. 8. 

November 9, 1953 

27S368— 53 3 



initially were pitifully weak, and even today cause 
us our greatest concern. 

During this same period the defense budgets 
of the member countries have increased signifi- 
cantly. Not considering the United States, the 
other Nato countries have more than doubled their 
defense budgets. If the United States increase is 
taken into account, the ratio is still more favorable. 

Nearly all countries have increased their periods 
of national service in their armed foi-ces, the most 
recent case being that of Denmark which has now 
provided for 18 months' service. 

Our concept for the defense of Europe is based 
on the maintenance of highly trained covering land 
forces, backed by reserve units which would be 
brought into action immediately after the out- 
break of hostilities. That shield, supported by 
hard-hitting air forces, should give us the neces- 
sary cushion of time to permit us to mobilize our 
reserves. Meanwhile, allied long-range air forces 
would conduct powerful retaliatory attacks deep 
into enemy territory against industrial and other 
vital targets. 

During this period of almost 3 years we have 
had the opportunity to prepare defense plans for 
the employment of our forces to meet an act of 
aggression. Every commander now knows what 
the mission of the forces under him would be in 
the event of an emergency. That does not guar- 
antee that we would be able to withstand an at- 
tack successfully, but at least each element of the 
command knows what action to take. The success 
of our efforts would depend on the amount of force 
that the aggressor would bring against us, and 
also on the skill with which he would employ that 
force. 

Just what could our Nato forces accomplish 
now? One official with a cynical turn of mind, 
when asked 3 years ago, "What do the Soviets need 
to march to the English Channel?" answered 
"Only shoes !" I can assure you that today, Octo- 
ber 8, 1953, the Nato forces of Allied Command, 
Europe are of such a strength that the Soviets 
today probably do not have sufficient power in 

633 



Occupied Europe to launch an attack with any 
reasonable certainty of success. In other words, 
we consider tliat the Soviets would have to bring 
in additional reinforcements from the U.S.S.R. 
itself both in air power and in land forces before an 
attack against the West would be successful. If 
that estimate is correct, it represents a most signifi- 
cant achievement, because for one thing it means 
that we should be able to obtain a reasonable 
amount of warning of an impending attack. 

We should then be able to take appropriate pre- 
cautionary measures, especially in readying our air 
forces, and we should be able to mobilize our land 
reserves to give us a better chance to meet the 
threat. 

This is a much greater capability than we 
thouglit would be jjossible when Shape was 
organized. 

Before leaving this question of progress I should 
like to make it crystal clear that we still do not 
have adequate strength to defeat an all-out Rus- 
sian attack. That is why we have recommended 
to the North Atlantic Council that our forces 
should continue to be strengthened. 



Improved Outlook for EDC 

One of the sources of additional defensive 
strength is Western (Jermany. As you know, six 
of tlie continental nations are now considering a 
plan for a European Defense Community which 
provides, among other features, for German mili- 
tary participation in the defense of Europe. We 
have analyzed the military aspects of this plan. 
We consider it not only feasible but also highly 
desirable from a military point of view. The out- 
look for Enc is better now tlian it has been at 
any time. The chances that the treaty will be rati- 
fied within the next few months are reasonably 
good. 

What are some of the major problems which we 
still face? 

We consider that air power is the dominant fac- 
tor in modern warfare. Our most critical defi- 
ciency today is the strength of our air forces, and 
I say that in spite of the excellent progress already 
made. For example, in 3 years the number of 
Nato airfields has increased from 20 to 120 — a 
truly remarkable achievement. The Soviets have 
an air force of some 20,000 operational planes, a 
large proportion of which are jets. To meet tliat 
air threat our air forces must be increased and 
their effectiveness must be such as to be ready to 
figlit on an instant's notice. We at Shape have 
given first priority to the development of our air 
forces. That does not mean that we think we 
could win a war solely by tlie use of air power. 
We consider that an adequate defense posture in 
Europe can be obtained only by the air-land-naval 
team. 

Earlier I told you that under our concept our 
shield would hold long enough to enable our re- 



serve forces to mobilize and move to the area 
where they are needed. Unfortunately those re- 
serves are still critically inadequate. That de- 
ficiency represents our second major problem. 
The Soviets have a very large active land force 
in being, consisting of 175 Soviet divisions plus 
approximately 70 satellite divisions. The satellite 
divisions are only moderately effective, but they 
are improving constantlj'. 

We have no thought of trj'ing to match that 
total force division for division, because maintain- 
ing active forces of that magnitude would place 
unacceptable strain on our economy. That is the 
reason why we place such great dependence on 
reserve divisions. But those divisions must be 
good, because if they are to be emploj'ed against 
well-trained Soviet forces — and Soviet divisions 
are well trained — their effectiveness has to be of 
the highest caliber. The creation of adequate 
reserve forces presents a difficult problem for the 
Nato governments. It means that a sizeable pro- 
portion of our military-age manpower will have 
to spend a part of each year in reserve training. 
That is inconvenient for tlie individuals concerned, 
and, of course, it tends to create economic strains 
when these men are withdrawn temporarily from 
civilian pursuits. 

But in spite of these deficiencies I think it is 
fair to say that we have done exceptionally well 
in the initial build-up phase of our Nato defense 
effort. What is the nature of the problem we face 
in the future? What is the outlook for success? 

In simple terms I should say that we are now 
confronted with the problem of the long pull, 
because every indication [loints to a prolonged 
period of strain. A friend of mine used to say, 
"The pocketbook is the most sensitive nerve of the 
human body," and I suppose that is a wise ob- 
servation. Certainly it is true that the economic 
dilHculties of the Nato nations are very serious for 
them. It is also true tluit important social and 
economic projects have been deferred by them as 
a result of heavy expenditures for defense. Our 
armed forces will be effective only to the extent 
that the nations suppoi'ting tlieni remain strong 
in spirit, active in intellectual endeavor, and sound 
economically. The task, therefore, for the Nato 
countries now is to establish on a long term basis 
that balance between militarj', economic, and so- 
cial factors which will make us reasonably secure 
both from external attack by an aggressor and 
from internal disintegration resulting from pov- 
erty and discouragement. 

A defense j)rogram is something that cannot be 
turned off every time Soviet leaders speak of the 
possibility of co-existence and turned on a month 
later when a Laos is invaded or an Iran maneu- 
vered to the edge of the land of no return. We 
cannot afford it psychologically and we cannot 
afford it financially. 

I think tliat it requires no great vision to be able 



634 



Department of State Bulletin 



to predict that Nato's next 3 yeai's will be more 
difficult than its first 3-year period. 

It is well to recognize that Nato was created in 
an atmosphere of fear. The threat was towering 
and immediate, the hour was late. The whips of 
fear drove us into each other's arms. Ancient 
rivalries were forgotten. Political differences 
were reconciled. Confronted by the facts and by 
the question of survival, we found that survival 
was paramount and all else secondary. That ele- 
ment of fear is beginning to disappear. One rea- 
son is the very success we have had to date in 
building up a certain degree of strengtli in Nato. 
We have grown stronger, and many hope — rather 
wishfully, I fear — that Soviet intentions are 
changing. I think it would be a tragic mistake 
for us to lower our guard now. 

As for the military potential of the Soviet bloc, 
there is no evidence to indicate that it is lessening. 
On the contrary, all of the intelligence available 
to us indicates that it is increasing. 

As for Soviet intentions, most authorities who 
study that subject continuously have come to the 
conclusion that the overall objective of Soviet im- 
perialism remains steadfastly the same. It is 
only the manner by which it seeks to achieve those 
objectives wliich may be undergoing revision. 
Witliin tlie past 10 years the number of people in 
the Soviet orbit has increased from some 190 mil- 
lion to over 800 million. It now constitutes the 
largest empire in the history of mankind. 

Soviet leaders have made it unmistakably clear 
that one of the prime objectives of Soviet foreign 
policy is the dismemberment of the Nato alliance 
and the progressive isolation of its member states. 
This, of course, is the ancient but still valid 
strategy of divide and conquer. 

It is a sad commentary on the state of the world 
today that peace cannot be established without 
military power. Nevertheless that is a fact. We 
have tried negotiation from weakness and in the 
process we have seen almost half of the world 
swallowed up in the darkness of Soviet imperial- 
ism. We must have military strength not only to 
resist aggression but to give our political leaders 
a firm basis from which to negotiate a modus 
vivendi with the Soviet Union. 

During recent months Soviet propaganda efforts 
have emphasized what they term "the aggressive 
nature of Nato". I can assure you that there has 
never been as much as a single paragraph written 
at Shape which envisages that we would be the 
aggressor. All of our plans are based upon the 
assumption that war, if it comes, will be started by 
an enemy. Thus, we have to plan our strategy ac- 
cordingly. I need not tell you that in this day of 
modern weapons this is a tremendous disadvantage 
for us. But it is a disadvantage which we must 
accept. We could never maintain our moral posi- 
tion in the free world if we should ever allow our- 
selves to contemplate the launching of a so-called 
preventive war. The Soviets know well that our 



troop dispositions and our strengths are such that 
we do not have a capability to assume the role of 
an aggressor even if we wished to do so. If they 
do not understand that our alliance is clearly a de- 
fensive one and tliat our objective is the preserva- 
tion of peace, it could be only a distorted philos- 
ophy which blinds them. 

I have noted within the last few weeks, since the 
announcement concerning the Soviet experiment 
with respect to the hydrogen bomb, that some 
serious-minded people in the United States have 
been posing a question which runs vei'y much like 
this: "Should we not concentrate our efforts on 
meeting the Soviet atomic threat instead of build- 
ing a defense of Western Europe?" 

It seems to me that there is a basic fallacy in the 
way this question is posed. No responsible per- 
son would question tlie need for rapid and ener- 
getic action to meet the growing Russian atomic 
threat, and I would be the last to quarrel with this 
part of the proposal. AVliat is wrong, it seems to 
me, is to view actions of this kind as an alternative 
to building a defense of Western Europe. If the 
question were put in the form : "Shouldn't we con- 
centrate on the defense against a Soviet atomic 
threat in addition to building a defense of Western 
Europe?", I think we woulcl see the nature of the 
problem more thoroughly. 

A few go further, however, than pointing out 
the growing need to meet the atomic threat. They 
question whether in an age of atomic warfare the 
defense of the Western European area really re- 
tains much importance. They argue that it is un- 
likely that an atomic war could be won by opera- 
tions in Europe west of the Iron Curtain. But 
that is only part of the story. The question must 
also be asked : "Could the war be lost through re- 
verses there?" And more important, "Could the 
peace be lost there?" 

The buildup of military strength under Nato 
command in Western Europe is dedicated to the 
dual proposition : First, that without such strength 
we would be in great danger — too great to accept — 
of losing a war if it should occur. Secondly, that 
without such strength we woulcl once more find 
ourselves in a situation where the danger that war 
might occur would be extremely grave. 

We have already taken effective action to block 
the Western European avenue to an easy and 
cheap conquest. We must now keep it blocked. 
The buildup of strength that has already occurred 
has denied to a potential aggressor the possibility 
of obtaining, as some wise man put it, the fruits 
of war without the cost of war. 

Others have argued that the atomic develop- 
ment offers an opportunity to escape from the 
close contacts and concessions to solidarity that 
collective security requires. They feel that be- 
cause the complications which arise in military 
coalitions are so great, because the burdens seem to 
be never-ending, and because there seem to be so 
many cases of interference between the members, 



Uoy^mhet 9, 7953 



635 



we would do better to shift to defense a<i;ainst a 
different form of threat. But tliis view simply 
blinks tile fact that the ori<^inal threat remains: 
It has not diminished and, in fact, has increased 
in many aspects. New weapons frequently have 
the effect of adding new prolilems and new tasks 
without eliminating those that previously con- 
fronted us. It would be tragic in the extreme if, 
through concern over a new threat, we dropped 
our defenses against an old one which still re- 
mains. 

I think it is fairly simple to write a prescrip- 
tion for success of the North Atlantic Treaty Or- 
ganization. It is that we should have unity and 
faith — confidence in each other. The execution, 
liowever, is more difficult. The responsibility of 
American leadership in this connection is truly 
a heavy one. To a large extent the future of the 
free society of the N,\to peoples depends upon the 
success we have in exercising that leadership. You 
have heard that there is a growing anti-American 
feeling in Europe. It is true there is slight in- 
crease, but it is not significant. There is, of 
course, an incessant Communist stream of anti- 
American poison, and some of it takes effect. It 
is natural (hat there would be some irritation, 
because proud nations with glorious traditions are 
not going to be too enthusiastic about accepting 
the leadership of a young country. I do not find 
much anti-American sentiment. If you think 
there is anti-American sentiment in Western Eu- 
rope, you should know that the magnitude of anti- 
Soviet feeling in East Germany is at least 10 times 
as crreat. 

What I do find, however, is an increasing con- 
cern whether or not we Americans as a people 
have tlie necessary maturity to lead the world 
through this critical struggle. The European 
press devotes considerable space to pronounce- 
ments on foreign affairs by prominent Americans 
in all spheres of activity. Alany of these Amer- 
icans hold no oflicial position and are not speaking 
for the U.S. Government. Some of the pronounce- 
ments ai'c very helpful ; others are damaging. The 
European reader is frequently unable to distin- 
guisli whetlier or not these are declarations of of- 
ficial U.S. policy. He reasons that if the state- 
nuMits are suflicieiitly important to appear in print 
3,000 miles from their source, there nuist be some- 
thing behind tiiem. Our problem is essentially 
a task of being the strongest element in the North 
Atlantic community and still being sufficiently 
modest and understanding to work well within it. 
We must be able to work effectively on a partner- 
ship basis with a profound respect for views and 
inteivsts other than our own. The one thing that 
the European resents — and naturally so — is dic- 
tation. 

One of the very special dangers which all of us 
in Nato must guard against is the unbridled criti- 
cism of our allies. I'd like to cite France as a case 
in i)oint. As you know. Franco is beset with very 

636 



serious internal problems at the present time. A 
large number of Americans come to France each 
summer, and a good manj' of them become experts 
on the country in the two or three days or weeks 
they are there. All too often the net result is 
caustic criticism of France. Now let's see how the 
French look at themselves : 



French Self-Criticism 

An official French commission which made a 
comprehensive study (Sfafistiques et Etudes Fi- 
nancieres, No 18 1953) of the French economy re- 
cently had these harsh criticisms to make: 

Tax dodging and special privileges contribute powerfully 
to France's economic difficulties. The French economy 
employs too niucli manpower to produce too little. Con- 
trolled competition results in prices which are no longer 
the consequence of economic laws. 

Last Sunday M. Faure, French Minister of Fi- 
nance and Economic Affairs, in a stern warning to 
the nation that reforms must be made, said: 

The French system is becoming a system of vested in- 
terest and privilege — not a reward for enterprise. No 
premium is put on initiative, but a premium is put on 
intrigue. The disease of unfair taxation is gnawing the 
nation. 

I have read you these criticims by Frenclimen 

of their own system to show you that, for the most 
part, they have identified their own difficulties, and 
in very severe terms. The French Parliament as- 
sembled only the day before yesterday. One of 
its early tasks undoubtedly will be to seek a solu- 
tion for these problems. The govermnent is faced 
with the job of trying to push a very heavy rock 
up an extremely steej) hill. That is not an easy 
task, and progress will probably bo slow. 

You frequently hear that the French have an 
unstable form of government; that the Cabinet 
has fallen 18 times since the war; and that there 
have been 13 different Prime Ministers in the same 
period. All of these statements are true. What 
you seldom hear, however, is that France has had 
only two Foreign Ministers during that period, 
M. Bidault, the jiresent incumbent, and M. Robert 
Schuman. Nearly every other country in Eu- 
rope — and the United States, too — has had more 
F'oreign Ministers since the war than the French. 
The foreign policy under Bidault and Schuman 
has not only been stable and steadfastly encourag- 
ing, particularly with respect to N.\to, but also 
France has taken tlie leader.^hip in ideas and it is 
aroinid France that the notion of a United Europe 
is slowly but steadily becoming a reality. 

It disturbs me that because of the serious inter- 
nal problems which France is facing, doubts are 
expressed from time to time questioning her mili- 
tary capabilities. Would she have the will to fight 
in an emergency? Is she a valuable ally? We 
have made a thorough analysis of both of these 
questions at Siiai-k and our answer is an miquali- 
Hed "yes." I can say categorically that there is no 

Department of State Bulletin 



question in our minds but that the Frencli will 
fight effectively if an emergency should develop. 
They fought gloriously in Korea, and they are at 
this very moment fighting gallantly in Indo-China. 

The Indo-China war has been a terrific burden 
on France for almost 7 years, both from a stand- 
point of casualties and financial considerations. 
The United States has recently given additional 
help to alleviate the financial burden of tlie Indo- 
China conflict, and the French are most grateful. 
However, there is nothing that money can do to 
recompense for the many officers who are killed or 
totally disabled each year — practically the equiv- 
alent of the annual output of the French West 
Point. The Indo-China war is your ]>roblem as 
well as theirs, for it is being conducted in defense 
of a free M'orld. 

I have taken this time to discuss some aspects 
of the French situation with you because I think 
there is considerable misunderstanding about it 
which might lead to strains in our alliance. 

As for the future, I have faith in France. I 
am convinced that not only does France need us 
but that we need her too. It is in the interest 
of the entire Western World that she be given 
genuine understanding as slie tries to solve the 
problems which are agonizing her at this time. 
The defense of Europe is practically impossible 
unless we have the leadership and active coopera- 
tion of France. 

I have singled out France as an example for 
particular attention. But my failure to mention 
any other country in Nato by no means implies 
that its troops will not fight, that it doesn't have 
an important role in Nato, or that it may not be 
having severe internal economic problems also. 
As a matter of fact, all Nato nations do have prob- 
lems, and they do have vitally important roles to 
perform. Moreover, I am supremely confident 
that all Nato forces would fight with great bravery 
if an aggressor should attack. 

We are facing a period ahead when service to 
the cause of freedom must be given unselfishly 
by the North Atlantic peoples. From my experi- 
ence I am confident that the people will make 
these sacrifices if they imderstand the reasons, and 
if they believe that Nato can be an effective agency 
to preserve the peace. It is especially appropri- 
ate that you should consider this subject tonight 
as you have assembled here to pay homage to the 
memory of a man who devoted his life to the serv- 
ice of his country. 

Wliether we like it or not, American destiny and 
the destinies of our partners in freedom are in- 
extricably interwoven. We shall solve this prob- 
lem of survival together and in common, or we 
shall not solve it at all. Let us make no mistake 
about that. No nation — not even our own — is suf- 
ficient unto itself today. "V^Hien even the smallest 
of our partners in freedom suffers a serious mis- 
hap, it is the old eternal cry of John Donne again : 
"Never send to know for whom the bell tolls. It 



tolls for thee." Though we forget all else, this 
we should not forget. 

Our modest strength is beginning to reap divi- 
dends. It would be a tragedy if we should weary 
and falter now. 

Never was there a greater need among the Nato 
nations for unity, for wisdom, and for persever- 
ance. Never was there a greater need to demon- 
strate that we who have inherited freedom have 
not forgotten the value of the heritage nor lost 
the will to defend it. 



U.S., Japanese Representatives 
Conclude Conferences 

Press release 607 dated October 30 

Following is the text of a joint statement con- 
cerning the conclusion of talks between Walter S. 
Robertson, Assistant Secretary for Far Eastern 
Affairs, and Hayato Ikeda, personal representative 
of the Prime Minister of Japan, which began at 
Washington October 5, 1953. 

Mr. Hayato Ikeda, the personal representative 
of the Prime Minister of Japan, and his party had 
a series of conferences with Mr. Walter S. Robert- 
son, Assistant Secretary of State for Far Eastern 
Affairs, and other officials of the United States 
Government during the past four weeks. 

The talks covered various interrelated problems 
of mutual interest such as Japan's defense build- 
up. United States assistance, settlement for United 
States postwar economic aid (Garioa), foreign 
investment, and trade with Communist China. 
The informal exchange of views on these subjects 
was most profitable and lays the ground work for 
further cooperation between the two countries. 
The discussions were exploratory and no agi"ee- 
ments were entered into. Certain general un- 
derstandings are set forth below. 

The conferees agreed on the necessity of increas- 
ing Japan's self-defense forces in order to protect 
her from possible aggression, and to reduce the 
United States burden related to the defense of 
Japan. It was, however, noted that under present 
circumstances there are constitutional, economic, 
budgetary and other limitations which will not 
allow the immediate building of Japan's self- 
defense foi'ces to a point sufficient for Japan's 
defense. With due regard to these limitations, 
continued effort on the part of Japan will be made 
to expedite the build-up. Subject to necessary 
Congressional authorization, the United States 
conferees offered to assist Japan in developing the 
Japanese forces by supplying major items of mili- 
tary equipment for the land, sea and air forces 
which Japan raises. 

Questions relating to Japanese defense forces 
and United States military assistance will be dis- 



Novembet 9, J 953 



637 



cussed further in Tokyo in the near future by rep- 
resentatives of the two governments with a view to 
reaching a definite understanding. 

The conferees agreed that a reduction in Japan's 
contribution to the support of United States forces 
should be considered from time to time in the light 
of the development of Japan's own forces. It was 
also agreed that the withdrawal of the United 
States forces from Japan would be effected as the 
Japanese forces develop the capability to defend 
their country. 

The conferees considered that $50 million is a 
reasonable target amount for commodities to be 
supplied to Japan under Section 550 of the Mu- 
tual Security Act.^ It is contemplated that the 
local currency proceeds of the sale of such agricul- 
tural products will be used to help develop the de- 
fense production and the industrial potential of 
Japan through offshore procurement and invest- 
ment. Necessary arrangements will be executed 
to cover the requirements of Section 550 and the 
related defense support activities. 

The conferees recognized that pending a politi- 
cal settlement in Korea it is important to maintain 
a high level of controls over trade with Communist 
China. However, the implications of these con- 
trols for Japanese trade are such that the United 
States and Japan will continue current consulta- 
tions on the items to be controlled. 

The United States conferees attached great im- 
portance to an early settlement for Garioa aid. It 
was agreed to hold a meeting in Tokyo in the near 
future between representatives of the United 
States and Japan with a view to reaching an agree- 
ment on the settlement. 

As to foreign investment in Japan, the invest- 
ment guaranty program under the Mutual Secu- 
rity Act and the Contact Clearing House Service, 
as well as the services of the United States Depart- 
ment of Commerce, were suggested as helpful 
measures to be taken on the side of the United 
States, while willingness on the part of Japan to 
liberalize Japanese laws and I'egulations pertain- 
ing to foreign investments was expressed by the 
Japanese conferees in order to create a better cli- 
mate for foreign investment. 

The Japanese conferees expressed their belief 
that vigorous efforts on the part of Japan to resist 
inflation are most important in order to strengthen 
Japan's economic position and to promote further 
economic cooperation between the United States 
and Japan. 

It was gratifying for all the conferees to learn 
that while they were in conference the $40 million 
loans for Japanese thermal electric projects were 
signed by the International Bank and Japanese 
representatives, and that the $60 million cotton 
credit to Japan was announced by the Export- 
Import Bank of Washington. 



' For text of section 550, see p. 639. 
638 



FOA Announces Plans for Buying 
Surplus Commodities for Overseas 

The Foreign Operations Administration (Foa) 
on October 13 revealed plans for the application 
of section 550 of the Mutual Security Act of 1953, 
which provides for tlie purchase of between $100 
million and $250 million worth of U.S. surplus 
agricultural commodities to be resold overseas for 
foreign currencies. 

FoA has set a planning figure for European 
countries of $130 million for this program. It is 
anticipated that from $35 million to $45 million 
more will be made available to cover transactions 
with other friendly countries including triangular 
trade transactions. 

The European countries with which it is be- 
lieved most likely that section 550 programs can 
be developed include the United Kingdom, Ger- 
many, Yugoslavia, Spain, France, the Nether- 
lands, Greece, Denmark, Belgium, and Norway, 
but other European countries are also eligible. 

Discussions are under way with these govern- 
ments to determine what programs can be de- 
veloped which comply with the provisions of sec- 
tion 550 that such sales be in addition to usual 
marketings. 

Negotiations also are planned with Near East- 
ern, Far Eastern, and Latin American countries 
which it is anticipated usually will participate in 
the section 550 program through triangular trade 
arrangements. That is, Foa would sell agricul- 
tural commodities to one country in return for 
local currency to be used to purchase items re- 
quired for the economic aid progi-am of another 
foreign country. Foa is now developing plans to 
cover this phase of the program. 

The specific program for any country will not 
become firm until the foreign government con- 
cerned has submitted a request for acquisition of 
surplus commodities in the United States and Foa 
has approved the program as eligible under sec- 
tion 550. Submissions are to be received within 
4 to 5 weeks from the listed countries, and pur- 
chasing and shipping is expected to be well under 
way by early winter. 

In announcing tentative jilans, Foa emphasized 
that the program is open to any friendly country 
desiring to purchase agricultural conmiodities 
under the terms of section 550. 

Congress did not approjiriate additional funds 
to cover the purchase of these surplus commodities. 
A major portion of the funds, Foa said, will be 
drawn from the military assistance program, and 
the foreign currencies which Foa receives for the 
surplus commodities will bo used for military pro- 
duction program.s, purchase of strategic materials 
for the U.S. stockpile, payment for offshore pro- 
curement of military materiel, loans to increase the 
output of strategic and other materials abroad, 
and for other purposes within the limitation of 

Department of State Bulletin 



section 550. Use of the foreign currencies will be 
determined in each case after mutual agreement 
witli tlie foreign government. Special precau- 
tions will be taken, in accordance with section 550, 
to safeguard against the displacement of foreign 
exchange earnings which would otherwise accrue 
to the United States or friendly nations. 

Illustrative of the kinds and types of agricul- 
tural commodities that may be included in this 
program are cotton, tobacco, corn, wheat, beef, 
dairy products, fruits, fats, oils, and oilseeds. 

It is anticipated that each fore